10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q

ý QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2018

¨ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from  to

Commission File Number: 001-35006

SPECTRUM PHARMACEUTICALS, INC.

(Exact name of registrant as specified in its charter)

Delaware	93-0979187
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)
11500 South Eastern Avenue, Suite 240 Henderson, Nevada	89052
(Address of principal executive offices)	(Zip Code)

(702) 835-6300

(Registrant’s telephone number, including area code)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes  ý    No  ¨

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the Registrant was required to submit and post such files).    Yes  ý    No  ¨

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer	¨	Accelerated filer	ý
Non-accelerated filer	¨ (Do not check if a smaller reporting company)	Smaller reporting company	¨
		Emerging Growth Company	¨

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    Yes  ¨    No  ý

As of July 31, 2018, 105,958,838shares of the registrant’s common stock were outstanding.

SPECTRUM PHARMACEUTICALS, INC.

QUARTERLY REPORT ON FORM 10-Q

FOR THE THREE AND SIX MONTHS ENDED JUNE 30,2018

TABLE OF CONTENTS

Item		Page
	PART I. FINANCIAL INFORMATION
Item 1.	Condensed Consolidated Financial Statements (unaudited):
	Condensed Consolidated Balance Sheets as of June 30, 2018 and December 31, 2017	3
	Condensed Consolidated Statements of Operations for the three and six months ended June 30, 2018 and 2017	4
	Condensed Consolidated Statements of Comprehensive Loss for the three and six months ended June 30, 2018 and 2017	5
	Condensed Consolidated Statements of Cash Flows for the six months ended June 30, 2018 and 2017	6
	Notes to Condensed Consolidated Financial Statements	7
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	40
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	50
Item 4.	Controls and Procedures	50
	PART II. OTHER INFORMATION
Item 1.	Legal Proceedings	50
Item 1A.	Risk Factors	51
Item 6.	Exhibits	52
	Signatures	53

Items 2 through 5 of Part II have been omitted because they are not applicable with respect to the current reporting period.

SPECTRUM PHARMACEUTICALS, INC. ®, FUSILEV®, FOLOTYN®, ZEVALIN®, MARQIBO®, BELEODAQ® , EVOMELA®, and ROLONTIS® are registered trademarks of Spectrum Pharmaceuticals, Inc. and its affiliates. QAPZOLA™,REDEFINING CANCER CARE™ and the Spectrum Pharmaceuticals’ logos are trademarks owned by Spectrum Pharmaceuticals, Inc. Any other trademarks are the property of their respective owners.

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PART I: FINANCIAL INFORMATION

ITEM 1: CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

SPECTRUM PHARMACEUTICALS, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands, except share and par value amounts)

(Unaudited)

	June 30, 2018			December 31, 2017
ASSETS
Current assets:
Cash and cash equivalents	$	174,371		$	227,323
Marketable securities	95,287			248
Accounts receivable, net of allowance for doubtful accounts of $70 and $71, respectively	27,658			32,260
Other receivables	2,915			2,133
Inventories	4,520			5,715
Prepaid expenses and other assets	4,769			10,067
Total current assets	309,520			277,746
Property and equipment, net of accumulated depreciation	523			589
Intangible assets, net of accumulated amortization	123,214			137,159
Goodwill	18,106			18,162
Other assets	13,159			53,783
Total assets	$	464,522		$	487,439
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable and other accrued liabilities	$	49,886		$	58,117
Accrued payroll and benefits	4,946			9,261
Deferred revenue	—			3,872
FOLOTYN development liability	211			275
Convertible senior notes	39,427			38,224
Total current liabilities	94,470			109,749
FOLOTYN development liability, less current portion	11,980			12,111
Deferred revenue, less current portion	—			315
Acquisition-related contingent obligations	6,755			6,272
Deferred tax liabilities	1,447			1,438
Other long-term liabilities	5,751			6,215
Total liabilities	120,403			136,100
Commitments and contingencies
Stockholders’ equity:
Preferred stock, $0.001 par value; 5,000,000 shares authorized; no shares issued and outstanding	—			—
Common stock, $0.001 par value; 300,000,000 shares authorized; 105,130,603 and 100,742,735 shares issued and outstanding at June 30, 2018 and December 31, 2017, respectively	103			100
Additional paid-in capital	829,052			837,347
Accumulated other comprehensive (loss) income	(3,088		)	15,999
Accumulated deficit	(481,948		)	(502,107		)
Total stockholders’ equity	344,119			351,339
Total liabilities and stockholders’ equity	$	464,522		$	487,439

See accompanying notes to these unaudited condensed consolidated financial statements.

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SPECTRUM PHARMACEUTICALS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(In thousands, except share and per share amounts)

(Unaudited)

	Three Months Ended June 30,						Six Months Ended June 30,
	2018			2017			2018			2017
Revenues:
Product sales, net	$	23,753		$	31,156		$	51,863		$	57,001
License fees and service revenue	415			3,145			2,799			6,401
Total revenues	$	24,168		$	34,301		$	54,662		$	63,402
Operating costs and expenses:
Cost of sales (excludes amortization of intangible assets)	6,606			11,303			13,420			19,439
Cost of service revenue	—			2,118			—			4,221
Selling, general and administrative	23,451			17,421			47,556			36,525
Research and development	21,488			15,167			39,382			29,945
Amortization of intangible assets	6,934			6,901			13,880			13,790
Total operating costs and expenses	58,479			52,910			114,238			103,920
Loss from operations	(34,311		)	(18,609		)	(59,576		)	(40,518		)
Other income (expense):
Interest expense, net	(242		)	(2,131		)	(472		)	(4,182		)
Change in fair value of contingent consideration related to acquisitions	(192		)	(97		)	(483		)	(294		)
Other income, net	48,492			240			58,463			650
Total other income (expense)	48,058			(1,988		)	57,508			(3,826		)
Income (loss) before income taxes	13,747			(20,597		)	(2,068		)	(44,344		)
Provision for income taxes	(3		)	(255		)	(6		)	(54		)
Net income (loss)	$	13,744		$	(20,852	)	$	(2,074	)	$	(44,398	)
Net income (loss) per share:
Basic	$	0.13		$	(0.27	)	$	(0.02	)	$	(0.57	)
Diluted (Note 7)	$	0.13		$	(0.27	)	$	(0.02	)	$	(0.57	)
Weighted average shares outstanding:
Basic	102,597,059			78,576,260			101,747,416			78,366,610
Diluted	112,617,150			78,576,260			101,747,416			78,366,610

See accompanying notes to these unaudited condensed consolidated financial statements.

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SPECTRUM PHARMACEUTICALS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS

(In thousands)

(Unaudited)

	Three Months Ended June 30,						Six Months Ended June 30,
	2018			2017			2018			2017
Net income (loss)	$	13,744		$	(20,852	)	$	(2,074	)	$	(44,398	)
Other comprehensive loss:
Unrealized loss on available-for-sale securities, net of income tax benefit of $960, and $0 for the three and six months ended June 30, 2017	—			(2,951		)	—			(1,144		)
Cumulative effect of ASU 2016-01 adoption on January 1, 2018 for unrealized gains on equity securities, net of income tax; recorded as a reclassification to "accumulated deficit" (see Note 3(a))	—			—			(17,211		)	—
Foreign currency translation adjustments	(2,269		)	792			(1,876		)	944
Other comprehensive loss	(2,269		)	(2,159		)	(19,087		)	(200		)
Total comprehensive income (loss)	$	11,475		$	(23,011	)	$	(21,161	)	$	(44,598	)

See accompanying notes to these unaudited condensed consolidated financial statements.

5

SPECTRUM PHARMACEUTICALS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands)

(Unaudited)

	Six Months Ended June 30,
	2018			2017
Cash Flows From Operating Activities:
Net loss	$	(2,074	)	$	(44,398	)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization	13,993			13,961
Stock-based compensation	9,211			7,207
Accretion of debt discount on 2018 Convertible Notes, recorded to interest expense (Note 13)	1,079			2,794
Amortization of deferred financing costs on 2018 Convertible Notes, recorded to interest expense (Note 13)	124			321
Unrealized gains from transactions denominated in foreign currency	10			(15		)
Change in cash surrender value of corporate-owned life insurance policy	(5		)	(153		)
Deferred tax liabilities	9			127
Income tax recognition on unrealized gain for available-for-sale securities	—			—
Unrealized gains on marketable securities (Note 3(a))	(58,634		)	—
Change in fair value of contingent consideration related to the Talon and EVOMELA acquisitions (Note 9)	483			294
Changes in operating assets and liabilities:
Accounts receivable, net	5,087			(2,105		)
Other receivables	(781		)	1,299
Inventories	816			428
Prepaid expenses	1,167			(439		)
Other assets	3,451			863
Accounts payable and other accrued obligations	(8,210		)	3,519
Accrued payroll and benefits	(4,314		)	(2,737		)
FOLOTYN development liability	(195		)	(567		)
Deferred revenue	—			(700		)
Other long-term liabilities	(464		)	847
Net cash used in operating activities	(39,247		)	(19,454		)
Cash Flows From Investing Activities:
Proceeds from redemption of corporate-owned life insurance policy	4,130			—
Payment for corporate-owned life insurance premiums	—			(601		)
Redemption of mutual funds	—			(1		)
Purchases of property and equipment	(46		)	(167		)
Net cash provided by (used in) investing activities	4,084			(769		)
Cash Flows From Financing Activities:
Proceeds from employees for exercises of stock options	4,804			1,010
Proceeds from sale of stock under employee stock purchase plan	734			406
Proceeds from employees, for our remittance to tax authorities, related to employee vesting of restricted stock and stock option exercises	4,645			—
Payments to tax authorities related to employee surrender of vested restricted stock and stock option exercises	(27,686		)	(1,284		)
Net cash (used in) provided by financing activities	(17,503		)	132
Effect of exchange rates on cash and equivalents	(286		)	182
Net decrease in cash and cash equivalents	(52,952		)	(19,909		)
Cash and cash equivalents—beginning of period	227,323			158,222
Cash and cash equivalents—end of period	$	174,371		$	138,313
Supplemental disclosure of cash flow information:
Cash paid for income taxes	$	27		$	10
Cash paid for interest	$	558		$	1,513

See accompanying notes to these unaudited condensed consolidated financial statements.

6

Spectrum Pharmaceuticals, Inc.

Notes to Condensed Consolidated Financial Statements

(all tabular amounts presented in thousands, except share, per share, per unit, and number of years)

(Unaudited)

1. DESCRIPTION OF BUSINESS, BASIS OF PRESENTATION, AND OPERATING SEGMENT

(a) Description of Business

Spectrum Pharmaceuticals, Inc. (“Spectrum”, the “Company”, “we”, “our”, or “us”) is a biopharma company, with a primary strategy comprised of acquiring, developing, and commercializing a broad and diverse pipeline of late-stage clinical and commercial products. We have an in-house clinical development organization with regulatory and data management capabilities, in addition to commercial infrastructure and a field-based sales force for our marketed products. Currently, we have six approved oncology/hematology products (FUSILEV, FOLOTYN, ZEVALIN, MARQIBO, BELEODAQ, and EVOMELA) that target different types of cancer including: non-Hodgkin’s lymphoma (“NHL”), advanced metastatic colorectal cancer, acute lymphoblastic leukemia, and multiple myeloma (“MM”).

We also have three drugs in mid-to-late stage development (in Phase 2 or Phase 3 clinical trials):

• poziotinib, a novel pan-HER inhibitor used in the treatment of patients with a variety of solid tumors, including breast and lung cancer;

• ROLONTIS for chemotherapy-induced neutropenia; and

• QAPZOLA for immediate intravesical instillation in post-transurethral resection of bladder tumors in patients with non-muscle invasive bladder cancer (“NMIBC”).

(b) Basis of Presentation

Interim Financial Statements

The interim financial data for the three and six months ended June 30, 2018 and 2017, respectively, is unaudited, and is not necessarily indicative of our operating results for a full year. In the opinion of our management, the interim data includes normal and recurring adjustments necessary for a fair presentation of our financial results for the three and six months ended June 30, 2018 and 2017. Certain information and footnote disclosures normally included in annual financial statements prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) have been condensed or omitted pursuant to the U.S. Securities and Exchange Commission (“SEC”) rules and regulations relating to interim financial statements. The accompanying Condensed Consolidated Financial Statements should be read in conjunction with our audited Consolidated Financial Statements and Notes thereto included within our Annual Report on Form 10-K for the fiscal year ended December 31, 2017 (filed with the SEC on March 7, 2018).

Principles of Consolidation

The accompanying Condensed Consolidated Financial Statements have been prepared in accordance with GAAP and with the rules and regulations of the SEC. These financial statements include the financial position, results of operations, and cash flows of Spectrum and its subsidiaries, all of which are wholly-owned (except for Spectrum Pharma Canada (“SPC”), as discussed below). All inter-company accounts and transactions among these legal entities have been eliminated in consolidation.

Variable Interest Entity

We own fifty-percent of SPC, a legal entity organized in Quebec, Canada in January 2008. Some of our clinical studies are conducted through this “variable interest entity” (as defined under applicable GAAP). We fund all of SPC’s operating costs, and since we assume all risks and rewards for this entity, we meet the criteria as being its “primary beneficiary.” Accordingly, SPC’s balance sheets and statements of operations are included in our Condensed Consolidated Financial Statements as if it were a wholly-owned subsidiary for all periods presented.

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Notes to Condensed Consolidated Financial Statements

(all tabular amounts presented in thousands, except share, per share, per unit, and number of years)

(Unaudited)

(c) Operating Segment

We operate in one reportable operating segment that is focused exclusively on developing and marketing oncology and hematology drug products. For the three and six months ended June 30, 2018 and 2017, all of our revenue and related expenses were solely attributable to these activities. Substantially all of our assets (excluding cash held in certain foreign bank accounts and ZEVALIN distribution rights for ex-U.S. territories - see Note 3(f)) are held in the United States.

2. USE OF ESTIMATES AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The preparation of financial statements in conformity with GAAP requires our management to make informed estimates and assumptions that affect our reported amounts of assets, liabilities, revenues, and expenses. These amounts may materially differ from the amount ultimately realized and reported due to the inherent uncertainty of any estimate or assumption. On an on-going basis, our management evaluates its most critical estimates and assumptions, including those related to (i) gross-to-net revenue adjustments; (ii) the timing of revenue recognition; (iii) the collectability of customer accounts; (iv) whether the cost of our inventories can be recovered; (v) the recoverability of our reported goodwill and intangible assets; (vi) the realization of our tax assets and estimates of our tax liabilities; (vii) the likelihood of payment and value of contingent liabilities; (viii) the fair value of our investments; (ix) the valuation of our stock options and the periodic expense recognition of stock-based compensation; and (x) the potential outcome of our ongoing or threatened litigation.

Our accounting policies and estimates that most significantly impact the presented amounts within our Condensed Consolidated Financial Statements are further described below:

(i) Revenue Recognition

Impact of the New Revenue Recognition Standard:ASU No. 2014-09, Revenue from Contracts with Customers (“Topic 606”), became effective for us on January 1, 2018. Our disclosure within the below sections to this footnote reflects our updated accounting policies that are affected by this new standard. We applied the “modified retrospective” transition method for open contracts for the implementation of Topic 606; thisresulted in the recognition of an aggregate $4.7 million, net of tax, decrease to our January 1, 2018 “accumulated deficit” on our accompanying Condensed Consolidated Balance Sheets for the cumulative impact of applying this new standard. We made no adjustments to our previously-reported total revenues, as those periods continue to be presented in accordance with our historical accounting practices under Topic 605, Revenue Recognition. See Notes 4, 5, and 19 for additional quantitative and qualitative revenue disclosures in accordance with Topic 606.

Required Elements of Our Revenue Recognition: Revenue from our (a) product sales, (b) out-license arrangements, and (c) service arrangements is recognized under Topic 606 in a manner that reasonably reflects the delivery of our goods and/or services to customers in return for expected consideration and includes the following elements:

(1) we ensure that we have an executed contract(s) with our customer that we believe is legally enforceable;

(2) we identify the “performance obligations” in the respective contract;

(3) we determine the “transaction price” for each performance obligation in the respective contract;

(4) we allocate the transaction price to each performance obligation; and

(5) we recognize revenue only when we satisfy each performance obligation.

    These five elements, as applied to each of our revenue categories, are summarized below:

(a) Product Sales: We sell our products to pharmaceutical wholesalers/distributors (i.e., our customers), except for our U.S. sales of ZEVALIN in which case the end-user (i.e., clinic or hospital) is our customer. Our wholesalers/distributors in turn sell our products directly to clinics, hospitals, and private oncology-based practices. Revenue from our product sales is recognized as physical delivery of product occurs (when our customer obtains control of the product), in return for agreed-upon consideration.

Our gross product sales (i.e., delivered units multiplied by the contractual price per unit) are reduced by our corresponding gross-to-net (“GTN”) estimates using the “expected value” method, resulting in our reported “product sales, net” in the accompanying Condensed Consolidated Statements of Operations, reflecting the amount we ultimately expect to realize in net cash proceeds, taking into account our current period gross sales and related cash receipts, and the subsequent cash

8

Notes to Condensed Consolidated Financial Statements

(all tabular amounts presented in thousands, except share, per share, per unit, and number of years)

(Unaudited)

disbursements on these sales that we estimate for the various GTN categories discussed below. These estimates are based upon information received from external sources (such as written or oral information obtained from our customers with respect to their period-end inventory levels and sales to end-users during the period), in combination with management’s informed judgments. Due to the inherent uncertainty of these estimates, the actual amount incurred (of some, or all) of product returns, government chargebacks, prompt pay discounts, commercial rebates, Medicaid rebates, and distribution, data, and GPO administrative fees may be materially above or below the amount estimated, then requiring prospective adjustments to our reported net product sales.

These GTN estimate categories are each discussed below:

Product Returns Allowances: Our FUSILEV, MARQIBO, and BELEODAQ customers are contractually permitted to return purchased products beginning at its expiration date and within six months thereafter. Our EVOMELA customers are permitted to return purchased product beginning at six months prior to its expiration date, and within 12 months thereafter (as well as for overstock inventory, as determined by end-users). ZEVALIN and FOLOTYN returns for expiry are not contractually permitted. Returns outside of this aforementioned criteria are not customarily allowed. We estimate expected product returns for our allowance based on our historical return rates. Returned product is typically destroyed, since substantially all returns are due to expiry and cannot be resold.

Government Chargebacks: Our products are subject to pricing limits under certain federal government programs (e.g., Medicare and 340B Drug Pricing Program). Qualifying entities (i.e., end-users) purchase products from our customers at their qualifying discounted price. The chargeback amount we incur represents the difference between our contractual sales price to our customer, and the end-user’s applicable discounted purchase price under the government program. There may be significant lag time between our reported net product sales and our receipt of the corresponding government chargeback claims from our customers.

Prompt Pay Discounts: Discounts for prompt payment are estimated at the time of sale, based on our eligible customers’ prompt payment history and the contractual discount percentage.

Commercial Rebates: Commercial rebates are based on (i) our estimates of end-user purchases through a group purchasing organization (“GPO”), (ii) the corresponding contractual rebate percentage tier we expect each GPO to achieve, and (iii) our estimates of the impact of any prospective rebate program changes made by us.

Medicaid Rebates: Our products are subject to state government-managed Medicaid programs, whereby rebates are issued to participating state governments. These rebates arise when a patient treated with our product is covered under Medicaid, resulting in a discounted price for our product under the applicable Medicaid program. Our Medicaid rebate accrual calculations require us to project the magnitude of our sales, by state, that will be subject to these rebates. There is a significant time lag in us receiving rebate notices from each state (generally several months or longer after our sale is recognized). Our estimates are based on our historical claim levels by state, as supplemented by management’s judgment.

Distribution, Data, and GPO Administrative Fees: Distribution, data, and GPO administrative fees are paid to authorized wholesalers/distributors of our products (except for U.S. sales of ZEVALIN) for various commercial services including: contract administration, inventory management, delivery of end-user sales data, and product returns processing. These fees are based on a contractually-determined percentage of our applicable sales.

(b) License Fees: Our out-license arrangements allow licensees to market our product(s) in certain territories for a specific term (representing the out-license of “functional intellectual property”). These arrangements may include one or more of the following forms of consideration: (i) upfront license fees, (ii) sales royalties, (iii) sales milestone-achievement fees, and (iv) regulatory milestone-achievement fees. We recognize revenue for each based on the contractual terms that establish our right to collect payment once the performance obligation is achieved, as follows:

(1) Upfront license fees: We determine whether upfront license fees are earned at the time of contract execution (i.e., when rights transfer to the customer) or over the actual (or implied) contractual period of the out-license. As part of this determination, we evaluate whether we have any other requirements to provide substantive services that are inseparable from the performance obligation of the license transfer. Our customers’ “distinct” rights to licensed “functional intellectual property” at the time of contract execution results in concurrent revenue recognition of all upfront license fees (assuming that there are no other performance obligations at contract execution that are inseparable from this license transfer).

9

Notes to Condensed Consolidated Financial Statements

(all tabular amounts presented in thousands, except share, per share, per unit, and number of years)

(Unaudited)

(2) Royalties: Under the “sales-or-usage-based royalty exception” we recognize revenue in the same period that our

licensees complete product sales in their territory for which we are contractually entitled to a percentage-based royalty receipt.

(3) Sales milestones: Under the “sales-or-usage-based royalty exception” we recognize revenue in full within the period that our licensees achieve annual or aggregate product sales levels in their territories for which we are contractually entitled to a specified lump-sum receipt.

(4) Regulatory milestones: Under the terms of the respective out-license, regulatory achievements may either be our responsibility, or that of our licensee.

• When our licensee is responsible for the achievement of the regulatory milestone, we recognize revenue in full (for the contractual amount due from our licensee) in the period that the approval occurs (i.e., when the “performance obligation” is satisfied by our customer) under the “most likely amount” method. This revenue recognition remains “constrained” (i.e., not recognized) until regulatory approval occurs, given its inherent uncertainty and the requirement of a significant revenue reversal not being probable if achievement does not occur. At each reporting period, we re-evaluate the probability of milestone achievement and the associated revenue constraint; any resulting adjustments would be recorded on a cumulative catch-up basis, thus reflected in our financial statements in the period of adjustment.

• When we are responsible for the achievement of a regulatory milestone, the “relative selling price method” is applied for purposes of allocating the transaction price to our performance obligations. In such case, we consider (i) the extent of our effort to achieve the milestone and/or the enhancement of the value of the delivered item(s) as a result of milestone achievement and (ii) if the milestone payment is reasonable relative to all of the deliverables and payment terms (including other potential milestone consideration) within the arrangement. We have historically assessed the contractual value of these milestones upon their achievement to be identical to the allocation of value of our performance obligations and thus representing the “transaction price” for each milestone at contract inception. We recognize this revenue in the period that the regulatory approval occurs (i.e., when we complete the “performance obligation”) under the “most likely amount” method, and revenue recognition is otherwise “constrained” until regulatory approval occurs, given its inherent uncertainty and the requirement of a significant revenue reversal not being probable if achievement does not occur. At each reporting period, we re-evaluate the probability of milestone achievement and the associated revenue constraint; any resulting adjustments would be recorded on a cumulative catch-up basis, thus reflected in our financial statements in the period of adjustment.

(c) Service Revenue: We receive fees under certain arrangements for (i) sales and marketing services, (ii) supply chain services, (iii) research and development services, and (iv) clinical trial management services.

Our rights to receive payment for these services may be established by (1) a fixed-fee schedule that covers the term of the arrangement, so long as we meet ongoing performance obligations, (2) our completion of product delivery in our capacity as a procurement agent, (3) the successful completion of a phase of drug development, (4) favorable results from a clinical trial, and/or (5) regulatory approval events.

We consider whether revenue associated with these service arrangements is reportable each period, based on our completed services or deliverables (i.e., satisfied “performance obligations”) during the reporting period, and the terms of the arrangement that contractually result in fixed payments due to us. The promised service(s) within these arrangements are distinct and explicitly stated within each contract, and our customer benefits from the separable service(s) delivery/completion. Further, the nature of the promise to our customer as stated within the respective contract is to deliver each named service individually (not a transfer of combined items to which the promised goods or services are inputs), and thus are separable for revenue recognition.

(ii) Cash and Cash Equivalents

Cash and cash equivalents consist of bank deposits and highly liquid investments with maturities of three months or less from the purchase date.

10

Notes to Condensed Consolidated Financial Statements

(all tabular amounts presented in thousands, except share, per share, per unit, and number of years)

(Unaudited)

(iii) Marketable Securities

Our marketable securities consist of our holdings in equity securities (beginning January 1, 2018 - see Note 3(a)), mutual funds, and bank certificates of deposit (“Bank CDs”). Beginning January 1, 2018, our realized and unrealized gains (losses) on marketable securities are included in “Other income, net” on the accompanying Condensed Consolidated Statements of Operations. Prior to January 1, 2018, our unrealized gains (losses) were included in “other comprehensive (loss) income” on our accompanying Condensed Consolidated Statements of Comprehensive Loss.

(iv) Accounts Receivable

Our accounts receivables are derived from our product sales and license fees (our service revenue is recorded in “other receivables”), and do not bear interest. The allowance for doubtful accounts is management’s best estimate of the amount of probable credit losses in our existing accounts receivable. Account balances are charged off against the allowance after appropriate collection efforts are exhausted.

