UPDATE: H.C. Wainwright & Co. Initiates Coverage on Spectrum Pharmaceuticals with Buy Rating, $15 PT on Discounted Revenues, EPS Valuation Methodology

In a report published Monday, H.C. Wainwright & Co. analyst Reni Benjamin initiated coverage on

with a Buy rating and $15.00 price target. In the report, H.C. Wainwright & Co. noted, “We are initiating coverage of Spectrum Pharmaceuticals with a BUY rating and a target price of $15, based on a discounted revenues and earnings per share valuation methodology. Spectrum Pharmaceuticals future value is supported by the revenue generated from four marketed products: Fusilev, Zevalin, Folotyn, and Marqibo. Combined, annual revenues should reach $165 MM by 2014, and continue growing at a 5-10% growth rate, in our opinion. The company also has a late-stage clinical development program comprised of belinostat for PTCL, apaziquone for bladder cancer, and a captisol-enabled melphalan for autologous stem cell transplants, as well as a pipeline of earlier stage products to fuel growth. With a solid portfolio of diverse oncology assets, and a strong cash position of $128 MM, we believe Spectrum represents an undervalued player with significant upside for the long-term investor.” Spectrum Pharmaceuticals closed on Friday at $8.49.