Shares of Irvine drug maker Spectrum Pharmaceuticals Inc. surged Friday on takeover speculation.
Spectrum shares were up 7% near the end of trading with a market value of about $235 million.
An article published on the Seeking Alpha investor Web site talked about speculation Spectrum could be bought and cited a few companies that could be interested, including Irvine-based Allergan Inc.
Allergan and Spectrum are developing EoQuin, a bladder cancer drug candidate that’s in late-phase clinical trials.
“If (Allergan) really believes the drug is a winner, then why not try to own 100%” of Spectrum, author Mark Cifra wrote.
Allergan paid Spectrum $41.5 million for the right to market EoQuin in the U.S. last October. Spectrum could get an additional $304 million if EoQuin is approved and reaches certain sales milestones.
Allergan has worked to build its urology portfolio in recent years through buying new drugs and testing flagship Botox for treating overactive bladder.
But Spectrum’s cancer and other drugs may not be a fit with Allergan.
Cifra also mentioned other potential buyers, including Germany’s Bayer AG, which sells Zevalin, a blood cancer drug that Spectrum is awaiting a Food and Drug Administration decision on.
But the author threw a little cold water on the takeover buzz, saying “I personally don’t think it will happen.”
Spectrum shares have alternately surged and pulled back most of this week after talk about Bayer possibly buying it surfaced.