(v) Inventories

We value our inventory at the lower of (i) the actual cost of its purchase or manufacture, or (ii) its net realizable value. Inventory cost is determined on the first-in, first-out method. We regularly review our inventory quantities in process of manufacture and on hand. When appropriate, we record a provision for obsolete and excess inventory to derive its new cost basis, which takes into account our sales forecast by product and corresponding expiry dates of each product lot.

Manufacturing costs of drug products that are pending U.S. Food and Drug Administration (“FDA”) approval are expensed through “research and development,” on the accompanying Condensed Consolidated Statements of Operations (rather than being capitalized to “inventories”).

(vi) Property and Equipment

Our property and equipment is stated at historical cost, and is depreciated on a straight-line basis over an estimated useful life that corresponds with its designated asset category. We evaluate the recoverability of “long-lived assets” (which includes property and equipment) whenever events or changes in circumstances in our business indicate that the asset’s carrying amount may not be recoverable through our on-going operations.

(vii) Goodwill and Intangible Assets

Our goodwill represents the excess of our business acquisition cost over the estimated fair value of the net assets acquired in the corresponding transaction. Goodwill has an indefinite accounting life and is therefore not amortized. Instead, goodwill is evaluated for impairment on an annual basis (as of each October 1st), unless we identify impairment indicators that would require earlier testing.

We evaluate the recoverability of indefinite-lived intangible assets at least annually, or whenever events or changes in our business indicate that an intangible asset’s (whether indefinite or definite-lived) carrying amount may not be recoverable. Such circumstances could include, but are not limited to the following:

(a) a significant decrease in the market value of an asset;

(b) a significant adverse change in the extent or manner in which an asset is used; or

(c) an accumulation of costs significantly in excess of the amount originally expected for the acquisition of an asset.

Intangible assets with finite useful lives are amortized over their estimated useful lives on a straight-line basis. We review these assets for potential impairment if/when facts or circumstances suggest that the carrying value of these assets may not be recoverable.

(viii) Stock-Based Compensation

11

Notes to Condensed Consolidated Financial Statements

(all tabular amounts presented in thousands, except share, per share, per unit, and number of years)

(Unaudited)

Stock-based compensation expense for equity awards granted to our employees and members of our Board of Directors is recognized on a straight-line basis over each award’s vesting period. Recognized compensation expense is net of an estimated forfeiture rate, representing the percentage of awards that are expected to be forfeited prior to vesting, though is ultimately adjusted for actual forfeitures. We use the Black-Scholes option pricing model to determine the fair value of stock options (as of the date of grant) that have service conditions for vesting. We use the Monte Carlo valuation model to value equity awards (as of the date of grant) that have combined market conditions and service conditions for vesting.

The recognition of stock-based compensation expense and the initial calculation of stock option fair value requires uncertain assumptions, including (a) the pre-vesting forfeiture rate of the award, (b) the expected term that the stock option will remain outstanding, (c) our stock price volatility over the expected term (and that of our designated peer group with respect to certain market-based awards), and (d) the prevailing risk-free interest rate for the period matching the expected term.

With regard to (a)-(d): We estimate forfeiture rates based on our employees’ overall forfeiture history, which we believe will be representative of future results. We estimate the expected term of stock options granted based on our employees’ historical exercise patterns, which we believe will be representative of their future behavior. We estimate the volatility of our common stock on the date of grant based on historical volatility of our common stock for a look-back period that corresponds with the expected term. We estimate the risk-free interest rate based upon the U.S. Department of the Treasury yields in effect at award grant, for a period equaling the expected term of the stock option.

(ix) Foreign Currency Translation

We translate the assets and liabilities of our foreign subsidiaries that are stated in their functional currencies (i.e., local operating currencies), to U.S. dollars at the rates of exchange in effect at the reported balance sheet date. Revenues and expenses are translated using the monthly average exchange rates during the reported period. Unrealized gains and losses from the translation of our subsidiaries’ financial statements (that are initially denominated in the corresponding functional currency) are included as a separate component of “accumulated other comprehensive (loss) income” in the Condensed Consolidated Balance Sheets.

We record foreign currency transactions, when initially denominated in a currency other than the respective functional currency of our subsidiary, at the prevailing exchange rate on the date of the transaction. Resulting unrealized foreign exchange gains and losses from transactions with third parties are included in “accumulated other comprehensive (loss) income” in the Condensed Consolidated Balance Sheets.

All unrealized foreign exchange gains and losses associated with our intercompany loans are included in “accumulated other comprehensive (loss) income” in the Condensed Consolidated Balance Sheets, as these loans with our foreign subsidiaries are not expected to be settled in the “foreseeable future.”

(x) Basic and Diluted Net Loss per Share

We calculate basic and diluted net loss per share using the weighted average number of common shares outstanding during the periods presented. In periods of a net loss, basic and diluted loss per share are the same. For the diluted earnings per share calculation, we adjust the weighted average number of common shares outstanding to include only dilutive stock options, warrants, and other common stock equivalents outstanding during the period.

(xi) Income Taxes

Deferred tax assets and liabilities are recorded based on the estimated future tax effects of temporary differences between the tax basis of assets and liabilities and amounts reported in the financial statements, as well as operating losses and tax credit carry forwards using enacted tax rates and laws that are expected to be in effect when the differences are expected to reverse. Realization of deferred tax assets is dependent upon future earnings, the timing and amount of which are uncertain.

We have recorded a valuation allowance to reduce our deferred tax assets, because we believe that, based upon a weighting of positive and negative factors, it is more likely than not that these deferred tax assets will not be realized. If/when we were to determine that our deferred tax assets are realizable, an adjustment to the corresponding valuation allowance would increase our net income in the period that such determination was made.

12

Notes to Condensed Consolidated Financial Statements

(all tabular amounts presented in thousands, except share, per share, per unit, and number of years)

(Unaudited)

In the event that we are assessed interest and/or penalties from taxing authorities that have not been previously accrued, such amounts would be included in “provision for income taxes” within the Condensed Consolidated Statements of Operations for the period in which we received the notice.

(xii) Research and Development Costs

Our research and development costs are expensed as incurred, or as certain milestone payments become due, which are generally triggered by contractual clinical or regulatory events.

(xiii) Fair Value Measurements

We determine measurement-date fair value based on the proceeds that would be received through the sale of the asset, or that we would pay to settle or transfer the liability, in an orderly transaction between market participants. We utilize valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs to the extent possible. Fair value measurements are based on a three-tier hierarchy that prioritizes the inputs used to measure fair value. These tiers include the following:

Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities that are publicly accessible at the measurement date.

Level 2: Observable prices that are based on inputs not quoted on active markets, but that are corroborated by market data. These inputs may include quoted prices for similar assets or liabilities or quoted market prices in markets that are not active to the general public.

Level 3: Unobservable inputs are used when little or no market data is available.

3. BALANCE SHEET ACCOUNT DETAIL

The composition of selected financial statement captions that comprise the accompanying Condensed Consolidated Balance Sheets are summarized below:

(a) Cash and Cash Equivalents and Marketable Securities

As of June 30, 2018 and December 31, 2017, our “cash and cash equivalents” were held with major financial institutions. Our “marketable securities” solely relate to our equity holdings in CASI (see Note 10).

We maintain cash balances in excess of federally insured limits with reputable financial institutions. To a limited degree, the Federal Deposit Insurance Corporation (“FDIC”) and other third parties insure these investments. However, these investments are not insured against the possibility of a complete loss of earnings or principal and are inherently subject to the credit risk related to the continued credit worthiness of the underlying issuer and general credit market risks. We manage such risks in our portfolio by investing in highly liquid, highly-rated instruments, and limit investing in long-term maturity instruments.

Our investment policy requires that purchased investments in marketable securities may only be in highly-rated instruments, which are primarily U.S. treasury bills or treasury-backed securities, and also limits our investments in securities of any single issuer (excluding any debt or equity securities received from our strategic partners in connection with an out-license arrangement, as discussed in Note 10).

The carrying amount of our equity securities, money market funds, and Bank CDs approximates their fair value (utilizing “Level 1” or “Level 2” inputs – see Note 2(xiii)) because of our ability to immediately convert these instruments into cash with minimal expected change in value.

The following is a summary of our presented “cash and cash equivalents” and “marketable securities”:

13

Notes to Condensed Consolidated Financial Statements

(all tabular amounts presented in thousands, except share, per share, per unit, and number of years)

(Unaudited)

	Cost		Foreign Currency Translation			Gross Unrealized Gains*		Gross Unrealized Losses		Estimated Fair Value		Cash and Cash Equivalents		Marketable Securities
June 30, 2018
Equity securities* (see Note 3(g) and Note 10)	$	8,710	$	(1,747	)	$	88,075	$	—	$	95,038	$	—	$	95,038
Bank deposits	10,769		—			—		—		10,769		10,769		—
Money market funds	163,602		—			—		—		163,602		163,602		—
Bank certificates of deposits	249		—			—		—		249		—		249
Total cash and cash equivalents and marketable securities	$	183,330	$	(1,747	)	$	88,075	$	—	$	269,658	$	174,371	$	95,287
December 31, 2017
Bank deposits	$	10,965	$	—		$	—	$	—	$	10,965	$	10,965	$	—
Money market funds	216,358		—			—		—		216,358		216,358		—
Bank certificates of deposits	248		—			—		—		248		—		248
Total cash and cash equivalents and marketable securities	$	227,571	$	—		$	—	$	—	$	227,571	$	227,323	$	248

* Beginning January 1, 2018, under the new requirements of ASU 2016-01, Recognition and Measurement of Financial Assets and Liabilities, the unrealized gains (losses) on our CASI Pharmaceuticals, Inc. (NASDAQ: CASI) (“CASI”) equity securities are recognized as an increase (decrease) to “other income, net” on the Consolidated Statements of Operations (rather than through “other comprehensive (loss) income” on the Consolidated Statements of Comprehensive Loss). Our adoption of ASU 2016-01 on January 1, 2018, resulted in a$17.2 million cumulative-effect adjustment, net of income tax, recorded as a decrease to “accumulated other comprehensive (loss) income” and a decrease to “accumulated deficit” on the accompanying Condensed Consolidated Balance Sheets. Our recognized unrealized gain on these equity securities for the three and six months ended June 30, 2018 was $48.5 million and $58.6 million, respectively, as reported in “other income, net” on the accompanying Condensed Consolidated Statements of Operations.

As of June 30, 2018, none of our securities were in an unrealized loss position.

(b) Property and Equipment, net of Accumulated Depreciation

“Property and equipment, net of accumulated depreciation” consists of the following:

	June 30, 2018			December 31, 2017
Computer hardware and software	$	3,080		$	2,994
Laboratory equipment	635			630
Office furniture	212			218
Leasehold improvements	2,938			2,938
Property and equipment, at cost	6,865			6,780
(Less): Accumulated depreciation	(6,342		)	(6,191		)
Property and equipment, net of accumulated depreciation	$	523		$	589

Depreciation expense (included within “total operating costs and expenses” in the accompanying Condensed Consolidated Statements of Operations) for the six months ended June 30, 2018 and 2017, was $112 thousand and $0.2 million, respectively.

In February 2016, the FASB issued ASU 2016-02, which amends the FASB Accounting Standards Codification and creates Topic 842, Leases. The new topic supersedes Topic 840, Leases, and requires lease assets and lease liabilities (including those for operating leases) to be presented on the balance sheet at their “gross amounts” and requires additional disclosures regarding lease arrangements. Topic 842 is effective for us beginning January 1, 2019, and mandates a “modified retrospective” transition method. We are currently assessing the quantitative impact this guidance will have on our consolidated financial statements. We presently do not have any capital lease arrangements, or have any active contracts that would contain an “embedded lease”. Our current lease arrangements affected by this “gross-up” presentation on our balance sheets, beginning

14

Notes to Condensed Consolidated Financial Statements

(all tabular amounts presented in thousands, except share, per share, per unit, and number of years)

(Unaudited)

January 1, 2019, are limited to our principal executive office in Henderson, Nevada, and our administrative and research and development facility in Irvine, California, in addition to several other administrative office leases.

(c) Inventories

“Inventories” consists of the following:

	June 30, 2018			December 31, 2017
Raw materials	$	2,149		$	1,077
Work-in-process	3,204			2,551
Finished goods	2,647			5,187
(Less:) Non-current portion of inventories included within "other assets" *	(3,480		)	(3,100		)
Inventories	$	4,520		$	5,715

* The “non-current” portion of inventories is presented within “other assets” in the accompanying Condensed Consolidated Balance Sheets at June 30, 2018 and December 31, 2017, respectively. This value of $3.5 million at June 30, 2018 represents product that we expect to sell beyond June 30,2019 and the value at December 31, 2017 represents product that we expect to sell beyond December 31, 2018.

.

(d) Prepaid Expenses and Other Assets

“Prepaid expenses and other assets” consists of the following:

	June 30, 2018		December 31, 2017
Other miscellaneous prepaid operating expenses	$	3,900	$	3,389
Prepaid insurance	761		645
Research and development supplies	108		1,883
Key employee life insurance - cash surrender value	—		4,150
Prepaid expenses and other assets	$	4,769	$	10,067

(e) Other Receivables

“Other receivables” consists of the following:

	June 30, 2018		December 31, 2017
Other miscellaneous receivables*	$	968	$	1,152
Income tax receivable	638		665
Insurance receivable	1,130		53
Reimbursements due from development partners for incurred research and development expenses	179		263
Other receivables	$	2,915	$	2,133

* As of June 30, 2018 and December 31, 2017, the balance is inclusive of $0.4 million and $0.4 million, respectively, of Medicaid rebate credits to be applied against future invoices for each respective state program, and $0.2 million and $0.4 million, respectively, of royalty receivables from Mundipharma International Corporation Limited (“Mundipharma”) for sales of ZEVALIN in Japan.

(f) Intangible Assets and Goodwill

Intangible assets, net of accumulated amortization and impairment charges consists of the following:

15

Notes to Condensed Consolidated Financial Statements

(all tabular amounts presented in thousands, except share, per share, per unit, and number of years)

(Unaudited)

			June 30, 2018
	Historical Cost		Accumulated Amortization			Foreign Currency Translation			Impairment			Net Amount		Full Amortization Period (months)	Remaining Amortization Period (months)
MARQIBO IPR&D (NHL and other novel indications)	$	17,600	$	—		$	—		$	—		$	17,600	n/a	n/a
EVOMELA distribution rights	7,700		(1,333		)	—			—			6,367		156	129
BELEODAQ distribution rights	25,000		(7,500		)	—			—			17,500		160	112
MARQIBO distribution rights	26,900		(19,342		)	—			—			7,558		81	21
FOLOTYN distribution rights (1)	118,400		(60,649		)	—			—			57,751		152	53
ZEVALIN distribution rights – U.S.	41,900		(39,294		)	—			—			2,606		123	9
ZEVALIN distribution rights – ex-U.S.	23,490		(17,624		)	(2,994		)	—			2,872		96	21
FUSILEV distribution rights (2)	16,778		(9,618		)	—			(7,160		)	—		56	0
FOLOTYN out-license (3)	27,900		(15,917		)	—			(1,023		)	10,960		110	49
Total intangible assets	$	305,668	$	(171,277	)	$	(2,994	)	$	(8,183	)	$	123,214

(1) Beginning June 2016, we adjusted the amortization period of our FOLOTYN distribution rights to November 2022 from March 2025, representing the period through which we expect to have patent protection from generic competition (see Note 16(g)).

(2) On February 20, 2015, the United States District Court for the District of Nevada found the patent covering FUSILEV to be invalid, which was upheld on appeal. On April 24, 2015, Sandoz began to commercialize a generic version of FUSILEV. This represented a “triggering event” under applicable GAAP in evaluating the value of our FUSILEV distribution rights as of March 31, 2015, resulting in a $7.2 million impairment charge (non-cash) in the first quarter of 2015. We accelerated amortization expense recognition in 2015 for the then remaining net book value of FUSILEV distribution rights.

(3) On May 29, 2013, we amended our FOLOTYN collaboration agreement with Mundipharma. As a result of the amendment, Europe and Turkey were excluded from Mundipharma’s commercialization territory, and their royalty rates and milestone payments to us were modified. This constituted a change under which we originally valued the FOLOTYN out-license as part of business combination accounting, resulting in an impairment charge (non-cash) of $1.0 million in the second quarter of 2013.

			December 31, 2017
	Historical Cost		Accumulated Amortization			Foreign Currency Translation			Impairment			Net Amount
MARQIBO IPR&D (NHL and other novel indications)	$	17,600	$	—		$	—		$	—		$	17,600
EVOMELA distribution rights	7,700		(1,037		)	—			—			6,663
BELEODAQ distribution rights	25,000		(6,563		)	—			—			18,437
MARQIBO distribution rights	26,900		(17,182		)	—			—			9,718
FOLOTYN distribution rights	118,400		(54,111		)	—			—			64,289
ZEVALIN distribution rights – U.S.	41,900		(37,557		)	—			—			4,343
ZEVALIN distribution rights – Ex-U.S.	23,490		(17,232		)	(2,471		)	—			3,787
FUSILEV distribution rights	16,778		(9,618		)	—			(7,160		)	—
FOLOTYN out-license	27,900		(14,555		)	—			(1,023		)	12,322
Total intangible assets	$	305,668	$	(157,855	)	$	(2,471	)	$	(8,183	)	$	137,159

Intangible asset amortization expense recognized during the six months ended June 30, 2018 and 2017, was $13.9 million and $13.8 million, respectively.

Estimated intangible asset amortization expense for the remainder of 2018 and the five succeeding fiscal years and thereafter is as follows:

16

Notes to Condensed Consolidated Financial Statements

(all tabular amounts presented in thousands, except share, per share, per unit, and number of years)

(Unaudited)

Years Ending December 31,
Remainder of 2018	$	13,850
2019	25,095
2020	19,756
2021	18,266
2022	15,882
2023	2,467
2024 and thereafter	10,298
	$	105,614

“Goodwill” consists of the following:

	June 30, 2018			December 31, 2017
Acquisition of Talon (MARQIBO rights)	$	10,526		$	10,526
Acquisition of ZEVALIN Ex-U.S. distribution rights	2,525			2,525
Acquisition of Allos (FOLOTYN rights)	5,346			5,346
Foreign currency exchange translation effects	(291		)	(235		)
Goodwill	$	18,106		$	18,162

(g) Other Assets

“Other assets” consists of the following:

	June 30, 2018		December 31, 2017
Equity securities (see Note 10)*	$	—	$	37,530
Key employee life insurance – cash surrender value	6,123		10,737
Inventories - non-current portion	3,480		3,100
Promissory note receivable - long term (see Note 10)	1,521		1,517
Income tax receivable**	668		668
Research & development supplies and other	1,367		231
Other assets	$	13,159	$	53,783

* As of March 31, 2018, we reclassified our presentation of these equity securities from this account caption to “marketable securities” on the face of our accompanying Condensed Consolidated Balance Sheets - see Note 3(a).

** This value represents the non-current portion of the refundable alternative minimum tax credit that is expected to be received over the next few years (see Note 16).

(h) Accounts Payable and Other Accrued Liabilities

“Accounts payable and other accrued liabilities” consists of the following:

	June 30, 2018		December 31, 2017
Trade accounts payable and other accrued liabilities	$	29,370	$	33,648
Accrued rebates	6,904		7,990
Accrued product royalty	3,427		4,339
Allowance for returns	4,378		4,045
Accrued data and distribution fees	3,036		4,305
Accrued GPO administrative fees	230		296
Accrued inventory management fee	799		1,126
Allowance for chargebacks	1,742		2,368
Accounts payable and other accrued liabilities	$	49,886	$	58,117

17

Notes to Condensed Consolidated Financial Statements

(all tabular amounts presented in thousands, except share, per share, per unit, and number of years)

(Unaudited)

Amounts presented within “accounts payable and other accrued liabilities” in the accompanying Condensed Consolidated Balance Sheets for our categories of GTN estimates (see Note 2(i)) were as follows:

	Commercial/Medicaid Rebates and Government Chargebacks			Distribution, Data, Inventory and GPO Administrative Fees			Product Return Allowances
Balance as of December 31, 2016	$	9,817		$	5,146		$	2,309
Add: provisions	106,647			20,104			2,807
(Less): credits or actual allowances	(106,106		)	(19,523		)	(1,071		)
Balance as of December 31, 2017	10,358			5,727			4,045
Add: provisions	33,083			7,094			898
(Less): credits or actual allowances	(34,795		)	(8,756		)	(565		)
Balance as of June 30, 2018	$	8,646		$	4,065		$	4,378

(i) Deferred Revenue

Deferred revenue (current and non-current) consists of the following:

	June 30, 2018		December 31, 2017
EVOMELA deferred revenue	$	—	$	3,819
ZEVALIN out-license in India territory (see Note 15(b)(iii))	—		368
Deferred revenue*	$	—	$	4,187

* On January 1, 2018, we reclassified the deferred revenue related to our EVOMELA product sales and our ZEVALIN out-license in the India territory of $3.8 million and $0.4 million, respectively. These amounts were included in the $4.7 million aggregate decrease to “accumulated deficit” on January 1, 2018, in accordance with the adoption of Topic 606 (see Note 2(i)).

(j) Other Long-Term Liabilities

“Other long-term liabilities” consists of the following:

	June 30, 2018		December 31, 2017
Accrued executive deferred compensation	$	5,212	$	5,928
Deferred rent (non-current portion)	1		52
Clinical study holdback fees, non-current	62		59
Other tax liabilities	176		176
Royalty liability	300		—
Other long-term liabilities	$	5,751	$	6,215

4. GROSS-TO-NET PRODUCT SALES

The below table presents a GTN (see Note 2(i)) product sales reconciliation for the accompanying Condensed Consolidated Statements of Operations:

18

Notes to Condensed Consolidated Financial Statements

(all tabular amounts presented in thousands, except share, per share, per unit, and number of years)

(Unaudited)

	Three Months Ended June 30,						Six Months Ended June 30,
	2018			2017			2018			2017
Gross product sales	$	44,062		$	67,709		$	93,651		$	125,926
Commercial rebates and government chargebacks	(16,053		)	(30,001		)	(33,083		)	(57,324		)
Data and distribution fees, GPO fees, and inventory management fees	(3,584		)	(5,176		)	(7,094		)	(9,640		)
Prompt pay discounts	(323		)	(419		)	(713		)	(688		)
Product returns	(349		)	(957		)	(898		)	(1,273		)
Product sales, net	$	23,753		$	31,156		$	51,863		$	57,001

5. COMPOSITION OF TOTAL REVENUE

The below table presents our net product sales by geography for the three and six months ended June 30, 2018 and 2017:

	Three Months Ended June 30,								Six Months Ended June 30,
	2018				2017				2018				2017
United States	$	21,347	89.9	%	$	29,064	93.3	%	$	44,545	85.9	%	$	52,865	92.7	%
International:
Europe/Canada	2,406		10.1	%	2,092		6.7	%	5,894		11.4	%	4,136		7.3	%
Asia Pacific	—		—	%	—		—	%	1,424		2.7	%	—		—	%
Total International	2,406		10.1	%	2,092		6.7	%	7,318		14.1	%	4,136		7.3	%
Product sales, net	$	23,753	100.0	%	$	31,156	100.0	%	$	51,863	100.0	%	$	57,001	100.0	%

The below table presents our net sales by product for the three and six months ended June 30, 2018 and 2017:

	Three Months Ended June 30,								Six Months Ended June 30,
	2018				2017				2018				2017
FOLOTYN	$	11,680	49.2	%	$	11,181	35.9	%	$	24,402	47.1	%	$	20,455	35.9	%
EVOMELA	5,779		24.3	%	10,058		32.3	%	13,913		26.8	%	16,359		28.7	%
BELEODAQ	2,703		11.4	%	3,396		10.9	%	5,416		10.4	%	6,267		11.0	%
ZEVALIN	1,638		6.9	%	2,297		7.4	%	4,661		9.0	%	5,144		9.0	%
MARQIBO	1,149		4.8	%	2,163		6.9	%	2,043		3.9	%	4,142		7.3	%
FUSILEV	804		3.4	%	2,061		6.6	%	1,428		2.8	%	4,634		8.1	%
Product sales, net	$	23,753	100.0	%	$	31,156	100.0	%	$	51,863	100.0	%	$	57,001	100.0	%

The below table presents our license fees and service revenue by source for the three and six months ended June 30, 2018 and 2017:

19

Notes to Condensed Consolidated Financial Statements

(all tabular amounts presented in thousands, except share, per share, per unit, and number of years)

(Unaudited)

	Three Months Ended June 30,								Six Months Ended June 30,
	2018				2017				2018				2017
Out-license of FOLOTYN in all countries except the United States, Canada, Europe, and Turkey: royalties (Note 14)	$	415	100.0	%	$	119	3.8	%	792		28.3	%	382		6.0	%
Out-license of ZEVALIN: recognition of milestone achievement, upfront cash receipt and subsequent royalties for Asia and certain other territories, excluding China (Note 11)	—		—	%	630		20.0	%	2,001		71.5	%	1,245		19.5	%
Out-license of ZEVALIN: amortization of upfront cash receipt related to India territory (Note 15(b)(iii)) and other	—		—	%	12		0.4	%	6		0.2	%	24		0.4	%
Out-license of ZEVALIN, FOLOTYN, BELEODAQ, MARQIBO: upfront cash receipt and subsequent royalties for the Canada territory (Note 15(b)(xiv))	—		—	%	3		0.1	%	—		—	%	3		—	%
Sales and marketing contracted services (Note 12)	—		—	%	2,381		75.7	%			—	%	4,747		74.2	%
License fees and service revenues	$	415	100.0	%	$	3,145	100.0	%	$	2,799	100.0	%	$	6,401	100.0	%

