Prospectus dated January 29, 2003
| Filed pursuant to Rule 424(b)(3) Registration
Statement No. 333-102587 |
PROSPECTUS
UP TO 518,386 SHARES OF
SPECTRUM
PHARMACEUTICALS, INC.
COMMON STOCK
Our common stock is traded on the Nasdaq SmallCap Market under the symbol “SPPI.” On January 15, 2003, the closing price of our common stock was $2.36.
This prospectus relates to the sale of up to 518,386 shares of our common stock by the selling stockholders named
in this prospectus. The shares of our common stock offered by this prospectus were issued to the selling stockholders in settlement of outstanding debts owed to those parties. See “Issuance of Common Stock to Selling Stockholders” on page
9. We will not receive any of the proceeds from the sale of these shares.
INVESTING IN OUR COMMON STOCK INVOLVES
A HIGH DEGREE OF RISK. SEE “RISK FACTORS” BEGINNING ON PAGE 1.
Neither the Securities and Exchange Commission nor any state securities commission has approved or disapproved of these securities or
passed upon the accuracy or adequacy of the prospectus. Any representation to the contrary is a criminal offense.
The date of this prospectus is January 29, 2003
No dealer, salesperson or other individual has been authorized to give any information or to make any representations
other than contained or incorporated by reference in this Prospectus, and if given or made, such information or representations must not be relied upon as having been authorized by the Company or any underwriter. This Prospectus does not constitute
an offer or solicitation by anyone in any jurisdiction in which such offer or solicitation is not authorized or in which the person making such offer is not qualified to do so or to anyone to whom it is unlawful to make such offer or solicitation.
Neither the delivery of this Prospectus nor any sale made hereunder shall, under any circumstance, create any implication that there has not been any change in the affairs of the Company since the date hereof.
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ABOUT SPECTRUM PHARMACEUTICALS, INC.
We were a development stage pharmaceutical company
from inception through June 30, 2002. Beginning in the third quarter ended September 30, 2002, we are no longer a development stage enterprise in that we have commenced our planned principal operations of (1) in-licensing of oncology drug candidates
and the further development of and strategic alliances for these drug candidates, (2) the discovery of neurology drugs and out-licensing these drug candidates to strategic partners, and we have generated revenue from these operations and (3) seeking
U.S. regulatory approval of generic pharmaceutical products and to subsequently market these products in the United States.
Our functional genomics business is engaged in discovering gene functions and validating novel molecular targets for innovative drug development. On July 19, 2002, we adopted a formal plan to discontinue the operations of our
functional genomics business. However, as part of a change in management and reassessment of the Company’s strategy in August 2002, we altered our plans to discontinue the operations and changed the focus of the business to out-licensing the
genomics technology and the administration of two Pfizer collaboration agreements. We have eliminated all further functional genomics research operations and the associated research funding commitments to the University of California, Irvine.
We conduct our pharmaceutical activities as Spectrum Pharmaceuticals and NeoOncoRx, and our functional genomics
activities as NeoGene Technologies. Unless otherwise specified or required by context, references in this prospectus supplement to “we,” “us,” “our” and “Spectrum” refer to Spectrum Pharmaceuticals, Inc. and
its subsidiaries on a consolidated basis.
We have incurred losses in every year of our existence and expect to
continue to incur significant operating losses for the next several years. We have never generated revenues from product sales and there is no assurance that revenue from product sales will ever be achieved. There is no assurance that any of our
proposed products will ever be successfully developed, receive and maintain required governmental regulatory approvals, become commercially viable or achieve market acceptance.
The pharmaceutical marketplace in which we operate is highly competitive, and includes many large, well-established companies pursuing treatments for the applications we
are pursuing. See “Risk Factors” below.
This prospectus relates to the sale of up to 518,386 shares of
our common stock by the stockholders identified under the heading “Selling Stockholders” below. The shares of our common stock offered by this prospectus were issued to the selling stockholders in private placements to settle outstanding
debts owed by us to those parties.
We were incorporated in Colorado in December 1987 and reincorporated in
Delaware in June 1997. In December 2002 we changed our name from NeoTherapeutics, Inc. to Spectrum Pharmaceuticals, Inc. Our executive offices are located at 157 Technology Drive, Irvine, California 92618. Our telephone number is (949)
788-6700. Our web site address is www.spectrumpharm.com. Information contained in our web site does not constitute part of this prospectus supplement.
On January 15, 2003, we announced the filing of our first
Abbreviated New Drug Application, or ANDA, with the U.S. Food and Drug Administration. The filing was made by our NeoJB subsidiary on behalf of J.B. Chemicals and Pharmaceuticals Ltd. or JBCPL, and relates to a generic drug product manufactured by
JBCPL. Upon approval of the ANDA, if it is approved, and expiration of the patent for the indicated drug, we expect that JBCPL will manufacture the product and NeoJB will sell the drug in the United States. However, we have not completed our
negotiations with JBCPL regarding the terms of this arrangement, and we cannot be certain that we will be able to complete these negotiations on terms favorable to us or at all. Revenue from the sale of the indicated drug would not likely occur
until after the end of this year, if ever.
On January 16, 2003, we sold 222,223 shares of our common stock under
our shelf registration statement at a negotiated purchase price of $2.25 per share for gross cash proceeds of $500,000. The investors also received
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warrants to purchase up to 55,555 shares of our common stock at an exercise price of $3.25 per share.
Offering costs including cash commissions paid to the placement agent of this transaction were approximately $30,000.
Your investment in our common stock involves a high degree of risk. You
should consider the risks described below and the other information contained in this prospectus carefully before deciding to invest in our common stock. If any of the following risks actually occur, our business, financial condition and operating
results would be harmed. As a result, the trading price of our common stock could decline, and you could lose a part or all of your investment.
Our losses will continue to increase as we expand our development efforts, and our efforts may never result in profitability.
Our cumulative losses during the period from our inception in 1987 through November 30, 2002 were approximately $139.2 million, almost all of which consisted of research and development and
general and administrative expenses. We lost approximately $26.0 in 1999, $46.4 in 2000, $27.8 in 2001, and $15.2 million in the eleven-month period ended November 30, 2002. We expect our losses to increase in the future as we expand our clinical
trials and increase our research and development activities. We currently do not sell any products or services and we may never achieve significant revenues or become profitable. Even if we eventually generate revenues from sales, we nevertheless
expect to incur significant operating losses over the next several years.
Our business does not generate the cash needed to finance
our current and anticipated operations and our existing cash and investment securities are not sufficient to fund our operations for the next 12 months.
