Healthcare Industry News: Imitrex
News Release - May 7, 2008
Spectrum Pharmaceuticals Receives $20 Million Cash Payment from Par Pharmaceutical for Sumatriptan Injection
A Non-Dilutive Source of Funds From a Non-Core AssetAll-Cash Transaction
IRVINE, Calif.--(HSMN NewsFeed)--Spectrum Pharmaceuticals, Inc. (Nasdaq:SPPI ) announced today that it has received a cash payment of $20 million from Par Pharmaceutical, Inc. (NYSE:PRX ), the Company’s marketing partner for sumatriptan injection, for the sale of its share of profits from the commercialization of sumatriptan injection.
“The sumatriptan injection partnership with Par has provided us approximately $27 million in non-dilutive funding since 2006, when we saw an opportunity outside of our core business in the field of oncology and urology,” said Rajesh C. Shrotriya, MD, Chairman, President and Chief Executive Officer. “This cash infusion today represents a majority of our estimated 2008 net use of cash for operations. Not only does this cash infusion obviate the need to raise cash anytime soon, it enhances our ability to successfully launch LEVOleucovorin and carry out our business plan without having to worry about the financial markets at this time.”
About Sumatriptan Injection
Sumatriptan injection is the generic form of GlaxoSmithKline’s Imitrex® injection, which is currently selling on the market and is indicated for the acute treatment of migraine attacks with or without aura and the acute treatment of cluster headache episodes.
About Spectrum Pharmaceuticals
We are a biopharmaceutical company that acquires, develops and commercializes a diversified portfolio of drug products, with a focus mainly on oncology and urology. Our strategy is comprised of acquiring and developing a broad and diverse pipeline of late-stage clinical and commercial products with a focus on oncology and urology; establishing a commercial organization for our approved drugs; continuing to build a team with people who have demonstrated skills, passion, commitment and a track record of success in developing drugs and commercialization in our areas of focus; and, leveraging the expertise of partners around the world to assist us in the execution of our strategy. For more information, please visit our website at www.spectrumpharm.com.
Forward-looking statement – This press release may contain forward-looking statements regarding future events and the future performance of Spectrum Pharmaceuticals that involve risks and uncertainties that could cause actual results to differ materially. These statements include but are not limited to statements that relate to our business and its future, Spectrum's ability to identify, acquire, develop and commercialize its portfolio of drug candidates, the Company's promising pipeline, that we don’t have the need to raise cash anytime soon, our ability to successfully launch LEVOleucovorin and carry out our business plan without having to worry about the financial markets at this time and any statements that relate to the intent, belief, plans or expectations of Spectrum or its management, or that are not a statement of historical fact. Risks that could cause actual results to differ include the possibility that our existing and new drug candidates, may not prove safe or effective, the possibility that our existing and new drug candidates may not receive approval from the FDA, and other regulatory agencies in a timely manner or at all, the possibility that our existing and new drug candidates, if approved, may not be more effective, safer or more cost efficient than competing drugs, the possibility that our efforts to acquire or in-license and develop additional drug candidates may fail, our lack of revenues, our limited marketing experience, our dependence on third parties for clinical trials, manufacturing, distribution and quality control and other risks that are described in further detail in the Company's reports filed with the Securities and Exchange Commission. We do not plan to update any such forward-looking statements and expressly disclaim any duty to update the information contained in this press release except as required by law.
SPECTRUM PHARMACEUTICALS, INC.™, TURNING INSIGHTS INTO HOPE™ and the Spectrum Pharmaceuticals logo are trademarks owned by Spectrum Pharmaceuticals, Inc. All other trademarks and tradenames are the property of their respective owners.
Source: Spectrum Pharmaceuticals
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