UPDATE: Dawson James Initiates Spectrum Pharmaceuticals at Market Outperform on Share Weakness

Dawson James initiated coverage on Spectrum Pharmaceuticals SPPI with a Market Outperform rating and a $15 price target. Dawson James noted, "Spectrum is a mid-cap, oncology/hematology focused biotechnology company with a rich portfolio of marketed and development stage drugs. … Spectrum stock is currently trading at $11-12 range, and has dropped >37% from its 52- week high of $17.48. From a valuation standpoint, the shares trade at 2.1 times FY12 and 1.6 times FY13 revenues, and <6 and <4 times our FY12 and FY13 EPS estimates, levels more commonly associated with shares of manufacturers of generic drugs. We consider the recent weakness in stock an excellent buying opportunity for investors." Spectrum Pharmaceuticals closed at $11.28 on Monday.