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INSERTING and REPLACING Spectrum Pharmaceuticals Reports Strong Revenues and Profits for Third Quarter; Revenues of $69 million



  INSERTING and REPLACING Spectrum Pharmaceuticals Reports Strong Revenues and
  Profits for Third Quarter; Revenues of $69 million up 35% over last year and
  GAAP Diluted EPS of $0.33 and Non-GAAP Diluted EPS of $0.42

  * Strong FUSILEV® (levoleucovorin) for Injection revenues recorded in Q3.
    Accounts ordering FUSILEV increased by 13% over last quarter. FUSILEV
    market penetration at approximately 31% up from 29% in the prior quarter.
  * Company expects Pro-Forma Revenue to exceed $300 million in 2012, up from
    earlier guidance of around $300 million.
  * Integration of Allos Therapeutics exceeding expectations. Anticipated
    synergies are expected to be $50 million or higher, exceeding earlier
    estimated range of $40 to $50 million.

Business Wire

HENDERSON, Nev. -- November 07, 2012

Insert after Forward-looking statement two financial tables, SPECTRUM
PHARMACEUTICALS, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS
and SUMMARY CONSOLIDATED BALANCE SHEETS.

The corrected release reads:

    SPECTRUM PHARMACEUTICALS REPORTS STRONG REVENUES AND PROFITS FOR THIRD
QUARTER; REVENUES OF $69 MILLION UP 35% OVER LAST YEAR AND GAAP DILUTED EPS OF
                   $0.33 AND NON-GAAP DILUTED EPS OF $0.42

  * Strong FUSILEV® (levoleucovorin) for Injection revenues recorded in Q3.
    Accounts ordering FUSILEV increased by 13% over last quarter. FUSILEV
    market penetration at approximately 31% up from 29% in the prior quarter.
  * Company expects Pro-Forma Revenue to exceed $300 million in 2012, up from
    earlier guidance of around $300 million.
  * Integration of Allos Therapeutics exceeding expectations. Anticipated
    synergies are expected to be $50 million or higher, exceeding earlier
    estimated range of $40 to $50 million.

Spectrum Pharmaceuticals (NasdaqGS: SPPI), a biotechnology company with fully
integrated commercial and drug development operations with a primary focus in
hematology and oncology, announced today financial results for the three-month
and nine-month periods ended September, 2012.

“The third quarter marks the eighth consecutive profitable quarter that has
helped Spectrum establish a great foundation and platform to attain additional
growth,” said Rajesh C. Shrotriya, M.D., Chairman, President and Chief
Executive Officer of Spectrum Pharmaceuticals, Inc. “Diversification is key to
our strategy, and we took a major step in that direction by completing the
acquisition of Allos in September and adding a third product, FOLOTYN, to our
portfolio. Four years ago we were primarily a FUSILEV company with limited
cash. Today, Spectrum has FUSILEV, worldwide ZEVALIN, and FOLOTYN, along with
a robust, maturing pipeline, and a strong balance sheet.”

Three-Month Period Ended September 30, 2012 (All numbers are approximate)

Consolidated revenue of $69.0 million was comprised of product sales of $65.9
million and $3.2 million from licensing fees. This represents a 35.3% increase
from the $51.0 million in consolidated revenue, including product sales of
$47.9 million, recorded in the three-month period ending September 30, 2011.

GAAP Results

The Company recorded net income of $21.3 million, or $0.36 per basic and $0.33
per diluted share in the three-month period ended September 30, 2012, compared
to a net income of $20.3 million, or $0.38 per basic and $0.34 per diluted
share in the comparable period in 2011. Total research and development
expenses were $10.2 million in the quarter, as compared to $7.4 million in the
same period in 2011. Selling, general and administrative expenses were $23.1
million in the quarter, compared to $15.8 million in the same period in 2011.