During the three-month period ended September 30, 2002, our burn rate was approximately $3.0 million. We anticipate that our burn rate will be reduced to approximately $1.5 million, or lower, per
quarter starting with the fourth quarter in 2002.
At the present time, our business does not generate cash from
operations needed to finance our short-term operations. We will rely primarily on raising funds through the sale of our securities, and/or out-licensing our drug candidates and technology, to meet all of our short-term cash needs. We have generated
operating losses since our inception and our existing cash and investment securities, are not sufficient to fund our current planned pharmaceutical and functional genomics operations for the next 12 months. Therefore, we will need to seek additional
funding by June 2003, or sooner, through public or private financings, including equity financings, and through other arrangements to continue operating our businesses and meet our short-term and long-term cash needs. As has been stated by our
independent public accountants in their opinion, our current financial position raises substantial doubt as to our ability to continue as a going concern. Additionally, our long-term business plans require that we enter into collaborative
partnership agreements and strategic alliance agreements with larger pharmaceutical companies to co-develop, manufacture and market our product candidates.
We may not be able to raise additional funds on favorable terms, if at all. Accordingly, we would be forced to significantly change our business plans and restructure our operations to conserve cash,
which would likely involve some, combination, or all of the following:
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Out-license or sell some or all of our intellectual, technological, and/or tangible property not presently contemplated and at terms that we believe would not
be favorable to us; |
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Further reduce the size of our workforce, including the number of our scientific personnel; |
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Reduce the scope and nature of our research and drug development activities; and |
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Terminate operating leases and other contractual arrangements. |
We will need substantial additional funds to support the continued research and development of our potential products. Since we currently have no products available for
commercial sale and minimal revenues from
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licensing in our oncology and genomics divisions, we must use capital to fund our operating expenses. Our operating expenses, and consequently
our capital requirements, will depend on many factors, including:
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continued scientific progress in research and development to identify and develop or obtain additional product candidates; the costs and progress of preclinical
and clinical testing of our anti-cancer drugs and additional drug candidates; |
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cost involved in filing, prosecuting and enforcing patent claims; |
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effect of competing technological developments; |
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cost of manufacturing scale-up; |
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cost of commercialization activities; |
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time and cost involved in obtaining regulatory approvals; and |
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our ability to establish collaborative and other arrangements with third parties, such as licensing and manufacturing agreements.
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Our efforts to in-license and develop new drug development targets may fail.
In the third quarter of 2002 we shifted our strategic focus from discovery and development of neurology drugs to the in-licensing of
oncology drug candidates and the further development of and forming strategic alliances for these drug candidates, and the discovery of neurology drug candidates and out-licensing of these drug candidates to strategic partners. In the fourth quarter
of 2002 we announced plans to pursue regulatory approval in the United States of generic drugs manufactured by J.B. Chemicals and Pharmaceuticals Ltd. or JBCL, an Indian company, through our existing joint venture, NeoJB LLC. We may not in-license,
discover or validate any more new drug development targets based on our efforts. In addition, we may not have sufficient funds to purchase chemical libraries necessary for lead generation and/or new compound synthesis and the conducting of early
testing to establish therapeutic potential necessary to obtain patents on new compounds. Although we intend to seek out established pharmaceutical companies as partners for the development, manufacture and marketing of certain of our compounds, we
may be unsuccessful in negotiating related contracts on reasonable terms for us, if at all.
Our potential drug products are in
various stages of clinical and pre-clinical development and may not prove safe or effective enough to obtain regulatory approval to sell any of them.
We have acquired rights to three anti-cancer drugs that are in clinical trials, and we have commenced a clinical trial of our Neoquin drug candidate for superficial urinary bladder cancer. We expect
that we will need to complete additional trials before we will be able to apply for regulatory approval to sell any of our potential drug products. Our other proposed products are in pre-clinical development. We cannot be certain that any of our
proposed products will prove to be safe or effective in treating cancer, disorders of the nervous system, or any other diseases or indications. Our former lead drug candidate, Neotrofin, failed to demonstrate efficacy in previous trials for
Alzheimer’s disease and Parkinson’s disease. All of our proposed drugs will require additional research and development, testing and regulatory clearance before we can sell them. We cannot be certain that we will receive regulatory
approval to sell any of our proposed drugs. We do not expect to have any products commercially available for at least five years, if at all.
On September 30, 2002, we entered into a co-development and license agreement with GPC Biotech AG for the development and commercialization of our lead drug candidate, satraplatin. GPC Biotech will
fully fund development and commercialization expenses for satraplatin. We will not have control over the drug development process and therefore, the success of our lead drug candidate will depend upon the efforts of a third party. There is no
assurance that GPC Biotech will be successful in the clinical development of the drug, the achievement of any milestones such as the acceptance of an NDA (New Drug Application) filing by the U.S. Food and Drug Administration or the eventual
commercialization of satraplatin.
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Our efforts to enter the generic drug market may fail.
We plan to use our management’s experience with the regulatory approval process in the United States to seek the introduction of
generic drug products into the United States, which may include generic drugs produced by other pharmaceutical companies or developed internally by us. While some members of our management have experience with obtaining regulatory approval of drug
candidates in the United States, we have limited experience with generic drug products, and, as a company, we have not successfully obtained regulatory approval of any of our products.
On January 15, 2003, we announced the filing of our first Abbreviated New Drug Application, or ANDA, with the U.S. Food and Drug Administration. The filing was made by our
NeoJB subsidiary on behalf of JBCPL, and relates to a generic drug product manufactured by JBCPL. We cannot be certain that the FDA will approve this ANDA, or if approved, that we will be able to complete an agreement with JBCPL to allow NeoJB to
market the drug product in the United States on terms favorable to us or at all. We do not currently have an agreement with JBCPL related to this product.
Even if we obtain regulatory approval to market one or more generic drug products in the United States, we may face opposition from the producers of the branded versions of these drugs. Branded
pharmaceutical companies have historically been aggressive in seeking to prevent generic competition, including the extensive use of litigation.
In addition, many branded pharmaceutical companies increasingly have used state and federal legislative and regulatory means to delay generic competition. These efforts have included:
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pursuing new patents for existing products which may be granted just before the expiration of one patent which could extend patent protection for a number of
more years or otherwise delay the launch of generics; |
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using the Citizen Petition process to request amendments to FDA standards; |
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seeking changes to the United States Pharmacopeia, an organization which publishes industry recognized compendia of drug standards; and
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attaching patent extension amendments to non-related federal legislation. |
In addition, some branded pharmaceutical companies have engaged in state-by-state initiatives to enact legislation that restricts the substitution of some generic drugs.
