logo
  Join        Login             Stock Quote

Allos Therapeutics (ALTH) Downgraded To 'Hold' By Brean Murray

 April 10, 2012 09:57 AM
 


Allos Therapeutics Inc. (Nasdaq:ALTH) shares were downgraded to "Hold" from "Buy" by Brean Murray, Carret & Co analyst Brian Skorney.

Last week, Spectrum Pharmaceuticals (Nasdaq: SPPI) announced acquisition of Allos, the maker of Folotyn cancer drug. 

Skorney believes Spectrum is getting Allos for a ‘song' as a result of desperation following the disappointing launch of Folotyn and the failed merger with AMAG last year.

[Related -Six Stocks That Could Get An October Bump From The FDA]

"Spectrum has an established oncology program with Zevalin, and we believe leveraging the existing sales relationships will greatly increase the market potential for Folotyn," the analyst wrote in a note. "We see Allos as a good strategic fit for Spectrum and foresee no reason for this merger not to proceed."

However, Skorney believes the stock is currently reflecting a high probability that this acquisition goes through and do not see additional upside from investment.

Folotyn sales have been growing with $50 million in sales during 2011 over $35 million in sales during 2010. Spectrum sees synergy potential in consolidating the Zevalin and Folotyn sales forces, to bring both oncology drugs to a wider audience, the analyst noted.

Spectrum also plans to test its folate analog, Fusilev, in combination with Folotyn to mitigate Folotyn's toxicities and to explore combination therapy of their its pipeline drug, belinostat, with Folotyn to create additional synergy. Based on the entirety of Spectrum's oncology program, Folotyn can easily be leveraged to reach its estimate of $100 million in annual sales, Skorney said.

[Related -Spectrum Pharmaceuticals, Inc. (SPPI) Reports Positive Data In Cancer Study]

On Tuesday, Allos shares added 0.55 percent to trade at $1.82.

iOnTheMarket Premium
Advertisement

Advertisement


Post Comment -- Login is required to post message
Name:  
Alert for new comments:
Your email:
Your Website:
Title:
Comments:
 

rss feed

Latest Stories

article imageInitial Jobless Claims Rose Unexpectedly

Claims unexpectedly rose in the latest report through last weekend to breach 300,000 for the first time read on...

article imageAll Quiet on the Record High Front

What can we glean from the media’s lack of attention to the market’s recent record read on...

article imageThe Chip Maker Short Sellers Should Be Watching

Investing in semiconductor stocks is always tricky. Industry cycles can lead to bumps in the road for the read on...

article imageChicago Fed: US Economic Growth Slowed In October

The pace of US growth slowed more than expected in October, according to this morning’s update of the read on...

Advertisement
Popular Articles

Advertisement
Daily Sector Scan
Partner Center



Fundamental data is provided by Zacks Investment Research, and Commentary, news and Press Releases provided by YellowBrix and Quotemedia.
All information provided "as is" for informational purposes only, not intended for trading purposes or advice. iStockAnalyst.com is not an investment adviser and does not provide, endorse or review any information or data contained herein.
The blog articles are opinions by respective blogger. By using this site you are agreeing to terms and conditions posted on respective bloggers' website.
The postings/comments on the site may or may not be from reliable sources. Neither iStockAnalyst nor any of its independent providers is liable for any informational errors, incompleteness, or delays, or for any actions taken in reliance on information contained herein. You are solely responsible for the investment decisions made by you and the consequences resulting therefrom. By accessing the iStockAnalyst.com site, you agree not to redistribute the information found therein.
The sector scan is based on 15-30 minutes delayed data. The Pattern scan is based on EOD data.