6. STOCK-BASED COMPENSATION

We report our stock-based compensation expense (inclusive of our incentive stock plan, employee stock purchase plan, and 401(k) contribution matching program) in the accompanying Condensed Consolidated Statements of Operations, based on the assigned department of the recipient. Stock-based compensation expense included within “total operating costs and expenses” for the three and six months ended June 30, 2018 and 2017, was as follows (see Note 18 for a discussion of certain immaterial corrections affecting the presented 2017 amounts below):

	Three Months Ended June 30,				Six Months Ended June 30,
	2018		2017		2018		2017
Cost of sales	$	80	$	51	$	146	$	81
Selling, general and administrative	3,832		2,888		7,522		6,126
Research and development	822		548		1,543		1,000
Total stock-based compensation	$	4,734	$	3,487	$	9,211	$	7,207

7. NET INCOME (LOSS) PER SHARE

Net income (loss) per share was computed by dividing net loss by the weighted average number of common shares outstanding for the three and six months ended June 30, 2018 and 2017:

20

Notes to Condensed Consolidated Financial Statements

(all tabular amounts presented in thousands, except share, per share, per unit, and number of years)

(Unaudited)

	Three Months Ended June 30,					Six Months Ended June 30,
	2018		2017			2018			2017
Basic weighted average shares outstanding	102,597,059		78,576,260			101,747,416			78,366,610
Effect of dilutive securities:
2018 Convertible Notes	3,854,959		—			—			—
Common stock options	3,870,462		—			—			—
Restricted stock awards	1,797,089		—			—			—
Restricted stock units	245,214		—			—			—
Common stock warrants	252,368		—			—			—
Diluted average shares outstanding	112,617,151		78,576,260			101,747,416			78,366,610
Net income (loss) as reported	$	13,744	$	(20,852	)	$	(2,074	)	$	(44,398	)
Interest attributable to 2018 Convertible Notes	886		—			—			—
Net income (loss) for diluted earnings per share	$	14,630	$	(20,852	)	$	(2,074	)	$	(44,398	)
Net income (loss) per share – basic	$	0.13	$	(0.27	)	$	(0.02	)	$	(0.57	)
Net income (loss) per share – diluted	$	0.13	$	(0.27	)	$	(0.02	)	$	(0.57	)

The below outstanding securities for the six months ended June 30, 2018 and three and six months ended June 30, 2017 were excluded from the calculation above because their impact under the “treasury stock method” and “if-converted method” would have been anti-dilutive due to our net loss per share in each respective period, as summarized below:

	Three Months Ended June 30,		Six Months Ended June 30,
	2018	2017	2018	2017
2018 Convertible Notes	—	10,454,799	3,854,959	10,454,799
Common stock options	—	1,271,207	4,396,587	1,110,474
Restricted stock awards	—	2,166,299	1,797,089	2,166,299
Restricted stock units	—	217,206	245,214	217,206
Common stock warrants	—	13,337	257,039	1,813
Total	—	14,122,848	10,550,888	13,950,591

21

Notes to Condensed Consolidated Financial Statements

(all tabular amounts presented in thousands, except share, per share, per unit, and number of years)

(Unaudited)

8. FAIR VALUE MEASUREMENTS

The table below summarizes certain asset and liability fair values that are included within our accompanying Condensed Consolidated Balance Sheets, and their designations among three fair value measurement categories (see Note 2(xiii)):

	June 30, 2018 Fair Value Measurements
	Level 1		Level 2		Level 3		Total
Assets:
Bank certificates of deposits	$	—	$	249	$	—	$	249
Money market funds	—		163,602		—		163,602
Equity securities (Note 3(a))	95,038		—		—		95,038
Mutual funds	—		101		—		101
Deferred compensation investments (life insurance cash surrender value - Note 3(g))	—		6,123		—		6,123		*
	$	95,038	$	170,075	$	—	$	265,113
Liabilities:
Deferred executive compensation liability (Note 15(f))	$	—	$	5,973	$	—	$	5,973	*
Drug development liability (Note 14)	—		—		12,191		12,191
Talon CVR (Note 9(a))	—		—		6,693		6,693
Corixa Liability (Note 15(b)(i))	—		—		62		62
	$	—	$	5,973	$	18,946	$	24,919

	December 31, 2017 Fair Value Measurements
	Level 1		Level 2		Level 3		Total
Assets:
Bank certificates of deposits	$	—	$	248	$	—	$	248
Money market funds	—		216,358		—		216,358
Equity securities (Note 10)	37,530		—		—		37,530
Mutual funds	—		59		—		59
Deferred compensation investments (life insurance cash surrender value)	—		14,887		—		14,887		*
	$	37,530	$	231,552	$	—	$	269,082
Liabilities:
Deferred executive compensation liability (Note 15(f))	$	—	$	11,038	$	—	$	11,038	*
Drug development liability (Note 14)	—		—		12,386		12,386
Talon CVR (Note 9(a))	—		—		6,210		6,210
Corixa Liability (Note 15(b)(i))	—		—		62		62
	$	—	$	11,038	$	18,658	$	29,696

* The reported amount of “deferred compensation investments” is based on the cash surrender value of (ex)employee life insurance policies at period-end, while the reported amount of “deferred executive compensation liability” is based on the period-end market value of investments selected by plan participants.

We did not have any transfers between “Level 1” and “Level 2” (see Note 2(xiii)) for all periods presented.

The table below summarizes the 2017 and 2018 activity of our liabilities that are valued with unobservable inputs:

22

Notes to Condensed Consolidated Financial Statements

(all tabular amounts presented in thousands, except share, per share, per unit, and number of years)

(Unaudited)

	Fair Value Measurements of Unobservable Inputs (Level 3)
Balance as of December 31, 2016	$	14,445
FOLOTYN development liability (see Note 14)	(744		)
Talon CVR fair value adjustment - MARQIBO (see Note 9(a))	4,957
Balance as of December 31, 2017	18,658
FOLOTYN development liability (see Note 14)	(195		)
Talon CVR fair value adjustment - MARQIBO (see Note 9(a))	483
Balance as of June 30, 2018	$	18,946

* This amount is comprised of the current and non-current portions of “FOLOTYN development liability” and the non-current portion of “acquisition-related contingent obligations” on our accompanying Condensed Consolidated Balance Sheets.

Our carrying amounts of financial instruments such as cash equivalents, accounts receivable, prepaid expenses, accounts payable, and accrued liabilities, excluding acquisition-related contingent obligations, approximate their related fair values due to their short-term nature.

9. BUSINESS COMBINATIONS AND CONTINGENT CONSIDERATION

(a) Acquisition of Talon Therapeutics, Inc.

Overview of Talon Acquisition

On July 17, 2013, we purchased all of the outstanding shares of common stock of Talon Therapeutics, Inc. (“Talon”). Through the acquisition of Talon, we gained worldwide rights to MARQIBO. The Talon purchase consideration consisted of (i) an aggregate upfront cash amount of $11.3 million, (ii) issuance of 3.0 million shares of our common stock, then equivalent to $26.3 million (based on a closing price of $8.77 per share on July 17, 2013), and (iii) the issuance of a contingent value right (“CVR”) initially valued at $6.5 million.

The CVR was valued using a valuation model that probability-weights expected outcomes (ranging from 50% to 100%) and discounts those amounts to their present value, using an appropriate discount rate (these represent unobservable inputs and are therefore classified as Level 3 inputs – see Note 2 (xiii)). The CVR has a maximum payout of $195 million if all sales and regulatory approval milestones are achieved, as summarized below:

• $5 million upon the achievement of net sales of MARQIBO in excess of $30 million in any calendar year

• $10 million upon the achievement of net sales of MARQIBO in excess of $60 million in any calendar year

• $25 million upon the achievement of net sales of MARQIBO in excess of $100 million in any calendar year

• $50 million upon the achievement of net sales of MARQIBO in excess of $200 million in any calendar year

• $100 million upon the achievement of net sales of MARQIBO in excess of $400 million in any calendar year; and

• $5 million upon receipt of marketing authorization from the FDA regarding Menadione Topical Lotion

Talon CVR Fair Value as of June 30, 2018 and December 31, 2017

The CVR fair value will continue to be evaluated on a quarterly basis. Current and future changes in its fair value results from the likelihood and timing of milestone achievement and/or the corresponding discount rate applied thereon. Adjustments to CVR fair value are recognized within “change in fair value of contingent consideration related to acquisitions” in the accompanying Condensed Consolidated Statements of Operations.

23

Notes to Condensed Consolidated Financial Statements

(all tabular amounts presented in thousands, except share, per share, per unit, and number of years)

(Unaudited)

	Fair Value of Talon CVR
December 31, 2017	$	6,210
Fair value adjustment for the six months ended June 30, 2018	483
June 30, 2018	$	6,693

(b) Acquisition of Rights to EVOMELA and Related Contingent Consideration

Overview of Acquisition of Rights to EVOMELA

In March 2013, we completed the acquisition of exclusive global development and commercialization rights to Captisol-enabled®, propylene glycol-free MELPHALAN (which we branded as “EVOMELA”) for use as a conditioning treatment prior to autologous stem cell transplant for patients with MM. We acquired these rights from CyDex a wholly-owned subsidiary of Ligand for an initial license fee of $3 million, and assumed responsibility for EVOMELA’s then-ongoing clinical and regulatory development program. We accounted for this transaction as a business combination, which required that assets acquired and liabilities assumed be recognized on the balance sheet at their fair values as of the transaction date.

We are required to pay Ligand additional amounts up to an aggregate $60 million upon the achievement of annual net sales thresholds (exclusive of the $6 million milestone payment triggered in March 2016, as discussed below), however, we do not expect to achieve these sales thresholds based on our estimated market size for this product and our projected market share at the time of the acquisition and to date. We also must pay Ligand royalties of 20% on our net sales of EVOMELA in all territories.

Our EVOMELA royalty obligation and sales-based milestones are jointly treated as part of an “executory contract” (as defined under GAAP) that is connected with an at-market supply agreement for Captisol that was executed concurrently with this acquisition (requiring the continuing involvement of CyDex). As a result, our royalty obligation and sales-based milestone arrangements are treated as separate transactions, distinct from the consideration for the EVOMELA rights. Our royalty expenses are reported through “cost of sales” in our Condensed Consolidated Statements of Operations in the same period of our recognized revenue for the product sale.

Consideration Transferred

The acquisition-date fair value of the consideration transferred consisted of the following:

Cash consideration	$	3,000
Ligand contingent consideration	4,700
Total purchase consideration	$	7,700

Fair Value Estimate of Asset Acquired and Liability Assumed

The total purchase consideration is allocated to the acquisition of the net tangible and intangible assets based on their estimated fair values as of the transaction date. The allocation of the total purchase price to the net assets acquired is as follows:

EVOMELA IPR&D rights $ 7,700

We estimated the fair value of the in-process research and development using the income approach. The income approach uses valuation techniques to convert future net cash flows to a single present value (discounted) amount.  We applied our net cash flow projections for EVOMELA over 10 years and a discount rate of 25%, taking into account our estimates of future incremental earnings that may be achieved upon regulatory approval and commercialization of the product(s). The fair value of the Ligand Contingent Consideration (as defined below) liability was determined using the probability of success and the discounted cash flow method of the income approach (representing unobservable “Level 3” inputs (see Note 2(xiii))for regulatory and sales-based milestones due to Ligand upon achievement).

In March 2016, the FDA approved EVOMELA, triggering a $6 million milestone payment to Ligand (“Ligand Contingent Consideration”) that was paid in April 2016. “EVOMELA IPR&D” of $7.7 million was reclassified in April 2016 to “EVOMELA distribution rights” that is reported within “Intangible assets, net of accumulated amortization” in the

24

Notes to Condensed Consolidated Financial Statements

(all tabular amounts presented in thousands, except share, per share, per unit, and number of years)

(Unaudited)

accompanying Condensed Consolidated Balance Sheets as of June 30, 2018 (see Note 3(f)). Amortization related to this intangible asset commenced on April 1, 2016.

(c) Allos Acquisition

We acquired Allos Therapeutics, Inc. (“Allos”) in September 2012 for cash consideration of $205.2 million and assumed its FOLOTYN distribution rights (see Note 14). We accounted for this transaction as a business combination, which required that assets acquired and liabilities assumed be reported on our balance sheet at their fair values as of the transaction date. We have no ongoing contingent consideration obligations from this transaction.

10. OUT-LICENSE OF MARQIBO, ZEVALIN, & EVOMELA IN CHINA TERRITORY

Overview of CASI Out-License

In September 2014, we executed three product out-license agreements with a perpetual term with CASI, a publicly-traded biopharmaceutical company (NASDAQ: CASI) with a primary focus on the China market (collectively, the “CASI Out-License”). Under the CASI Out-License, we granted CASI the exclusive rights to distribute ZEVALIN, MARQIBO, and EVOMELA (“CASI Out-Licensed Products”), in greater China (which includes Taiwan, Hong Kong and Macau). CASI is responsible for the development and commercialization of these drugs, including the submission of import drug registration applications to regulatory authorities and conducting any confirmatory clinical studies in greater China. We will provide CASI with future commercial supply of the CASI Out-Licensed Products under typical market terms. Our consideration consisted of CASI common stock in return for their distribution rights of ZEVALIN and EVOMELA, and a secured promissory note for their distribution rights of MARQIBO.

Our Ownership in CASI at June 30, 2018

Under certain conditions that expired in December 2017, we had a right to purchase additional shares of CASI common stock in order to maintain our post-investment ownership percentage if CASI issued additional securities. During 2017 and 2016, we acquired an additional 1.5 million and 4.6 million common shares of CASI, respectively, at par value. Our aggregate holding of 11.5 million CASI common shares as of June 30, 2018 represented an approximate 13.3% ownership, with a fair market value of $95.0 million (see Note 3(a)).

Proceeds Received from CASI in 2014

The proceeds we received in 2014, and its fair value on the CASI Out-License execution date, consisted of the following:

CASI common stock (5.4 million shares)	$	8,649	(a)
CASI secured promissory note, net of fair value discount ($1.5 million face value and 0.5% annual coupon)	1,310		(b)
Total consideration received, net of fair value discount	$	9,959	(c)

(a) Value determined based on the September 17, 2014 closing price of 5.4 million shares of CASI common stock on the NASDAQ Capital Market of $1.60 per share.

(b) Value estimated using the terms of the $1.5 million promissory note, the application of a synthetic debt rating based on CASI’s publicly-available financial information, and the prevailing interest yields on similar public debt securities as of September 17, 2014. This full balance was reclassified beginning December 31, 2017 to “other assets” (presented within non-current assets on the accompanying Condensed Consolidated Balance Sheets) from “other receivables” (presented within current assets) due to an amended maturity date of September 17, 2019.

(c) Presented within “license fees and service revenue” in the Consolidated Statements of Operations for the year ended December 31, 2015 (see below).

In addition, CASI will be responsible for paying any royalties or milestones that we are obligated to pay to our third-party licensors resulting from the achievement of certain milestones and/or sales of CASI Out-Licensed Products, but only to the extent of the greater China portion of such royalties or milestones.

License Fee Revenue Recognized in 2015

25

Notes to Condensed Consolidated Financial Statements

(all tabular amounts presented in thousands, except share, per share, per unit, and number of years)

(Unaudited)

The $9.7 million value of the upfront proceeds (undiscounted, and net of certain foreign exchange adjustments) from CASI were recognized in 2015 within “license fees and service revenue” on our Consolidated Statements of Operations. The delayed timing of this revenue recognition corresponded with the execution of certain supply agreements with CASI for ZEVALIN, MARQIBO, and EVOMELA. These agreements allow CASI to procure CASI Out-Licensed Products directly from approved third parties, and in such case, do not require our future involvement for its commercial supply.

11. OUT-LICENSE OF ZEVALIN IN CERTAIN EX-U.S. TERRITORIES

In November 2015, we entered into an out-license agreement with Mundipharma for its commercialization of ZEVALIN in Asia (excluding India and greater China), Australia, New Zealand, Africa, the Middle East, and Latin America (including the Caribbean). In return, we received $18 million (comprised of $15 million received in December 2015 and $3 million received in January 2016). Of these proceeds, $15 million was recognized and reported within “license fees and service revenue” in the fourth quarter of 2015, and the remaining $3 million payment was recognized in full by June 30, 2017.

In April 2018, we received $2 million due to Mundipharma’s achievement of a specified sales milestone which was recognized in the first quarter of 2018 and reported within “license fees and service revenue” on our accompanying Condensed Consolidated Statements of Operations for the six months ended June 30, 2018 (see Note 5). Mundipharma is required to reimburse us for our payment of royalties due to Bayer Pharma AG (“Bayer”) from its ZEVALIN sales - see Note 15(b)(ii).

12. CO-PROMOTION ARRANGEMENT WITH EAGLE PHARMACEUTICALS

In November 2015, we executed an agreement with Eagle Pharmaceuticals, Inc. (“Eagle”) whereby designated members of our sales force will concurrently market up to six of Eagle’s products along with our products, in return for fixed monthly payments (aggregating $12.8 million), as well as variable sales-based milestones, over an 18 month contract term that commenced on January 1, 2016 and ended on June 30, 2017 (the “Eagle Agreement”). On July 1, 2017, our sales force ceased marketing Eagle products and the Eagle Agreement expired under its terms.

The fixed receipts from Eagle for our sales activities, as well as reimbursements of third-party marketing services, are recognized within “license fees and service revenue” on our accompanying Condensed Consolidated Statements of Operations, and was $2.4 million and $4.7 million for the three and six months ended June 30, 2017. No sales-based milestones were achieved.

An allocation of our sales personnel costs that are dedicated to Eagle sales activities are reported within “cost of service revenue” on our accompanying Condensed Consolidated Statements of Operations, as are reimbursable costs for Eagle marketing activities. These were an aggregate $2.1 million and $4.2 million for the three and six months ended June 30, 2017.

13. CONVERTIBLE SENIOR NOTES

Overview of Convertible Notes and Conversion Hedge

On December 17, 2013, we entered into an agreement for the sale of $120 million aggregate principal amount of 2.75% Convertible Senior Notes (equaling 120,000 notes, denominated in $1,000 principal units) due December 2018 (the “2018 Convertible Notes”). As of June 30, 2018 and December 31, 2017, $40.6 million of principal of the 2018 Convertible Notes was outstanding due to our open market purchases discussed below.

The 2018 Convertible Notes are convertible into shares of our common stock at a conversion rate of 95 shares per $1,000 principal units, equating to 3.9 million common shares if fully converted at June 30, 2018. The in-the-money conversion price is equivalent to $10.53 per common share. The conversion rate and conversion price is subject to adjustment under certain limited circumstances. The 2018 Convertible Notes bear interest at a rate of 2.75% per year, payable semiannually in arrears on June 15 and December 15 of each year. The 2018 Convertible Notes will mature and become payable on December 15, 2018, subject to earlier conversion into common stock at the holders’ option.

The sale of the 2018 Convertible Notes closed on December 23, 2013 and we received net proceeds of $115.4 million, after deducting banker and professional fees of $4.6 million. We used a portion of these net proceeds to simultaneously enter into “bought call” and “sold warrant” transactions with Royal Bank of Canada (collectively, the “Conversion Hedge”). We recorded the Conversion Hedge on a net cost basis of $13.1 million, as a reduction to “additional paid-in capital” in our accompanying Condensed Consolidated Balance Sheets. Under applicable GAAP, the Conversion Hedge transaction has not been (and is not expected to be) marked-to-market through earnings or comprehensive income.

26

Notes to Condensed Consolidated Financial Statements

(all tabular amounts presented in thousands, except share, per share, per unit, and number of years)

(Unaudited)

On and after June 15, 2018, and until the close of business on the second scheduled trading day immediately preceding the maturity date, holders may convert all or a portion of their 2018 Convertible Notes. Our stockholders’ approved “flexible settlement” at our Annual Meeting of Stockholders on June 29, 2015. As a result, we may (at our election) settle any future conversions of the 2018 Convertible Notes by paying or delivering cash, shares of our common stock, or a combination of cash and shares of common stock. However, if the holders of the 2018 Convertible Notes do not elect to convert into shares of our common stock, our December 2018 obligation to repay the principal amount of $40.6 million in cash, plus any accrued and unpaid interest, will remain unchanged.

Open Market Purchases of 2018 Convertible Notes and Conversion Hedge Unwind in December 2016 and October 2017

In December 2016, we completed two open market purchases of our 2018 Convertible Notes, aggregating 9,963 note units (equivalent to $10 million principal value) for $9.0 million. We recognized an aggregate loss of $25 thousand on the retirement of these 2018 Convertible Notes (based on its carrying value under GAAP), which is included in “other income (expense), net” on the Consolidated Statements of Operations for the year ended December 31, 2016. Concurrent with these two open market purchases in December 2016, we unwound a portion of our previously sold warrants and previously purchased call options (which were part of our Conversion Hedge described below) for aggregate net proceeds of $21 thousand. We recorded a corresponding net increase to “additional paid-in capital” in the Consolidated Balance Sheets as of December 31, 2016.

In October 2017, we completed an additional open market purchase of our 2018 Convertible Notes, aggregating 69,472 note units (equivalent to $69.5 million principal value) for $27.3 million in cash and 5.4 million newly-issued shares of our common stock, then worth $73 million. We recognized a loss of $0.8 million on the retirement of these 2018 Convertible Notes (based on its carrying value under GAAP), which was included in “other (expense) income, net” on the Consolidated Statements of Operations for the year ended December 31, 2017. Accordingly, as of June 30, 2018 and December 31, 2017, $40.6 million in principal of our 2018 Convertible Notes remained outstanding.

Concurrent with this open market purchase in October 2017, we also unwound a portion of the previously sold warrants and previously purchased call options that were part of our Conversion Hedge for aggregate net proceeds of $5.8 million. We recorded a corresponding net increase to “additional paid-in capital” in the Consolidated Balance Sheets as of December 31, 2017.

We entered into Conversion Hedge transactions in December 2013 to reduce the potential dilution to our stockholders and/or offset any cash payments that we are required to make in excess of the principal amount, upon conversion of the 2018 Convertible Notes (in the event that the market price of our common stock is greater than the conversion price). The strike price of the “bought call” is equal to the conversion price and conversion rate of the 2018 Convertible Notes (at such time, it matched the 11.4 million common shares into which the holders could convert the 2018 Convertible Notes); the strike price of our “sold warrant” is $14.03 per share of our common stock, and is also for 11.4 million common shares (reduced by the partial unwinding of these instruments, as discussed above).

Carrying Value and Fair Value of 2018 Convertible Notes at June 30, 2018 and December 31, 2017

The carrying value of the 2018 Convertible Notes as of June 30, 2018 and December 31, 2017, is summarized as follows:

	June 30, 2018			December 31, 2017
Principal amount	$	40,565		$	40,565
(Less): Unamortized debt discount (amortized through December 2018)	(1,022		)	(2,101		)
(Less): Debt issuance costs	(116		)	(240		)
Carrying value	$	39,427		$	38,224

As of June 30, 2018 and December 31, 2017, the estimated aggregate fair value of the 2018 Notes is $81.0 million and $74.3 million, respectively. These estimated fair values represent a Level 2 measurement (see Note 2(xiii)), based upon the 2018 Convertible Notes quoted bid price at each date in a thinly-traded market.

Components of Interest Expense on 2018 Convertible Notes

27

Notes to Condensed Consolidated Financial Statements

(all tabular amounts presented in thousands, except share, per share, per unit, and number of years)

(Unaudited)

The following table sets forth the components of interest expense recognized in the accompanying Condensed Consolidated Statements of Operations for the 2018 Convertible Notes for the three and six months ended June 30, 2018 and 2017: 

	Three months ended June 30,						Six months ended June 30,
	2018			2017			2018			2017
Contractual coupon interest expense	$	279		$	757		$	558		$	1,513
Amortization of debt issuance costs	62			155			124			321
Accretion of debt discount	545			1,412			1,079			2,794
Total	$	886		$	2,324		$	1,761		$	4,628
Effective interest rate	8.41		%	8.65		%	8.41		%	8.65		%

14. FOLOTYN LICENSE AGREEMENT AND DEVELOPMENT LIABILITY

As the result of our acquisition of Allos Therapeutics, Inc. on September 5, 2012 (see Note 9(c)), we assumed a strategic collaboration agreement with Mundipharma (as amended and/or restated, the “Mundipharma Collaboration Agreement”), as well as certain FOLOTYN clinical development obligations (the “FOLOTYN Development Liability”).

Mundipharma Collaboration Agreement Summary

Under the Mundipharma Collaboration Agreement, we retained full commercialization rights for FOLOTYN in the United States and Canada, with Mundipharma having exclusive rights to commercialize FOLOTYN in all other countries in the world (the “Mundipharma Territories”). On May 29, 2013, the Mundipharma Collaboration Agreement was amended and restated, in order to modify: (i) the scope of the licensed territory, (ii) milestone payments, (iii) royalty rates, and (iv) drug development obligations. In connection with the amendment and restatement of the Mundipharma Collaboration Agreement, we received a one-time $7 million payment from Mundipharma for certain research and development activities to be performed by us.