Some of these initiatives could have an impact on products that we will seek to introduce to the United States. We have limited resources, and may not be able to effectively respond to these or other measures that may be taken by pharmaceutical
companies that produce the branded version of our generic products.
We must comply with the listing requirements of the Nasdaq
SmallCap Market or we could be delisted and the liquidity of our common stock would decline.
Our common stock
was transferred from the Nasdaq National Market to the Nasdaq SmallCap Market where it began trading on October 16, 2002 under the ticker symbol NEOT. On December 11, 2002, we changed our name to Spectrum Pharmaceuticals, Inc., and began trading
under the ticker symbol SPPI. To remain listed on this market, we must meet Nasdaq’s continued listing requirements. Among other requirements, Nasdaq rules require that a SmallCap Market company maintain a minimum stockholders equity of $2.5
million or a minimum market value of listed securities of $35 million or a net income from continuing operations (in latest fiscal year or 2 of the last 3 fiscal years) of at least $500,000. As of September 30, 2002, we were not in compliance with
this standard, however, as of January 3, 2003, we had demonstrated to Nasdaq that we had regained compliance with this standard. There is no assurance that we will be able to maintain compliance with this standard or any of the other continued
listing requirements. If we fail to do so, our common stock could be delisted from the Nasdaq SmallCap Market.
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If our stock is delisted from the Nasdaq SmallCap Market, we would likely seek
quotation on the American Stock Exchange or a regional stock exchange, if available. However, quotation on such a market or exchange could reduce the market liquidity for our common stock. If our common stock is not quoted on another market or
exchange, trading of our common stock could be conducted in the over-the-counter market on an electronic bulletin board established for unlisted securities such as the Pink Sheets or the OTC Bulletin Board. As a result, an investor would find it
more difficult to dispose of, or obtain accurate quotations for the price of, our common stock.
If our common
stock is delisted from the Nasdaq SmallCap Market, we fail to obtain quotation on another market or exchange, and the trading price remains below $5.00 per share, trading in our common stock might also become subject to the requirements of certain
rules promulgated under the Securities Exchange Act of 1934, which require additional disclosure by broker-dealers in connection with any trades involving a stock defined as a “penny stock” (generally, any equity security not listed on a
national securities exchange or quoted on Nasdaq that has a market price of less than $5.00 per share, subject to certain exceptions). Many brokerage firms are reluctant to recommend low-priced stocks to their clients. Moreover, various regulations
and policies restrict the ability of stockholders to borrow against or “margin” low-priced stocks and declines in the stock price below certain levels may trigger unexpected margin calls. Additionally, because brokers’ commissions on
low-priced stocks generally represent a higher percentage of the stock price than commissions on higher priced stocks, the current price of the common stock can result in an individual stockholder paying transaction costs that represent a higher
percentage of total share value than would be the case if our share price were higher. This factor may also limit the willingness of institutions to purchase our common stock. Finally, the additional burdens imposed upon broker-dealers by these
requirements could discourage broker-dealers from facilitating trades in our common stock, which could severely limit the market liquidity of the stock and the ability of investors to trade our common stock.
Nasdaq corporate governance rules prohibit an issuer of listed securities from issuing 20% or more of its outstanding voting stock in one
transaction or a series of related transactions other than a public offering at less than the greater of book value or the then current market value, without obtaining prior stockholder consent. While we have obtained stockholder approval of this
type of financing in the past, we do not currently have stockholder approval to do similar financings in the future. We do not generate sufficient revenues to fund operations, and we do not currently have sufficient cash on hand to fund our
operations beyond June 2003. While we are exploring all financing and strategic alternatives, we will need to raise additional funds through the sale of securities by June 2003, or sooner, to continue operating our business. Based on our recent
experience and our current financial position, we believe that we might need to offer our securities at a discount to market price in order to attract investors to provide these funds. Therefore Nasdaq’s 20% share limitation rule may hinder or
prevent financing transactions from occurring.
Nasdaq corporate governance standards also require us to notify
Nasdaq no later than fifteen (15) days prior to entering into a transaction that may result in the potential issuance of common stock greater than ten percent (10%) of the total shares of common stock outstanding. Several of our recent financings
have been very sensitive to market conditions, and consequently have only had a short time period in which they could be completed. Therefore this 15 day notification rule may hinder or prevent similar financing transactions from occurring.
Competition for patients in conducting clinical trials may prevent or delay approval of a drug candidate and strain our limited
financial resources.
Many pharmaceutical companies are conducting clinical trials in patients with the cancer
types that Spectrum’s drugs target . As a result, we must compete with them for clinical sites, physicians and the limited number of patients who fulfill the stringent requirements for participation in clinical trials. Also, due to the
confidential nature of clinical trials, we cannot be certain how many of the eligible cancer patients may be enrolled in competing studies and consequently not available to us. This competition may increase costs of our clinical trials and delay the
introduction of our potential products.
Any failure to comply with extensive governmental regulation could prevent or delay product
approval or cause governmental authorities to disallow our products after approval and subject us to criminal or civil liabilities.
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The FDA and comparable agencies in foreign countries impose many requirements on
the introduction of new drugs through lengthy and detailed clinical testing and data collection procedures, and other costly and time consuming compliance procedures. These requirements apply to every stage of the clinical trial process and make it
difficult to estimate when any of our potential products will be available commercially, if at all. Our proprietary compounds will require substantial clinical trials and FDA review as new drugs. Even if we successfully enroll patients in our
clinical trials, patients may not respond to our potential drug products. We think it is prudent to expect setbacks. While we believe that we are currently in compliance with applicable FDA regulations, if we fail to comply with the regulations
applicable to our clinical testing, the FDA may delay, suspend or cancel our clinical trials, or the FDA might not accept the test results. The FDA, or any comparable regulatory agency in another country, may suspend clinical trials at any time if
it concludes that the trials expose subjects participating in such trials to unacceptable health risks. Further, human clinical testing may not show any current or future product candidate to be safe and effective to the satisfaction of the FDA or
comparable regulatory agencies or the data derived from the clinical tests may be unsuitable for submission to the FDA or other regulatory agencies.
