Spectrum Pharmaceuticals Reports Record Revenues and Profits for First Quarter of 2012

  Spectrum Pharmaceuticals Reports Record Revenues and Profits for First
  Quarter of 2012

  *Financial Highlights of the Quarter

       *EPS of $0.71 Per Diluted Share Compared to $0.23 Per Diluted Share in
         the Same Quarter Last Year.
       *Total Revenues of $60 Million Compared to $44 Million in the Same
         Quarter Last Year.
       *$253 Million in Cash, Investments and Receivables as of March 31,
         2012, Compared with $222 Million in December 31, 2011.

  *FUSILEV^® Gains Market Share and Grows Revenue

       *Record FUSILEV Revenues of $51 Million Compared to $35 Million in the
         Same Quarter Last Year.
       *1,263 Accounts Ordered FUSILEV in the First Quarter Compared to 549
         Accounts in the Previous Evidencing Strong User Pull Through.
       *Current Trends Indicate Strong Demand Should Continue.

  *Planned Acquisition of Allos Therapeutics Expected to be Accretive to
    Spectrum in the Fourth Quarter of 2012

       *FOLOTYN^®, an Anti-Cancer Agent for the Treatment of Patients with
         Relapsed or Refractory Peripheral T-cell Lymphoma (PTCL), Achieved
         U.S. net Sales of$50 Millionin 2011.

Business Wire

HENDERSON, Nev. -- April 26, 2012

Spectrum Pharmaceuticals, Inc. (NasdaqGS: SPPI), a biotechnology company with
fully integrated commercial and drug development operations with a primary
focus in hematology and oncology, today reported financial results for the
three month period ended March 31, 2012.

“The first quarter represents an unprecedented milestone in the history of the
company, with approximately $46.5 million reported in net profits and a record
EPS of $0.71,” said Rajesh C. Shrotriya, MD, Chairman, Chief Executive
Officer, and President of Spectrum Pharmaceuticals. “Our earnings were driven
by strong pull through of FUSILEV and a judicious management of our operating
expenses. I am proud that, while we are preparing to integrate two key
acquisitions, we continue to be focused on growing our core business
profitably. Fiscal discipline will remain a core part of our strategy, which
we believe will continue to serve our shareholders well in the future.”

Three-Month Period Ended March 31, 2012 (All numbers are approximate)

Consolidated revenue of $60 million was comprised of product sales of $57
million and $3 million from licensing fees. This represents a 37% increase
from the $44 million in consolidated revenue, including product sales of $41
million, recorded in the three month period ending March 31, 2011.

GAAP Results

The Company recorded net income of $47 million, or $0.80 per basic and $0.71
per diluted share in the three-month period ended March 31, 2012, compared to
a net income of $13 million, or $0.25 per basic and $0.23 per diluted share in
the comparable period in 2011. Total research and development expenses were
$8.9 million in the quarter, as compared to $5.8 million in the same period in
2011. Selling, general and administrative expenses were $18.3 million in the
quarter, compared to $12.8 million in the same period in 2011.

Non-GAAP Results

The Company recorded non-GAAP net income of $26 million, or $0.45 per basic
share and $0.40 per diluted share in the three-month period ended March 31,
2012, compared to a net income of $22 million, or $0.43 per basic and $0.40
per diluted share in the comparable period in 2011. Non-GAAP research and
development expenses were $7.5 million, as compared to $5.4 million in the
same period of 2011. Non-GAAP selling, general and administrative expenses
were $14.5 million, as compared to $9.1 million in the same period in 2011.

During the three-month period ended March 31, 2012, net cash provided by
operations was approximately $27 million. Cash, equivalents, investments and
receivables as of March 31, 2012 aggregated $253 million, as compared to $222
million as of December 31, 2011.

There were approximately 59.5 million shares of common stock issued and
outstanding as of March 31, 2012.

Conference Call

       Thursday, April 26, 2012 @ 1:30 p.m. Eastern/10:30 a.m. Pacific
              Domestic: (877) 837-3910, Conference ID# 72508257
            International: (973) 796-5077, Conference ID# 72508257

For interested individuals unable to join the call, a replay will be available
from April 26, 2012 @ 4:30 p.m. ET/1:30 p.m. PT through May 9, 2012 until
11:59 p.m. ET/8:59 p.m. PT.

