Spectrum 34% selloff today ‘clearly overdone,’ says Jefferies

Jefferies analyst Roger Song is a “bit surprised” the FDA did not grant Breakthrough Therapy Designation to Spectrum Pharmaceuticals’ poziotinib given the drug’s “impressive” overall response rate and durability versus current options. However, the company is confident that the planned accelerated approval pathway remains unchanged, Song tells investors in a research note. And the analyst continues to believe an ORR of 25%-30% could support an approval. The after-market selloff of 34% is “clearly overdone” as pivotal data could emerge within 6-12 months followed by a potential first-line indication approval, says the analyst. He keeps a Buy rating on Spectrum with a $25 price target. The stock in premarket trading is down $3.64 to $6.80.
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