We cannot predict with certainty when we might submit any of our proposed products currently under development for the regulatory approval required in order to commercially sell the products. Once we
submit a proposed product for commercial sale approval, the FDA or other regulatory agencies may not issue their approvals on a timely basis, if at all. If we are delayed or fail to obtain these approvals, our business and prospects may be
significantly damaged. If we fail to comply with regulatory requirements, either prior to seeking approval or in marketing our products after approval, we could be subject to regulatory or judicial enforcement actions. These actions could result in:
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product recalls or seizures; |
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refusals to approve new products and withdrawal of existing approvals; and |
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enhanced exposure to product liabilities. |
The loss of key researchers or managers could significantly hinder our drug development process and might cause our business to fail.
Our success depends upon the contributions of our key management and scientific personnel. The loss of Dr. Luigi Lenaz, our Vice President, Oncology Division and President of our subsidiary NeoOncoRx,
Inc., would damage the development of our anti-cancer business substantially. Dr. Lenaz has an employment agreement with us that will expire on July 1, 2003, with automatic one year renewals thereafter unless Dr. Lenaz or we gives notice of intent
not to renew at least 90 days in advance of the renewal date. We also may need substantial additional expertise in marketing and other areas in order to achieve our business objectives. Competition for qualified personnel among pharmaceutical
companies is intense, and the loss of key personnel, or the inability to attract and retain the additional skilled personnel required for the expansion of our business, could significantly damage our business.
If we cannot protect or enforce our intellectual property rights adequately, the value of our research could decline as our competitors appropriate portions
of our research.
We actively pursue patent protection for our proprietary products and technologies. We hold
rights to thirteen U.S. patents and currently have eleven U.S. patent applications pending. The Company has determined it will not be maintaining eight of the U.S. patents and five of the U.S. patent applications relating to Neotrofin. Our issued
patents expire between 2003 and 2020. In addition, we have numerous foreign patents issued and patent applications pending corresponding to our U.S. patents. However, our patents may not protect us against our
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competitors. We may have to file suit to protect our patents or to defend our use of our patents against infringement claims brought by others.
Because we have limited cash resources, we may not be able to afford to pursue or defend against litigation in order to protect our patent rights.
We also rely on trade secret protection for our unpatented proprietary technology. Trade secrets are difficult to protect. While we enter into proprietary information agreements with our employees,
consultants and others, these agreements may not successfully protect our trade secrets or other proprietary information.
We are a
small company relative to our principal competitors and our limited financial and research resources may limit our ability to develop and market new products.
Many companies, both public and private, including well-known pharmaceutical companies such as Amgen, Inc., Bayer AG, Eli Lilly and Co., Novartis AG, Bristol-Meyers Squibb
Company, Glaxo SmithKline, IDEC Pharmaceuticals, Vertex Pharmaceuticals, Inc., Guilford Pharmaceuticals, Inc., Cephalon, Inc., Aventis, Elan Corporation, Pfizer, Inc., Janssen Pharmaceutica, Inc. and Shire Pharmaceuticals Group plc, are developing
products to treat certain of the diseases we are pursuing. Competitors that have a strategic and clinical focus similar to ours include AVI Biopharma, Inc., Chiron Corp., Corixa Corp., Dendreon Corp., Genta Inc., Imclone Systems Incorporated, MGI
Pharma, Inc. and SuperGen, Inc. among others. Many of these companies have substantially greater financial, research and development, manufacturing, marketing and sales experience and resources than us. As a result, our competitors may be more
successful than us in developing their products, obtaining regulatory approvals and marketing their products to consumers.
Numerous oncology drugs are on the market for each cancer type we are pursuing. For example, cisplatin and carboplatin are the most prevalent platinum-based derivatives used in chemotherapy. Our product candidate, satraplatin, if the
FDA ever approves it, would likely compete against these drugs directly. Unless satraplatin is shown to have better efficacy and is as cost effective if not more cost effective than cisplatin and carboplatin, it may not gain acceptance by the
medical field and therefore never be successful commercially.
Our limited experience at managing and conducting clinical trials
ourselves may delay the trials and increase our costs.
We will continue managing and conducting some future
clinical trials ourselves rather than hiring outside clinical trial contractors. We believe managing and conducting clinical trials ourselves has reduced and will continue to reduce the costs associated with our clinical trials and gives us more
control over the clinical trial process. However, while some of our management has had experience at conducting clinical trials, we have limited experience in doing so as a company. While we have not experienced significant delays or increased costs
to date by conducting clinical trials ourselves, as we move forward with our self-conducted clinical trials, our limited experience may delay the completion of our clinical trials and increase our costs.
We may be dependant on third parties for clinical testing, manufacturing and/or marketing
We may not conduct some clinical trials ourselves, and we will not manufacture any of our proposed products for commercial sale nor do we have the resources necessary to do
so. Neither we nor our current management have any experience marketing pharmaceutical products. We intend to contract with larger pharmaceutical companies or contract research organizations to conduct such activities. In connection with our efforts
to secure corporate partners, we may seek to retain certain co-marketing rights to certain of our proposed products, so that we may promote our products to selected medical specialists while our corporate partner promotes these products to the
medical market generally. We cannot be certain that we will be able to enter into any partnering arrangements on this or any other basis. If we are not able to secure adequate partnering arrangements, we will have to hire additional employees or
consultants with expertise in marketing, since our current employees have no experience in these areas. We cannot be certain that sufficient employees with relevant skills will be available to us. Any increase in the number of our employees would
increase our expense level, and could make it harder for us to make a profit.
In addition, we cannot be certain
that we or our potential corporate partners can successfully introduce our proposed products or that such proposed products will achieve acceptance by patients, health care providers and
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insurance companies. Further, it is possible that we may not be able to secure arrangements to manufacture and market our proposed products at
prices that would permit us to make a profit. To the extent that clinical trials are conducted by corporate partners, we may not be able to control the design and conduct of these clinical trials.
We may be subject to product liability claims, and may not have sufficient product liability insurance to cover any claims, which may expose us to substantial
liabilities.
We may be exposed to product liability claims from patients who participate in our clinical
trials, or, if we are able to obtain FDA approval for one or more of our potential products, from consumers of our products. Although we currently carry product liability insurance in the amount of $5 million per occurrence, it is possible that the
amounts of this coverage will be insufficient to protect us from future claims. Further, we cannot be certain that we will be able to maintain our existing insurance or obtain or maintain additional insurance on acceptable terms for our clinical and
commercial activities or that such additional insurance would be sufficient to cover any potential product liability claim or recall. Failure to maintain sufficient insurance coverage could have a material adverse effect on our business, prospects
and results of operations if claims are made that exceed our coverage.
