Spectrum Pharmaceuticals, Inc. (SPPI) announced that it has out-licensed two approved products and a late-stage candidate to CASI Pharmaceuticals, Inc. (CASI) in China. Shares of CASI Pharma gained over 8% following the announcement.
The companies have inked license agreements as per which CASI Pharma has been granted exclusive rights to Zevalin and Marqibo and the development and commercialization rights to Captisol-enabled melphalan in China. The agreement also includes places like Taiwan, Hong Kong and Macau.
As per the agreement, CASI Pharma will also be responsible for the submission of import drug registration applications of the products and conduct studies on them if and when required.
Zevalin is approved for the treatment of non-Hodgkin's lymphoma (NHL) whereas Marqibo is indicated for the treatment of acute lymphoblastic leukemia (ALL). Zevalin sales came in at $6.3 million and Marqibo contributed $1.4 million to the company’s net revenue in the second quarter of 2014.
Spectrum Pharma is developing Captisol-enabled melphalan as a conditioning treatment prior to autologous stem cell transplant for patients with multiple myeloma in a phase III study. The company intends to file a New Drug Application for the candidate in the U.S. by year end.
Our Take
We are encouraged by Spectrum Pharma’s decision to out-license its products in China. We are encouraged by the company’s focus on emerging markets. The company’s efforts to reach out to the global oncology market are impressive.
Spectrum Pharma currently carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the health care sector include Gilead Sciences (GILD) and Endo International plc (ENDP). Both the stocks sport a Zacks Rank #1 (Strong Buy).
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