Spectrum Pharmaceuticals Shares Slide Premarket After Financing, FDA AdCom
September 23 2022 - 7:35AM
Dow Jones News
By Colin Kellaher
Shares of Spectrum Pharmaceuticals Inc. slid more than 20% in
premarket trading after the biopharmaceutical company said it had
lined up $65 million in financing following a setback for its
proposed treatment for nonsmall cell lung cancer.
The Henderson, Nev., company said it entered into a five-year
debt financing agreement with investment affiliates managed by SLR
Capital Partners LLC that extends its cash runway through 2024.
Spectrum unveiled the new financing the day after a U.S. Food
and Drug Administration advisory committee voted 9-4 that the
benefits of poziotinib for patients with certain types of nonsmall
cell lung cancer didn't outweigh its risks.
The FDA, which has set a target action date of Nov. 24 for
poziotinib, isn't bound to follow the advice of its advisory
panels, though it usually does. Spectrum said it plans to carefully
evaluate its options for the poziotinib program ahead of the target
action date.
Spectrum--which earlier this month won FDA approval for its
Rolvedon injection used to reduce the incidence of infection
related to chemotherapy--said the funding from SLR, coupled with
its cash on hand, provides sufficient capital to optimize the
commercial launch of Rolvedon and to fund its operations through
2024.
Spectrum shares, which closed Thursday at about 63.5 cents, were
recently changing hands at 50 cents, down 21%, in premarket
trading.
Write to Colin Kellaher at colin.kellaher@wsj.com
(END) Dow Jones Newswires
September 23, 2022 08:20 ET (12:20 GMT)
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