Morgan Joseph Raises Price Target on Spectrum Pharmaceuticals (SPPI) Following FDA Approval of Fusilev for Colorectal Cancer

Morgan Joseph is reiterating its Buy rating on shares of Spectrum Pharmaceuticals (NASDAQ: SPPI) and is raising its price target from $10 to $17 as the expected to report record revenues in Q1 of $40 million, almost double last years result of $26 million.

With the company's announcement on Friday that the FDA approved Fusilev for colorectal cancer, the firm is raising its FY11 revenue estimate from $83 million to $146.5 million.

The firm is lowering its Q1 revenue estimate for Zevalin from $8.6 million to $5.1 million as its believes the trajectory of Zevalin will be slow until the FDA acts on the company's sBLA submission relating to removal of bioscan.

An analyst at Morgan Joseph comments, "We believe that Spectrum presents a rare opportunity for biotechnology investors as a vehicle for investing in a rapidly growing, multi-product franchise, with a very solid pipeline, strong cash position, and inexpensive valuation, in our view."

The firms current 2011 and 2012 EPS estimates are a $0.20 loss and a $0.52 gain.

For more ratings news on Spectrum Pharmaceuticals click here and for the rating history of Spectrum Pharmaceuticals click here.

Shares of Spectrum Pharmaceuticals closed at $9.00 yesterday.

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