Spectrum to be swallowed by Assertio

25 Apr 2023
firstwordpharma.com
Drug ApprovalAcquisition
Spectrum Pharmaceuticals agreed to be acquired by Assertio, less than six months after failing to secure FDA approval of poziotinib for lung cancer patients harbouring HER2 exon 20 insertion mutations. The deal announced Tuesday includes a stock component worth $248 million to Spectrum's shareholders, as well as contingent value rights (CVRs) totalling $43 million linked to the company's sole marketed drug Rolvedon (eflapegrastim-xnst).
Following the rejection of poziotinib, Spectrum cut its R&D workforce by approximately 75%, having slashed 30% of its staffing numbers earlier last year to focus on Rolvedon. The long-acting G-CSF product is authorised in the US for adults with non-myeloid malignancies receiving myelosuppressive anticancer drugs associated with clinically significant febrile neutropenia.
Tom Riga, Spectrum's CEO, suggested that the merger "will position us to accelerate Rolvedon's launch," with the product having generated sales of $10.1 million in its first quarter on the market. Assertio chief executive Dan Peisert said "we intend to retain the majority of Spectrum's commercial infrastructure, which we believe is synergistic to our digital non-personal platform, deploying these complementary dual channels to support clinical messaging, reimbursement education and Rolvedon awareness to further aid and accelerate its launch."
The companies noted that the first CVR worth $0.10 per share will be payable upon Rolvedon sales achieving $175 million in 2024, with another $0.10 due if the product's revenue reaches $225 million the following year. Assertio indicated that Rolvedon's intellectual property protection is anticipated to extend through 2036.
Following closing of the transaction, which is expected in the third quarter, Assertio will own approximately 65% of the combined company, with Spectrum shareholders owning the remaining 35%.
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