Spectrum’s stock is down after FDA committee voted against cancer drug

Shares of Spectrum Pharmaceuticals Inc. SPPI, -26.13% were down 22.0% in premarket trading on Friday, the day after a Food and Drug Administration committee voted 9-4 that the benefits of the company’s experimental lung-cancer drug do not outweigh the risks. The FDA is not required to follow the committee’s advice when deciding when to approve a new drug but often does. The regulator is expected to make its decision on or before Nov. 24. Spectrum on Friday also announced a five-year debt financing plan with SLR Capital Partners for up to $65 million. The company said the deal, along with its existing cash balance, will support the commercial launch of Roldvedon, a treatment for chemotherapy-induced neutropenia that received FDA approval this month, and fund operations through 2024. Spectrum’s stock is down 49.2% this year, while the broader S&P 500 SPX, -1.40% has declined 20.5%.