Spectrum Pharmaceuticals, Inc. (NASDAQ:SPPI) Q4 2022 Earnings Call Transcript

Thomas Riga: Thanks Maury.

Operator: One moment for our next question. And our next question will come from Edward White. Your line is open.

Edward White: Good morning. Thanks for taking my questions. So the first question, Tom is just as you’re working your way through the launch, are you finding that your sales force is right sized? Or do you see that you have to make any additions? And how should we be thinking about SG&A expenses, perhaps directionally following the fourth quarter results?

Thomas Riga: Hey, Ed thanks for thanks for the question. Let me let me handle those one at a time. In terms of right size, we had a pretty disciplined strategy out of the gate. It was driven by two things. One is our understanding of the market and what we believed was going to be necessary to achieve success. And I think largely the sales that we’re seeing outside of the top line number, really speak to on strategy sales. So I think the team is executing quite well. But to your point, we are lean. And as we expand into other parts of the business, and we continue to expand our tentacles, we’ll evaluate it. I think as you think about 2023, we’re pretty comfortable with the size of the sales force that exists today. And I don’t anticipate significant growth that I would draw your attention to on that particular aspect of the SG&A line.

As you look at expenses, I think what you’re seeing here is the R&D line came in at $8.7 million in Q4. That’s largely associated with the de-prioritization of poziotinib that is largely included in that number. So I would expect to see 2023 expense line continue to reduce at the level of R&D with offsetting increases in SG&A. I think those are your two. And if there’s something else, let me know.

Edward White: Those, those were done. And then just speaking of R&D, what are your current goals in R&D and expectations? You had mentioned that you are looking at our portfolio of cancer treatments; maybe you can just give us your thoughts on potential internal R&D efforts or business development opportunities.

Thomas Riga: Yes, so through the change that we’ve driven in the company, we have maintained a lenient scalable R&D group. My expectation of their focus as we move into 2023 is really centered around two things. It’s around the same day dosing study and the pediatric PMR for ROLVEDON. So those activities will be central to how we execute. We intentionally kept this group scalable, because we’re obviously optimistic with ROLVEDON. And what I had mentioned in the prepared remarks is we do aspire to, to not just be a single product company and those decisions and discussions will happen over time. But I think it’s all starting and stopping with ROLVEDON success, which is our primary focus today.

Edward White: Great, Tom, thanks for taking my question.

Thomas Riga: Thanks, Ed.

Operator: One moment for our next question. And our next question comes from Reni Bennett Benjamin of JMP Securities. Your line is open.

Reni Bennett Benjamin: Hey, Tom and team thanks for taking the questions and congratulations on the launch. Maybe just, jumping straight in, I think in your prepared remarks you mentioned that in the first quarter that number of accounts has doubled. And I guess two related questions. So that is that would make about 140 accounts, is it? Can we think about this doubling of accounts, translating to a potential doubling of the revenues for the first quarter? Or, if not, what are the — what are the different factors we should be considering? And as we, as we think about this doubling of accounts, what’s the total number of accounts that you are, are targeting? And how much progress have we made towards that total number?