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Spectrum Pharmaceuticals Reports Fourth Quarter and Year End Financials

March 31, 2003 at 12:00 AM EST
Spectrum Pharmaceuticals Reports Fourth Quarter and Year End Financials

Monday March 31, 8:01 am ET

IRVINE, Calif., March 31 /PRNewswire-FirstCall/ -- Spectrum Pharmaceuticals, Inc. (Nasdaq: SPPI - News) today reported a net loss for the fourth quarter ended December 31, 2002 of $3.8 million, or $(1.89) per share, compared to a net loss of $9.7 million, or $(10.71) per share, for the fourth quarter ended December 31, 2001. The fourth quarter 2002 loss includes non-recurring restructuring charges of approximately $1.7 million and $350,000 in prepaid costs for oncology drug formulation and development. Excluding these items, the Company's net loss for the fourth quarter of 2002 was approximately $1.4 million. The decrease in net loss during the fourth quarter principally reflects the reduction in expenses caused by the completion of a large clinical trial in April of 2002 as well as cost reduction efforts implemented upon change in management at the Company during August 2002.

The Company reported a net loss for 2002 of $17.6 million, compared to a net loss of $27.8 million in 2001. The decrease in net loss principally reflects the recognition of $2 million in licensing fees from GPC Biotech, the reduction in expenses caused by the completion of a large clinical trial in April of 2002, as well as cost reduction efforts implemented at the Company.



Revenues increased from $41,113 in 2001 to $2,371,387 in 2002. This increase reflects the recognition of a $2 million licensing fee from GPC Biotech. On September 30, 2002, the Company announced that it had entered into a co-development and licensing agreement with GPC Biotech for Spectrum's prostate cancer drug satraplatin, wherein the Company received $2 million up-front, and can receive additional licensing and milestone payments totaling $20 million.

In August 2002, the Company announced and implemented a major restructuring and refocused its development efforts on its anti-cancer drug pipeline. As a result of this restructuring the Company incurred approximately $3.0 million in non-recurring expenses in the third and fourth quarters of 2002.

For the fourth quarter, research and development expenses decreased from $7.3 million in 2001 to $1.3 million in 2002. The decrease in research and development expense reflects a decrease in expenses related to the completion of a large clinical trial in April of this year and two smaller clinical trials in the second quarter, and cost reduction efforts including a major restructuring of the Company in August of 2002. General and administrative expenses decreased from $2.3 million during the fourth quarter of 2001 to $0.8 million during the fourth quarter of 2002. The decline principally reflects a decrease in salary and related expenses due to reductions in workforce implemented at the Company during 2002.

Spectrum had cash and equivalents of $1.6 million on December 31, 2002, and during the first quarter of 2003, the Company raised approximately $500,000 in cash through the sale of common equity. Shares of common stock outstanding on December 31, 2002 were 2,726,019.

Spectrum Pharmaceuticals' primary focus is to develop in-licensed drugs for the treatment and supportive care of cancer patients. The Company's lead drug, satraplatin, is a phase 3 oral, anti-cancer drug being co-developed with GPC Biotech AG. Elsamitrucin, a phase 2 drug, will initially target non-Hodgkin's lymphoma. Neoquin™ is being studied in the treatment of superficial bladder cancer, and may have applications as a radiation sensitizer. The Company is actively working to develop, seek approval for and oversee the marketing of generic drugs in the U.S. Spectrum also has a pipeline of pre-clinical neurological drug candidates for disorders such as attention-deficit hyperactivity disorder, schizophrenia, mild cognitive impairment and pain, which it is actively seeking to out-license or co- develop. For additional information, visit the Company's web site at www.spectrumpharm.com.

This press release may contain forward-looking statements regarding future events and the future performance of Spectrum Pharmaceuticals that involve risks and uncertainties that could cause actual results to differ materially. These risks are described in further detail in the Company's reports filed with the Securities and Exchange Commission.





                 SPECTRUM PHARMACEUTICALS, INC. AND SUBSIDIARIES

                   Summary Statement of Operations - Unaudited

                         Three Months Ended          Twelve Months Ended
                             December 31,                 December 31,
                         2002          2001          2002             2001
                     (Unaudited)                 (Unaudited)

    Revenues           $152,080      $24,445      $2,371,387        $41,113

    Operating expenses:
      Research and
       development    1,288,589    7,343,430      12,726,499     20,611,119
      General and
       administrative   753,423    2,275,614       4,102,435      7,579,866
      Restructuring
       expenses       1,668,727           --       3,049,815             --

    Loss from
     operations      (3,558,659)  (9,594,599)    (17,507,362)   (28,149,872)

      Other (expense)
       income, net,
       principally
       interest        (276,510)    (140,706)       (126,499)       363,505

    Minority interest
     in consolidated
     Subsidiaries'
     net loss                --           --              --        (48,453)

    Net loss        $(3,835,169) $(9,735,305)   $(17,633,861)  $(27,834,820)
    Basic and
     diluted loss
     per common share    $(1.89)     $(10.71)        $(12.34)       $(36.50)

    Basic and diluted
     weighted average
     common shares
     outstanding      2,024,151      908,781       1,429,380        784,949


                              Summary Balance Sheets

                                          December 31,     December 31,
                                              2002             2001
                                          (Unaudited)
    Cash, cash equivalents,
     marketable securities
     and short-term investments           $1,578,338       $7,156,601
    Other current assets                     992,772          860,236
    Total current assets                   2,571,110        8,016,837
    Property and equipment,
     net and other assets                    882,010        4,808,025

    Total assets                          $3,453,120      $12,824,862

    Current liabilities                   $2,521,691       $5,212,316
    Long term liabilities and other          259,077          825,536
    Stockholders' equity                     672,352        6,787,010

    Total liabilities and
     stockholders' equity                 $3,453,120      $12,824,862



For further information, please contact:





John McManus
Spectrum Pharmaceuticals, Inc.
(949) 788-6700, ext. 247