On 21st April, Spectrum Pharmaceuticals, Inc. (Nasdaq: SPPI) announced the closing of its transaction to acquire the oncology drug assets of Targent, Inc. Spectrum Pharmaceuticals, Inc. is a specialty pharmaceutical company (based in Irvine, California) that is in the business of acquiring, developing and commercializing prescription drug products for the treatment of cancer and other unmet medical needs.
Together with this acquisition is Spectrum Pharma’s acquisition of Targent, Inc.’s key product: levofolinic acid (LFA), the pure active isomer of calcium leucovorin, a component of "standard of care" 5-fluorouracil (5-FU) containing regimens for the treatment of colorectal cancer and other malignancies; and its full sales and marketing rights in the United States, Canada and Mexico, along with several other oncology drugs in various stages of development.
This acquisition’s terms of agreement included the issuance of Spectrum to Targent the aggregate amount of 600,000 shares of the company's common stock: only 1/3rd (200,000) of these shares will be registered for resale. The remaining 2/3rd (400,000) shares will not be registered and therefore will be subject to restrictions on resale under rule 144 of the Securities Act of 1933. And them later, upon achievement of certain regulatory and sales milestones, Spectrum shall pay Targent additional shares of common stock and cash.
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