The use of hazardous materials in our research and development
efforts imposes certain compliance costs on us and may subject us to liability for claims arising from the use or misuse of these materials.
Our research and development efforts involve the use of hazardous materials, including biological materials, chemicals and radioactive materials. We are subject to federal, state and local laws and
regulations governing the storage, use and disposal of these materials and some waste products. We believe that our safety procedures for the storage, use and disposal of these materials comply with the standards prescribed by federal, state and
local regulations. However, we cannot completely eliminate the risk of accidental contamination or injury from these materials. If there were to be an accident, we could be held liable for any damages that result, which could exceed our financial
resources. We currently maintain insurance coverage of up to $1,000,000 per occurrence for injuries resulting from the hazardous materials we use, and up to $25,000 per occurrence for pollution clean up and removal, however, future claims may exceed
these amounts. Currently the costs of complying with federal, state and local regulations are not significant, and consist primarily of waste disposal expenses.
There are a substantial number of shares of our common stock eligible for future sale in the public market. The sale of these shares could cause the market price of our common stock to fall. Any future equity issuances by
us may have dilutive and other effects on our existing stockholders.
There were 2,948,242 shares of our
common stock outstanding as of January 17, 2003. In addition, security holders held options, warrants and other rights as of January 17, 2003 which, if exercised, would obligate us to issue up to an additional 1,141.403 shares of common stock
at a weighted average exercise price of $44.62 per share, of which 921,772 shares are subject to options or warrants which are currently exercisable at a weighted average exercise price of $52.42 per share. A substantial number of those shares, when
we issue them upon exercise, will be available for immediate resale in the public market. In addition, we have the ability to sell up to approximately $5.0 million of our common stock pursuant to a shelf registration that will be eligible for
immediate resale in the market. The market price of our common stock could fall as a result of such resales due to the increased number of shares available for sale in the market.
We have financed our operations, and we expect to continue to finance our operations, primarily by issuing and selling our common stock or securities convertible into or
exercisable for shares of our common stock. Any issuances by us of equity securities may be at or below the prevailing market price of our common stock and may have a dilutive impact on our other stockholders. These issuances would also cause our
net income, if any, or loss per share to decrease in future periods. As a result, the market price of our common stock could drop.
The market price and volume of our common stock fluctuate significantly and could result in substantial losses for individual investors.
The stock market from time to time experiences significant price and volume fluctuations that are unrelated to the operating performance of particular companies. These broad market fluctuations may
cause the market price and volume of our common stock to decrease. In addition, the market price and volume of our common stock is
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highly volatile. Factors that may cause the market price and volume of our common stock to decrease include fluctuations in our results of
operations, timing and announcements of our technological innovations or new products or those of our competitors, FDA and foreign regulatory actions, developments with respect to patents and proprietary rights, public concern as to the safety of
products developed by us or others, changes in health care policy in the United States and in foreign countries, changes in stock market analyst recommendations regarding our common stock, the pharmaceutical industry generally and general market
conditions. In addition, the market price and volume of our common stock may decrease if our results of operations fail to meet the expectations of stock market analysts and investors. While a decrease in market price could result in direct economic
loss for an individual investor, low trading volume could limit an individual investor’s ability to sell our common stock, which could result in substantial economic loss as well. During 2002, the price of our common stock ranged between
$101.25 and $0.80, as adjusted to reflect a 25-for-1 reverse split of our outstanding common stock that we effected on September 6, 2002, and the daily trading volume, adjusted to reflect the reverse split has been as high as 777,764 shares and as
low as 940 shares, with a recent average from January 2, 2003 up to and including January 15, 2003 of approximately 30,970 shares.
Certain charter and bylaws provisions and our stockholder rights plan may make it more difficult for someone to acquire control of us or replace current management.
Certain provisions of our Certificate of Incorporation and Bylaws may make it more difficult for someone to acquire control of us or replace our current management. These
provisions may make it more difficult for stockholders to take certain corporate actions and could delay, discourage or prevent someone from acquiring our business or replacing our current management, even if doing so would benefit our stockholders.
These provisions could limit the price that certain investors might be willing to pay for shares of our common stock.
On December 13, 2000, we adopted a Stockholder Rights Plan pursuant to which we have distributed rights to purchase units of our capital Series B Junior Participating Preferred Stock. The rights become exercisable upon the earlier of
ten days after a person or group of affiliated or associated persons has acquired 20% or more of the outstanding shares of our common stock or ten business days after a tender offer has commenced that would result in a person or group beneficially
owning 20% or more of our outstanding common stock. These rights could delay or discourage someone from acquiring our business, even if doing so would benefit our stockholders.
Our businesses are sometimes involved, or perceived by the public to be involved, in activities that may be seen as morally unacceptable and therefore may be legislated against, preventing us from
engaging in certain research and development activities and eventually marketing certain product candidates.
Our businesses involve the use of animals for certain research and development activities. Some groups perceive this as inhumane or otherwise morally unacceptable. If pressure by these groups and others results in legislation that
limits or prevents any of our research and development activities, our businesses may be significantly harmed.
FORWARD-LOOKING STATEMENTS
This prospectus and the documents incorporated by reference
into this prospectus contain forward-looking statements that are based on current expectations, estimates and projections about our industry, management’s beliefs, and assumptions made by management. Words such as “anticipates,”
“expects,” “intends,” “plans,” “believes,” “seeks,” “estimates,” and variations of such words and similar expressions are intended to identify such forward-looking statements. These
statements are not guarantees of future performance and are subject to certain risks, uncertainties and assumptions that are difficult to predict; therefore, actual results may differ materially from those expressed or forecasted in any
forward-looking statements. The risks and uncertainties include those noted in “Risk Factors” above and in the documents incorporated by reference.
We undertake no obligation to update publicly any forward-looking statements, whether as a result of new information, future events or otherwise, except to the extent that we are required to do so by
law. We also may make additional disclosures in our Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K that we may file from time to time with the Securities and Exchange Commission, or SEC. Please also note
that we provide a cautionary discussion of risks and uncertainties under the section entitled “Risk
9
Factors” in our Annual Report on Form 10-K. These are factors that we think could cause our actual results to differ materially from
expected results. Other factors besides those listed here could also adversely affect us. This discussion is provided as permitted by the Private Securities Litigation Reform Act of 1995.
