Spectrum Plunges After Sales Forecast Misses EstimatesRyan Flinn
Spectrum Pharmaceuticals Inc., a maker of cancer medicines, plunged the most in almost five years after the drugmaker said full-year sales would fall far short of analysts’ estimates.
The shares declined 37 percent to $7.79 at the close in New York, their biggest single-day drop since April 22, 2008.
Annual 2013 revenue will be $160 million to $180 million, Henderson, Nevada-based Spectrum said late yesterday in a statement. Analysts anticipated total revenue of $297 million, according to the average of five estimates compiled by Bloomberg. The company said sales of its top product, Fusilev, will be $80 million to $90 million.
Spectrum cited shifting ordering patterns for Fusilev, an injection known chemically as levoleucovorin, as well as the increased use of generic drugs by hospitals, for the sales forecast.
Fusilev first won FDA approval in 2008 for patients with a bone tumor called osteosarcoma. The agency two years ago cleared the drug as a treatment for patients with advanced colon cancer. The treatment generated $204 million in sales last year, Spectrum reported.