Rodman & Renshaw Reiterates Outperform Rating on Spectrum Pharmaceuticals

Rodman & Renshaw is out with a research report this morning, where it reiterates its Outperform rating on Spectrum Pharmaceuticals SPPI; it has a $12.00 price target on the stock. The R&R analysts cited a recent meeting with company management, where they came away believing that 1Q11 Fusilev sales could surpass the $35 MM booked in 1Q11. If correct, and given that the leucovorin shortage is easing, the analysts noted that Fusilev may have built a loyal following of oncologists resulting in a revenue base that could be maintained going forward. As for valuation, the analysts remarked, “We are reiterating our Market Outperform / Speculative Risk and our 12-month target price of $12 based on a revenue and earnings multiples analysis that reflects higher projected revenues for Fusilev given the recent approval in colorectal cancer.”