April 21, 2011

SPPI Spectrum Pharma (pre) files for BIG dilution

Spectrum Pharmaceuticals (NASDAQ: SPPI) recently put out an SEC filing (pre14a) where the CEO wrote a letter asking shareholders to vote for board members, informed them about record revenues etc. But what was conveniently left out from the letter, but present in the next page was this staggering news.

The approval of an amendment to our Certificate of Incorporation to increase the authorized number of shares of common stock from 100,000,000 to 175,000,000; .

That is some BIG DILUTION. The meeting is set for June 13, 2011 at 10:30 a.m. Pacific Time.

FDA's response to Spectrum's quest to get Fusilev approved for use in treating colorectal cancer (in US) is due on April 29th, 2011. Whether that news (is positive) will move the stock more or if the dilution will have a bigger impact is to be seen.

Insider buy/sales are not too clear with only 4000 net shares bought in the last several months.
Disclosure: No positions as of now. And it looks too volatile for me to initiate any position. I just wrote this post to let people know about the dilution as well as to get some page views

Sources used for research:
Seeking Alpha article
Edgar Filing


Spectrum Pharma announces FDA approval of FUSILEV's ready-to-use formulation (SPPI) 9.05 -0.03 : Co announces that the FDA has approved co's Supplemental New Drug Application for FUSILEV Injection. Unlike the currently available lyophilized product, this approval is for a "Ready-to-Use" formulation of FUSILEV for Injection. "We are pleased that the FDA has approved the 'Ready-to-Use' formulation of FUSILEV... As the name implies, the RTU formulation provides an additional option for physician and medical staff use. The RTU formulation requires no reconstitution, and is of a higher strength than the currently available lyophilized formulation.

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