Spectrum Pharmaceuticals, Inc. (NasdaqGM: SPPI), a commercial-stage biotechnology company with a primary focus in oncology, today reported financial results for the third quarter ended September 30, 2009.
“During the quarter, we made significant progress toward stabilizing, and ultimately growing, ZEVALIN® sales revenue, even before its September 3rd approval in the first-line setting,” said Rajesh C. Shrotriya, MD, Chairman, Chief Executive Officer, and President of Spectrum Pharmaceuticals. “We believe the sales stabilization in the third quarter is a direct result of our concerted efforts to remove many of the barriers that have hindered ZEVALIN’s use in the hospital and community settings. We continue to remain optimistic about ZEVALIN’s growth prospects, as ZEVALIN has received a Category 1 recommendation from the National Comprehensive Cancer Network® Drugs and Biologic Compendium™, we have significantly expanded our sales force, ZEVALIN received a label expanding approval in September, and we have made great progress toward a streamlined reimbursement standard for this important therapeutic.”
Third Quarter Results Ended September 30, 2009
Consolidated revenue of $7.1 million was comprised of product sales of $5.0 million – $4.7 million from ZEVALIN and $0.3 million from FUSILEV® – and $2.1 million attributable to the amortization of the Allergan licensing fee. This compares to no similar revenue in the same period in 2008. The Company recorded a net loss of $8.4 million, or ($0.20) per share, compared to net loss of $8.8 million, or ($0.28) per share, in the third quarter of 2008. Total research and development expenses were $5.5 million, as compared to $6.0 million in the same period of 2008, a $0.5 million, or 8.3% decrease, mainly due to sharing by its partner, Allergan Inc., of apaziquone related development costs, and a reduction in costs related to other pipeline products. Selling, general and administrative expenses were $7.0 million, a $3.9 million increase, compared to the $3.1 million in the same period in 2008, attributable to the direct cost of commercialization activities of ZEVALIN and FUSILEV and related payroll costs.
Nine-Month Results Ended September 30, 2009
Consolidated revenue of $29.4 million was comprised of product sales of $23.0 million – $10.6 million from ZEVALIN and $12.4 million from FUSILEV – and $6.4 million attributable to the amortization of the Allergan licensing fee. This compares to $20.7 million of one-time, non-recurring revenue in the same period of 2008 from the sale of rights to certain non-core products. The Company recorded a net loss of $17.5 million, or ($0.48) per share, compared to a net loss of $6.8 million, or ($0.22) per share, in the same period of 2008. Research and development expenses were $17.5 million, as compared to $19.1 million in the same period of 2008, a $1.6 million, or 8.4% decrease, mainly due to sharing by its partner, Allergan Inc., of apaziquone related development costs, and a reduction in costs related to other pipeline products. Selling, general and administrative expenses were $22.5 million, a $13.6 million increase, compared to the $8.9 million in the same period in 2008, attributable to the commercialization of ZEVALIN and FUSILEV and related payroll costs.