We have added Spectrum Pharmaceuticals, Inc. (SPPI) to our evaluated company list. Spectrum specializes in acquiring undervalued oncology drugs and then advances them further into clinical development. The company has purchased the rights to several drugs, which for a variety of reasons, were never completely developed by the previous owners. This strategy has thus far been successful for Spectrum as its purchase of the rights to Satraplatin in 2001 has resulted in a recent NDA submission for prostate cancer.

We view the potential approval of Satraplatin as a pivotal event for the company, as the royalties it receives will not only fund further R&D spending, but will also provide additional flexibility when making licensing decisions with its other drugs. More lucrative partnerships (relative to Satraplatin) are likely to be established in the future as the company will be able to take drugs further into clinical development on its own.

For the full report, please download the PDF version at the top of this page.

For our disclosures, please read the BioMedTracker Research Standards.