Wednesday was a bad day for investors of Spectrum Pharmaceuticals as it toppled more than 35% due to a significant reduction of estimated sales of its flagship product, Fusilev. Generic leucovorin, which had been absent from the market started to return and materially affected orders for Spectrum's branded drug.
In this video, Motley Fool analyst David Williamson recaps the recent news and picks up the pieces for investors taking a look at the drugs in Spectrum's pipeline, including cancer drug Apaziquone, which it recently regained the rights to from Allergan.
Is Spectrum a buy at these new lower prices, or should investors proceed with caution? Watch and find out.
David Williamson has no position in any stocks mentioned. Follow David on Twitter @MotleyDavid. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.