Spectrum Pharmaceuticals (SPPI) Stock: Gaining On Acquisition Hopes

Spectrum Pharmaceuticals, Inc. (NASDAQ: SPPI) is having a great day in the market today, and for good reason. Various reports are starting to break with regard to the company exploring strategic options. Of course, one of those options include the sale of the business. As you could image, the news is exciting investors, leading to big gains. Today, we’ll talk about:

  • The takeover chatter circling SPPI;
  • what we’re seeing from the stock as a result; and
  • what we’ll be watching for ahead.

SPPI Heads For The Top On Acquisition Hopes

As mentioned above, Spectrum Pharmaceuticals is headed for the top in the market today after news broke that the company is exploring strategic options, including the sale of its busienss. According to sources familiar with the story, the exploration of options comes as takeover interest from other drugmakers ramps up.

In order to facilitate the exploration and potential sale of the business, SPPI is currently working with Jefferies Group LLC. However, none of the reports have named their sources as the information is considered to be private. To date, no final decisions with regard to the sale of the company have been made and the company could decide against an acquisition.

Nonetheless, now is the time for an acquisition in the space. Recently, pharmaceutical companies around the world have been acquiring others like it’s going out of style. In fact, so far in this run, Sanofi has announced acquisitions that costed a total amount of around $16 billion while Takeda recently acquired Shire in a deal worth $62 billion. Nonetheless, as mentioned above, in the case of SPPI, no final decisions have been made quite yet.

What We’re Seeing From The Stock 

One of the first lessons that we learn when we start to dig into the market is that the news causes moves. With news breaking that an acquisition could be coming for Spectrum Pharmaceuticals, it only makes sense that excited investors are sending the stock on a run for the top in the market today. Of course, our partners at Trade Ideas were the first to alert us to the gains. Currently (10:42), SPPI is trading at $21.22 per share after a gain of $2.24 per share or 11.80% thus far today!

Stop wasting your time! Start finding winning trades in minutes with Trade Ideas!

What We’ll Be Watching For Ahead

Moving forward, the CNA Finance team will continue to keep a close eye on SPPI. In particular, we’re interested in following the story surrounding the company’s potential sale. After all, if a sale does take place, it will likely be at a strong premium considering the growth we’ve seen on the company in recent months. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!

Never Miss The News Again

Do you want real-time, actionable news delivered to your inbox? Join the CNA Finance mailing list below!

Subscribe Today!

* indicates required

Leave a Comment