Shares of Spectrum Pharmaceuticals (SPPI) shed 40 percent in extended hours on Tuesday after the drug maker warned that sales of its drug Fusilev will drop drastically, while full-year revenues will likely miss analysts' expectations.
Henderson, Nevada-based Spectrum expects Fusilev sales at about $10 to $15 million for the first quarter, and about $80 to $90 million for the fiscal year 2013.
Fusilev is Spectrum's most revenue generating drug. The drug is indicated in the treatment of patients with advanced metastatic colorectal cancer. For the full year 2012, Fusilev generated sales of $204.3 million, more than 75 percent of total sales.
Spectrum Pharmaceuticals said it anticipates a change in ordering patterns of Fusilev following the recent stabilization of the folate analog market.
For the full year 2013, Spectrum expects revenues of $160 million to $180 million. Analysts polled by Thomson Reuters currently have a consensus estimate of $297.33 million for the year.
While reporting full year 2012, Chief Executive Rajesh Shrotriy had assured investors of "strong growth in sales and operating income in 2013."
Nevertheless, the company expects its hematology franchise, which includes Folotyn and Zevalin, to grow in 2013. Spectrum also continues to manage operating cost and expects to be profitable in 2013 on an adjusted basis.
SPPI closed Tuesday's trading at $12.43, up $0.47 or 3.93%, on a volume of 0.95 million shares, on the Nasdaq. The stock plunged $5.02 or 40.39% in after hours trade.
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