Non-GAAP Results

The Company recorded non-GAAP net income of $27.5 million, or $0.47 per basic
share and $0.42 per diluted share in the three-month period ended September
30, 2012, compared to a net income of $22.5 million, or $0.42 per basic and
$0.38 per diluted share in the comparable period in 2011. Non-GAAP research
and development adjustments were $1.1 million, as compared to $0.3 million in
the same period of 2011. Non-GAAP selling, general and administrative
adjustments were $6.6 million, as compared to $1.1 million in the same period
in 2011.

During the three-month period ended September 30, 2012, net cash provided by
operations was approximately $63.9 million. Cash, equivalents, investments and
receivables as of September 30, 2012 aggregated $237.5 million, as compared to
$279 million as of June 30, 2011.

There were approximately 59.5 million shares of common stock issued and
outstanding as of September 30, 2012.

Nine-Month Period Ended September 30, 2012 (All numbers are approximate)

The Company recorded net income of $85.9 million, or $1.47 per basic and $1.32
per diluted share, compared to income of $40.2 million, or $0.77 per basic and
$0.70 per diluted share, in the nine-month period ended September 30, 2011.
Consolidated revenue of $197.6 million was comprised of product sales of
$188.3 million and $9.3 million from licensing fees. This represents a 41.1%
increase from $140 million in consolidated revenue recorded in the first nine
months of 2011, comprised of product sales of $130.8 million and $9.3 million
from licensing fees. Total research and development expenses were $28.7
million, as compared to $20.9 million in the same period of 2011. Selling,
general and administrative expenses were $64.7 million, compared to $47.3
million in the same period in 2011.

Third Quarter Highlights

Product Diversification and Fiscal Discipline

  * Three commercial products – including recently acquired FOLOTYN®
    (pralatrexate injection) – plus two additional late-stage products.
  * All three products can be effectively promoted by a single sales
    representative.
  * Realization of synergies in acquisition of Allos Therapeutics; integration
    continues, with further benefits and cost savings expected in 2013.
  * Decentralizing key decision-making in commercial sales team to better meet
    the needs of our customers regionally.

Continuing to Attract Top Talent

  * Ken Keller, Executive Vice President and Chief Operating Officer
  * Joe Turgeon, Senior Vice President, Sales & Commercial Operations.

Conference Call

Wednesday, November 7, 2012 @ 1:30 p.m. Eastern/10:30 a.m. Pacific
Domestic:                (877) 837-3910, Conference ID# 55115957  
International:           (973) 796-5077, Conference ID# 55115957
                                                                    

For interested individuals unable to join the call, a replay will be available
from November 7, 2012 @ 4:30 p.m. ET/1:30 p.m. PT through November 21, 2012
until 11:59 p.m. ET/8:59 p.m. PT.

Domestic Replay Dial-In #:                       (855) 859-2056, Conference
                                                 ID# 55115957
International Replay Dial-In                     (404) 537-3406, Conference
#:                                               ID# 55115957
                                                  

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 November 7, 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.

About Spectrum Pharmaceuticals, Inc.

Spectrum Pharmaceuticals is a leading biotechnology company focused on
acquiring, developing, and commercializing drug products, with a primary focus
in oncology and hematology. Spectrum and its affiliates market three oncology
drugs ─ FUSILEV^® (levoleucovorin) for Injection in the U.S.; FOLOTYN^®
(pralatrexate injection), also marketed in the U.S.; and ZEVALIN^®
(ibritumomab tiuxetan) Injection for intravenous use, for which the Company
has worldwide marketing rights. Spectrum's strong track record in in-licensing
and acquiring differentiated drugs, and expertise in clinical development have
generated a robust, diversified, and growing pipeline of product candidates in
advanced-stage Phase 2 and Phase 3 studies. More information on Spectrum is
available at www.sppirx.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 July 2022, based on 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.