As a result of the amendment and restatement of the Mundipharma Collaboration Agreement, (a) Europe and Turkey were excluded from Mundipharma’s commercialization territory, (b) we may receive regulatory milestone payments of up to $16 million, and commercial progress and sales-dependent milestone payments of up to $107 million (see Note 15(b)(vii) for July 2017 achievement), (c) we will receive tiered double-digit royalties based on net sales of FOLOTYN within Mundipharma’s licensed territories, and (d) we and Mundipharma will each bear our own FOLOTYN development costs. Effective as of May 1, 2015, we modified the Mundipharma Collaboration Agreement to revise the conditions for our exercise of the option to gain commercialization rights in Switzerland from Mundipharma, as well as royalties payable to us (in the tiered double-digits) on Mundipharma’s net sales in Switzerland.

FOLOTYN Development Liability

The fair value of the FOLOTYN Development Liability within the accompanying Consolidated Balance Sheets was estimated using the discounted income approach model. The unobservable inputs (i.e., “Level 3” inputs - see Note 2(xiii)) in this valuation model that have the most significant effect on these liabilities include (i) estimates of research and development personnel costs needed to perform the research and development services contractually required, (ii) estimates of expected cash outflows to third parties for these clinical services and supplies during the expected period of performance through 2031, and (iii) an appropriate discount rate for these expenditures. These inputs are reviewed by management on a quarterly basis for continued applicability.

We adjust this liability at each quarter-end, with corresponding adjustments for incurred costs recorded as credits to “research and development” expense in our accompanying Condensed Consolidated Statements of Operations. 

28

Notes to Condensed Consolidated Financial Statements

(all tabular amounts presented in thousands, except share, per share, per unit, and number of years)

(Unaudited)

	FOLOTYN Development Liability, Current			FOLOTYN Development Liability, Long Term			FOLOTYN Development Liability, Total
Balance as of December 31, 2017	$	275		$	12,111		$	12,386
Transfer from long-term to current in 2018	131			(131		)	—
(Less): Expenses incurred in 2018	(195		)	—			(195		)
Balance as of June 30, 2018	$	211		$	11,980		$	12,191

15. FINANCIAL COMMITMENTS & CONTINGENCIES AND LICENSE AGREEMENTS

(a) Facility Leases

We lease our principal executive office in Henderson, Nevada under a non-cancelable operating lease expiring April 30, 2019. We also lease our research and development facility in Irvine, California under a non-cancelable operating lease expiring May 31, 2019, in addition to several other administrative office leases. Each lease agreement contains scheduled rent increases which are accounted for on a straight-line basis.

(b) In/Out Licensing Agreements and Co-Development Arrangements

The in-license agreements for our commercialized and development-stage drug products provide us with territory-specific rights to their manufacture and distribution (including further sub-licensing/out-licensing, rights). We are generally responsible for all related clinical development costs, patent filings and maintenance costs, marketing costs, and liability insurance costs. We are also obligated to make specified milestone payments to our licensors upon the achievement of certain regulatory and sales milestones, and to pay royalties based on our net sales of all in-licensed products. We also enter into out-license agreements for territory-specific rights to our drug products which include one or more of: upfront license fees, royalties from our licensees’ sales, and/or milestone payments from our licensees’ sales or regulatory achievements. For certain development-stage drug products, we may enter into cost-sharing arrangements with our licensees and licensors.

Our most significant of these agreements, and the key financial terms and our accounting for each, are summarized below:

(i) ZEVALIN U.S.: In-Licensing and Development in the United States

In December 2008, we acquired rights to commercialize and develop ZEVALIN in the United States as the result of a transaction with Cell Therapeutics, Inc. through our wholly-owned subsidiary, RIT Oncology LLC. In accordance with the terms of assumed contracts, we are required to meet specified payment obligations, including a milestone payment to Corixa Corporation of $5 million based on ZEVALIN sales in the United States. This milestone has not yet been met, and $0.1 million for this potential milestone achievement is included within “acquisition-related contingent obligations” in our accompanying Condensed Consolidated Balance Sheets as of June 30, 2018 and December 31, 2017, respectively. Our U.S. net sales-based royalties are in the low to mid-single digits to Genentech, Inc. and mid-teens to Biogen.

(ii) ZEVALIN Ex-U.S.: In-License and Asset Purchase Agreement with Bayer Pharma

In April 2012, through our wholly-owned subsidiary, Spectrum Pharmaceuticals Cayman, L.P., we completed a €19 million acquisition of licensing rights to market ZEVALIN outside of the United States from Bayer. ZEVALIN is currently approved in approximately 40 countries outside the United States for the treatment of B-cell NHL, including countries in Europe, Latin America, and Asia.

We amended the agreement in February 2016, which adjusted our tiered royalty to Bayer from the single-digits to 20%. The term of the agreement, as amended, continues until the expiration of the last-to-expire ZEVALIN patent in the relevant country, or 15 years from the date of first commercial sale of ZEVALIN in such country, whichever is longer.

(iii) ZEVALIN Ex-U.S.: Out-License Agreement with Dr. Reddy’s

29

Notes to Condensed Consolidated Financial Statements

(all tabular amounts presented in thousands, except share, per share, per unit, and number of years)

(Unaudited)

In June 2014, we executed an exclusive License Agreement with Dr. Reddy’s Laboratories Ltd. (“Dr. Reddy’s”) for ZEVALIN distribution rights within India. The agreement term is 15 years from the receipt of pending approval of ZEVALIN from the Drug Controller General of India. In December 2014, upon our execution of a drug supply agreement, an upfront and non-refundable payment of $0.5 million was triggered and paid to us in February 2015. The recognition of the applicable portion of this upfront receipt is no longer reported on a straight-line basis within “license fees and service revenue” on our accompanying Condensed Consolidated Statements of Operations, due to the adoption of Topic 606 as of January 1, 2018 (see Note 2(i)). Additionally, sales and regulatory milestones, each aggregating $1.5 million (for a total of $3 million if both achieved) are due to us upon Dr. Reddy’s achievement, as well as a 20% royalty on its net sales of ZEVALIN in India.

(iv) ZEVALIN Ex-U.S.: Out-License Agreement with Mundipharma

In November 2015, we entered into an out-license agreement with Mundipharma for its commercialization of ZEVALIN in Asia (excluding India and Greater China), Australia, New Zealand, Africa, the Middle East, and Latin America (including the Caribbean islands). In return, we received $18 million (comprised of $15 million received in December 2015 and $3 million received in January 2016). Of these proceeds, $15 million was recognized within “license fees and service revenue” in the fourth quarter of 2015, and the remaining $3 million payment was recognized in full by June 30, 2017. Mundipharma is required to reimburse us for our payment of royalties due to Bayer from its ZEVALIN sales (see Note 15(b)(ii)).

In March 2018, Mundipharma achieved a specified sales milestone, resulting in a $2 million receipt due to us (subsequently received in April 2018); this amount was recognized within “license fees and service revenue” on our accompanying Condensed Statements of Operations for the six months ended June 30, 2018 (see Note 5).

(v) FUSILEV: In-License Agreement with Merck & Cie AG

In May 2006, we amended and restated a license agreement with Merck & Cie AG (“Merck”), which we assumed in connection with our March 2006 acquisition of the assets of Targent, Inc. This provided us with an exclusive license to use regulatory filings related to FUSILEV, and a non-exclusive license under certain patents and know-how to develop, manufacture, and sell FUSILEV in the field of oncology in North America.

The contractual royalty percentage on our FUSILEV net sales due to Merck is set at the mid-single digits; however, in September 2017, we paid Merck $2.6 million in full settlement of all royalty obligations under the agreement. We are no longer contractually obligated to pay Merck any royalties on our future net sales of FUSILEV, though we remain obligated to remit a $0.2 million payment upon FDA approval of our oral form of FUSILEV. This regulatory milestone has not been met, and no amounts have been accrued in our accompanying Condensed Consolidated Balance Sheets for its potential achievement.

(vi) FOLOTYN: In-License Agreement with Sloan-Kettering Institute, SRI International and Southern Research Institute

In December 2002, Allos entered into an in-license agreement for the drug now marketed as FOLOTYN with Sloan-Kettering Institute for Cancer Research, SRI International, and Southern Research Institute. We assumed this agreement when we acquired Allos in September 2012. The agreement provides for our exclusive worldwide rights to a portfolio of patents and patent applications related to FOLOTYN, though we are required to fund certain drug development programs. In addition, we pay graduated royalties to our licensors based on our worldwide annual net sales of FOLOTYN (including our sub- licensees). These royalties are 8% of annual worldwide net sales up to $150 million; 9% of annual worldwide net sales of $150 million through $300 million; and 11% of annual worldwide net sales in excess of $300 million.

(vii) FOLOTYN: Out-License Agreement with Mundipharma

As a result of our acquisition of Allos (see Note 10(c)), we assumed “the Mundipharma Collaboration Agreement” as well as certain FOLOTYN clinical development obligations. Under the Mundipharma Collaboration Agreement (see Note 15), we retained full commercialization rights for FOLOTYN in the United States and Canada, with Mundipharma having exclusive rights to commercialize FOLOTYN in all other countries in the world, except in Europe and Turkey. We are contractually entitled to receive regulatory and sales milestone payments from Mundipharma upon its achievement of such milestones, which aggregate $16 million and $107 million, respectively, as well as tiered double-digit royalties on Mundipharma’s net sales.

In July 2017, FOLOTYN was approved in Japan for the treatment of adult patients with relapsed or refractory peripheral T-cell lymphoma. Consequently, we received $3 million from Mundipharma in August 2017 for this milestone achievement. This amount was recognized within “license fees and service revenue” on our Consolidated Statements of Operations for the year ended December 31, 2017.

30

Notes to Condensed Consolidated Financial Statements

(all tabular amounts presented in thousands, except share, per share, per unit, and number of years)

(Unaudited)

In August 2017, FOLOTYN was commercially launched in Japan. This triggered a contractual milestone of $2.0 million from Mundipharma. This amount was recorded within “license fees and service revenue” on our Consolidated Statements of Operations for the year ended December 31, 2017.

(viii) EVOMELA: In-License Agreement with CyDex Pharmaceuticals, Inc.

In March 2013, we completed the acquisition of exclusive global development rights to EVOMELA from CyDex, a wholly-owned subsidiary of Ligand (see Note 9(b)), and assumed responsibility for its then-ongoing clinical and regulatory development program. We filed a New Drug Application (“NDA”) with the FDA in December 2015 for its use as a conditioning treatment prior to autologous stem cell transplant for patients with MM, and in March 2016, the FDA communicated its approval. Consequently, we made a $6 million contractual milestone payment to Ligand in April 2016. We reclassified $7.7 million from “EVOMELA IPR&D rights” to “EVOMELA distribution rights” which is presented within “intangible assets, net of accumulated amortization and impairment charges” (see Note 3(f)) within our accompanying Condensed Consolidated Balance Sheets as of June 30, 2018.

We are required to pay Ligand additional amounts of up to $60 million (exclusive of the $6 million milestone paid in April 2016), upon our achievement of specified net sales thresholds. We are also responsible to pay Ligand royalties of 20% on our net sales of EVOMELA in all territories.

(ix) MARQIBO: Acquisition of Talon Therapeutics, Inc. and Related Contingent Consideration Agreement

In July 2013, we completed the acquisition of Talon, through which we obtained exclusive global development and commercialization rights to MARQIBO (see Note 9(a)). As part of this acquisition, the former Talon stockholders have contingent financial rights that we have valued and presented on our accompanying Condensed Consolidated Balance Sheets as a $6.7 million and $6.2 million liability within “acquisition-related contingent obligations” as of June 30, 2018 and December 31, 2017, respectively. The maximum payout value of the contingent financial rights to the former Talon shareholders is $195 million, assuming we achieve all sales and regulatory approval milestones. In addition, we are contractually obligated to pay royalties in the single digits on our net sales of MARQIBO and a portion of sublicensing revenue may be due upon our receipt of such revenue for MARQIBO.

(x) QAPZOLA: License Agreements with Allergan, Inc. and NDDO Research Foundation

In October 2008, we entered into an exclusive development and commercialization collaboration agreement with Allergan, Inc. (“Allergan”) for QAPZOLA pursuant to which Allergan paid us an up-front non-refundable fee of $41.5 million at execution (which we had recognized in full within “license fees and service revenue” by December 31, 2013).

Concurrently we also entered into a letter agreement with NDDO Research Foundation (“NDDO”), pursuant to which we agreed to pay NDDO the following in relation to QAPZOLA milestones: (a) upon FDA acceptance of our NDA, the issuance of 25,000 of our common shares (which occurred in March 2016 and the $0.1 million value of these shares was included in “research and development” expense for the year ended December 31, 2016), and (b) upon FDA approval, a one-time payment of $0.3 million (which has not yet been met, and no amounts have been accrued in our accompanying Consolidated Balance Sheets for its potential achievement).

In January 2013, we entered into a second amendment to the license, development, supply and distribution agreement with Allergan. This amendment relieved Allergan of its development and commercialization obligations and resulted in our acquisition of its rights in the United States, Europe, and other territories, in exchange for our agreement to pay a tiered single-digit royalty on our sales of certain products containing QAPZOLA.

(xi) QAPZOLA: Collaboration Agreement with Nippon Kayaku Co. LTD.

In November 2009, we entered into a collaboration agreement with Nippon Kayaku Co., LTD. (“Nippon Kayaku”) for the development and commercialization of QAPZOLA in Asia, except North and South Korea (the “Nippon Kayaku Territory”). In addition, Nippon Kayaku received exclusive rights to QAPZOLA for the treatment of NMIBC in the Nippon Kayaku Territory, including Japan and China. Nippon Kayaku will conduct QAPZOLA clinical trials in the Nippon Kayaku Territory pursuant to a development plan. Further, Nippon Kayaku will be responsible for all expenses relating to the development and commercialization of QAPZOLA in the Nippon Kayaku Territory.

Under the terms of this agreement, Nippon Kayaku paid us an upfront fee of $15 million (which we recognized within “license fees and service revenue” in full by December 31, 2013). Under the terms of the agreement, we are entitled to receive

31

Notes to Condensed Consolidated Financial Statements

(all tabular amounts presented in thousands, except share, per share, per unit, and number of years)

(Unaudited)

$10 million and $126 million from Nippon Kayaku upon the achievement of certain regulatory and commercialization milestones, respectively (some of which are our responsibility to achieve). Nippon Kayaku is also obligated to pay us royalties on its net sales of QAPZOLA in the mid-teen digits.

(xii) BELEODAQ: In-License and Collaboration Agreement with Onxeo

In February 2010, we entered into an in-license and collaboration agreement with TopoTarget A/S (now Onxeo DK) (“Onxeo”), for the development and commercialization of BELEODAQ, as amended in October 2013. We paid Onxeo an upfront fee of $30 million (and agreed to additional payments described below) for rights in North America and India, with an option for China. We are contractually obligated to pay royalties in the mid-teen digits on our net sales of BELEODAQ.

All development and studies of BELEODAQ are conducted under a joint development plan (of which we fund 70% and Onxeo funds 30%). We have final decision-making authority for all developmental activities in North America and India (and China upon exercise of its option). Onxeo has final decision-making authority for all developmental activities in all other jurisdictions. In February 2014, upon FDA acceptance of our NDA, we were contractually obligated to issue Onxeo one million shares of our common stock and to make a $10 million milestone payment. The aggregate value of this milestone at achievement was $17.8 million, and was recognized within “research and development” expense in the first quarter of 2014.

In July 2014, we received approval from the FDA for BELEODAQ’s use for injection and treatment of relapsed or refractory peripheral T-cell lymphoma. As a result, we made a second milestone payment to Onxeo of $25 million in November 2014. This amount was capitalized as “BELEODAQ distribution rights” and is presented within “intangible assets, net of accumulated amortization and impairment charges” (see Note 3(f)). We are also contractually obligated to pay Onxeo upon our achievements of other regulatory events and sales thresholds, up to $88 million and $190 million, respectively. These milestone amounts are not included within “total liabilities” in our accompanying Consolidated Balance Sheets.

(xiii) ROLONTIS: Co-Development and Commercialization Agreement with Hanmi Pharmaceutical Co. Ltd

In October 2014, we exercised our option under a License Option and Research Collaboration Agreement dated January 2012 (as amended) with Hanmi Pharmaceutical Co. Ltd., or Hanmi, for ROLONTIS (formerly referred to as “LAPS-G-CSF” or “SPI-2012”), a drug based on Hanmi’s proprietary LAPSCOVERY™ technology for the treatment of chemotherapy induced neutropenia. Under the terms of this agreement, as amended, we have primary financial responsibility for the ROLONTIS development plan and hold its worldwide rights (except for Korea, China, and Japan). We are contractually obligated to pay Hanmi royalties in the mid-teen digits on our net sales of ROLONTIS.

In January 2016, the first patient was dosed with ROLONTIS in a clinical trial. This triggered our contractual milestone payment to Hanmi, and in April 2016, we (i) issued 318,750 shares of our common stock, then valued at $2.3 million, and (ii) remitted a $0.4 million payment to the Internal Revenue Service (the IRS) on its behalf for related tax obligations. This aggregate $2.7 million value was recognized within “research and development” expense in our Consolidated Statements of Operations for the year ended December 31, 2016. We are responsible for further contractual payments upon our achievement of regulatory and sales milestones, up to $13 million and $225 million, respectively. These amounts are not included within “total liabilities” in our accompanying Condensed Consolidated Balance Sheets.

(xiv) Poziotinib: In-License Agreement with Hanmi and Exclusive Patent and Technology License Agreement with MD Anderson

In February 2015, we executed an in-license agreement with Hanmi for poziotinib, a pan-HER inhibitor in Phase 2 clinical trials, (which has also shown single agent activity in the treatment of various cancer types during Phase I studies, including breast, gastric, colorectal, and lung cancers), and made an upfront payment for these rights. This payment was recognized within “research and development” expense in the Consolidated Statements of Operations for the year ended December 31, 2015. We are also contractually obligated to pay Hanmi royalties in the low to mid-teen digits on our net sales of poziotinib.

Under the terms of this agreement, we received the exclusive rights to commercialize poziotinib, excluding Korea and China. Hanmi and its development partners are fully responsible for the completion of on-going Phase 2 trials in Korea. We are financially responsible for all other clinical studies. We are contractually obligated to make payments to Hanmi upon our achievement of certain regulatory and sales milestones, aggregating $33 million and $325 million, respectively, which are not included within “total liabilities” in our accompanying Condensed Consolidated Balance Sheets. We will pay Hanmi royalties in the low to mid-teen digits on our net sales of poziotinib. These amounts are not included within “total liabilities” in our accompanying Condensed Consolidated Balance Sheets.

32

Notes to Condensed Consolidated Financial Statements

(all tabular amounts presented in thousands, except share, per share, per unit, and number of years)

(Unaudited)

In April 2018, we we executed an exclusive patent and technology agreement for poziotinib’s use in treating patients with EGFR and HER2 exon 20 mutations in cancer and HER2 exon 19 mutations in cancer with The University of Texas M.D. Anderson Cancer Center (“MD Anderson”) that had discovered its use in treating these patient-types (“Exon 19/20 Patients”). We made an upfront payment of $0.5 million upon this agreement’s execution that was recognized within “research and development” expense in the accompanying Condensed Consolidated Statements of Operations for the three and six months ended June 30, 2018.

We are contractually obligated to make payments to MD Anderson upon our achievement of certain regulatory and sales milestones, aggregating $11 million and $23 million, respectively, which are not included within “total liabilities” in our accompanying Condensed Consolidated Balance Sheets. We will also pay MD Anderson royalties in the low single-digits on our net sales of poziotinib that relate to the treatment of Exon 19/20 Patients.

(xv) ZEVALIN, FOLOTYN, BELEODAQ, and MARQIBO: Out-License Agreement with Servier in Canada, Inc. in Canada

In January 2016, we entered into a strategic partnership with Servier Canada, Inc. (“Servier”) for the out-licenses of ZEVALIN, FOLOTYN, BELEODAQ, and MARQIBO. We received an aggregate $6 million of upfront proceeds in the first quarter of 2016, which was recognized within “license fees and service revenue” in our Consolidated Statements of Operations for the year ended December 31, 2016. We are also entitled to milestone receipts (aggregating $2.0 million) upon Servier’s achievement of specific regulatory approvals, and a high single-digit royalty on its sales of these products.

(c) Service Agreements

In connection with the research and development of our drug products, we have entered into contracts with numerous third party service providers, such as radio-pharmacies, distributors, clinical trial centers, clinical research organizations, data monitoring centers, and with drug formulation, development and testing laboratories. The financial terms of these agreements are varied and generally obligate us to pay in stages, depending on achievement of certain events specified in the agreements, such as contract execution, reservation of service or production capacity, actual performance of service, or the successful accrual and dosing of patients.

At each period end, we accrue for all services received, with such accruals based on factors such as estimates of work performed, patient enrollment, completion of patient studies and other events. Should we decide to discontinue and/or slow-down the work on any project, the associated costs for those projects would be limited to the extent of the work completed. Generally, we are able to terminate these contracts due to the discontinuance of the related project(s) and thus avoid paying for the services that have not yet been rendered.

(d) Supply Agreements

We have entered into certain supply agreements, or have issued purchase orders, which require us to make minimum purchases from vendors for the manufacture of our products. These commitments do not exceed our planned commercial requirements, and the contracted prices do not exceed their fair market value.

(e) Employment Agreements

We previously entered into an employment agreement with our former Chief Executive Officer, Rajesh C. Shrotriya, M.D., under which cash compensation and benefits would become payable in the event of termination by us for any reason other than cause, his resignation for good reason, or upon a change in control of our Company. Effective December 17, 2017, Dr. Shrotriya’s employment was terminated without cause. As of December 31, 2017, we accrued for all contractual cash amounts due and unpaid to him within “accrued payroll and benefits” on the accompanying Condensed Consolidated Balance Sheets.

We entered into new employment agreements with each of our named executive officers (CEO, COO, CFO, and CLO) in April and June 2018, which supersede any prior Change in Control Severance Agreements with such individuals. These new agreements provide for the payment of certain benefits to each executive upon his separation of employment under specified circumstances. These arrangements are designed to encourage each to act in the best interests of our stockholders at all times during the course of a change in control event or other significant transactions.

(f) Deferred Compensation Plan

33

Notes to Condensed Consolidated Financial Statements

(all tabular amounts presented in thousands, except share, per share, per unit, and number of years)

(Unaudited)

The Spectrum Pharmaceuticals, Inc. Deferred Compensation Plan (the “DC Plan”) is administered by the Compensation Committee of our Board of Directors and is intended to comply with the requirements of Section 409A of the Internal Revenue Code of 1986, as amended.

The DC Plan is maintained to provide special benefits for a select group of our employees (the “DC Participants”). DC Participants make annual elections to defer a portion of their eligible cash compensation which is then placed into their DC Plan accounts. We match a fixed percentage of these deferrals, and may make additional discretionary contributions. At June 30, 2018 and December 31, 2017, the aggregate value of this DC Plan liability totaled $6.0 million and $11.0 million, respectively, and is included within “accounts payable and other accrued liabilities” and “other long-term liabilities” in the accompanying Condensed Consolidated Balance Sheets.

(g) Litigation

We are involved from time-to-time with various legal matters arising in the ordinary course of business. These claims and legal proceedings are of a nature we believe are normal and incidental to a pharmaceutical business, and may include product liability, intellectual property, employment matters, and other general claims.

We make provisions for liabilities when it is both probable that a liability has been incurred and the amount of the loss can be reasonably estimated. Such provisions are assessed at least quarterly and adjusted to reflect the impact of any settlement negotiations, judicial and administrative rulings, advice of legal counsel, and other information and events pertaining to a particular case. Litigation is inherently unpredictable. Although the ultimate resolution of these various matters cannot be determined at this time, we do not believe that such matters, individually or in the aggregate, will have a material adverse effect on our consolidated results of operations, cash flows, or financial condition.

Stockholder Litigation

Olutayo Ayeni v. Spectrum Pharmaceuticals, Inc., et al. (Filed September 21, 2016 in the United States District Court, Central District of California; Case No. 2:16-cv-07074) (the “Ayeni Action”) and Glen Hartsock v. Spectrum Pharmaceuticals, Inc., et al. (Filed September 28, 2016 in the United States District Court, District Court of Nevada Case; No. 2:16-cv-02279-RFB-GWF) (the “Hartsock Action”). On November 15, 2016, the Ayeni Action was transferred to the United States District Court for the District of Nevada. The parties have stipulated to a consolidation of the Ayeni Action with the Hartsock Action. These class action lawsuits allege that we and certain of our executive officers made false or misleading statements and failed to disclose material facts about our business and the prospects of approval for our NDA to the FDA for QAPZOLA in violation of Section 10(b) (and Rule 10b-5 promulgated thereunder) and 20(a) of the Securities Exchange Act of 1934, as amended. The plaintiffs seek damages, interest, costs, attorneys’ fees, and other unspecified equitable relief. We believe that these claims are without merit, and intend to vigorously defend against these claims. Furthermore, as of June 30, 2018, the value of a potential settlement cannot be reasonably estimated given its highly uncertain nature.

16. INCOME TAXES

We apply an estimated annual effective tax rate (“ETR”) approach for calculating a tax provision for interim periods, as required under GAAP. We recorded a provision for income taxes of $0.0 million and $0.1 million for the six months ended June 30, 2018 and 2017, respectively. Our ETR differs from the U.S. federal statutory tax rate of 21% primarily as a result of nondeductible expenses, state income taxes, foreign income taxes, and the impact of a valuation allowance on our deferred tax assets.