ISSUANCE OF COMMON STOCK TO THE SELLING STOCKHOLDERS
In November and December, 2002, we
entered into settlement agreements and releases with the selling stockholders for the issuance of 356,926 shares of common stock, and a warrant to purchase up to 161,460 shares of common stock at an exercise price of $0.25 per share, in
consideration of the settlement of outstanding debts which we owed to those parties. Pursuant to the settlement agreements and releases, we have filed a registration statement, of which this prospectus forms a part, in order to permit the selling
stockholders to resell to the public the shares of common stock they acquired.
The proceeds from the sale of the common stock under this prospectus
will belong to the selling stockholders. We will not receive any proceeds from such sales.
The net tangible book value of our common stock on November 30, 2002 was
$2,255,979, or approximately $0.98 per share. Net tangible book value per share represents the amount of our total tangible assets, less our total liabilities, divided by the total number of shares of our common stock outstanding. The number of
shares of our common stock outstanding may be increased by shares issued upon exercise of the Warrant, and, to the extent the Warrant is exercised for cash, the net tangible book value of our common stock may increase. If the entire warrant were
exercised for cash, the net tangible book value of our common stock would be $2,296,344, or approximately $0.94 per share, excluding the effect of any other transactions occurring after November 30, 2002. Since we will not receive any of the
proceeds from the sale of common stock under this prospectus, the net tangible book value of our common stock will not be increased as a result of such sales, nor will the number of shares outstanding be affected by such sales. Consequently, there
will be no change in net tangible book value per share of our common stock as a result of any sales made under this prospectus, and dilution in net tangible book value per share to new investors will represent the difference between the amount per
share paid by purchasers of shares of our common stock in this offering and the net tangible book value per share of our common stock at the time of the purchase.
The selling stockholders may sell up to 518,386 shares of our
common stock pursuant to this prospectus. The selling stockholders, other than Oppenheimer, Wolff & Donnelly, LLP, have provided us with products and services related to our research and development activities on commercial terms, and we expect
to continue to obtain products and services from the selling stockholders in the future. Oppenheimer, Wolff & Donnelly, LLP, has been and continues to be our legal counsel for intellectual property matters. The shares of our common stock offered
by this prospectus, and the Warrant, were issued to the selling stockholders in settlement of outstanding debts for products and services. We have no other material relationship with the selling stockholders.
The following table sets forth information regarding beneficial ownership of our common stock by the selling stockholders as of January
17, 2003. There were 2,948,242 shares of our common stock outstanding as of January 17, 2003.
10
| |
|
Shares of Common Stock Beneficially Owned Before Offering
|
|
|
Number of Shares of Common Stock Offered Hereby
|
|
Shares of Common Stock Beneficially Owned Following the Offering(2)
|
|
| Name
|
|
Number
|
|
% of Class(1)
|
|
|
|
Number
|
|
% of Class
|
|
| Clinical Pharmaceutical Trials, Inc. |
|
8,500 |
|
0.3 |
% |
|
8,500 |
|
0 |
|
— |
|
| GRAM Laboratories, Inc. |
|
198,854 |
|
6.7 |
% |
|
198,854 |
|
0 |
|
— |
|
| NDDO Oncology B.V. |
|
45,994 |
|
1.6 |
% |
|
45,994 |
|
0 |
|
— |
|
| NDDO Research Foundation |
|
56,818 |
|
1.9 |
% |
|
55,618 |
|
1,200 |
|
0.0 |
% |
| Symbion Research International Inc. |
|
48,000 |
|
1.6 |
% |
|
48,000 |
|
0 |
|
— |
|
| Oppenheimer, Wolff & Donnelly, LLP |
|
161,460 |
|
5.2 |
% |
|
161,460 |
|
0 |
|
— |
|
(1) |
|
For the purposes of calculating percent of class beneficially owned by a holder, shares of common stock which may be issued to that holder within 60 days of
January 17, 2003 are deemed to be outstanding. |
(2) |
|
Assumes the sale by the selling stockholders of all of the shares of common stock available for resale under this Prospectus. |
The selling stockholders and any of their pledgees, assignees and
successors-in-interest may, from time to time, sell any or all of the shares of common stock offered hereby for their own accounts on any stock exchange, market or trading facility on which the shares are traded or in private transactions. These
sales may be at fixed or negotiated prices. The selling stockholders may use any one or more of the following methods when selling shares:
| |
• |
|
ordinary brokerage transactions and transactions in which the broker-dealer solicits purchasers; |
| |
• |
|
block trades in which the broker-dealer will attempt to sell the shares as agent but may position and resell a portion of the block as principal to facilitate
the transaction; |
| |
• |
|
purchases by a broker-dealer as principal and resale by the broker-dealer for its account; |
| |
• |
|
an exchange distribution in accordance with the rules of the applicable exchange; |
| |
• |
|
privately negotiated transactions; |
| |
• |
|
broker-dealers may agree with the selling stockholders to sell a specified number of such shares at a stipulated price per share;
|
| |
• |
|
a combination of any such methods of sale; and |
| |
• |
|
any other method permitted pursuant to applicable law. |
The selling stockholders may also sell shares under Rule 144 under the Securities Act, if available, rather than under this prospectus.
The selling stockholders may also engage in short sales against the box, puts and calls and other transactions in our securities or
derivatives of our securities and may sell or deliver shares in connection with these trades. The selling stockholders may pledge their shares to their brokers under the margin provisions of customer agreements. If a selling stockholder defaults on
a margin loan, the broker may, from time to time, offer and sell the pledged shares.
The selling stockholders
have advised us that they have not entered into any agreements, understandings or arrangements with any underwriters or broker-dealers regarding the sale of their shares other than ordinary course brokerage arrangements, nor is there an underwriter
or coordinating broker acting in connection with the proposed sale of shares by the selling stockholders.
Broker-dealers engaged by the selling stockholders may arrange for other brokers-dealers to participate in sales. Broker-dealers may receive commissions or discounts from the selling stockholders, or, if any broker-dealer acts as
agent for the purchaser of shares, from the purchaser, in amounts to be negotiated. The selling stockholders do not expect these commissions and discounts to exceed what is customary in the types of transactions involved.
11
The selling stockholders and any broker-dealers or agents that are involved in
selling the shares may be deemed to be “underwriters” within the meaning of the Securities Act in connection with such sales. In such event, any commissions received by such broker-dealers or agents and any profit on the resale of the
shares purchased by them may be deemed to be underwriting commissions or discounts under the Securities Act.
We
have agreed to pay all fees and expenses incident to the registration of the shares, including fees and disbursements of counsel to the selling stockholders. We have agreed to indemnify the selling stockholders against certain losses, claims,
damages and liabilities, including liabilities under the Securities Act.
