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Auriga Reiterates a 'Buy' on Spectrum Pharmaceuticals (SPPI); Share Price Decline Unwarranted; Fundamentals Remain Strong

January 27, 2012 1:47 PM EST
SPPI Hot Sheet
Rating Summary:
    4 Buy, 0 Hold, 0 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 19 | Down: 16 | New: 82
Auriga reiterates a 'Buy' on Spectrum Pharmaceuticals (NASDAQ: SPPI) price target of $18.00.

Auriga analyst, "The company confirms that there are no fundamental changes about the business. The management also confirms that to support current business, the company has no need or intention to raise capital. We believe this is logical; the company finished Q3 with about $160 million cash or cash equivalents. A draw of $25 million to pay for Zevalin ex-US rights should be inconsequential. Spectrum also suggested that it does not plan to build commercial infrastructure to market Zevalin globally. Rather, it would pursue a strategy to form local partnerships or use contract sales force. We see minimal upfront cash outlay for either of the approaches."

For an analyst ratings summary and ratings history on Spectrum Pharmaceuticals click here. For more ratings news on Spectrum Pharmaceuticals click here.

Shares of Spectrum Pharmaceuticals closed at $14.05 yesterday, with a 52 week range of $5.76-$16.00.


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