Our provision for income taxes is computed using the asset and liability method, under which deferred tax assets and liabilities are recognized for the expected future tax consequences of temporary differences between the financial reporting and tax bases of assets and liabilities, and for the expected future tax benefit to be derived from tax loss and credit carryforwards.

Deferred tax assets and liabilities are determined using the enacted tax rates in effect for the years in which those tax assets are expected to be realized. A valuation allowance is established when it is more likely than not the future realization of all or some of the deferred tax assets will not be achieved. The evaluation of the need for a valuation allowance is performed on a jurisdiction by jurisdiction basis, and includes a review of all available positive and negative evidence.

34

Notes to Condensed Consolidated Financial Statements

(all tabular amounts presented in thousands, except share, per share, per unit, and number of years)

(Unaudited)

We recognize the impact of a tax position in our financial statements only if that position is more likely than not to be sustained upon examination by taxing authorities, based on the technical merits of the position. Any interest and penalties related to uncertain tax positions will be reflected in income tax expense.

The intraperiod tax allocation rules require that we allocate the provision for income taxes between continuing operations and other categories of earnings. In prior periods where we have a year-to-date pre-tax loss from continuing operations and year-to-date pre-tax income in other categories of earnings, such as other comprehensive income, ASC 740-20-45-7 requires that we allocate the income tax provision to other categories of earnings, and then record a related tax benefit in continuing operations. For the three and six months ended June 30, 2017, we recognized net losses from investments and currency transactions within the Condensed Consolidated Statement of Comprehensive Income (Loss). As a result, during the quarter ended June 30, 2017, we reversed $0.2 million of tax benefit previously recognized during the three months ended March 31, 2017 pursuant to allocations under ASC 740-20-45-7 andrecorded tax expense of $0.3 million within “provision for income taxes” on the Condensed Consolidated Statements of Operations. Beginning January 1, 2018, as a result of the adoption of ASU 2016-01,and related reclassification of gains on investments in equity securities to the Consolidated Statements of Operations, we have recognized currency translation losses in our Condensed Consolidated Statement of Comprehensive Income (Loss). Thus, during the three and six months ended June 30, 2018, there has been no allocation of tax benefits to the Condensed Consolidated Statements of Operations pursuant to the required allocations under ASC 740-20-45-7.

On December 22, 2017, the U.S. government enacted comprehensive tax legislation commonly referred to as the Tax Cuts and Jobs Act (the “Tax Act”). Changes include, but are not limited to, a corporate tax rate decrease from 35% to 21% effective for tax years beginning in 2018, the transition of U.S. international taxation from a worldwide tax system to a territorial system, which includes a new federal tax on global intangible low-taxed income (Global Minimum Tax or GMT), and a one-time transition tax on the mandatory deemed repatriation of cumulative foreign earnings as of December 31, 2017.

The SEC Staff issued SAB 118, which provides guidance on accounting for the tax effects of the Tax Act. SAB 118 provides a measurement period that should not extend beyond one year from the Tax Act enactment date for companies to complete the accounting under ASC 740. In accordance with SAB 118, a company must reflect the income tax effects of those aspects of the Tax Act for which the accounting under ASC 740 is complete. To the extent that a company’s accounting for certain income tax effects of the Tax Act is incomplete but it is able to determine a reasonable estimate, it must record a provisional estimate in the financial statements. If a company cannot determine a provisional estimate to be included in the financial statements, it should continue to apply ASC 740 on the basis of the provisions of the tax laws that were in effect immediately before the enactment of the Tax Act.

At December 31, 2017, we were able to make reasonable estimates of certain effects and, therefore, recorded provisional adjustments. The provisional amounts described below are subject to revisions as we complete our analysis of the Tax Act, collect data, and interpret any additional guidance issued by the United States Treasury Department, Internal Revenue Service, or IRS, FASB, and other standard-setting and regulatory bodies. Adjustments to the provisional amounts may materially impact our consolidated income tax provision (benefit) and effective tax rates in the period(s) in which such adjustments are made. Our accounting for the tax effects of the Tax Act will be completed during the one-year measurement period.

Reduction of U.S. federal corporate tax rate: For certain of our deferred tax assets and deferred tax liabilities, we have recorded a provisional decrease in net deferred tax assets of $38.9 million, with a corresponding decrease in the valuation allowance of $41.4 million and a benefit to income tax expense of $2.5 million for the year ended December 31, 2017. This provisional estimate may be affected by other analyses related to the Tax Act, including, but not limited to, the state tax effect of adjustments made to federal temporary differences.

Deemed repatriation transition tax: Based upon our preliminary analysis, we have concluded that a net accumulated E&P deficit exists as of December 31, 2017 for our foreign subsidiaries. As a result, we did not accrue any provisional transition tax liabilities. We will continue to gather additional and perform additional analyses to more precisely determine past foreign earnings and related taxes and will update our provisional estimate with respect to the transition tax liability when such work is completed within the one-year measurement period.

Valuation allowance: The Tax Act limits the amount taxpayers are able to deduct for net operating loss carryforwards generated in taxable years beginning after December 31, 2017 to 80% of the taxpayer’s taxable income. However, net operating loss carryforwards generated in taxable years ending after December 31, 2017 can be carried forward indefinitely. A taxable temporary difference associated with an indefinite-lived asset is generally considered to be a source of taxable income to

35

Notes to Condensed Consolidated Financial Statements

(all tabular amounts presented in thousands, except share, per share, per unit, and number of years)

(Unaudited)

support realization of a net operating loss with an unlimited carryforward period. Due to the restriction on the ability to use the net operating loss with unlimited carryforward periods arising in taxable years beginning after December 31, 2017, only 80% of the indefinite-lived taxable temporary difference would serve as a source of taxable income. As a result, the valuation allowance decreased by $2.9 million related to the 80% utilization of the indefinite-lived taxable temporary as a source of taxable income.

Under GAAP, we are allowed to make an accounting policy choice with respect to the GMT of either (1) treating taxes due on future U.S. inclusions in taxable income related to GMT as a current-period expense when incurred or (2) as a component of deferred income taxes. We will make our accounting policy election for this item when our analysis is complete, during the measurement period.

Due to the valuation allowance on deferred tax assets, the was no net impact to the tax provision for income taxes arising from the Tax Act for the three and six months ended June 30, 2018.

17. STOCKHOLDERS’ EQUITY

Sale of Common Stock Under ATM Agreements

In December 2015 and August 2017, we entered into collective at-market-issuance sales agreements with FBR Capital Markets & Co., MLV & Co. LLC, and H.C. Wainwright & Co., LLC. (the “December 2015 ATM Agreement” and the “August 2017 ATM Agreement”, respectively). These agreements allowed us to raise aggregate gross proceeds through these brokers of up to $250 million from the sale of our common stock on the public market.

Through June 30, 2018, we had raised aggregate gross net proceeds of $202.1 million through these at-market sales, of which $128.3 million was raised during the year ended December 31, 2017. We are using these proceeds to continue to develop our product pipeline and to provide additional capital structure flexibility.

We sold and issued shares of our common stock under both the December 2015 ATM Agreement and August 2017 ATM Agreement, summarized as follows:

Description of Financing Transaction	No. of Common Shares Issued	Proceeds Received (Net of Broker Commissions and Fees )
Common shares issued pursuant to the December 2015 ATM Agreement during the year ended December 31, 2016	10,890,915	$	73,869
Common shares issued pursuant to the December 2015 ATM Agreement between July 1, 2017 and July 31, 2017	3,243,882	$	23,745
Common shares issued pursuant to the August 2017 ATM Agreement between August 1, 2017 and December 31, 2017	10,314,250	$	104,527

There were no sales of our common stock under the August 2017 ATM Agreement during the six months ended June 30, 2018.

36

Notes to Condensed Consolidated Financial Statements

(all tabular amounts presented in thousands, except share, per share, per unit, and number of years)

(Unaudited)

18. IMMATERIAL RESTATEMENT OF PRIOR PERIOD FINANCIAL STATEMENTS FOR STOCK-BASED COMPENSATION

Subsequent to the issuance of our unaudited interim financial statements for the quarter and year-to-date periods ended September 30, 2017, our management identified certain immaterial errors within previously reported operating expense captions of “selling, general, and administrative” and “research and development” that solely relate to our stock-based compensation recognition (see Note 6). These errors were primarily the result of an improper system setting during our 2012 implementation of our then-new stock-based compensation software. Consequently, incremental expense for the reversal of previously applied forfeiture estimates was not timely recognized upon the full vesting of each award, as required; this error persisted through September 30, 2017. We considered these errors from a qualitative and quantitative perspective, and concluded they were not material to each prior period. However, we have restated our accompanying Condensed Consolidated Financial Statements to correct for these immaterial errors for the prior-year interim period presented.

Restated Condensed Consolidated Statements of Operations for the three and six months ended June 30, 2017:

	Three Months Ended June 30, 2017						Six Months Ended June 30, 2017
	As Previously Reported			As Restated			As Previously Reported			As Restated
Operating costs and expenses:
Selling, general and administrative	$	17,107		$	17,421		$	35,715		$	36,525
Research and development	15,097			15,167			29,792			29,945
Total operating costs and expenses	52,526			52,910			102,957			103,920
Loss from operations	(18,225		)	(18,609		)	(39,555		)	(40,518		)
Loss before income taxes	(20,213		)	(20,597		)	(43,381		)	(44,344		)
Net loss	$	(20,468	)	$	(20,852	)	$	(43,435	)	$	(44,398	)
Net loss per share:
Basic	$	(0.26	)	$	(0.27	)	$	(0.55	)	$	(0.57	)
Diluted	$	(0.26	)	$	(0.27	)	$	(0.55	)	$	(0.57	)

Restated Condensed Consolidated Statements of Comprehensive Loss for the three and six months ended June 30, 2017:

	Three Months Ended June 30, 2017						Six Months Ended June 30, 2017
	As Previously Reported			As Restated			As Previously Reported			As Restated
Net loss	$	(20,468	)	$	(20,852	)	$	(43,435	)	$	(44,398	)
Total comprehensive loss	$	(22,627	)	$	(23,011	)	$	(43,635	)	$	(44,598	)

Other than for the correction to net loss and stock-based compensation, the restatement adjustments had no impact on cash flows from operating, investing, or financing activities for the six months ended June 30, 2017. Furthermore, such restatement adjustments had no impact to prior period total assets, total liabilities or total stockholders’ equity.

19. NEW REVENUE RECOGNITION STANDARD

As discussed in Note 2(i), Topic 606 became effective for us on January 1, 2018. We applied the “modified retrospective” transition method for the accounting of open contracts at implementation. This resulted in the recognition of an aggregate $4.7 million increase to our January 1, 2018 retained earnings (for the tax-effected cumulative impact of initially applying this new standard, with no adjustments to our prior period face financial statements). Our prior periods continue to be presented in accordance with our historical revenue accounting practices under Topic 605.

Had we continued to apply Topic 605 for our revenue recognition for the three and six months ended June 30, 2018, the “proforma” impact to our Condensed Consolidated Statements of Operations is presented in the table below:

37

Notes to Condensed Consolidated Financial Statements

(all tabular amounts presented in thousands, except share, per share, per unit, and number of years)

(Unaudited)

	Three Months Ended June 30, 2018
	As Reported Under Topic 606			Adjustments			If Reported Under Topic 605
Revenue:
Product sales, net	$	23,753		$	1,165		$	24,918
License fees and service revenue	415			(56		)	359
Total revenues	$	24,168		$	1,109		$	25,277
Loss from operations	(34,311		)	1,109			(33,202		)
Loss before income taxes	13,747			1,109			14,856
Net income	$	13,744		$	1,109		$	14,853
Net income per share:
Basic	$	0.13		$	0.01		$	0.14
Diluted	$	0.13		$	0.01		$	0.14

	Six Months Ended June 30, 2018
	As Reported Under Topic 606			Adjustments		If Reported Under Topic 605
Revenue:
Product sales, net	51,863			1,562		53,425
License fees and service revenue	2,799			64		2,863
Total revenues	54,662			1,626		56,288
Loss from operations	(59,576		)	1,626		(57,950		)
Loss before income taxes	(2,068		)	1,626		(442		)
Net loss	(2,074		)	1,626		(448		)
Net loss per share:
Basic	$	(0.02	)	$	0.02	$	0.00
Diluted	$	(0.02	)	$	0.02	$	0.00

Had we continued to apply Topic 605 for our revenue recognition for the three and six months ended June 30, 2018, the “proforma” impact to our Condensed Consolidated Balance Sheets as of June 30, 2018 is presented in the table below.

38

Notes to Condensed Consolidated Financial Statements

(all tabular amounts presented in thousands, except share, per share, per unit, and number of years)

(Unaudited)

	June 30, 2018
	As Reported Under Topic 606			Adjustments			If Reported Under Topic 605
Current assets:
Accounts receivable, net of allowance for doubtful accounts	27,658			38			27,696
Total current assets	$	309,520		$	38		$	309,558
Total assets	$	464,522		$	38		$	464,560
Current liabilities:
Deferred revenue	—			2,308			2,308
Total current liabilities	$	94,470		$	2,308		$	96,778
Deferred revenue, less current portion	—			282			282
Total liabilities	$	120,403		$	2,590		$	122,993
Stockholders’ equity:
Accumulated deficit	(481,948		)	(2,552		)	(484,500		)
Total stockholders’ equity	344,119			(2,552		)	341,567
Total liabilities and stockholders’ equity	$	464,522		$	38		$	464,560

Had we continued to apply Topic 605 for our revenue recognition for the six months ended June 30, 2018, the “proforma” impact to our Condensed Consolidated Statements of Cash Flows for the six months ended June 30, 2018 is presented in the table below:

	Six Months Ended June 30, 2018
	As Reported Under Topic 606			Adjustments			If Reported Under Topic 605
Net loss	$	(2,074	)	$	1,626		$	(448	)
Changes in operating assets and liabilities:
Accounts receivable, net	5,087			(38		)	5,049
Deferred revenue	—			1,588			1,588

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ITEM 2.

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Note Regarding Forward-Looking Statements

This Quarterly Report on Form 10-Q contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities Act”), and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), in reliance upon the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include, without limitation, statements regarding our future product development activities and costs, the revenue potential (licensing, royalty and sales) of our products and product candidates, the success, safety and efficacy of our drug products, revenues, development timelines, product acquisitions, accounting principles, litigation expenses, liquidity and capital resources and trends, and other statements containing forward-looking words, such as, “believes,” “may,” “could,” “will,” “expects,” “intends,” “estimates,” “anticipates,” “plans,” “seeks,” “continues,” or the negative thereof or variation thereon or similar terminology (although not all forward-looking statements contain these words). Such forward-looking statements are based on the reasonable beliefs of our management as well as assumptions made by and information currently available to our management. Readers should not put undue reliance on these forward-looking statements. Forward-looking statements are inherently subject to risks and uncertainties, some of which cannot be predicted or quantified; therefore, our actual results may differ materially from those described in any forward-looking statements. Factors that might cause such a difference include, but are not limited to, those discussed in our periodic reports filed with the U.S. Securities and Exchange Commission (the “SEC”), including our Annual Report on Form 10-K for the fiscal year ended December 31, 2017, as well as those discussed elsewhere in this Quarterly Report on Form 10-Q, and the following factors:

• our ability to successfully develop, obtain regulatory approval for and market our products;

• our ability to continue to grow sales revenue of our marketed products;

• risks associated with doing business internationally;

• our ability to generate and maintain sufficient cash resources to fund our business;

• our ability to enter into strategic alliances with partners for manufacturing, development and commercialization;

• efforts of our development partners;

• the ability of our manufacturing partners to meet our timelines;

• the ability to timely deliver product supplies to our customers;

• our ability to identify new product candidates and to successfully integrate those product candidates into our operations;

• the timing and/or results of pending or future clinical trials, and our reliance on contract research organizations;

• reports of adverse events or safety concerns involving each of our products;

• our ability to protect our intellectual property rights;

• competition in the marketplace for our drugs;

• delay in approval of our products or new indications for our products by the U.S. Food and Drug Administration (the “FDA”);

• the impact of legislative or regulatory reform on the pricing for pharmaceutical products;

• actions by the FDA and other regulatory agencies, including international agencies;

• securing positive reimbursement for our products;

• the impact of any product liability, or other litigation to which we are, or may become a party;

• the impact of legislative or regulatory reform of the healthcare industry and the impact of recently enacted healthcare reform legislation;

• the availability and price of acceptable raw materials and components from third-party suppliers, and their ability to meet our demands;

40

• our ability, and that of our suppliers, development partners, and manufacturing partners, to comply with laws, regulations and standards, and the application and interpretation of those laws, regulations and standards, that govern or affect the pharmaceutical and biotechnology industries, the non-compliance with which may delay or prevent the development, manufacturing, regulatory approvals and sale of our products;

• defending against claims relating to improper handling, storage or disposal of hazardous chemical, radioactive or biological materials which could be time consuming and expensive;

• our ability to maintain the services of our key executives and technical and sales and marketing personnel;

• the difficulty in predicting the timing or outcome of product development efforts and regulatory approvals; and

• demand and market acceptance for our approved products.

All subsequent written and oral forward-looking statements attributable to us or by persons acting on our behalf are expressly qualified in their entirety by these cautionary statements. We expressly disclaim any intent or obligation to update information contained in any forward-looking statement after the date thereof to conform such information to actual results or to changes in our opinions or expectations.

Company Overview

Spectrum Pharmaceuticals, Inc. (“Spectrum”, the “Company”, “we”, “our”, or “us”) is a biopharma company, with a primary strategy comprised of acquiring, developing, and commercializing a broad and diverse pipeline of clinical and commercial products. We have an in-house clinical development organization with regulatory and data management capabilities, in addition to commercial infrastructure and a field-based sales force for our marketed products. Currently, we have six approved oncology/hematology products (FUSILEV, FOLOTYN, ZEVALIN, MARQIBO, BELEODAQ, and EVOMELA) that target different types of cancer including: non-Hodgkin’s lymphoma, advanced metastatic colorectal cancer, acute lymphoblastic leukemia, and multiple myeloma.

We also have three drugs in mid-to-late stage development (in Phase 2 or Phase 3 clinical trials):

• Poziotinib, a novel pan-HER inhibitor used in the treatment of patients with a variety of solid tumors, including breast and lung cancer;

• ROLONTIS for chemotherapy-induced neutropenia; and

• QAPZOLA for immediate intravesical instillation in post-transurethral resection of bladder tumors in patients with non-muscle invasive bladder cancer, or NMIBC.

See Item 1. Business of our Annual Report on Form 10-K for the fiscal year ended December 31, 2017, for a discussion of:

• Company Overview

• Cancer Background and Market Size

• Product Portfolio

• Manufacturing

• Sales and Marketing

• Customers

• Competition

• Research and Development

Recent Highlights of Product Development Initiatives

We continue to make meaningful progress in the advancement of our product pipeline during 2018, as summarized below:

• poziotinib, an irreversible tyrosine kinase inhibitor:

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Non-small cell lung cancer (“NSCLC”) tumors with EGFR or HER2 exon 20 insertion mutations are rare, and have generally not been responsive to several other tyrosine kinase inhibitors (“TKIs”). Consequently, there are no drugs currently approved to treat patients with these mutations, who have a poor prognosis of approximately two months of progression-free survival. However, poziotinib, due to its unique chemical structure and characteristics, is believed to inhibit cell growth of EGFR or HER2 exon 20 insertions.

Use in Treatment of Lung Cancer

In collaboration with The University of Texas MD Anderson Cancer Center (“MD Anderson”), an investigator-sponsored Phase 2 trial was initiated in NSCLC patients with EGFR or HER2 exon 20 mutations. The EGFR cohort of 50 patients has completed enrollment; the enrollment of the HER2 cohort of 30 patients is ongoing.

On April 23, 2018, poziotinib data was published in Nature Medicine from the ongoing study led by MD Anderson. This publication summarized the current preclinical and clinical data with poziotinib for EGFR and HER2 exon 20 mutations. MD Anderson utilized in silico, in vitro, and in vivo testing to model structural alterations induced by exon 20 mutations and identify potentially effective inhibitors. 3-D modeling indicated alterations restricted the size of the drug binding pocket, limiting the binding of large, rigid inhibitors. It was found that poziotinib, due to its small size and flexibility, can circumvent these steric changes, and is a potent inhibitor of the most common EGFR and HER2 exon 20 mutants. Poziotinib demonstrated greater activity than approved EGFR TKIs in vitro and in EGFR or HER2 exon 20 mutant patient-derived xenograft models, and genetically engineered mouse models of NSCLC.

This Nature Medicine publication reported an update on the preliminary clinical data of poziotinib dosing on the 11 NSCLC patients previously reported at World Lung Conference on Lung Cancer in October 2017. The reported poziotinib data demonstrated a confirmed objective response rate of 64%, and its safety profile was consistent with other TKIs. The median progression-free survival had not been reached (with a median follow-up of 6.6 months). We expect additional data from this study to be presented at the upcoming World Conference on Lung Cancer on September 24, 2018 in Toronto, Canada.

In addition to the MD Anderson study, we initiated a multi-center study in NSCLC patients with EGFR or HER2 exon 20 insertion mutations, beginning in October 2017. This study will enroll up to 87 patients with EGFR exon 20 insertion mutations, and up to 87 patients with HER2 exon 20 insertion mutations.

In a recent April 2018 American Association of Cancer Research poster presentation for poziotinib, data was presented highlighting the preclinical and clinical activity of poziotinib in HER2 exon 20 mutant NSCLC. The poster also noted that EGFR and HER2 exon 20 mutations occur in a variety of other solid tumors in addition to NSCLC. We are planning a “basket study” to investigate the potential for poziotinib to treat patients with these mutations in other solid tumor cancer-types.

Use in Treatment of Breast Cancer

We are also currently enrolling patients in a Phase 2 breast cancer trial for poziotinib. The Phase 2 study is an open-label study that will enroll approximately 75 patients with HER2 positive metastatic breast cancer, who have failed at least two HER2 directed therapies. Additionally, we have recently opened a Phase 1b study that will test the combination of poziotinib and ado-trastuzumab emtansine (T-DM1) in patients with metastatic breast cancer.

• ROLONTIS, a novel long-acting G-CSF:

A pivotal Phase 3 study (ADVANCE Study, or SPI-GCF-301) was initiated in the first quarter of 2016 to evaluate ROLONTIS as a treatment for chemotherapy-induced neutropenia. The ADVANCE study, which is being conducted under a special protocol assessment (“SPA”) has completed enrollment with 406 patients and on February 5, 2018, we announced that the top line result of this study met the primary endpoint of non-inferiority in Duration of Severe Neutropenia between ROLONTIS and pegfilgrastim, with a similar adverse profile between the two study arms. We initiated a second pivotal Phase 3 study (RECOVER Study, or SPI-GCF-302) and also announced the completion of its enrollment on February 5, 2018. We expect to file our Biologics License Application with the FDA for ROLONTIS in the fourth quarter of 2018.

• QAPZOLA, a potent tumor-activated drug being investigated for NMIBC:

In February 2017, we received a SPA from the FDA for our redesigned Phase 3 study of QAPZOLA. This Phase 3 study has been specifically designed to build on learnings from our previous studies, as well as recommendations from the FDA. Currently, we anticipate that 425 evaluable patients will be enrolled in the Phase 3 study, which will use a single dose of 8 mg of QAPZOLA and will evaluate time-to-recurrence as the primary endpoint. We began enrolling patients in the third quarter of 2017.

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CHARACTERISTICS OF OUR REVENUE AND EXPENSES

See Item 7. Characteristics of Our Revenue and Expenses of our Annual Report on Form 10-K for the year ended December 31, 2017, for a discussion of the nature of our revenue and operating expense line items within our accompanying Condensed Consolidated Statements of Operations.