Domestic Replay Dial-In #:       (855) 859-2056, Conference ID# 72508257
International Replay Dial-In #:   (404) 537-3406, Conference ID# 72508257

This conference call will also be webcast. Listeners may access the webcast,
which will be available on the investor relations page of Spectrum
Pharmaceuticals' website: www.sppirx.com on April 26, 2012 at 1:30 p.m.
Eastern/10:30 a.m. Pacific.

On the conference call, management will review the financial results, provide
an update on the Company’s business and discuss expectations for the future.

Key Accomplishments For Early 2012

FUSILEV^®

  *Continued revenue and market share growth
  *Strong end-user pull through
  *Expanded manufacturing capacity assures reliable supply to meet increasing
    demand

ZEVALIN^®

  *Entered into an agreement to acquire licensing rights from Bayer
    Healthcare to market ZEVALIN outside ofthe US
  *Launched new patient-to-patient educational campaign for ZEVALIN on
    ZEVALIN.com
  *Publication: ZEVALIN Plus High Dose Chemotherapy (Z-BEAM) Highly Effective
    in Aggressive Lymphoma; Randomized Study Reported in "CANCER", the Journal
    of the American Cancer Society

Planned Allos Therapeutics Acquisition

  *Signed a definitive agreement and commenced a tender offer to acquire all
    of the outstanding shares of Allos Therapeutics
  *Upfront portion of the transaction valued at up to$206 millionon a
    fully-diluted basis, andapproximately $108 millionnet of Allos' cash
    balance at the end of 2011
  *FOLOTYN^® marketed for the treatment of patients with relapsed or
    refractory peripheral T-cell lymphoma (PTCL); FOLOTYN generated more
    than$35 millionin U.S. net sales in 2010 and$50 millionin 2011
  *Acquisition expected to be accretive to Spectrum on a cash basis in the
    fourth quarter of 2012

Catalysts for remainder of 2012

FUSILEV^®

  *Continue to expand market share
  *Initiate additional clinical study to expand indications

ZEVALIN^®

  *Initiate enrollment in the “ZEST” clinical study in diffuse large B-cell
    lymphoma
  *Initiate trial in newly diagnosed follicular non-hodgkin’s lymphoma
    patients
  *Conduct the “ZAR” trial, a head-to-head study vs. rituximab maintenance in
    follicular non-hodgkin’s lymphoma in North America

Belinostat

  *Top line data from pivotal trial in relapsed refractory PTCL expected in
    Q4

Pipeline

  *Initiate a Phase 2 study for SPI-1620
  *Initiate a Phase 2 study for SPI-2012
  *Initiate a Phase 2 study for Lucanthone in GBM
  *Initiate a Phase I study for SPI-014 (f/k/a Renazorb)

About Spectrum Pharmaceuticals, Inc.

Spectrum Pharmaceuticals, a biotechnology company with a primary focus in
oncology and hematology, currently markets two oncology drugs, FUSILEV^®
(levoleucovorin) for Injection and ZEVALIN^® (ibritumomab tiuxetan) Injection
for intravenous use. In addition, Spectrum has two drugs, belinostat and
apaziquone, in late stage development and a diversified pipeline of novel drug
candidates in earlier stages of development. The Company’s strategy is
comprised of acquiring, developing and commercializing a broad and diverse
pipeline of late-stage clinical and commercial drug products. The Company has
aggressive business development and commercial operation teams that support a
robust drug development program encompassing clinical development, medical
research, regulatory affairs, biostatistics and data management. The Company
also leverages the expertise of its worldwide partners to assist in the
execution of its strategy. For more information, please visit the Company’s
website at www.sppirx.com.

About Allos Therapeutics, Inc.

Allos Therapeutics is a biopharmaceutical company committed to the development
and commercialization of innovative anti-cancer therapeutics. Allos is
currently focused on the development and commercialization of FOLOTYN^®
(pralatrexate injection), a folate analog metabolic inhibitor. FOLOTYN is
approved in the U.S. for the treatment of patients with relapsed or refractory
peripheral T-cell lymphoma (PTCL). This indication is based on overall
response rate. Clinical benefit such as improvement in progression free
survival or overall survival has not been demonstrated. Allos is also
developing FOLOTYN in other hematologic malignancies and solid tumors. Allos
is headquartered in Westminster, Colorado. For more information, please visit
Allos’ website at www.allos.com.