Upon notification to us by a selling
stockholder that any material arrangement has been entered into with a broker-dealer for the sale of shares through a block trade, special offering, exchange distribution or secondary distribution or a purchase by a broker or dealer, we will file a
supplement to this prospectus, if required, pursuant to Rule 424(b) under the Securities Act, disclosing the following:
| |
• |
|
the name of each such selling stockholder and of the participating broker-dealer(s); |
| |
• |
|
the number of shares involved; |
| |
• |
|
the price at which such shares were sold; |
| |
• |
|
the commissions paid or discounts or concessions allowed to such broker-dealer(s), where applicable; |
| |
• |
|
that such broker-dealer(s) did not conduct any investigation to verify the information set out or incorporated by reference in this prospectus; and
|
| |
• |
|
other facts material to the transaction. |
In addition, we will file a supplement to this prospectus when a selling stockholder notifies us that a donee or pledgee intends to sell more than 500 shares of our common stock.
We have advised the selling stockholders that the anti-manipulation provisions of Regulation M promulgated under the Securities
Exchange Act of 1934 may apply to their sales of our shares offered by this prospectus.
DESCRIPTION OF SECURITIES TO BE REGISTERED
The following summary of the terms of
our common stock does not purport to be complete and is subject to and qualified in its entirety by reference to our Charter and Bylaws, copies of which are on file with the Commission. See “Where You Can Find More Information.”
We have authority to issue 50,000,000 shares of common stock, $.001 par value per share. As of January 17,
2003, we had 2,948,242 shares of common stock outstanding, held of record by approximately 380 stockholders.
Terms
Holders of our common stock are entitled to one vote per share on all matters to be voted upon by the stockholders. The holders
of common stock are not entitled to cumulative voting rights with respect to election of directors, and as a consequence, minority stockholders will not be able to elect directors on the basis of their shares alone. Our board of directors is divided
into three classes, with the term of each class expiring every third year at the annual meeting of stockholders. The number of directors is distributed equally between the three classes. Subject to the preferences that may be applicable to the
holders of outstanding shares of preferred stock, if any, the holders of our common stock are entitled to receive ratably such lawful dividends as may be declared by the Board of Directors. In the event of liquidation, dissolution or winding up of
Spectrum, and subject to the rights of the holders of outstanding shares of preferred stock, if any, the holders of shares of our common stock shall be entitled to receive pro rata all of our remaining assets available for distribution to our
stockholders. Our common stock has no preemptive or conversion rights, other subscription rights, or redemption or sinking fund provisions. All
12
outstanding shares of our common stock are fully paid and nonassessable. The rights, powers, preferences and privileges of holders of our common
stock are subject to, and may be adversely affected by, the rights of the holders of shares of any series of preferred stock, if any.
Stockholder Rights Plan
On December 13, 2000, we adopted a Stockholder Rights Plan
pursuant to which we have distributed rights to purchase units of our capital Series B Junior Participating Preferred Stock. The rights become exercisable upon the earlier of ten days after a person or group of affiliated or associated persons has
acquired 20% or more of the outstanding shares of our common stock or ten business days after a tender offer has commenced that would result in a person or group beneficially owning 20% or more of our outstanding common stock. The description and
terms of the rights are set forth in a Rights Agreement between us and U.S. Stock Transfer Corporation, as rights agent, filed with the Securities and Exchange Commission on December 26, 2000, as Exhibit 4.1 to our Form 8-A.
Certain Provisions of Delaware Law and of the Company’s Charter and Bylaws
The following paragraphs summarize certain provisions of the Delaware General Corporation Law and the Company’s Charter and Bylaws. The summary does not purport to
be complete and is subject to and qualified in its entirety by reference to the DGCL and to the Company’s Charter and Bylaws, copies of which are on file with the Commission. See “Where You Can Find More Information.”
Our Certificate of Incorporation and Bylaws contain provisions that, together with the ownership position of
the officers, directors and their affiliates, could discourage potential takeover attempts and make it more difficult for stockholders to change management, which could adversely affect the market place of our common stock.
Our Certificate of Incorporation limits the personal liability of our directors to Spectrum and our stockholders to the fullest extent
permitted by the Delaware General Corporation Law, or DGCL. The inclusion of this provision in our Certificate of Incorporation may reduce the likelihood of derivative litigation against directors and may discourage or deter stockholders or
management from bringing a lawsuit against directors for breach of their duty of care.
Our Bylaws provide that
special meetings of stockholders can be called only by the Board of Directors, the Chairman of the Board of Directors or the Chief Executive Officer. Stockholders are not permitted to call a special meeting and cannot require the Board of Directors
to call a special meeting. There is no right of stockholders to act by written consent without a meeting, unless the consent is unanimous. Any vacancy on the Board of Directors resulting from death, resignation, removal or otherwise or newly created
directorships may be filled only by vote of the majority of directors then in office, or by a sole remaining director. Our Bylaws establish advance notice procedures with respect to stockholder proposals and the nomination of candidates for election
as directors, except for nominations made by or at the direction of the board of directors or a committee of the board. Our Bylaws also provide for a classified board. See “Terms” above.
We are subject to the “business combination” statute of the DGCL, an anti-takeover law enacted in 1988. In general,
Section 203 of the DGCL prohibits a publicly-held Delaware corporation from engaging in a “business combination” with an “interested stockholder,” for a
period of three years after the date of the transaction in which a person became an “interested stockholder,” unless:
| |
• |
|
prior to such date the board of directors of the corporation approved either the “business combination” or the transaction which resulted in the
stockholder becoming an “interested stockholder,” |
| |
• |
|
upon consummation of the transaction which resulted in the stockholder becoming an “interested stockholder,” the “interested stockholder”
owned at least 85% of the voting stock of the corporation outstanding at the time the transaction commenced, excluding for purposes of determining the number of shares outstanding those shares owned (1) by persons who are directors and also officers
and (2) employee stock plans in which employee participants do not have the right to determine confidentially whether shares held subject to the plan will be tendered in a tender or exchange offer, or |
13
| |
• |
|
at or subsequent to such time the “business combination” is approved by the board of directors and authorized at an annual or special meeting of
stockholders, and not be written consent, by the affirmative vote of a least 66?% of the outstanding voting stock which is not owned by the “interested stockholder.” |
A “business combination” includes mergers, stock or asset sales and other transactions resulting in a financial benefit to the “interested
stockholders.” An “interested stockholder” is a person who, together with affiliates and associates, owns (or within three years, did own) 15% or more of the corporation’s voting stock. Although Section 203 permits us to elect
not to be governed by its provisions, we have not made this election. As a result of the application of Section 203, potential acquirers of Spectrum may be discouraged from attempting to effect an acquisition transaction with us, thereby possibly
depriving holders of our securities of certain opportunities to sell or otherwise dispose of such securities at above-market prices pursuant to such transactions.