CRITICAL ACCOUNTING POLICIES AND ESTIMATES

See Item 7. Critical Accounting Policies and Estimates of our Annual Report on Form 10-K for the year ended December 31, 2017, for a discussion of significant estimates and assumptions as part of the preparation of our accompanying Condensed Consolidated Financial Statements. These critical accounting policies and estimates arise in conjunction with the following accounts:

• Revenue recognition (see Note 2(i) to our accompanying Condensed Consolidated Financial Statements for discussion regarding our January 1, 2018 adoption of the new revenue recognition standard)

• Inventories – lower of cost or market

• Fair value of acquired assets and assumed liabilities

• Goodwill and intangible assets – impairment evaluations

• Income taxes

• Stock-based compensation

• Litigation accruals (as required)

RESULTS OF OPERATIONS

Operations Overview – Three and Six Months Ended June 30, 2018 and 2017

	Three Months Ended June 30,										Six Months Ended June 30,
	2018					2017					2018					2017
	($ in thousands)										($ in thousands)
Total revenues	$	24,168		100.0	%	$	34,301		100.0	%	$	54,662		100.0	%	$	63,402		100.0	%
Operating costs and expenses:
Cost of sales (excludes amortization of intangible assets)	6,606			27.3	%	11,303			33.0	%	13,420			24.6	%	19,439			30.7	%
Cost of service revenue	—			—	%	2,118			6.2	%	—			—	%	4,221			6.7	%
Selling, general and administrative	23,451			97.0	%	17,421			50.8	%	47,556			87.0	%	36,525			57.6	%
Research and development	21,488			88.9	%	15,167			44.2	%	39,382			72.0	%	29,945			47.2	%
Amortization of intangible assets	6,934			28.7	%	6,901			20.1	%	13,880			25.4	%	13,790			21.8	%
Total operating costs and expenses	58,479			242.0	%	52,910			154.3	%	114,238			209.0	%	103,920			163.9	%
Loss from operations	(34,311		)	(142.0	)%	(18,609		)	(54.3	)%	(59,576		)	(109.0	)%	(40,518		)	(63.9	)%
Interest expense, net	(242		)	(1.0	)%	(2,131		)	(6.2	)%	(472		)	(0.9	)%	(4,182		)	(6.6	)%
Change in fair value of contingent consideration related to acquisitions	(192		)	(0.8	)%	(97		)	(0.3	)%	(483		)	(0.9	)%	(294		)	(0.5	)%
Other income, net	48,492			200.6	%	240			0.7	%	58,463			107.0	%	650			1.0	%
Income (loss) before income taxes	13,747			56.9	%	(20,597		)	(60.0	)%	(2,068		)	(3.8	)%	(44,344		)	(69.9	)%
Provision for income taxes	(3		)	—	%	(255		)	(0.7	)%	(6		)	—	%	(54		)	(0.1	)%
Net income (loss)	$	13,744		56.9	%	$	(20,852	)	(60.8	)%	$	(2,074	)	(3.8	)%	$	(44,398	)	(70.0	)%

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THREE MONTHS ENDED JUNE 30,2018 AND 2017

Total Revenues 

	Three Months Ended June 30, 2018
	2018			2017			$ Change			% Change
	($ in millions)
Product sales, net:
FOLOTYN	$	11.7		$	11.2		$	0.5		4.5	%
EVOMELA	5.8			10.1			(4.3		)	(42.6	)%
BELEODAQ	2.7			3.4			(0.7		)	(20.6	)%
ZEVALIN	1.6			2.3			(0.7		)	(30.4	)%
MARQIBO	1.1			2.2			(1.1		)	(50.0	)%
FUSILEV	0.8			2.1			(1.3		)	(61.9	)%
Total Product sales, net	$	23.7	*	$	31.3	*	$	(7.6	)	(24.3	)%
License fees and service revenue	0.4			3.1			(2.7		)	(87.1	)%
Total revenues	$	24.1	*	$	34.4	*	$	(10.3	)	(29.9	)%

* Does not agree to the face of the accompanying Condensed Consolidated Statements of Operations for the three months ended June 30, 2018 and 2017, by an immaterial amount due to rounding.

Product sales, net. To derive net product sales, gross product revenues in each period are reduced by management’s latest estimated provisions for (i) product returns, (ii) government chargebacks, (iii) prompt pay discounts, (iv) commercial rebates, (v) Medicaid rebates, and (vi) distribution, data, and group purchasing organization (“GPO”), administrative fees. Our management considers various factors in the determination of these provisions, which are described within Note 2(i)(a) to our accompanying Condensed Consolidated Financial Statements.

FOLOTYN revenue increased $0.5 million as a result of an increase in the net average sales price per unit, partially offset by a decrease in the number of units sold in the current period.

EVOMELA revenue decreased $4.3 million as a result of a decrease in the number of units sold and a decrease in our average net sales price per unit in the current period.

BELEODAQ revenue decreased $0.7 million as a result of a decrease in the number of units sold, partially offset by an increase in the net average sales price per unit in the current period.

ZEVALIN revenue decreased $0.7 million as a result of a decline in units sold and a decrease in the net average sales price per unit in the current period.

MARQIBO revenue decreased $1.1 million as a result of a decline in the units sold and a decrease in the net average sales price per unit in the current period.

FUSILEV revenue decreased $1.3 million as a result of the continued significant decline in our unit sales due to the competitive launch of generic levo-leucovorin products beginning in April 2015 (see Note 3(f)) to our accompanying Condensed Consolidated Financial Statements). We expect to report further net sales declines of FUSILEV in 2018 due to ongoing pricing pressure from generic competition.

License fees and service revenue. Our license fees and service revenue in the current period decreased by $2.7 million primarily due to (i) $2.4 million of non-recurring service revenue from our expired co-promotion arrangement with Eagle Pharmaceuticals, Inc. (see Note 12 to our accompanying Condensed Consolidated Financial Statements), and (ii) $0.6 million decrease in income from the prior-year period for the recognition of up-front payments related to our ZEVALIN out-license agreement (see Note 11 to our accompanying Condensed Consolidated Financial Statements), partially offset by $0.3 million increase in royalties related to our out-license of FOLOTYN (see Note 14 to our accompanying Condensed Consolidated Financial Statements).

44

Operating Expenses

	Three Months Ended June 30, 2018
	2018		2017		$ Change			% Change
	($ in millions)
Operating costs and expenses:
Cost of sales (excludes amortization of intangible assets)	$	6.6	$	11.3	$	(4.7	)	(41.6	)%
Cost of service revenue	—		2.1		(2.1		)	(100.0	)%
Selling, general and administrative	23.5		17.4		6.1			35.1	%
Research and development	21.5		15.2		6.3			41.4	%
Amortization of intangible assets	6.9		6.9		—			—	%
Total operating costs and expenses	$	58.5	$	52.9	$	5.6		10.6	%

Cost of Sales. Cost of sales decreased $4.7 million in the current period primarily due to our net product revenue decrease. This decline in product revenue was further impacted by (i) our product sales mix and (ii) higher costs related to our EVOMELA manufacturing activities.

Cost of Service Revenue. Cost of service revenue relates to our allocated commercial and marketing expenses (from “selling, general, and administrative” expenses) for the fee-based promotion and sale of Eagle Pharmaceuticals, Inc.’s products by our sales force. Our cost of service revenue decreased by the full $2.1 million incurred in the prior period, as we ceased marketing these products as of July 1, 2017 (see Note 12 to our accompanying Condensed Consolidated Financial Statements).

Selling, General and Administrative. Selling, general and administrative expenses increased $6.1 million in the current period primarily due to (i) non-recurrence of certain sales and marketing costs in the prior period, aggregating $2.1 million, that were allocated from this account to “cost of service revenue” (see above), (ii) $1.0 million in Nevada payroll tax expense related to stock option exercises by our former CEO, and (iii) an increase of $1.4 million in litigation and patent related expenses.

Research and Development. Research and development expenses increased by $6.3 million in the current period due to a number of factors, including (i) $3.8 million increase in clinical and development initiatives related to poziotinib, (ii) $3.6 million increase in the development and manufacturing of ROLONTIS, and (iii) $1.1 million increase in personnel-related costs to drive our product development. These increases were partially offset by a $3.1 million decrease in clinical trial related expenses associated with ROLONTIS, as both the ADVANCE and RECOVER studies have completed enrollment and associated costs are down significantly as compared to the prior year period.

Amortization of Intangible Assets. Amortization expense remained consistent compared to the prior year period.

Total Other Income (Expense)

	Three Months Ended June 30, 2018
	2018		2017			$ Change		% Change
	($ in millions)
Total other income (expense)	$	48.1	$	(2.0	)	$	50.1	2,505.0	%

Total other income (expense). Total other income (expense)increased by $50.1 million primarily due to (i) $48.5 million increase in unrealized gain on our CASI Pharmaceuticals, Inc. equity securities, which are now recorded within “other income (expense)” rather than “other comprehensive (loss) income” due to our adoption of ASU 2016-01 (see Note 3(a) to our accompanying Condensed Consolidated Financial Statements), and (ii) $1.4 million decrease in interest expense on our due 2018 Convertible Senior Notes as a result of our October 2017 repurchase of $69.5 million of principal value (see Note 13).

Provision for Income Taxes

45

	Three months ended June 30,
	2018		2017			$ Change		% Change
	($ in millions)
Provision for income taxes	$	—	$	(0.3	)	$	0.3	(100.0	)%

For the three months ended June 30, 2018, there was no provision for income taxes as the pre-tax income was offset by previous operating losses. For the three months ended June 30, 2017, we reported unrealized net losses from investments and currency transactions within the Condensed Consolidated Statements of Comprehensive Loss. As a result, we reversed $0.2 million of tax benefit previously recognized in the first quarter of 2017, pursuant to GAAP requirements, andrecorded tax expense of $0.3 million.

SIX MONTHS ENDEDJUNE 30,2018 AND 2017

Total Revenues

	Six months ended June 30,
	2018			2017		$ Change			% Change
	($ in millions)
Product sales, net:
FOLOTYN	24.4			20.5		$	3.9		19.0	%
EVOMELA	13.9			16.4		$	(2.5	)	(15.2	)%
BELEODAQ	5.4			6.3		$	(0.9	)	(14.3	)%
ZEVALIN	4.7			5.1		$	(0.4	)	(7.8	)%
MARQIBO	2.0			4.1		$	(2.1	)	(51.2	)%
FUSILEV	$	1.4		$	4.6	$	(3.2	)	(69.6	)%
Total Product sales, net	$	51.8	*	$	57.0	$	(5.2	)	(9.1	)%
License fees and service revenue	2.8			6.4		(3.6		)	(56.3	)%
Total revenues	$	54.6	*	$	63.4	$	(8.8	)	(13.9	)%

* Does not agree to the face of the accompanying Condensed Consolidated Statements of Operations for the six months ended June 30, 2018 by an immaterial amount due to rounding.

Product sales, net. To derive net product sales, gross product revenues in each period are reduced by management’s latest estimated provisions for (i) product returns, (ii) government chargebacks, (iii) prompt pay discounts, (iv) commercial rebates, (v) Medicaid rebates, and (vi) distribution, data, and GPO administrative fees. Our management considers various factors in the determination of these provisions, which are described within Note 2(i)(a) to our accompanying Condensed Consolidated Financial Statements.

FOLOTYN revenue increase is due to an increase in units sold in the current period, in addition to an increase in our net average sales price per unit.

EVOMELA revenue decrease is due to a decrease in our average net sales price per unit, partially offset by an increase in units sold in the current period.

BELEODAQ revenue decreased as a result of a decrease in the units sold during the period.

ZEVALIN revenue decrease is primarily due to a decrease in units sold in the U.S. territory, partially offset by an increase in product sales to Mundipharma for end-users in Japan (see Note 11).

MARQIBO revenue decrease is due to a decline in units sold during the period, in addition to a decrease in our average net sales price per unit.

FUSILEV revenue decrease is attributable to a decline in our unit sales due to the competitive launch in April 2015 of generic levo-leucovorin product (see Note 3(f)).

License fees and service revenue. Our license fees and service revenue in the current period decreased by $3.6 million primarily due to $4.7 million of non-recurring service revenue from our expired co-promotion arrangement with Eagle

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Pharmaceuticals, Inc. (see Note 12)to our accompanying Condensed Consolidated Financial Statements), partially offset by (i) $2 million contractual milestone achievement by our licensee for ZEVALIN sales (see Note 15(b)(v))to our accompanying Condensed Consolidated Financial Statements), resulting in $0.8 million increase in fees from the prior-year period for this out-license, and (ii) $0.4 million increase in royalties related to our out-license of FOLOTYN (see Note 14 to our accompanying Condensed Consolidated Financial Statements).

Operating Expenses

	Six months ended June 30,
	2018		2017		$ Change			% Change
	($ in millions)
Operating costs and expenses:
Cost of sales (excludes amortization of intangible assets)	$	13.4	$	19.4	$	(6.0	)	(30.9	)%
Cost of service revenue	—		4.2		(4.2		)	(100.0	)%
Selling, general and administrative	47.6		36.5		11.1			30.4	%
Research and development	39.4		29.9		9.5			31.8	%
Amortization of intangible assets	13.9		13.8		0.1			0.7	%
Total operating costs and expenses	$	114.3	$	103.8	$	10.5		10.1	%

Cost of Sales. Cost of sales decreased $6.0 million in the current period primarily due to our net product revenue decrease. This product revenue decrease was further impacted by (i) our product sales mix and (ii) higher costs related to our EVOMELA manufacturing activities.

Cost of Service Revenue. Cost of service revenue relates to our allocated commercial and marketing expenses (from “selling, general, and administrative” expenses) for the fee-based promotion and sale of Eagle Pharmaceuticals, Inc.’s products by our sales force. Our cost of service revenue decreased by the full $4.2 million incurred in the prior period, as we ceased marketing these products as of July 1, 2017 (see Note 12 to our accompanying Condensed Consolidated Financial Statements).

Selling, General and Administrative. Selling, general and administrative expenses increased by $11.1 million in the current period primarily due to a (i) $2.6 million increase in litigation expenses primarily associated with the termination of our former chief executive officer in December 2017, (ii) non-recurrence of certain sales and marketing costs in the prior period, aggregating $4.2 million, that were allocated from this account to “cost of service revenue” (see above), and (iii) $1.0 million Nevada payroll tax expense related to stock option exercises by our former CEO.

Research and Development. Research and development expenses increased by $9.5 million in the current period due to a number of factors, including (i) $7.5 million increase in clinical and development initiatives largely related to poziotinib, (ii) $3.2 million increase in the development and manufacturing of ROLONTIS, (iii) $1.2 million in technical transfer costs associated with ZEVALIN production, and (iv) $2.1 million increase in personnel-related costs to drive our product development. These increases were partially offset by $5.6 million decrease in clinical trial expenses associated with ROLONTIS, as both the ADVANCE and RECOVER studies have completed enrollment and associated costs are significantly reduced as compared to the prior year period.

Amortization and Impairment Charges of Intangible Assets. Amortization expense remained consistent compared to the prior year period.

Total Other Income (Expense)

	Six months ended June 30,
	2018		2017			$ Change		% Change
	($ in millions)
Total other income (expense)	$	57.5	$	(3.8	)	$	61.3	1,613.2	%

Total other income (expense). Total other income (expense)increased by $61.3 million primarily due to (i) $58.6 million increase in unrealized gain on our CASI Pharmaceuticals, Inc. equity securities, which are now recorded within “other income (expense)” rather than “other comprehensive loss” due to our adoption of ASU 2016-01 (see Note 3(a) to our accompanying

47

Condensed Consolidated Financial Statements) and (ii) $2.8 million decrease in interest expense primarily due to our 2018 Convertible Senior Notes as a result of our October 2017 repurchase of $69.5 million of principal value (see Note 13), partially offset by a $0.5 million increase in executive deferred compensation expense as a result of decreases in fair value of corresponding plan assets (see Note 15(f)), and a $0.2 million increase in the fair value of contingent consideration related to our MARQIBO product (see Note 9(b)).

Provision for Income Taxes

	Six months ended June 30,
	2018		2017			$ Change		% Change
	($ in millions)
Provision for income taxes	$	—	$	(0.1	)	$	0.1	100.0	%

Our provision for income taxes of $6 thousand and $54 thousand for the six months ended June 30, 2018 and 2017, respectively, is primarily due to increases in our deferred tax liabilities associated with indefinite lived assets which in turn result in an increased valuation allowance on our deferred tax assets.

LIQUIDITY AND CAPITAL RESOURCES

	June 30, 2018		December 31, 2017		June 30, 2017
	(in thousands, except financial metrics data)
Cash, cash equivalents, and marketable securities*	$	269,658	$	227,571	$	138,561
Accounts receivable, net	$	27,658	$	32,260	$	41,977
Total current assets	$	309,520	$	277,746	$	199,014
Total current liabilities	$	94,470	$	109,749	$	64,565
Working capital surplus (a)	$	215,050	$	167,997	$	134,449
Current ratio (b)	3.3		2.5		3.1

* Beginning March 31, 2018, we prospectively reclassified our presentation of equity holdings in CASI (see Note 3(a) and Note 10 to our accompanying Condensed Consolidated Financial Statements) from the caption of “other assets” to “marketable securities.”

(a) Total current assets at period end minus total current liabilities at period end.

(b) Total current assets at period end divided by total current liabilities at period end.

Net Cash Used In Operating Activities

Net cash used in operating activities was $39.2 million for the six months ended June 30, 2018, as compared to $19.5 million in the prior year period. For the six months ended June 30, 2018 and 2017, our cash collections from customers totaled $64.8 million and $75.9 million, respectively, representing 118.5% and 119.7% of reported net revenue for the same six-month periods. For the six months ended June 30, 2018 and 2017, cash payments for products, services, chargebacks, and rebates to our employees, vendors, and product end-users totaled $116.0 million and $99.9 million, respectively.

Net Cash Provided by (Used In) Investing Activities

Net cash provided by investing activities was $4.1 million for the six months ended June 30, 2018, as compared to $0.8 million of cash used in investing activities during the prior year period. The cash provided by investing activities for the six months of 2018 primarily relates to $4.1 million of proceeds received from the redemption of our corporate-owned life insurance policy.

Net Cash (Used In) Provided by Financing Activities

Net cash used in financing activities was $17.5 million for the six months ended June 30, 2018, as compared to $0.1 million provided by financing activities in the prior year period. Our cash used in financing activities during the first six months of 2018 primarily relates to our $27.7 million of aggregate payments to federal and state tax authorities related to our employees’ tax liabilities at the time of stock vestings and exercises. We made these payments in return for an equivalent value

48

of surrendered shares by our employees. This outflow was partially offset by $4.6 million of proceeds received from employees related to remittances to federal and state tax authorities for taxes due at vesting/exercise of equity awards, and $4.8 million of proceeds as a result of the exercise of employee stock options.

2018 Convertible Notes

In December 2013, we entered into an agreement for the sale of our 2018 Convertible Notes in the aggregate amount of $120 million. The 2018 Convertible Notes bear interest at a rate of 2.75% per year, payable semiannually in arrears on June 15 and December 15 of each year. The 2018 Convertible Notes will mature and become payable on December 15, 2018, subject to earlier conversion into common stock at the holders’ option. As of June 30, 2018 and December 31, 2017, an aggregate principal amount of $40.6 million remained outstanding due to our open market purchases of these instruments in December 2016 and October 2017.

The 2018 Convertible Notes are convertible into shares of our common stock at a current conversion rate of 95 shares per $1,000 principal amount of the 2018 Convertible Notes, or a conversion price of approximately $10.53 per common share. The conversion rate and conversion price are subject to adjustment under certain limited circumstances. We may settle conversions of the 2018 Convertible Notes by paying or delivering, as the case may be, cash, shares of our common stock, or a combination of cash and shares, at our election. As a result, a maximum of approximately 3.9 million common shares would have been issued if the 2018 Convertible Notes had been converted in full on June 30, 2018, and we choose not to settle any of such conversions in cash or a combination of cash and shares.

Sale of Common Stock Under ATM Agreements

In December 2015 and August 2017, we entered into collective at-market-issuance sales agreements with FBR Capital Markets & Co., MLV & Co. LLC, and H.C. Wainwright & Co., LLC. These agreements allowed us to raise aggregate gross proceeds through these brokers of up to $250 million from the sale of our common stock on the public market.

Through June 30, 2018, we had raised aggregate gross net proceeds of $202.1 million through these at-market sales, of which $128.3 million was raised during the year ended December 31, 2017. We had no sales under the ATM during the six months ended June 30, 2018. We are using these proceeds to continue to develop our product pipeline and to provide additional capital structure flexibility.

Future Capital Requirements

We believe that the future growth of our business will depend on our ability to successfully develop and acquire new drugs for the treatment of cancer and successfully bring these drugs to market.

The timing and amount of our future capital requirements will depend on many factors, including:

• the need for additional capital to fund future development programs;

• the need for additional capital to fund strategic acquisitions;

• the need for additional capital to fund licensing arrangements;

• our requirement for additional information technology infrastructure and systems; and

• adverse outcomes from potential litigation and the cost to defend such litigation.

We believe that our $270 million in aggregate cash and equivalents and marketable securities as of June 30, 2018 will allow us to fund our current and planned operations into 2020. However, we may seek additional capital through the sale of debt or equity securities (see Note 17 to our accompanying Condensed Consolidated Financial Statements), if necessary, especially in conjunction with opportunistic acquisitions or licensing arrangements. We may be unable to obtain such additional capital, or on terms favorable to us or our current stockholders and convertible senior note holders, if at all.

Off-Balance Sheet Arrangements

We have no off-balance sheet arrangements (except for operating leases) that provide financing, liquidity, market or credit risk support, or involve derivatives. In addition, we have no arrangements that may expose us to liability that are not expressly reflected in the accompanying Condensed Consolidated Financial Statements and/or notes thereto.

As of June 30, 2018, we did not have any relationships with unconsolidated entities or financial partnerships, often referred to as “structured finance” or “special purpose entities,” established for the purpose of facilitating off-balance sheet

49

arrangements or other contractually narrow or limited purposes. As such, we are not subject to any material financing, liquidity, market or credit risk that could arise if we had engaged in such relationships.

ITEM 3.    QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

In the normal course of business, our operations are exposed to risks associated with fluctuations in interest rates, credit ratings and foreign currency exchange rates.

The primary objective of our investment activities is to preserve principal, while at the same time maximizing yields without significantly increasing risk. We do not utilize hedging contracts or similar instruments. Because of our ability to generally redeem these investments at par at short notice and without penalty, changes in interest rates would have an immaterial effect on the fair value of these investments. If a 10% change in interest rates were to have occurred on June 30, 2018, any decline in the fair value of our investments would not be material in the context of our accompanying Condensed Consolidated Financial Statements. In addition, we are exposed to certain market risks associated with credit ratings of corporations whose corporate bonds we may purchase from time to time. If these companies were to experience a significant detrimental change in their credit ratings, the fair market value of such corporate bonds may significantly decrease. If these companies were to default on these corporate bonds, we may lose part or all of our principal. We believe that we effectively manage this market risk by diversifying our investments, and investing in highly-rated securities.

We are exposed to foreign currency exchange rate fluctuations relating to payments we make to vendors, suppliers and license partners in Euros (and other currencies to a lesser extent). We mitigate such risk by maintaining a limited portion of our cash in Euros.

ITEM 4.    CONTROLS AND PROCEDURES

Evaluation of Disclosure Controls and Procedures

Our management, with the participation of our chief executive officer and chief financial officer, evaluated the effectiveness of our disclosure controls and procedures as of June 30, 2018. The term “disclosure controls and procedures,” as defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act, means controls and other procedures of a company that are designed to ensure that information required to be disclosed by a company in the reports that it files or submits under the Exchange Act is recorded, processed, summarized and reported, within the time periods specified in the SEC’s rules and forms. These include controls and procedures that are designed to ensure that information required to be disclosed by a company in the reports that it files or submits under the Exchange Act is accumulated and communicated to the company’s management, including its principal executive and principal financial officers, as appropriate, to allow timely decisions regarding required disclosure.

Based on the evaluation of our disclosure controls and procedures as of June 30, 2018, our chief executive officer and chief financial officer concluded that, as of that date, our disclosure controls and procedures were effective.

Changes in Internal Control Over Financial Reporting

There has been no change in our internal control over financial reporting (as defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act) during the second fiscal quarter of 2018 that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

Limitations of the Effectiveness of Internal Controls

A control system, no matter how well conceived and operated, can provide only reasonable, not absolute, assurance that the objectives of the internal control system are met. Because of inherent limitations in any control systems, no evaluation of controls can provide absolute assurance that all control issues, if any, within a company have been detected. We continuously seek to improve the efficiency and effectiveness of our operations and of our internal controls.

PART II. OTHER INFORMATION

ITEM 1.    LEGAL PROCEEDINGS

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We are involved from time-to-time with various legal matters arising in the ordinary course of business. These claims and legal proceedings are of a nature we believe are normal and incidental to a pharmaceutical business, and may include product liability, intellectual property, employment matters, and other general claims. We may also be subject to derivative lawsuits from time to time.

We make provisions for liabilities when it is both probable that a liability has been incurred and the amount of the loss can be reasonably estimated. Such provisions are assessed at least quarterly and adjusted to reflect the impact of any settlement negotiations, judicial and administrative rulings, advice of legal counsel, and other information and events pertaining to a particular case. Litigation is inherently unpredictable. Although the ultimate resolution of these various matters cannot be determined at this time, we do not believe that such matters, individually or in the aggregate, will have a material adverse effect on our consolidated results of operations, cash flows, or financial condition.

Certain of the legal proceedings in which we are involved are discussed in Note 15, “Financial Commitments & Contingencies and License Agreements,” to our accompanying Condensed Consolidated Financial Statements, and are hereby incorporated by reference.

ITEM 1A.    RISK FACTORS

As of the date of this filing, there have been no material changes to the risk factors included in our Annual Report on Form 10-K for the year ended December 31, 2017, as filed with the SEC on March 7, 2018.