About FUSILEV^® (levoleucovorin) for injection

FUSILEV, a novel folate analog, is approved as a ready-to-use solution
(FUSILEV Injection), and as freeze-dried powder (FUSILEV for Injection).
FUSILEV is indicated for use in combination chemotherapy with 5-fluorouracil
in the palliative treatment of patients with advanced metastatic colorectal
cancer. FUSILEV is also indicated for rescue after high-dose methotrexate
therapy in osteosarcoma. FUSILEV is also indicated to diminish the toxicity
and counteract the effects of impaired methotrexate elimination and of
inadvertent overdosage of folic acid antagonists. FUSILEV, under various trade
names, is marketed outside the United States by Pfizer, Sanofi-Aventis, and
Takeda.

Important FUSILEV^® (levoleucovorin) Safety Considerations

FUSILEV is dosed at one-half the usual dose of racemic d,l-leucovorin. FUSILEV
is contraindicated for patients who have had previous allergic reactions
attributed to folic acid or folinic acid. Due to calcium content, no more than
16-mL (160-mg) of levoleucovorin solution should be injected intravenously per
minute. FUSILEV enhances the toxicity of fluorouracil. Concomitant use of
d,l-leucovorin with trimethoprim-sulfamethoxazole for pneumocystis carinii
pneumonia in HIV patients was associated with increased rates of treatment
failure in a placebo-controlled study. Allergic reactions were reported in
patients receiving FUSILEV. Vomiting (38%), stomatitis (38%) and nausea (19%)
were reported in patients receiving FUSILEV as rescue after high dose
methotrexate therapy. The most common adverse reactions (> 50%) in patients
with advanced colorectal cancer receiving FUSILEV in combination with
5-fluorouracil were diarrhea, nausea and stomatitis. FUSILEV may counteract
the antiepileptic effect of phenobarbital, phenytoin and primidone, and
increase the frequency of seizures in susceptible patients.

Full prescribing information can be found at www.FUSILEV.com.

About ZEVALIN^® and the ZEVALIN Therapeutic Regimen

ZEVALIN (ibritumomab tiuxetan) injection for intravenous use, is indicated for
the treatment of patients with relapsed or refractory, low-grade or follicular
B-cell non-Hodgkin's lymphoma (NHL). ZEVALIN is also indicated for the
treatment of patients with previously untreated follicular non-Hodgkin’s
Lymphoma who achieve a partial or complete response to first-line
chemotherapy.

ZEVALIN is a CD20-directed radiotherapeutic antibody. The ZEVALIN therapeutic
regimen consists of two components: rituximab, and Yttrium-90 (Y-90)
radiolabeled ZEVALIN for therapy. ZEVALIN builds on the combined effect of a
targeted biologic monoclonal antibody augmented with the therapeutic effects
of a beta-emitting radioisotope.

Important ZEVALIN^® Safety Information

Deaths have occurred within 24 hours of rituximab infusion, an essential
component of the ZEVALIN therapeutic regimen. These fatalities were associated
with hypoxia, pulmonary infiltrates, acute respiratory distress syndrome,
myocardial infarction, ventricular fibrillation, or cardiogenic shock. Most
(80%) fatalities occurred with the first rituximab infusion. ZEVALIN
administration can result in severe and prolonged cytopenias in most patients.
Severe cutaneous and mucocutaneous reactions, some fatal, can occur with the
ZEVALIN therapeutic regimen.

Please see full Prescribing Information, including BOXED WARNINGS, for ZEVALIN
and rituximab. Full prescribing information for ZEVALIN can be found at
www.ZEVALIN.com.

About FOLOTYN^®

FOLOTYN, (pralatrexate injection), a folate analogue metabolic inhibitor, was
discovered by Memorial Sloan-Kettering Cancer Center, SRI International and
Southern Research Institute and developed by Allos Therapeutics. In September
2009, the U.S. Food and Drug Administration (FDA) granted accelerated approval
for FOLOTYN for use as a single agent for the treatment of patients with
relapsed or refractory PTCL. This indication is based on overall response
rate. Clinical benefit such as improvement in progression-free survival or
overall survival has not been demonstrated. FOLOTYN has been available to
patients in the U.S. since October 2009. An updated analysis of data from
PROPEL, the pivotal study of FOLOTYN in patients with relapsed or refractory
PTCL, was published in the March 20, 2011 issue of the Journal of Clinical
Oncology. FOLOTYN has patent protection through 2017, potentially through July
2022, assuming a five-year patent term extension through the Hatch-Waxman Act.
Please see full Prescribing Information for FOLOTYN at www.FOLOTYN.com.

