Friday, August 24, 2012

Some Allos Therapeutics

I’ve been doing a little research into Allos Therapeutics, Inc. (Ticker: ALTH), which is in the process of being acquired by Spectrum Pharmaceuticals, Inc. (Ticker: SPPI) for $1.82. Originally, there was a CVR linked to the European approval of Folotyn, but that got the thumbs down so no CVR just $1.82 in cash. This deal is being held up due to a second request by the FTC. Looking at the drug portfolios of Spectrum and Allos Therapeutics, it’s hard to see how they can even think of blocking this deal. Spectrum has Zevalin, which is used to treat non-Hodgkin’s Lymphoma. Zevalin has pretty much been a disappointment. Allos Therapeutics has Folotyn, which is used to treat refractory peripheral T-cell lymphoma and generates $50 + million in annual sales. Both of these drugs are not even close to being blockbuster status (over a billion dollars in sales) when you compare them to Rituxan. The latest tender expires on September 4th. I’m looking for a September 7th close if it works out (potential 2.24% return or 53% annualized).


At June 03, 2016, Anonymous Sue-Ann said...

They may be blocking it for reasons that aren't important to buyers.


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