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ITEM 6.    EXHIBITS

		Incorporated by Reference
Exhibit Number	Description	Form	File No.	Exhibit	Filing Date	Filed Herewith
3.1	Restated Certificate of Incorporation of Spectrum Pharmaceuticals, Inc.	8-K	001-35006	3.1	6/18/18
3.2	Third Amended and Restated Bylaws of Spectrum Pharmaceuticals, Inc.	8-K	001-35006	3.2	3/29/18
10.1	Spectrum Pharmaceuticals, Inc. 2018 Long-Term Incentive Plan.	8-K	001-35006	10.1	6/18/18
10.2	Form of Stock Option Award under the Spectrum Pharmaceuticals, Inc. 2018 Long-Term Incentive Plan.	8-K	001-35006	10.2	6/18/18
10.3	Form of Restricted Stock Award under the Spectrum Pharmaceuticals, Inc. 2018 Long-Term Incentive Plan.	8-K	001-35006	10.3	6/18/18
10.4	Form of Canadian Restricted Stock Unit Award under the Spectrum Pharmaceuticals, Inc. 2018 Long-Term Incentive Plan.	8-K	001-35006	10.4	6/18/18
10.5	Form of Performance Unit Award under the Spectrum Pharmaceuticals, Inc. 2018 Long-Term Incentive Plan.	8-K	001-35006	10.5	6/18/18
10.6	Executive Employment Agreement, dated as of April 10, 2018, by and between Spectrum Pharmaceuticals, Inc. and Kurt A. Gustafson.					X
10.7	Executive Employment Agreement, dated as of April 10, 2018, by and between Spectrum Pharmaceuticals, Inc. and Thomas J. Riga.					X
10.8	Executive Employment Agreement, dated as of April 10, 2018, by and between Spectrum Pharmaceuticals, Inc. and Joseph W. Turgeon.					X
10.9	Executive Employment Agreement, dated as of June 18, 2018, by and between Spectrum Pharmaceuticals, Inc. and Keith McGahan.					X
31.1	Certification of Principal Executive Officer, pursuant to Rule 13a-14(a)/15d-14(a) promulgated under the Securities Exchange Act of 1934.					X
31.2	Certification of Principal Financial Officer, pursuant to Rule 13a-14(a)/15d-14(a) promulgated under the Securities Exchange Act of 1934.					X
32.1	Certification of Principal Executive Officer pursuant to Rule 13a-14(b)/15d-14(b) promulgated under the Securities Exchange Act of 1934 and 18 U.S.C. Section 1350.					X
32.2	Certification of Principal Financial Officer pursuant to Rule 13a-14(b)/15d-14(b) promulgated under the Securities Exchange Act of 1934 and 18 U.S.C. Section 1350.					X
101.INS	XBRL Instance Document.					X
101.SCH	XBRL Taxonomy Extension Schema Document.					X
101.CAL	XBRL Taxonomy Extension Calculation Linkbase Document.					X
101.DEF	XBRL Taxonomy Extension Definition Linkbase Document.					X
101.LAB	XBRL Taxonomy Extension Label Linkbase Document.					X
101.PRE	XBRL Taxonomy Extension Presentation Linkbase Document.					X

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

		SPECTRUM PHARMACEUTICALS, INC.
Date:	August 9, 2018	By:	/s/ Kurt A. Gustafson
			Kurt A. Gustafson
			Executive Vice President and Chief Financial Officer
			(Authorized Signatory and Principal Financial and Accounting Officer)

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EX-10.6

Exhibit 10.6

EXECUTIVE EMPLOYMENT AGREEMENT

This Executive Employment Agreement (this “Agreement”) is dated as of April 10, 2018 by and between Spectrum Pharmaceuticals, Inc., a Delaware corporation (the “Company”), and Kurt A. Gustafson (“Executive”).

WHEREAS, the Company desires to employ Executive as Chief Financial Officer; and

WHEREAS, the Company and Executive desire to enter into a written employment agreement to reflect the terms upon which Executive shall provide services to the Company.

NOW, THEREFORE, in consideration of the premises and agreements contained herein, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties agree as follows:

1. EMPLOYMENT/TERM. The Company hereby employs Executive to perform the duties and responsibilities set forth below under Section 2 of this Agreement, and Executive hereby accepts such employment, in each case on the terms and conditions set forth in this Agreement. This Agreement shall have a term commencing on April 10, 2018, (the “Effective Date”) and ending on the five-year anniversary of the Effective Date, (the “Term”), unless earlier terminated pursuant to Section 4 of this Agreement.

2. POSITION AND DUTIES.

a. Description of Executive’s Position, Duties, Authorities, and Responsibilities. Executive shall serve as the Chief Financial Officer of the Company, subject to the direction of the Chief Executive Officer. In such capacity, Executive shall (i) report to the Chief Executive Officer, (ii) devote his full professional time and attention, best efforts, energy and skills to the services required of him as an employee of the Company, except for paid time off taken in accordance with the Company’s policies and practices, and subject to the Company’s policies pertaining to reasonable periods of absence due to sickness, personal injury or other disability; (iii) use his best efforts to promote the interests of the Company; (iv) comply with all applicable governmental laws, rules and regulations and with all of the Company’s policies, rules and regulations applicable to employees of the

1

Company; and (v) discharge his responsibilities in a diligent and faithful manner, consistent with sound business practices and in accordance with the Chief Executive Officer’s directives.

b. Performance of Duties. Executive hereby accepts such employment and agrees to render the services described above in the manner described above. It is understood and agreed that Executive may not engage in other business activities during the Term, whether or not for profit or other pecuniary advantage; provided, however, that Executive may (i) make financial investments which do not involve his active participation, (ii) participate in charitable, educational, religious, civic, or other similar organizations and activities, and (iii) with the prior written consent of the Board of Directors of the Company (the “Board”), serve as an outside director on the board of directors of other corporations that are not affiliates or competitors of the Company or any of its affiliates, in any case to the extent that such activities collectively do not hinder or interfere with the performance of his duties under this Agreement, conflict with the policies of the Company concerning conflicts of interest or conflict with the businesses of the Company or any of its affiliates in any material way.

3. COMPENSATION AND BENEFITS.

a. Base Salary. As of the Effective Date, Executive’s base salary (the “Base Salary”) shall be $525,000 USD per year payable in periodic installments in accordance with the Company’s regular payroll practices as in effect from time to time. The Board or a duly authorized committee thereof will review the Base Salary on an annual basis and may increase, but never decrease, the Base Salary from time to time based on merit or such other considerations as the Board or a duly authorized committee thereof may deem appropriate; provided, however, the Company makes no assurances that the Base Salary will be increased during the Term. “Base Salary” shall mean the initial base salary or the then-current base salary as later approved by the Board.

b. Bonus. Executive shall be eligible to receive an annual cash bonus in an amount up to 50% of Executive’s Base Salary for the fiscal year for which the annual cash bonus is being paid, as determined in the discretion of the Board or a duly authorized committee

2

thereof, based on the performance of the Company and Executive relative to performance objectives or other metrics as the Board or a duly authorized committee thereof may deem appropriate. For the first calendar year in which this Agreement is effective, performance objectives or other metrics shall be established within 30 days of the Effective Date of this Agreement. Thereafter, performance objectives or other metrics shall be established within 60 days of the commencement of the calendar year.

c. Pro Rata Bonus. Notwithstanding any other provision in this Agreement to the contrary, should Executive’s employment be terminated by the Company without Cause (as defined below) or by Executive for Good Reason (as defined below), prior to the end of a calendar year, then the Board shall determine the amount of the target bonus for such calendar year, and the Company shall pay Executive the pro rata amount of such target bonus based on the number of days Executive was employed by the Company during the calendar year divided by 365 days (the “Pro Rata Bonus”). Such Pro Rata Bonus shall be paid when bonuses are paid to other senior executives of the Company and within two and one-half months following the end of the calendar year in which Executive is terminated.

d. Benefits and Vacation. Executive shall be eligible to participate in and receive the benefits under any deferred compensation plan, health, life, accident and disability insurance plans or programs, and any other employee benefit or fringe benefit plans or arrangements that the Company makes available generally to other senior executives of the Company, pursuant to the provisions of such plans, programs or arrangements as in effect from time to time. Executive shall be entitled to vacation and sick days in accordance with the policies of the Company for its employees generally, as in effect from time to time. The benefits described in this Section 3.d. are hereinafter referred to as the “Benefits”.

e. Equity Incentive Compensation. Executive shall be eligible to receive grants, at the discretion of the Board or a duly authorized committee thereof, under any long-term equity-based incentive compensation plans established or maintained by the Company for its senior executive officers, in each case subject to the terms and conditions of the

3

applicable plans and award documents with respect to such grants. The grants described in this Section 3.e. are hereinafter referred to as the “Equity Incentive Compensation”.

f. Expenses. The Company shall pay or reimburse Executive for all reasonable, ordinary and necessary business expenses incurred or paid by Executive during the Term in the performance of Executive’s services under this Agreement in accordance with the applicable policies and procedures of the Company as in effect from time to time, upon the presentation of proper expense statements or such other supporting documentation as the Company may reasonably require.

g. Auto Allowance. Company shall pay an automotive allowance of $1,150 per month to cover costs of business travel in a personal vehicle.

4. TERMINATION, OTHER THAN FOLLOWING A CHANGE OF CONTROL.

a. General. Executive’s employment may be terminated by either party at any time and for any reason; and upon termination of Executive’s employment, the Term shall end.

b. Resignation without Good Reason. Executive shall be required to give the Company at least 60 days’ advance written notice (the “Resignation Notice Period”) of any voluntary resignation of Executive’s employment hereunder (other than resignation for Good Reason (as defined below), in which event the procedures under Section 5.c. shall apply). During the Resignation Notice Period, the Company in its sole discretion may elect to accelerate Executive’s date of termination of employment, it being understood that any such termination shall still be treated as a voluntary resignation without Good Reason (as defined below) for purposes of this Agreement. Even if Executive’s date of termination is accelerated, Executive shall be paid his Base Salary, and shall receive Benefits capable of being provided to persons who are not actively employed by the Company, as if he had worked through the end of the Resignation Notice Period. The Company reserves the right to require Executive not to be in the offices of the Company or any of its affiliates and/or not to undertake all or any of Executive’s duties and/or not to contact clients, colleagues or advisors of the Company or any of its affiliates during all or part of the Resignation Notice Period. During the Resignation Notice Period, Executive’s terms and conditions of service and duties of loyalty and confidentiality to the Company shall

4

remain in full force and effect and, during any such Resignation Notice Period, Executive shall continue to perform as an employee in compliance with the terms of this Agreement and all other agreements applicable to Executive with respect to his service with the Company or any of its affiliates.

c. Death. Executive’s employment hereunder shall terminate automatically on the date of his death.

d. Disability. At the option of the Company, Executive’s employment hereunder may be terminated immediately upon Disability (as defined below) of Executive. For purposes of this Agreement, “Disability” means any physical or mental illness, impairment or incapacity which, in the good faith determination of the Board, has prevented Executive from performing the essential functions of his position hereunder for a period of 90 or more consecutive days (or for shorter periods totaling 120 days) during any period of 12 consecutive months.

e. Termination for Cause. Notwithstanding any other provision of this Agreement, the Company may, at any time, immediately terminate Executive’s employment for Cause (as defined below). For purposes of this Agreement, “Cause” means the occurrence of any of the following by Executive: (i) fraud, misappropriation, embezzlement or acts of similar dishonesty, (ii) conviction of, or plea of nolo contendere to, a felony, (iii) excessive use of alcohol or illegal use of drugs in the workplace, (iv) gross negligence or intentional or willful misconduct by Executive in the performance of his duties, (v) breach of Executive’s duty of loyalty to the Company or diversion or usurpation of corporate opportunities properly belonging to the Company, (vi) the knowing breach of any Company confidentiality agreement to which Executive is a party, (vii) willful disregard of the Company’s policies and procedures, (viii) insubordination, (ix) willful failure to satisfactorily perform the duties of Executive’s position, (x) act or omission that would materially and adversely impact the business or reputation of the Company, or (xi) violation of any material provision of this Agreement or any other material provision of any other agreement between Executive and the Company; in each case, as determined by the Company in its sole discretion. The Company’s lack of immediate action with

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respect to conduct of Executive that would constitute Cause hereunder shall not preclude the Company from taking later action on such act or taking action with respect to another such act committed by Executive.

f. Termination Without Cause. The Company may, at any time, immediately terminate Executive’s employment without Cause.

5. COMPENSATION UPON TERMINATION. Following any termination of Executive’s employment (the date of such termination, “Termination Date”), the obligations of the Company to pay or provide Executive with compensation and benefits under Section 3 shall immediately cease, and the Company shall have no further obligations to Executive under this Agreement, except as otherwise required by law or provided for under this Section 5.

a. Death or Disability. If, during the Term, Executive’s employment is terminated (i) by reason of Executive’s death or (ii) by the Company for Disability of Executive, the Company shall pay to Executive (or to his estate or designated beneficiary in the event of Executive’s death) (A) any unpaid Base Salary accrued through the Termination Date, (B) any unpaid Benefits accrued through the Termination Date to which Executive is entitled under any plans, programs or arrangements applicable to terminated employees in which Executive participates, and (C) a lump sum amount equal to two years of Executive’s Base Salary in effect as of the Termination Date; provided that, in the event Executive is terminated by the Company for Disability during the Change of Control Tail Period, such amount shall be paid monthly over a period of 24 months following such termination. Executive shall also immediately vest in all options, restricted stock and other Equity Incentive Compensation (as defined below), all of which shall be immediately available to exercise during the periods provided in the applicable plans and award documents granted to Executive. All payments under clause (C) of this Section 5.a. are conditioned upon Executive executing and delivering (and not revoking) within 90 days of the Termination Date a general waiver and release agreement in the form of Exhibit A, attached, or in a form and with substance satisfactory to the Company, that is no longer subject to revocation. If Executive is unable to execute and deliver such waiver and release agreement due to death or Disability, then the waiver and release agreement shall

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be executed and delivered by an authorized agent or representative of Executive and/or Executive’s estate. The payments described in clauses (A) and (C) above shall be made within 90 days (or by such earlier date as may be required by applicable law) following the Termination Date, and the payments described in clause (B) above shall be made in accordance with the provisions of the applicable plans, programs and arrangements maintained by the Company with respect to such payments or as otherwise required by applicable law.

b. For Cause or Without Good Reason (not During the Change of Control Tail Period). If, during the Term (other than during the Change of Control Tail Period (as defined below)), Executive’s employment is terminated (i) by the Company for Cause or (ii) by Executive for any reason other than for Good Reason (as defined below), the Company shall pay to Executive (A) any unpaid Base Salary accrued through the Termination Date and (B) any unpaid Benefits accrued through the Termination Date to which Executive is entitled under any plans, programs or arrangements applicable to terminated employees in which Executive participates. The payments described in clause (A) above shall be made within 90 days (or by such earlier date as may be required by applicable law) following the Termination Date, and the payments described in clause (B) above shall be made in accordance with the provisions of the applicable plans, programs and arrangements maintained by the Company with respect to such payments or as otherwise required by applicable law.

c. Without Cause or for Good Reason (not During the Change of Control Tail Period). If, during the Term (other than during the Change of Control Tail Period), Executive’s employment is terminated (i) by the Company without Cause or (ii) by Executive for Good Reason (as defined below), the Company shall pay to Executive (A) any unpaid Base Salary accrued through the Termination Date, (B) any unpaid Benefits accrued through the Termination Date to which Executive is entitled under any plans, programs or arrangements applicable to terminated employees in which Executive participates, and (C) the following severance benefits (the “Without Cause/For Good Reason Severance Benefits”): (a) two years of Executive’s Base Salary in effect as of the Termination Date

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and two times (2x) the previous year’s Bonus, in each case paid as a lump sum (b) 18 months of Company-paid continued coverage (COBRA) for Executive and his eligible dependents under the Company’s existing health and benefit plans. As part of the Without Cause/For Good Reason Severance Benefits, Executive shall also immediately vest in all options, restricted stock and other Equity Incentive Compensation (as defined below), all of which shall be immediately available to exercise during the periods provided in the applicable plans and award documents granted to Executive; provided, that, notwithstanding the foregoing, with respect to any options, restricted stock or other Equity Incentive Compensation that vest based on performance-based criteria (“Performance-Based Awards”), Executive shall vest in such Performance-Based Awards as part of the Without Cause/For Good Reason Severance Benefits pro rata based on the Executive’s target award for such Performance-Based Awards (irrespective of actual performance) and based on the number of days Executive was employed by the Company during the applicable performance period for such Performance-Based Awards divided by the total number of days in such performance period. All payments under clause (C) of this Section 5.c. are conditioned upon Executive executing and delivering (and not revoking) within 90 days of the Termination Date a general waiver and release agreement in the form of Exhibit A, attached, or in a form and with substance satisfactory to the Company, that is no longer subject to revocation; provided, further, that in order for Executive to terminate his employment for Good Reason (as defined below), (x) Executive must furnish written notice to the Company setting forth the facts and circumstances claimed to provide a basis for such resignation within 30 days following the occurrence of such facts and circumstances, (y) the Company shall have 30 days after its receipt of such written notice to cure such facts and circumstances in all material respects (and if so cured, then Executive shall not be permitted to resign for Good Reason (as defined below) in respect thereof), and (z) Executive must actually terminate his employment within 30 days following the expiration of the Company’s cure period set forth above. For purposes of this Agreement, “Good Reason” means the occurrence of any of the following events, without the express consent of Executive, (1) a material diminution in Executive’s Base Salary or (2) a material diminution in Executive’s title,

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position, duties, authorities or responsibilities (other than temporarily while physically or mentally incapacitated or as required by applicable law). The payments described in clauses (A) and (C) above shall be made within 90 days (or by such earlier date as may be required by applicable law) following the Termination Date, and the payments described in clause (B) above shall be made in accordance with the provisions of the applicable plans, programs and arrangements maintained by the Company with respect to such payments or as otherwise required by applicable law.

d. Termination During Change of Control Tail Period. In the event that Executive’s employment is terminated by the Company or by Executive during the Change of Control Tail Period for any reason other than a termination by reason of Executive’s death or by the Company for Disability of Executive, this Section 5 shall not apply, and the terms and conditions of Section 6 shall govern with respect to any compensation payable to Executive as a result of such termination. For purposes of this Agreement, the “Change of Control Tail Period” shall mean the 12 month period following the occurrence of a Change of Control (as defined below). In no event shall Executive be entitled to compensation both under this Section 5 and under Section 6.

e. Equity Incentive Compensation. Except in circumstances where termination is (i) by reason of Executive’s death or by the Company for Disability, (ii) by the Company without Cause, (iii) by Executive for Good Reason, or (iv) during the Change of Control Tail Period and subject to Section 6, upon termination of Executive’s employment during the Term, the Equity Incentive Compensation awarded to Executive shall forfeit or vest in accordance with the terms of the applicable plans and award documents with respect to such Equity Incentive Compensation, and shall be subject to such other terms and conditions of such plans and award documents that may apply as a result of such termination.

f. Benefits. Notwithstanding anything in this Section 5 to the contrary, the Benefits to which Executive is entitled upon or by reason of the termination of his employment with the Company (including during the Change of Control Tail Period) shall be subject to,

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and shall be governed by, the terms and conditions of the applicable plans, programs and arrangements maintained by the Company with respect to such Benefits.

g. Expiration of Term. Notwithstanding anything in this Section 5 to the contrary, the expiration of the Term by itself shall not entitle Executive to receipt of any payments under this Section 5.

6. CHANGE OF CONTROL.

a. Definition. “Change of Control” shall have the meaning prescribed to such phrase (or, if applicable, the phrase, “Change in Control”) in the 2009 Incentive Award Plan of the Company, or the latest equity incentive award plan of the Company in effect from time to time. The Board shall have full and final authority, which shall be exercised in its discretion, to determine conclusively whether a Change of Control of the Company has occurred pursuant to the above definition, and the date of the occurrence of such Change of Control and any incidental matters relating thereto.

b. Executive’s Rights Upon a Change of Control. If there should occur a Change of Control of the Company (or any successor) and Executive’s employment is terminated by the Company without Cause or Executive terminates employment with, Good Reason during the Change of Control Tail Period, Executive shall receive the Without Cause/For Good Reason Severance Benefits, as if he had been terminated without Cause or had terminated for Good Reason under Section 5.c. of this Agreement; provided, that the two years of Executive’s Base Salary in effect as of the Termination Date, payable as part of the Without Cause/For Good Reason Severance Benefits, shall be paid monthly over a period of 24 months following such termination; provided further that all equity awards that would have been eligible to vest under Section 5.c. shall vest immediately upon consummation of a Change of Control; and provided further that Executive shall vest in all Performance-Based Awards as part of the Without Cause/For Good Reason Severance Benefits upon consummation of a Change of Control pro rata based on the Executive’s target award for such Performance-Based Awards (irrespective of actual performance) and based on the number of days Executive was employed by the Company before the Change of Control during the applicable performance period for such Performance-Based

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Awards divided by the total number of days in such performance period. All of the provisions of Section 5.c., including but not limited to the notice and cure provisions, shall apply in like manner under this Section 6.b.

7. COOPERATION. Upon the receipt of reasonable notice from the Company (including outside counsel), Executive agrees that while employed by the Company and thereafter, Executive will respond and provide information with regard to matters in which Executive has knowledge as a result of Executive’s employment with the Company, and will provide reasonable assistance to the Company, its affiliates and their respective representatives in defense of all claims that may be made against the Company or its affiliates, and will assist the Company and its affiliates in the prosecution of all claims that may be made by the Company or its affiliates, to the extent that such claims may relate to the period of Executive’s employment with the Company. Executive agrees to promptly inform the Company if Executive becomes aware of any lawsuit involving such claims that may be filed or threatened against the Company or its affiliates. Executive also agrees to promptly inform the Company (to the extent that Executive is legally permitted to do so) if Executive is asked to assist in any investigation of the Company or its affiliates (or their actions), regardless of whether a lawsuit or other proceeding has then been filed against the Company or its affiliates with respect to such investigation, and shall not provide such assistance unless legally required. Upon presentation of appropriate documentation, the Company shall pay or reimburse Executive for all reasonable out-of-pocket travel, duplicating or telephonic expenses incurred by Executive in complying with this Section 7. For the first five hours of cooperation in any calendar month during the period of Cooperation, Executive shall provide the specified Cooperation services without hourly reimbursement. For each hour of Cooperation or part thereof after five hours, in any calendar month, Company shall reimburse Executive at the hourly rate determined by this fraction: (final Base Salary / 2,080 hours).

8. ARBITRATION. The parties hereby agree to submit all disputes, claims and controversies (“Claims”) between the parties or related to or arising out of their employment relationship (except to the extent otherwise provided in that certain Employee Obligations Agreement, dated as of May 23, 2013, by and between the Company and Executive (the “Employee Obligations Agreement”), or that certain Indemnification Agreement, dated as of December 10, 2014, by and

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between the Company and Executive (the “Indemnification Agreement”)) to final, binding arbitration to the fullest extent permitted by law. The Federal Arbitration Act., 9 U.S.C. § 1 et seq., shall govern the interpretation and enforcement of this Section 8. The court and not the arbitrator will determine matters of enforceability of this Section 8.

a. Statute of Limitations. The statutory limitations period applicable to a Claim asserted in a civil action shall apply to any such Claim asserted in any arbitration proceeding under this Section 8. Arbitration is commenced for limitations purposes by submitting the matter to the arbitral forum.

b. Individual Basis. All Claims that are subject to arbitration under this Section 8 must and will take place on an individual basis only.

c. Venue. Binding arbitration under this Section 8 shall be conducted in California, unless required by law to be conducted elsewhere, in which case it shall be conducted where required by law.

d. Applicable Rules. The arbitration proceeding, including discovery, shall be conducted in accordance with the Federal Arbitration Act, the JAMS Policy on Employment Arbitration Minimum Standards and the JAMS Employment Arbitration Rules and Procedures then in effect (the “JAMS Rules”). Executive understands that if he wishes to receive a copy of the JAMS Rules currently in effect, he may inform the Company in writing, and the Company will provide them to him before he executes this Agreement. Executive also understand that JAMS Rules are available online at http://www.jamsadr.com/rules-employment-arbitration/.

e. Arbitrator Selection. The arbitration shall be conducted before a neutral arbitrator selected by all parties in accordance with JAMS Rules. The parties may also agree on an arbitrator.

f. Cost Allocation. If required by applicable law, the Company shall pay all additional costs peculiar to the arbitration to the extent such costs would not otherwise be incurred in a court proceeding (for instance, the Company shall pay the arbitrator’s fees, and the JAMS administration and filing fees, to the extent such fees exceed court filing fees).

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g. Attorneys’ Fees and Costs. Each party shall pay his or its own costs and attorneys’ fees except that the arbitrator shall award costs and attorneys’ fees to the prevailing party.

h. Written Decision. The arbitrator shall follow applicable substantive law and, within 30 days after the conclusion of the arbitration, issue a written opinion setting forth the factual and legal bases for his or her decision.

i. Acknowledgement. EXECUTIVE UNDERSTANDS HE IS GIVING UP HIS RIGHT TO A JURY TRIAL BY ENTERING INTO THIS AGREEMENT. EXECUTIVE UNDERSTANDS HE IS GIVING UP HIS RIGHT TO COMMENCE OR PARTICIPATE IN A CLASS OR COLLECTIVE ACTION AND INSTEAD AGREES TO ARBITRATE ANY EMPLOYMENT-RELATED DISPUTE ON AN INDIVIDUAL BASIS ONLY TO THE MAXIMUM EXTENT PERMITTED BY LAW.

9. CODE SECTION 409A.

a. This Agreement is intended to comply with the requirements of Section 409A of the Internal Revenue Code of 1986, as amended (“Section 409A”), including the exceptions thereto, and shall be construed and administered in accordance with such intent. Notwithstanding any other provision of this Agreement, payments provided under this Agreement may only be made upon an event and in a manner that complies with Section 409A or an applicable exemption. Any payments under this Agreement that may be excluded from Section 409A either as separation pay due to an involuntary separation from service or as a short-term deferral shall be excluded from Section 409A to the maximum extent possible. For purposes of Section 409A, each separate payment or installment payment provided under this Agreement shall be treated as a separate payment. Any payments to be made under this Agreement in connection with a termination of employment shall only be made if such termination of employment constitutes a “separation from service” under Section 409A. Notwithstanding the foregoing, the Company makes no representations that the payments and benefits provided under this Agreement comply with Section 409A and in no event shall the Company be liable for all or any portion of any taxes, penalties, interest or other expenses that may be incurred by Executive on account of non-compliance with Section 409A.