Transfer Agent and Registrar
The transfer agent and registrar for the common
stock is U.S. Stock Transfer Corporation.
Latham & Watkins LLP, Costa Mesa, California, will pass
on the validity of the issuance of the shares of common stock offered by this prospectus.
The consolidated financial statements of the Company incorporated by reference
in this registration statement have been audited by Arthur Andersen LLP, independent public accountants, as indicated in their report with respect thereto, and are included herein in reliance upon the authority of said firm as experts in giving said
report. Arthur Andersen LLP has not consented to the inclusion of their report in the registration statement and in reliance upon Rule 437a of the Securities Act we have not therefore filed their consent. Because Arthur Andersen LLP has not
consented to the inclusion of their report in the registration statement, it may become more difficult for you to seek remedies against Arthur Andersen LLP in connection with any material misstatement or omission that may be contained in our
consolidated financial statements and schedules for such periods. In particular, and without limitation, you will not be able to recover against Arthur Andersen LLP under Section 11 of the Securities Act for any untrue statement of a material fact
contained in the financial statements audited by Arthur Andersen LLP or any omission of a material fact required to be statement in those financial statements.
LIMITATION ON LIABILITY AND DISCLOSURE OF SEC POSITION ON INDEMNIFICATION FOR SECURITIES ACT LIABILITIES
Our bylaws provide for indemnification of our directors and officers to the fullest extent permitted by law. Insofar as
indemnification for liabilities under the Securities Act may be permitted to directors, officers or controlling persons of the Company pursuant to the Company’s Certificate of Incorporation, as amended, bylaws and the Delaware General
Corporation Law, the Company has been informed that in the opinion of the SEC such indemnification is against public policy as expressed in such Act and is therefore unenforceable.
WHERE YOU CAN FIND MORE INFORMATION
We file annual, quarterly and special reports,
proxy statements and other information with the SEC. You may read and copy any document we file at the SEC’s public reference room at 450 Fifth Street, N.W., Washington, D.C., 20549. Please call the SEC at 1-800-SEC-0330 for
further information on the operation of the public reference rooms. Our SEC filings are also available to the public at the SEC’s web site at http://www.sec.gov.
The SEC allows us to “incorporate by reference” the information we file with them which means that we can disclose important information to you by referring you
to those documents instead of having to repeat the information in this prospectus. The information incorporated by reference is considered to be part of this prospectus, and later information that we file with the SEC will automatically update and
supersede this information.
14
We incorporate by reference the documents listed below and any future filings made with the SEC under
Sections 13(a), 13(c), 14, or 15(d) of the Securities Exchange Act of 1934 until the selling stockholders sell all the shares:
| |
• |
|
Our annual report on Form 10-K for the fiscal year ended December 31, 2001, filed on April 2, 2002; |
| |
• |
|
Our quarterly report on Form 10-Q for the quarters ended March 31, 2002, June 30, 2002, and September 30, 2002, filed on May 15, 2002, August 19, 2002, and
November 13, 2002, respectively; |
| |
• |
|
Our current reports on Form 8-K filed on March 14, 2002, March 27, 2002, April 25, 2002, April 29, 2002, May 1, 2002, May 7, 2002, June 3, 2002, June 7, 2002,
June 18, 2002 (dated June 7, 2002), June 19, 2002, July 12, 2002, August 23, 2002, September 6, 2002, October 1, 2002, November 21, 2002, November 26, 2002, December 19, 2002, December 23, 2002 (dated December 13, 2002), December 23, 2002 (dated
December 23, 2002), January 2, 2003, and January 17, 2003; |
| |
• |
|
Our definitive proxy statement filed on April 30, 2002, pursuant to Section 14 of the Exchange Act in connection with our 2002 Annual Meeting of Stockholders,
and our definitive proxy statements filed on July 12, 2002, August 9, 2002 and August 23, 2002 pursuant to Section 14 of the Exchange Act in connection with our 2002 Special Meeting of Stockholders; |
| |
• |
|
The description of our common stock contained in the Registration of Securities of Certain Successor Issuers filed pursuant to Section 12(g) of the Exchange Act
on Form 8-B on June 27, 1997, including any amendment or reports filed for the purpose of updating such description; |
| |
• |
|
The description of our Rights to Purchase Series B Junior Participating Preferred Stock contained in the Registration of Certain Classes of Securities filed
pursuant to Section 12(g) of the Exchange Act on Form 8-A on December 26, 2000, including any amendment or reports filed for the purpose of updating such description. |
You can request a copy of these filings, at no cost, by writing or telephoning us at the following address:
Spectrum Pharmaceuticals, Inc.
Attn: Investor Relations
157 Technology Drive
Irvine, California 92618
(949) 788-6700
You should rely only on the information contained
in this prospectus or any supplement and in the documents incorporated by reference. We have not authorized anyone else to provide you with different information. The selling stockholders will not make an offer of these shares in any state where the
offer is not permitted. You should not assume that the information in this prospectus or any supplement or in the documents incorporated by reference is accurate on any date other than the date on the front of those documents.
This prospectus is part of a registration statement we filed with the SEC (Registration No. 333-102587). That registration
statement and the exhibits filed along with the registration statement contain more information about the shares sold by the selling stockholders. Because information about contracts referred to in this prospectus is not always complete, you should
read the full contracts which are filed as exhibits to the registration statement. You may read and copy the full registration statement and its exhibits at the SEC’s public reference rooms or their web site.
15
518,386 SHARES OF COMMON STOCK
SPECTRUM PHARMACEUTICALS, INC.
PROSPECTUS
January 29, 2003
No dealer, salesperson or other individual has been
authorized to give any information or to make any representations other than contained or incorporated by reference in this Prospectus, and if given or made, such information or representations must not be relied upon as having been authorized by
the Company or any underwriter. This Prospectus does not constitute an offer or solicitation by anyone in any jurisdiction in which such offer or solicitation is not authorized or in which the person making such offer is not qualified to do so or to
anyone to whom it is unlawful to make such offer or solicitation. Neither the delivery of this Prospectus nor any sale made hereunder shall, under any circumstance, create any implication that there has not been any change in the affairs of the
Company since the date hereof.