Spectrum reports net cash use of $4.4 million in Q3; upcoming milestone payments expected

By Jennifer Lanning Drey

Portland, Ore., Nov. 3 - Spectrum Pharmaceuticals, Inc. used net cash of $4.4 million for operations in the third quarter, company vice president of finance Shyam Kumaria reported Friday during the company's quarterly earnings conference call.

Spectrum reported cash, cash equivalents and short-term investments of $50.5 million at Sept. 30, compared with $63.7 million at Dec. 31, 2005, according to a company news release.

The company expects its net cash burn rate to increase as clinical activities expand in the coming year but believes potential near-term revenues and its current cash on hand put Spectrum in a strong position to execute on its current plans, Kumaria said.

Within the next six to 18 months, Spectrum expects to receive about $20 million of the $58 million in satraplatin-related milestones that it could potentially receive from its development partner, GPC Biotech, AG.

"This quarter, we have moved closer to generating significant revenues from several of our drugs that are in the final stretch of being on the market as early as next year," said Rajesh Shrotriya, chief executive officer of Spectrum, during Friday's call.

During the third quarter, Spectrum reported positive results from a phase 3 clinical trial of satraplatin as a second-line treatment for patients suffering from hormone refractory prostate cancer.

Spectrum expects GPC to file a New Drug Application with the Food and Drug Administration for satraplatin by the end of the year. The drug has fast-track designation and could be approved as early as mid-2007, he said.

A European filing would quickly follow the FDA submission, Shrotriya also said.

Funds generated from satraplatin will be used to develop the company's other proprietary drugs, including EOquin and ozarelix, as well as to acquire new compounds, Shrotriya said.

Spectrum is developing the phase 3 protocol for ozarelix in patients with benign prostate hypertrophy and plans to start the registration trial in the first half of 2007.

Additionally, the company is finalizing a Special Protocol Assessment with the FDA for the phase 3 trial of EOquin as a treatment for superficial bladder cancer and plans to start a trial soon after finalization.

Spectrum also could gain near-term revenues from levofolinic acid (LFA), Shrotriya said. The company is preparing a response to questions raised by the FDA regarding the drug's chemistry and manufacturing and expects to file the response in early 2007.

If accepted, LFA could be launched later that year, Shrotriya said.

Spectrum Pharmaceuticals is a specialty pharmaceutical company based in Irvine, Calif., that develops prescription drugs for the treatment of cancer and other unmet medical needs.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.