By Jake King
Spectrum Pharmaceuticals (NASDAQ:SPPI) announced Monday morning that the company received a five-year extension on its patent for Folotyn, which lengthens the drug’s market exclusivity from July 16, 2017 to July 16, 2022. Of course, longer patent protection means more sales as generics will be barred from the market until the patent expires. Spectrum only acquired the drug in September with the acquisition of Allos Therapeutics and expects a strong synergy between its primary revenue-driver, Fusilev, and Folotyn, as existing Fusilev prescribers adopt the new drug. Folotyn is a treatment for relapsed peripheral T-cell lymphoma (PTCL) approved in September of 2009; in its second full year on the market, 2011, the drug generated $50M in sales. Upcoming earnings reports will be telling of the drug’s success at Spectrum, but a full year of sales will be more demonstrative of growth. SPPI presents a corporate update at the BIO Investor Forum in San Francisco on Tuesday, which combined with Monday’s news, should strengthen the stock.
