SPPI - Spectrum downgraded to neutral at B Riley on doubts over approval of poziotinib

• B Riley has downgraded Spectrum Pharmaceuticals ( NASDAQ: SPPI ) to neutral from buy citing uncertainty over the approval of poziotinib later this month and a challenging near-term pipeline catalyst profile.
• The firm also lowered its price target to $1 from $1.50 (~92% upside based on Tuesday's close).
• Shares are down ~9% in Wednesday afternoon trading.
• Analyst Mayank Mamtani gives an 11.5% chance of approval for poziotinib in non-small cell lung cancer (NSCLC) with certain mutations.
• Even if poziotinib is granted approval by the FDA action date of Nov. 24, Mamtani noted it would face competition from AstraZeneca's ( AZN ) Enhertu (trastuzumab), which was approved for NSCLC in August .
• And while Mamtani said that there are encouraging signs from the launch of Rolvedon (eflapegrastim) for neutropenia this year, it faces competition from a biosimilar as well as stalwart Neulasta Onpro (pegfilgrastim) from Amgen ( AMGN ).
• Seeking Alpha's Quant Rating views Spectrum Pharmaceuticals ( SPPI ) as a sell.

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