Forward-looking statement — This press release may contain forward-looking
statements regarding future events and the future performance of Spectrum
Pharmaceuticals that involve risks and uncertainties that could cause actual
results to differ materially. These statements are based on management's
current beliefs and expectations. These statements include but are not limited
to statements that relate to our business and its future, including certain
company milestones, Spectrum's ability to identify, acquire, develop and
commercialize a broad and diverse pipeline of late-stage clinical and
commercial products, leveraging the expertise of partners and employees around
the world to assist us in the execution of our strategy, and any statements
that relate to the intent, belief, plans or expectations of Spectrum or its
management, or that are not a statement of historical fact. Risks that could
cause actual results to differ include the possibility that our existing and
new drug candidates may not prove safe or effective, the possibility that our
existing and new applications to the FDA and other regulatory agencies may not
receive approval in a timely manner or at all, the possibility that our
existing and new drug candidates, if approved, may not be more effective,
safer or more cost efficient than competing drugs, the possibility that our
efforts to acquire or in-license and develop additional drug candidates may
fail, our lack of sustained revenue history, our limited marketing experience,
our dependence on third parties for clinical trials, manufacturing,
distribution and quality control and other risks that are described in further
detail in the Company's reports filed with the Securities and Exchange
Commission. We do not 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.

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

© 2012 Spectrum Pharmaceuticals, Inc. All Rights Reserved.

Source: Spectrum Pharmaceuticals, Inc.

                                                               
SPECTRUM PHARMACEUTICALS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except share and per share data)
(unaudited)
                                                                                
               Three Months Ended              Nine Months Ended
               September 30,                   September 30,
                 2012           2011             2012             2011          
Revenues:
Product sales, $ 65,871         $ 47,949       $ 188,282        $ 130,759
net
License and
contract         3,171          3,075            9,321            9,225       
revenue
                                                                                
Total revenues $ 69,042         $ 51,024       $ 197,603        $ 139,984     
                                                                                
Operating
costs and
expenses:
Cost of
product sales
(excludes
amortization     11,155         8,845            31,402           23,555
of purchased
intangible
assets)
Selling,
general and      23,114         15,811           64,723           47,261
administrative
Research and     10,183         7,388            28,657           20,904
development
Amortization
of purchased     1,834          930              4,400            2,790       
intangibles
                                                                                
Total
operating        46,286         32,974           129,182          94,510      
costs and
expenses
                                                                                
Income (loss)
from             22,756         18,050           68,421           45,474
operations
Change in fair
value of
common stock     —              2,999            —                (3,488     )
warrant
liability
Other income,    293            (144       )     (1,076     )     550         
net
                                                                                
Income (loss)
before           23,049         20,905           67,345           42,536
provision for
income taxes
Provision for    (1,737     )   (650       )     18,579           (2,300     )
income taxes
                                                                                
Net income     $ 21,312         $ 20,255       $ 85,924         $ 40,236      
(loss)
                                                                                
Net income
(loss) per
share:
Basic          $ 0.36           $ 0.38         $ 1.47           $ 0.77        
                                                                                
Diluted        $ 0.33           $ 0.34         $ 1.32           $ 0.70          
                                                                                
Weighted
average shares
outstanding:
Basic            58,912,031     53,810,047       58,564,176       52,477,789    
                                                                                
Diluted          65,139,606     59,469,863     64,880,786         57,326,069  
                                                                                

                                                 
SUMMARY CONSOLIDATED BALANCE SHEETS
(In thousands)
(unaudited)
                                                                 
                                                  September 30,   December 31,
                                                  2012            2011
                                                                   
Cash, cash equivalents                                143,283         121,202
Marketable securities                                 3,308           40,060
Accounts receivable, net                              90,943          51,703
Inventories, net                                      12,978          10,762
Prepaid expenses and other current assets             3,853           2,074
Deferred tax asset                                    11,351          —
                                                                   
Total current assets                                  265,716         225,801
Investments                                           —               9,283
Property and equipment, net                           2,988           2,681
Intangible assets, net                                204,633         41,654
Goodwill                                              29,976          —
Other assets                                          6,228           1.361
                                                                   