Important FOLOTYN^® Safety Information

Warnings and Precautions

FOLOTYN may suppress bone marrow function, manifested by thrombocytopenia,
neutropenia, and anemia. Monitor blood counts and omit or modify dose for
hematologic toxicities.

Mucositis may occur. If greater-than or equal to Grade 2 mucositis is
observed, omit or modify dose. Patients should be instructed to take folic
acid and receive vitamin B12 to potentially reduce treatment-related
hematological toxicity and mucositis.

Fatal dermatologic reactions may occur. Dermatologic reactions may be
progressive and increase in severity with further treatment. Patients with
dermatologic reactions should be monitored closely, and if severe, FOLOTYN
should be withheld or discontinued. Tumor lysis syndrome may occur. Monitor
patients and treat if needed.

FOLOTYN can cause fetal harm. Women should avoid becoming pregnant while being
treated with FOLOTYN and pregnant women should be informed of the potential
harm to the fetus.

Use caution and monitor patients when administering FOLOTYN to patients with
moderate to severe renal function impairment.

Elevated liver function test abnormalities may occur and require monitoring.
If liver function test abnormalities are greater-than or equal to Grade 3,
omit or modify dose.

Adverse Reactions

The most common adverse reactions were mucositis (70%), thrombocytopenia
(41%), nausea (40%), and fatigue (36%). The most common serious adverse events
are pyrexia, mucositis, sepsis, febrile neutropenia, dehydration, dyspnea, and
thrombocytopenia.

Use in Specific Patient Population

Nursing mothers should be advised to discontinue nursing or the drug, taking
into consideration the importance of the drug to the mother.

Drug Interactions

Co-administration of drugs subject to renal clearance (e.g., probenecid,
NSAIDs, and trimethoprim/sulfamethoxazole) may result in delayed renal
clearance.

Please see FOLOTYN^® Full Prescribing Information at www.FOLOTYN.com.

This press release may contain forward-looking statements regarding future
events and the future performance of Spectrum Pharmaceuticals and Allos
Therapeutics that involve risks and uncertainties that could cause actual
results to differ materially. These statements are based on management’s
current beliefs and expectations.Such forward-looking statements include
statements relating to the ability of the Spectrum Pharmaceuticals and Allos
Therapeutics to complete the transactions contemplated by the Agreement and
Plan of Merger dated as of April 4, 2012 (the “Merger Agreement”), including
the parties’ ability to satisfy the conditions to the consummation of the
tender offer and the other conditions set forth in the Merger Agreement, the
possibility of any termination of the Merger Agreement, and, if the
transaction is completed, the success and strategic fit of the proposed
combination of Spectrum Pharmaceuticals and Allos Therapeutics.The
forward-looking statements contained in this document are subject to risks and
uncertainties which may cause actual results to differ materially from the
forward-looking statements.Actual results may differ materially from current
expectations because of risks associated with uncertainties as to the timing
of the tender offer and the subsequent merger; uncertainties as to how many of
Allos’ stockholders will tender their shares of common stock in the tender
offer; the risk that competing offers or acquisition proposals will be made;
the possibility that various conditions to the consummation of the offer or
the merger may not be satisfied or waived, including that a governmental
entity may prohibit, delay or refuse to grant approval for the consummation of
the offer or the merger; and the risk that shareholder litigation in
connection with the tender offer or the merger may result in significant costs
of defense, indemnification and liability.The success and strategic fit of the
combined entities will depend on Spectrum Pharmaceuticals’ and Allos
Therapeutics’ ability to identify, acquire, develop and commercialize a broad
and diverse pipeline of late-stage clinical and commercial products, and to
leverage the expertise of partners and employees around the world to assist us
in the execution of our combined strategy.

