* Analysts expect approval next year
* Shares rise as much as 7 pct
(Adds detail, analysts' comment; updates shares)
By Natalie Grover
April 23 Spectrum Pharmaceuticals Inc
said it expects to seek U.S. marketing approval for its blood
cancer drug in the third quarter, after the treatment was shown
to be safe and effective in a key mid-stage trial.
The company's shares rose up as much as 7 percent on
The injectable drug, Captisol-enabled melphalan, an improved
form of common chemotherapy drug melphalan, is being tested in
patients with multiple myeloma undergoing stem cell transplants.
Roth Capital Partners analyst Joseph Pantginis said he
expects CE-Melphalan to receive full approval next year.
"CE-Melphalan would fit nicely with (Spectrum's)
salesforce's current hematological bag," he said.
H.C Wainright & Co analyst Reni Benjamin estimated that the
drug could generate about $25 million to $50 million in annual
High-dose chemotherapy in combination with stem cell
transplants is one of the last options for patients with
multiple myeloma - a type of blood cancer that originates in the
The higher dose of chemotherapy given during the treatment
destroys more myeloma cells. But it also kills normal
blood-producing stem cells in the bone marrow, which must be
replaced in order to restore blood cell production.
The drug is free of propylene glycol found in melphalan
products, including GlaxoSmithKline Plc's Alkeran, that
has been associated with renal and cardiac side-effects.
Captisol-enabled melphalan is formulated using a drug
delivery technology designed to optimize the solubility and
stability of the drug.
Spectrum Pharma, which acquired the development and
marketing rights to the drug from Ligand Pharmaceuticals Inc
in 2013, currently markets four cancer-related drugs.
About 24,050 new cases of multiple myeloma will be diagnosed
in the United States in 2014, according to American Cancer
The Irvine, California-based company's shares gave up some
of their earlier gains to be up 5.36 percent at $7.27 in late
morning trade on the Nasdaq.
(Reporting by Natalie Grover and Esha Dey in Bangalore; Editing
by Sriraj Kalluvila)