Total Assets                                      $   509,541     $   280,780
                                                                   
                                                                   
                                                                   
Current liabilities                               $   134,660     $   78,537
Deferred revenue and other credits – less             5,500           14,029
current portion
Deferred development costs – less current             11,600          —
portion
Deferred payment contingency                          2,200           —
Other long-term liabilities                           893             307
Revolving line of credit                              75,000          —
                                                                   
Total liabilities                                     229,853         92,873
Total stockholders’ equity                            279,688         187,907
                                                                   
Total liabilities and stockholders’ equity        $   509,541     $   280,780
                                                                       

Non-GAAP Financial Measures

In this press release, Spectrum reports certain historical and expected
non-GAAP results. Non-GAAP financial measures are reconciled to the most
directly comparable GAAP financial measure in the tables of this press release
and the accompanying footnotes. 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.

Condensed Consolidated Statements of Income and Reconciliation of Non-GAAP
Adjustments

(In thousands, except share and per share data)

(Unaudited)
 
                        Three months ended            Nine months ended
                        September 30, 2012            September 30, 2012
                        2012           2011           2012           2011
GAAP selling, general
and administrative      23,114         15,811         64,723         47,261
expenses
  Non GAAP
  adjustments to G&A:
  Reduction in staff    1,602          --             1,874          --
  Stock-based           2,800          4,056          8,109          14,037
  compensation
  Allos tender offer
  and Bayer agreement
  for licensing         2,166          --             6,224          --
  rights to market
  ZEVALIN outside the
  U.S.
  Change in fair
  market value of       --             (2,999     )   --             3,488       
  common stock
  warrant liability
      Total
      adjustments to    6,568          1,057          16,207         17,525
      G&A
                                                                      
Non-GAAP selling,
general and             16,546         14,754         48,516         29,736      
administrative
                                                                      
GAAP research and       10,183         7,388          28,657         20,904
development
  Non-GAAP
  adjustments to R&D:
  Stock-based           528            280            1,316          1,179
  compensation
  Reduction in staff    548            --             548            --
  One-time payment
  for co-development    --             --             1,000          --          
  agreement
      Total
      adjustments to    1,076          280            2,864          1,179
      R&D
Non-GAAP research and   9,107          7,108          25,793         19,725      
development
                                                                      
                                                                      
GAAP amortization of    1,824          930            4,400          2,790
purchased intangibles
  Non-GAAP
  adjustments to
  purchased
  intangibles:
  Amortization          1,834          930            4,400          2,790       
      Total
      adjustments to
      amortization of   1,834          930            4,440          2,790
      purchased
      intangibles
Non-GAAP amortization
of purchased            --             --             --             --          
intangibles
                                                                      
GAAP income before      23,049         20,905         67,345         42,536
income taxes
  Total non-GAAP        9,478          2,267          23,471         21,494      
  adjustments
Non-GAAP income         32,527         23,172         90,816         64,030      
before income taxes
                                                                      
GAAP
(provision)/benefit     (1,737     )   (650       )   18,579         (2,300     )
for income taxes
  Adjustment to
  (provision)/benefit   (3,316     )   --             (35,049    )   --          
  for income taxes
Non-GAAP
(provision)/benefit     (5,053     )   (650       )   (16,470    )   (2,300     )
for income taxes
                                                                      
GAAP net income         21,312         20,255         85,924         40,236
  Non-GAAP              6,162          2,267          (11,578    )   21,494      
  adjustments
Non-GAAP net income     27,474         22,522         74,346         61,730      
                                                                      
Non-GAAP income per
share:
  Basic                 0.47           0.42           1.27           1.18        
  Diluted               0.42           0.38           1.15           1.08        
                                                                      
Weighted average
shares outstanding:
  Basic                 58,912,031     53,810,047     58,564,176     52,477,789  
  Diluted               65,139,606     59,469,863     64,880,786     57,326,069  
                                                                                 

Contact:

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