Additional risks that could cause actual results to differ include, with
respect to Spectrum Pharmaceuticals, the possibility that existing and new
drug candidates may not prove safe or effective, the possibility that our
existing and new applications to the FDA or other regulatory agencies may not
receive approval in a timely manner or at all, the possibility that existing
and new drug candidates, if approved, may not be more effective, safer or more
cost efficient than competing drugs, the possibility that efforts to acquire
or in-license and develop additional drug candidates may fail, Spectrum
Pharmaceuticals’ lack of sustained revenue history, Spectrum Pharmaceuticals’
limited marketing experience, Spectrum Pharmaceuticals’ dependence on third
parties for clinical trials, manufacturing, distribution and quality control
and other risks that are described in further detail in the Spectrum
Pharmaceuticals’ reports filed with the Securities and Exchange Commission,
and with respect to Allos Therapeutics, uncertainties pertaining to the
business of Allos Therapeutics, including those set forth in Allos
Therapeutics’ reports filed with the Securities and Exchange
Commission.Neither Spectrum Pharmaceuticals nor Allos Therapeutics plan to
update any such forward-looking statements and expressly disclaim any duty to
update the information contained in this press release except as required by
law.

The tender offer described herein commenced on April 13, 2012. This press
release is neither an offer to purchase nor a solicitation of an offer to sell
securities. Spectrum Pharmaceuticals caused its subsidiary, Sapphire
Acquisition Sub, Inc., to file a tender offer statement on Schedule TO with
the Securities and Exchange Commission. Investors and Allos stockholders are
strongly advised, prior to making any decisions with respect to whether to
tender their shares of Allos into the tender offer or, if necessary, vote
their shares in favor of the adoption of the Merger Agreement, to read
carefully the tender offer statement (including an offer to purchase, letter
of transmittal and related tender offer documents) and the related
solicitation/recommendation statement on Schedule 14D-9, and if applicable, a
proxy statement regarding the merger, that Allos filed with the Securities and
Exchange Commission, and any amendments to the foregoing, because they contain
and will contain important information about the tender offer and the merger.
These documents are and will be available at no charge on the Securities and
Exchange Commission’s website at www.sec.gov. In addition, a copy of the
tender offer statement will be made available free of charge to all
stockholders of Allos who direct a request to Spectrum at www.sppirx.com, and
a copy of the tender offer statement and the solicitation/recommendation
statement will be made available free of charge to all stockholders of Allos
Therapeutics, Inc. at www.allos.com or by contacting Allos Therapeutics Inc.
at 11080 CirclePoint Road, Suite 200, Westminster, Colorado 80020 (303)
426-6262.

SPECTRUM PHARMACEUTICALS, INC^®, ZEVALIN^®, and FUSILEV^® are registered
trademarks of Spectrum Pharmaceuticals, Inc.REDEFINING CANCER CARE™ and the
Spectrum Pharmaceuticals logos are trademarks owned by Spectrum
Pharmaceuticals, Inc. Allos Therapeutics, Inc.^® and FOLOTYN^® are registered
trademarks of Allos Therapeutics, Inc.

© 2012 Spectrum Pharmaceuticals, Inc. All Rights Reserved.

Non-GAAP Financial Measures

The non-GAAP financial measures contained herein are a supplement to the
corresponding financial measures prepared in accordance with generally
accepted accounting principles (GAAP). The non-GAAP financial measures
presented exclude the items summarized in the below table. Management believes
that adjustments for these items assist investors in making comparisons of
period-to-period operating results and that these items are not indicative of
the Company's on-going core operating performance.

Management uses non-GAAP net income (loss) in its evaluation of the Company's
core after-tax results of operations and trends between fiscal periods and
believes that these measures are important components of its internal
performance measurement process. Management believes that providing these
non-GAAP financial measures allows investors to view the Company's financial
results in the way that management views the financial results.

The non-GAAP financial measures presented herein have certain limitations in
that they do not reflect all of the costs associated with the operations of
the Company's business as determined in accordance with GAAP. Therefore,
investors should consider non-GAAP financial measures in addition to, and not
as a substitute for, or as superior to, measures of financial performance
prepared in accordance with GAAP. The non-GAAP financial measures presented by
the Company may be different from the non-GAAP financial measures used by
other companies.

