After Regulatory Setback, Spectrum Pharma Secures Up To $65M In Debt Funding

Spectrum Pharmaceuticals Inc SPPI entered into a five-year debt financing agreement with SLR Capital Partners for a term loan facility of up to $65 million.
The company believes this transaction, combined with Spectrum's existing cash balance of $68 million as of June 30, provides sufficient capital to optimize the commercial launch of Rolvedon (eflapegrastim-xnst) injection and fund Spectrum's operations through 2024.
The first was a $30 million loan drawn upon closing. The remaining $35 million will be made available in three additional tranches subject to achieving pre-specified regulatory and financial milestones.
Earlier this month, the FDA approved Rolvedon to decrease the incidence of infection, as manifested by febrile neutropenia, in adult patients with non-myeloid malignancies.
The debt funding follows FDA's Oncologic Drugs Advisory Committee voted 9-4 against Spectrum poziotinib benefit-risk profile.
One of the highlighted issues is delayed confirmation of benefit, as the company has yet to enroll patients in its proposed confirmatory study.
Futility analysis for the confirmatory trial is expected in 2024, with topline results in 2026.
Price Action: SPPI shares are down 33.2% at $0.42 on the last check Friday.