The identity of the "mysterious" investor pledging some funding - tied to the ANDA filed by Spectrum (SPPI) on behalf of JBCPL for ciproflaxicin - was revealed in the 10K filed today. Perhaps not so surprising was the fact that it turned out to be an Indian entity. More surprising was the fact that it was another Indian manufacturer of generic drugs who is making the investment. Not Spectrum's partner JBCPL, but Lekar Pharma. The plot is thickening.
If there is a two-months' acceptance period for ANDAs too, we are getting closer to the first generic moment of truth. (Hint: Do they know how to file an ANDA). The PR stating that the ANDA had been filed was dated February 7.
In the meantime the share price has traded rather listlessly. Most of the time slightly below 2 USD. And the market cap. stays consequently at around 3 mUSD.
The directors are continuing to buy shares in the company from time to time although the transactions are normally not very big. But still. They buy rather than sell them.
Erik
Mr. A.P. Mehta
Director
LEKAR Pharma Limited
83 B & C Sheth Govindrao Smrithi
Dr. Annie Besant Road, Worli,
Mumbai 400 018
Dear Mr. Mehta,
This letter of agreement spells out the basic terms under which Lekar Pharma
Limited or its affiliate will invest $1 million into Spectrum Pharmaceuticals,
Inc. The investments will be made in two parts contingent upon the achievement
of two milestones.
The first milestone will be the acceptance by the US Food and Drug
Administration of an ANDA filing by Spectrum on behalf of JBCPL for
ciproflaxicin, and the investment will be $250,000 in cash for Spectrum shares,
based on the closing price of Spectrum stock on the day prior to acceptance by
the US Food and Drug Administration.
The second milestone will be the approval by the US Food and Drug Administration
of the ANDA filing by Spectrum on behalf of JBCPL for ciproflaxicin, and the
investment will be $750,000 in cash for Spectrum shares, based on the closing
price of Spectrum stock on the day prior to approval by the US Food and Drug
Administration.
The investment would be subject to approval by the Reserve Bank of India or
other appropriate authority under the prevailing laws of India.
Agreed to this 26th day of March 2003, by
/s/ Rajesh Shrotriya
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Rajesh Shrotriya, M.D.
Chairman, Chief Executive Officer
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