Spectrum Pharmaceuticals Buys Allos

Spectrum Pharmaceuticals Inc. said its experimental drug to treat bladder cancer failed to meet the main goals of late-stage trials, sending its shares down 16% in premarket trade, Reuters reported Thursday. The company was testing the drug apaziquone in two late-stage trials for non-muscle invasive bladder tumors. The company also said it agreed to buy Allos Therapeutics for about $206 million.

(Reuters) – Spectrum Pharmaceuticals Inc (SPPI.O) said its experimental drug to treat bladder cancer failed to meet the main goals of late-stage trials, sending its shares down 16 percent in premarket trade.

The company was testing the drug apaziquone in two late-stage trials for non-muscle invasive bladder tumors.

The company also said it agreed to buy Allos Therapeutics (ALTH.O) for about $206 million.

Allos shareholder will get $1.82 in cash for each share, which represents a premium of 27 percent to Allos’ Wednesday close, plus a contingent value right that gives shareholders 11 cents, if certain regulatory milestones are met in Europe.

Last year, AMAG Pharmaceuticals Inc (AMAG.O) dropped its plan to acquire Allos after AMAG shareholders voted against the deal.

Spectrum expects to close the deal in the second quarter and add to its fourth-quarter earnings.

Spectrum shares were down $1.90 at $10.30 in premarket trade. They closed at $12.20 on Wednesday on the Nasdaq.

(Reporting by Anand Basu in Bangalore; Editing by Don Sebastian)