Spectrum Pharmaceuticals, Inc. (SPPI) Stock Gaining After Sharp Plunge on Thursday, Here’s Why

Spectrum Pharmaceuticals, Inc. (SPPI), a biopharmaceutical company, has gained a 5.88% in premarket trading session and consequently is trading at $0.66 at the time of the writing. During Thursday’s regular trading session, the stock closed the day at $0.63 after slumping 33.62% during the day. The plunge could be attributed to Spectrum’s replacement with Jack in the Box in S&P SmallCap 600.

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Why SPPI Declined?

On Thursday, S&P Dow Jones Indices reported several changes to the S&P 500, S&P MidCap 400, and S&P SmallCap 600. Spectrum Pharmaceuticals (SPPI) was deleted from the S&P SmallCap 600 and in its place was added Jack in the Box (JACK) in SmallCAP 600. Alongside, numerous other stocks were changed. The changes are to become effective from 1st February 2022.

Participation in Conference

On 20th January, SPPI announced that its management was to participate in an upcoming conference, namely B. Riley Securities 2022 Virtual Oncology Conference. A fireside chat was scheduled for 27th of January 2022. The company further said that the live webcast of the fireside chat would be available from the investor Relations section of its website.

Strategic Restructuring of Company

On 5th of January, SPPI announced strategic restructuring of company. It said that it would prioritize its late stage product opportunities, namely poziotinib and ROLONTIS®. Also, the company said that it would deprioritize the developmental activities of its early-stage clinical development and research programs. The decisions were taken after a detailed review of operations and growth opportunities.

Equity Investment by Hanmi

On 4th of January, SPPI reported the $20 million equity investment by Hanmi Pharmaceutical. Alongside that, there were also revisions to the licensing agreements for ROLONTIS®and poziotinib. According to the terms of the strategic investment, Hanmi had entered into a $20 million equity purchase agreement that was to be priced at $1.60 per share.

Future Outlook for SPPI

During last three months, SPPI stock has declined more than 60%, while the more recent stats point toward a greater decline for the company. Looking ahead, the stock has got no positive signals and it is expected to fall further until a new bottom pivot could be found.