As prospects dimmed for one of its own cancer drugs, Spectrum Pharmaceuticals is poised to land another cancer drug with its planned acquisition of Westminster-based Allos Therapeutics Inc. for up to $206 million cash, plus additional consideration if certain milestones are met.
Spectrum announced both developments within minutes Thursday morning. The company first disclosed that in two late-stage clinical trials, the experimental drug apaziquone failed to achieve a statistically significant reduction in the rate of tumor recurrences in patients with a form of bladder cancer, compared with a placebo.
Spectrum shares tumbled $1.15, or 9.4 percent, to close at $11.06 on Thursday.
Soon after disclosing the research setback, Spectrum said it agreed to acquire Allos Therapeutics for $1.82 per share in cash, plus a contingent value right that would be worth an additional 11 cents a share if certain targets are met for Allos’ cancer drug Folotyn.
Folotyn was approved by the U.S. Food and Drug Administration in 2009 to treat patients with a form of lymphoma. The drug had U.S. sales of $50.5 million for 2011.
“The deal brings immediate diversification from a revenue-generating cancer drug” and should add to Spectrum’s earnings-per-share later this year, Spectrum chief executive Rajesh Shrotriya said.
Shrotriya also said the deal would have synergies, including combining sales forces that currently promote certain drugs to the same groups of physicians.
Allos shares jumped 39 cents, or 27 percent, to close at $1.82 Thursday.
Last year, Allos had agreed to be acquired by Amag Pharmaceuticals Inc. in an all-stock deal with total equity value of about $686 million, but the deal fell through when Amag shareholders rejected it.