Consolidated Statements of Income and Reconciliation of Non-GAAP Adjustments
(In thousands, except share and per share data)
(Unaudited)
                                                                                      
                   Three Months Ended                                      Three Months Ended
                   March 31, 2012                                           March 31, 2011
                   GAAP           Non-GAAP            Non-GAAP           GAAP              Non-GAAP          Non-GAAP
                                    Adjustments                                                Adjustments
Revenues:
Product sales,     $ 56,784         $ -                  $ 56,784           $ 40,523           $ -                 $ 40,523
net
License and
contract            3,075           -                 3,075            3,075            -                3,075
revenue
                                                                                                                   
Total revenues     $ 59,859         $ -                $ 59,859          $ 43,598          $ -               $ 43,598
                                                                                                                   
Operating
costs and
expenses:
Cost of
product sales
(excludes
amortization         8,673                                 8,673              6,580              -                   6,580
of purchased
intangible
assets)
Selling,
general and          18,262           (2,624  ) ^(1)
administrative
                                      (272    ) ^(5)
                                      (830    ) ^(4)       14,536             12,751             (3,660 ) ^(1)       9,091
Research and         8,891            (391    ) ^(1)
development
                                      (1,000  ) ^(3)       7,500              5,830              (404   ) ^(1)       5,426
Amortization
of purchased        930             -                 930              930              -                930
intangibles
                                                                                                                   
Total
operating           36,756          (5,117  )          31,639           26,091           (4,064 )          22,027
costs and
expenses
                                                                                                                   
Income from          23,103           5,117                28,220             17,507             4,064               21,571
operations
Change in fair
value of
common stock         -                -                    -                  (5,250     )       5,250   ^(2)       -
warrant
liability
Other income,       138             -                 138              520              -                520
net
                                                                                                                   
Income before
provision for        23,241           5,117                28,358             12,777             9,314               22,091
income taxes
Benefit
(provision)         23,301          (25,609 )          (2,308     )      -                -                -
for income
taxes
                                                                                                                   
Net income         $ 46,542         $ (20,492 ) ^(6)     $ 26,050          $ 12,777          $ 9,314           $ 22,091
                                                                                                                   
Net income per
share:
Basic              $ 0.80                                $ 0.45            $ 0.25                                $ 0.43
Diluted            $ 0.71                                $ 0.40            $ 0.23                                $ 0.40
                                                                                                                   
Weighted
average shares
outstanding:
Basic               58,464,059                           58,464,059       51,297,523                           51,297,523
Diluted             65,258,510                           65,258,510      55,529,536                           55,529,536

(1)  Adjustment for stock-based compensation expense recognized in the period
(2)   Add back the change in fair value of common stock warrant liability
(3)   Add back non-recurring payment related to co-development agreement
      Add back the legal and professional fees related to the Allos tender
(4)   offer and the Bayer agreement licensing rights to market ZEVALIN outside
      the U.S.
(5)   Add back non-recurring costs associated with a reduction in staff
(6)   Adjustment for benefit of deferred tax valuation account offset by
      current taxes
      

SPECTRUM PHARMACEUTICALS, INC. AND SUBSIDIARIES
SUMMARY CONSOLIDATED BALANCE SHEETS
(In thousands)
(Unaudited)
                                                             
                                                    March 31,     December 31,
                                                    2012          2011
                                                                  
Cash and equivalents                                  149,373         121,202
Marketable securities                                 36,951          40,060
Accounts receivable, net                              55,380          51,703
Inventories, net                                      8,859           10,762
Prepaid expenses and other current assets             2,303           2,074
Deferred tax asset                                   10,000         -
Total current assets                                  262,866         225,801
Investments                                           10,863          9,283
Property and equipment, net                           2,528           2,681
Intangible assets, net                                40,231          41,654
Deferred tax asset                                    15,038          -
Other assets                                         2,355          1,361
Total Assets                                        $ 333,881     $   280,780
                                                                  
Current liabilities                                 $ 82,695      $   78,537
Deferred revenue and other credits – less             11,268          14,029
current portion
Other long-term liabilities                          467            307
Total liabilities                                     94,430          92,873
Total stockholders’ equity                           239,451        187,907
Total liabilities and stockholders’ equity          $ 333,881     $   280,780

Contact:

Spectrum Pharmaceuticals, Inc.
Shiv Kapoor
Vice President, Strategic Planning & Investor Relations
702-835-6300
InvestorRelations@sppirx.com
 
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