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b. Notwithstanding any other provision of this Agreement, if at the time of Executive’s termination of employment, he is a “specified employee,” determined in accordance with Section 409A, any payments and benefits provided under this Agreement that constitute “nonqualified deferred compensation” subject to Section 409A that are provided to Executive on account of his separation from service shall not be paid until the first payroll date to occur following the six-month anniversary of Executive’s termination date (“Specified Employee Payment Date”). The aggregate amount of any payments that would otherwise have been made during such six-month period shall be paid in a lump sum on the Specified Employee Payment Date and thereafter, any remaining payments shall be paid without delay in accordance with their original schedule. If Executive dies before the Specified Employee Payment Date, any delayed payments shall be paid to Executive’s estate in a lump sum within one week of Executive’s death.

c. To the extent required by Section 409A, each reimbursement or in-kind benefit provided under this Agreement shall be provided in accordance with the following: (i) the amount of expenses eligible for reimbursement, or in-kind benefits provided, during each calendar year cannot affect the expenses eligible for reimbursement, or in-kind benefits to be provided, in any other calendar year; (ii) any reimbursement of an eligible expense shall be paid to Executive on or before the last day of the calendar year following the calendar year in which the expense was incurred; and (iii) any right to reimbursements or in-kind benefits under this Agreement shall not be subject to liquidation or exchange for another benefit. Any tax gross-up payments provided under this Agreement shall be paid to Executive on or before December 31 of the calendar year immediately following the calendar year in which Executive remits the related taxes.

d. Whenever in this Agreement a payment or benefit is conditioned on Executive’s execution of a release of claims, such release must be executed and all revocation periods shall have expired within 90 days after the Termination Date; failing which such payment or benefit shall be forfeited. If such payment or benefit constitutes “nonqualified deferred compensation” subject to Section 409A, and if such 90-day period begins in one calendar year and ends in the next calendar year, the payment or benefit shall not be made

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or commence before the second such calendar year, even if the release becomes irrevocable in the first such calendar year.

10. GENERAL PROVISIONS.

a. Notices. All notices, requests, demands, statements, reports and other communications provided for by this Agreement shall be in writing (email being sufficient) and shall be sent by (i) certified mail, return receipt requested, postage prepaid, (ii) nationally recognized overnight delivery service, (iii) personal delivery or (iv) email. A notice shall be deemed to be given (x) if notice is delivered by certified mail or nationally recognized overnight delivery service, on the business day following the date of its mailing, (y) if such notice is delivered personally, upon delivery, or (z) if such notice is sent by email, upon sending. Each party may change his or its address for notices by giving notice in accordance herewith. All notices shall be addressed and mailed or delivered to the following addresses:

If to the COMPANY: 157 Technology Dr. Irvine, CA 92618

If to EXECUTIVE:    15622 El Camino Entrada, Poway, CA 92064

b. Entire Agreement. This Agreement, the Employee Obligations Agreement, and the Indemnification Agreement constitute the entire agreement between the parties with respect to the subject matter hereof and thereof and supersede all prior agreements, representations and understandings (whether written or oral) of the parties with respect to the subject matter hereof and thereof, including that certain Change in Control Severance Agreement, dated as of March 28, 2014, by and between the Company and Executive, and any other agreement between Executive and the Company or any of its affiliates and subsidiaries. The above-referenced Change in Control Severance Agreement and any amendments thereto, by and between Executive and the Company, are terminated, canceled, and of no further force or effect as of the Effective Date hereof.

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c. Modification and Waiver. No amendment or variation of the terms of this Agreement shall be valid unless made in writing and signed by Executive and a duly authorized representative of the Company (other than Executive). A waiver of any term or condition of this Agreement shall not be construed as a general waiver by the Company. If one or more provisions of this Agreement are held to be illegal or unenforceable under applicable law, such illegal or unenforceable provision(s) shall be limited or excluded from this Agreement to the minimum extent required so that this Agreement shall otherwise remain in full force and effect and enforceable in accordance with its terms.

d. Governing Law. This Agreement shall be governed by and construed in accordance with the laws of the State of California, without giving effect to its conflict of law principles, and any dispute in the meaning, effect or validity of this Agreement shall be resolved in accordance with the laws of the State of California.

e. Assignment; Binding Effect. This Agreement is fully assignable and transferable by the Company, but any purported assignment or transfer by Executive is void. It is hereby agreed that Executive’s rights and obligations under this Agreement are personal and not assignable by Executive. This Agreement shall be binding upon and inure to the benefit of the heirs, legal representatives, successors and permitted assigns of the parties. EXECUTIVE HAS READ THIS AGREEMENT CAREFULLY AND UNDERSTANDS AND ACCEPTS THE OBLIGATIONS WHICH IT IMPOSES UPON EXECUTIVE WITHOUT RESERVATION. NO PROMISES OR REPRESENTATIONS HAVE BEEN MADE TO EXECUTIVE TO INDUCE EXECUTIVE TO SIGN THIS AGREEMENT. EXECUTIVE SIGNS THIS AGREEMENT VOLUNTARILY AND FREELY, IN DUPLICATE, WITH THE UNDERSTANDING THAT THE COMPANY WILL RETAIN ONE COUNTERPART AND THE OTHER COUNTERPART WILL BE RETAINED BY EXECUTIVE.

f. Injunctive Relief. Executive agrees that any breach of this Agreement will cause irreparable harm to the Company for which damages would not be an adequate remedy, and, therefore, to the fullest extent permitted by applicable law, the Company will be

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entitled to injunctive relief with respect thereto in addition to any other remedies and without any requirement to post bond.

g. Survival. This Agreement shall terminate upon the expiration of the Term; provided that the provisions of Sections 5 through 10 shall survive termination of this Agreement and termination of Executive’s employment regardless of the reason for such termination.

h. Withholding. The Company may withhold from any and all amounts payable under this Agreement or otherwise such federal, state and local taxes as may be required to be withheld pursuant to applicable law.

[Signature page follows]

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In witness whereof, parties have executed this Agreement as of the date first above written.

COMPANY:

Spectrum Pharmaceuticals, Inc.

By: /s/ Raymond W. Cohen             Raymond W. Cohen

Chairman, Compensation Committee

EXECUTIVE:

/s/ Kurt A. Gustafson            

Kurt A. Gustafson

Signature Page to Executive Employment Agreement    

EXHIBIT A

GENERAL RELEASE

I, Kurt A. Gustafson, in consideration of and subject to the performance by Spectrum Pharmaceuticals, Inc. (together with its subsidiaries and successors, the “Company”), of its obligations under the Executive Employment Agreement dated as of April 10, 2018 (the “Agreement”), do hereby release and forever discharge as of the date hereof the Company and its respective affiliates, subsidiaries and direct or indirect parent entities and all present, former and future directors, officers, agents, representatives, employees, successors and assigns of the Company and/or its respective affiliates, subsidiaries and direct or indirect parent entities (collectively, the “Released Parties”) to the extent provided below (this “General Release”). The Released Parties are intended to be third-party beneficiaries of this General Release, and this General Release may be enforced by each of them in accordance with the terms hereof in respect of the rights granted to such Released Parties hereunder. Terms used herein but not otherwise defined shall have the meanings given to them in the Agreement.

1.    I understand that any payments or benefits paid or granted to me under the Agreement represent, in part, consideration for signing this General Release and are not salary, wages or benefits to which I was already entitled. I understand and agree that I will not receive certain of the payments and benefits specified in the Agreement unless I execute this General Release and do not revoke this General Release within the time period permitted hereafter. Such payments and benefits will not be considered compensation for purposes of any employee benefit plan, program, policy or arrangement maintained or hereafter established by the Company or its affiliates.

2.    Except as provided in paragraphs 4 and 5 below and except for the provisions of the Agreement which expressly survive the termination of my employment with the Company, I knowingly and voluntarily (for myself, my heirs, executors, administrators and assigns) release and forever discharge the Company and the other Released Parties from any and all claims, suits, controversies, actions, causes of action, cross-claims, counter claims, demands, debts, compensatory damages, liquidated damages, punitive or exemplary damages, other damages, claims for costs and attorneys’ fees, or liabilities of any nature whatsoever in law and in equity, both past and present (through the date that this General Release becomes effective and enforceable) and whether known or unknown, suspected, or claimed against the Company or any of the Released Parties which I, my spouse, or any of my heirs, executors,

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administrators or assigns, may have, which arise out of or are connected with my employment with, or my separation or termination from, the Company (including, but not limited to, any allegation, claim or violation, arising under: Title VII of the Civil Rights Act of 1964, as amended; the Civil Rights Act of 1991; the Age Discrimination in Employment Act of 1967, as amended (including the Older Workers Benefit Protection Act); the Equal Pay Act of 1963, as amended; the Americans with Disabilities Act of 1990; the Americans with Disabilities Act Amendments Act of 2008; the Family and Medical Leave Act of 1993; the Labor Management Relations Act; the Worker Adjustment Retraining and Notification Act; the Employee Retirement Income Security Act of 1974; the Sarbanes-Oxley Act of 2002; the California Worker Adjustment Retraining and Notification Act; the California Fair Employment and Housing Act; the California Labor Code; the California Family Rights Act; the California Industrial Welfare Commission Wage Orders; the California Constitution; the California Government Code; any applicable Executive Order Programs; the Fair Labor Standards Act; or their state or local counterparts; or under any other federal, state or local civil or human rights law, or under any other local, state, or federal law, regulation or ordinance, as well as any amendments to any of the foregoing; or under any public policy, contract or tort, or under common law; or arising under any policies, practices or procedures of the Company; or any claim for wrongful discharge, breach of contract, infliction of emotional distress, defamation; or any claim for costs, fees, or other expenses, including attorneys’ fees incurred in these matters) (all of the foregoing collectively referred to herein as the “Claims”).

3.    I represent that I have made no assignment or transfer of any right, claim, demand, cause of action, or other matter covered by paragraph 2 above.

4.    I agree that this General Release does not waive or release any rights or claims that I may have under the Age Discrimination in Employment Act of 1967 which arise after the date I execute this General Release. I acknowledge and agree that my separation from employment with the Company in compliance with the terms of the Agreement shall not serve as the basis for any claim or action (including, without limitation, any claim under the Age Discrimination in Employment Act of 1967).

5.    I agree that I hereby waive all rights to sue or obtain equitable, remedial or punitive relief from any or all Released Parties of any kind whatsoever in respect of any Claim, including, without limitation, reinstatement, back pay, front pay, and any form of injunctive relief. Notwithstanding the above, I further acknowledge that I am not waiving and am not being required to waive any right that

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cannot be waived under law, including the right to file an administrative charge or participate in an administrative investigation or proceeding; provided, however, that I disclaim and waive any right to share or participate in any monetary award resulting from the prosecution of such charge or investigation or proceeding. Additionally, I am not waiving (i) any right to the severance benefits to which I am entitled under the Agreement, (ii) any claim relating to directors’ and officers’ liability insurance coverage or any right of indemnification under the Company’s organizational documents or otherwise, (iii) claims under the Consolidated Omnibus Budget Reconciliation Act of 1985, as amended, (iv) claims related to reimbursement of ordinary and reasonable business expenses in accordance with the Company’s policies in effect from time to time, and (v) claims relating to any outstanding equity-based award on the date of termination in accordance with the terms thereof.

6.    In signing this General Release, I acknowledge and intend that it shall be effective as a bar to each and every one of the Claims hereinabove mentioned or implied. I expressly consent that this General Release shall be given full force and effect according to each and all of its express terms and provisions, including those relating to unknown and unsuspected Claims (notwithstanding any state or local statute that expressly limits the effectiveness of a general release of unknown, unsuspected and unanticipated Claims), if any, as well as those relating to any other Claims hereinabove mentioned or implied. I acknowledge and agree that this waiver is an essential and material term of this General Release and that without such waiver the Company would not have agreed to the terms of the Agreement. I further agree that in the event I should bring a Claim seeking damages against the Company, or in the event I should seek to recover against the Company in any Claim brought by a governmental agency on my behalf, this General Release shall serve as a complete defense to such Claims to the maximum extent permitted by law. I further agree that I am not aware of any pending claim of the type described in paragraph 2 above as of the execution of this General Release.

7.    I agree that neither this General Release, nor the furnishing of the consideration for this General Release, shall be deemed or construed at any time to be an admission by the Company, any Released Party or myself of any improper or unlawful conduct.

8.    I agree that if I violate this General Release by suing the Company or the other Released Parties, I will pay all costs and expenses of defending against the suit incurred by the Released Parties, including reasonable attorneys’ fees.

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9.    I agree that this General Release and the Agreement are confidential and agree not to disclose any information regarding the terms of this General Release or the Agreement, except to my immediate family and any tax, legal or other counsel that I have consulted regarding the meaning or effect hereof or as required by law, and I will instruct each of the foregoing not to disclose the same to anyone.

10.    Any non disclosure provision in this General Release does not prohibit or restrict me (or my attorney) from responding to any inquiry about this General Release or its underlying facts and circumstances by the Securities and Exchange Commission (SEC), the Financial Industry Regulatory Authority (FINRA), any other self regulatory organization or any governmental entity.

11.    I hereby acknowledge that Sections 4 through 10 of the Agreement shall survive my execution of this General Release.

12.    I represent that I am not aware of any claim by me other than the claims that are released by this General Release. I acknowledge that I may hereafter discover claims or facts in addition to or different than those which I now know or believe to exist with respect to the subject matter of the release set forth in paragraph 2 above and which, if known or suspected at the time of entering into this General Release, may have materially affected this General Release and my decision to enter into it.

I SPECIFICALLY AND FREELY WAIVE ANY AND ALL RIGHTS I MAY HAVE UNDER CALIFORNIA CIVIL CODE SECTION 1542, WHICH STATES:

A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH THE CREDITOR DOES NOT KNOW OR SUSPECT TO EXIST IN HIS OR HER FAVOR AT THE TIME OF EXECUTING THE RELEASE, WHICH IF KNOWN BY HIM OR HER MUST HAVE MATERIALLY AFFECTED HIS OR HER SETTLEMENT WITH THE DEBTOR.

IN WAIVING THE PROTECTIONS OF CIVIL CODE SECTION 1542, I ACKNOWLEDGE AWARENESS OF THE ACTUAL FACTS AND CIRCUMSTANCES SURROUNDING THE AGREEMENT UPON WHICH THIS RELEASE IS GIVEN. TO EFFECT A FULL AND COMPLETE WAIVER AND RELEASE, I ASSUME THE RISK THAT I MAY LATER DISCOVER FACTS DIFFERENT FROM THOSE I NOW KNOW OR BELIEVE TO BE TRUE.

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13.    Notwithstanding anything in this General Release to the contrary, this General Release shall not relinquish, diminish, or in any way affect any rights or claims arising out of any breach by the Company or by any Released Party of the Agreement after the date hereof.

14.    Whenever possible, each provision of this General Release shall be interpreted in, such manner as to be effective and valid under applicable law, but if any provision of this General Release is held to be invalid, illegal or unenforceable in any respect under any applicable law or rule in any jurisdiction, such invalidity, illegality or unenforceability shall not affect any other provision or any other jurisdiction, but this General Release shall be reformed, construed and enforced in such jurisdiction as if such invalid, illegal or unenforceable provision had never been contained herein.

BY SIGNING THIS GENERAL RELEASE, I REPRESENT AND AGREE THAT:

1.    I HAVE READ IT CAREFULLY;

2.    I UNDERSTAND ALL OF ITS TERMS AND KNOW THAT I AM GIVING UP IMPORTANT RIGHTS, INCLUDING BUT NOT LIMITED TO, RIGHTS UNDER THE AGE DISCRIMINATION IN EMPLOYMENT ACT OF 1967, AS AMENDED, TITLE VII OF THE CIVIL RIGHTS ACT OF 1964, AS AMENDED; THE EQUAL PAY ACT OF 1963, THE AMERICANS WITH DISABILITIES ACT OF 1990; AND THE EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974, AS AMENDED;

3.    I VOLUNTARILY CONSENT TO EVERYTHING IN IT;

4.    I HAVE BEEN ADVISED TO CONSULT WITH AN ATTORNEY BEFORE EXECUTING IT AND I HAVE DONE SO OR, AFTER CAREFUL READING AND CONSIDERATION, I HAVE CHOSEN NOT TO DO SO OF MY OWN VOLITION;

5.    I HAVE HAD AT LEAST 45 DAYS FROM THE DATE OF MY RECEIPT OF THIS RELEASE TO CONSIDER IT, AND THE CHANGES MADE SINCE MY RECEIPT OF THIS RELEASE ARE NOT MATERIAL OR WERE MADE AT MY REQUEST AND WILL NOT RESTART THE REQUIRED 45 DAY PERIOD;

6.    I UNDERSTAND THAT I HAVE SEVEN (7) DAYS AFTER THE EXECUTION OF THIS RELEASE TO REVOKE IT AND THAT THIS RELEASE SHALL NOT BECOME EFFECTIVE OR ENFORCEABLE UNTIL THE REVOCATION PERIOD HAS EXPIRED;

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7.    I HAVE SIGNED THIS GENERAL RELEASE KNOWINGLY AND VOLUNTARILY AND WITH THE ADVICE OF ANY COUNSEL RETAINED TO ADVISE ME WITH RESPECT TO IT; AND

8.    I AGREE THAT THE PROVISIONS OF THIS GENERAL RELEASE MAY NOT BE AMENDED, WAIVED, CHANGED OR MODIFIED EXCEPT BY AN INSTRUMENT IN WRITING SIGNED BY AN AUTHORIZED REPRESENTATIVE OF THE COMPANY AND BY ME.

SIGNED:                            DATED:            

NAME: Kurt A. Gustafson                

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EX-10.7

Exhibit 10.7

EXECUTIVE EMPLOYMENT AGREEMENT

This Executive Employment Agreement (this “Agreement”) is dated as of April 10, 2018 by and between Spectrum Pharmaceuticals, Inc., a Delaware corporation (the “Company”), and Thomas J. Riga (“Executive”).

WHEREAS, the Company desires to employ Executive as Chief Operating Officer and Chief Commercial Officer; and

WHEREAS, the Company and Executive desire to enter into a written employment agreement to reflect the terms upon which Executive shall provide services to the Company.

NOW, THEREFORE, in consideration of the premises and agreements contained herein, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties agree as follows:

1. EMPLOYMENT/TERM. The Company hereby employs Executive to perform the duties and responsibilities set forth below under Section 2 of this Agreement, and Executive hereby accepts such employment, in each case on the terms and conditions set forth in this Agreement. This Agreement shall have a term commencing on April 10, 2018, (the “Effective Date”) and ending on the five-year anniversary of the Effective Date, (the “Term”), unless earlier terminated pursuant to Section 4 of this Agreement.

2. POSITION AND DUTIES.

a. Description of Executive’s Position, Duties, Authorities, and Responsibilities. Executive shall serve as the Chief Operating Officer and Chief Commercial Officer of the Company, subject to the direction of the Chief Executive Officer. In such capacity, Executive shall (i) report to the Chief Executive Officer, (ii) devote his full professional time and attention, best efforts, energy and skills to the services required of him as an employee of the Company, except for paid time off taken in accordance with the Company’s policies and practices, and subject to the Company’s policies pertaining to reasonable periods of absence due to sickness, personal injury or other disability; (iii) use his best efforts to promote the interests of the Company; (iv) comply with all applicable governmental

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laws, rules and regulations and with all of the Company’s policies, rules and regulations applicable to employees of the Company; and (v) discharge his responsibilities in a diligent and faithful manner, consistent with sound business practices and in accordance with the Chief Executive Officer’s directives.

b. Performance of Duties. Executive hereby accepts such employment and agrees to render the services described above in the manner described above. It is understood and agreed that Executive may not engage in other business activities during the Term, whether or not for profit or other pecuniary advantage; provided, however, that Executive may (i) make financial investments which do not involve his active participation, (ii) participate in charitable, educational, religious, civic, or other similar organizations and activities, and (iii) with the prior written consent of the Board of Directors of the Company (the “Board”), serve as an outside director on the board of directors of other corporations that are not affiliates or competitors of the Company or any of its affiliates, in any case to the extent that such activities collectively do not hinder or interfere with the performance of his duties under this Agreement, conflict with the policies of the Company concerning conflicts of interest or conflict with the businesses of the Company or any of its affiliates in any material way.

3. COMPENSATION AND BENEFITS.

a. Base Salary. As of the Effective Date, Executive’s base salary (the “Base Salary”) shall be $500,000 USD per year payable in periodic installments in accordance with the Company’s regular payroll practices as in effect from time to time. The Board or a duly authorized committee thereof will review the Base Salary on an annual basis and may increase, but never decrease, the Base Salary from time to time based on merit or such other considerations as the Board or a duly authorized committee thereof may deem appropriate; provided, however, the Company makes no assurances that the Base Salary will be increased during the Term. “Base Salary” shall mean the initial base salary or the then-current base salary as later approved by the Board.

b. Bonus. Executive shall be eligible to receive an annual cash bonus in an amount up to 50% of Executive’s Base Salary for the fiscal year for which the annual cash bonus is

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being paid, as determined in the discretion of the Board or a duly authorized committee thereof, based on the performance of the Company and Executive relative to performance objectives or other metrics as the Board or a duly authorized committee thereof may deem appropriate. For the first calendar year in which this Agreement is effective, performance objectives or other metrics shall be established within 30 days of the Effective Date of this Agreement. Thereafter, performance objectives or other metrics shall be established within 60 days of the commencement of the calendar year.

c. Pro Rata Bonus. Notwithstanding any other provision in this Agreement to the contrary, should Executive’s employment be terminated by the Company without Cause (as defined below) or by Executive for Good Reason (as defined below), prior to the end of a calendar year, then the Board shall determine the amount of the target bonus for such calendar year, and the Company shall pay Executive the pro rata amount of such target bonus based on the number of days Executive was employed by the Company during the calendar year divided by 365 days (the “Pro Rata Bonus”). Such Pro Rata Bonus shall be paid when bonuses are paid to other senior executives of the Company and within two and one-half months following the end of the calendar year in which Executive is terminated.

d. Benefits and Vacation. Executive shall be eligible to participate in and receive the benefits under any deferred compensation plan, health, life, accident and disability insurance plans or programs, and any other employee benefit or fringe benefit plans or arrangements that the Company makes available generally to other senior executives of the Company, pursuant to the provisions of such plans, programs or arrangements as in effect from time to time. Executive shall be entitled to vacation and sick days in accordance with the policies of the Company for its employees generally, as in effect from time to time. The benefits described in this Section 3.d. are hereinafter referred to as the “Benefits”.

e. Equity Incentive Compensation. Executive shall be eligible to receive grants, at the discretion of the Board or a duly authorized committee thereof, under any long-term equity-based incentive compensation plans established or maintained by the Company for

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its senior executive officers, in each case subject to the terms and conditions of the applicable plans and award documents with respect to such grants. The grants described in this Section 3.e. are hereinafter referred to as the “Equity Incentive Compensation”.

f. Expenses. The Company shall pay or reimburse Executive for all reasonable, ordinary and necessary business expenses incurred or paid by Executive during the Term in the performance of Executive’s services under this Agreement in accordance with the applicable policies and procedures of the Company as in effect from time to time, upon the presentation of proper expense statements or such other supporting documentation as the Company may reasonably require.

g. Auto Allowance. Company shall pay an automotive allowance of $1,150 per month to cover costs of business travel in a personal vehicle.

h. Relocation Allowance. In the event Executive relocates to Southern California at the request of the Company within the first two and one-half years of the Term, the Company shall pay or reimburse Executive for all reasonable relocation expenses, in accordance with IRS guidelines, in connection with his and his family’s relocation, including, but not limited to, short-term hotel costs or apartment rental, not to exceed three months, travel by Executive’s spouse for house-hunting, and moving all household goods. Payment or reimbursement of usual house-selling costs may be included. The total costs of all such amounts will not exceed $200,000.

4. TERMINATION, OTHER THAN FOLLOWING A CHANGE OF CONTROL.

a. General. Executive’s employment may be terminated by either party at any time and for any reason; and upon termination of Executive’s employment, the Term shall end.

b. Resignation without Good Reason. Executive shall be required to give the Company at least 60 days’ advance written notice (the “Resignation Notice Period”) of any voluntary resignation of Executive’s employment hereunder (other than resignation for Good Reason (as defined below), in which event the procedures under Section 5.c. shall apply). During the Resignation Notice Period, the Company in its sole discretion may elect to accelerate Executive’s date of termination of employment, it being understood that any

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such termination shall still be treated as a voluntary resignation without Good Reason (as defined below) for purposes of this Agreement. Even if Executive’s date of termination is accelerated, Executive shall be paid his Base Salary, and shall receive Benefits capable of being provided to persons who are not actively employed by the Company, as if he had worked through the end of the Resignation Notice Period. The Company reserves the right to require Executive not to be in the offices of the Company or any of its affiliates and/or not to undertake all or any of Executive’s duties and/or not to contact clients, colleagues or advisors of the Company or any of its affiliates during all or part of the Resignation Notice Period. During the Resignation Notice Period, Executive’s terms and conditions of service and duties of loyalty and confidentiality to the Company shall remain in full force and effect and, during any such Resignation Notice Period, Executive shall continue to perform as an employee in compliance with the terms of this Agreement and all other agreements applicable to Executive with respect to his service with the Company or any of its affiliates.

c. Death. Executive’s employment hereunder shall terminate automatically on the date of his death.

d. Disability. At the option of the Company, Executive’s employment hereunder may be terminated immediately upon Disability (as defined below) of Executive. For purposes of this Agreement, “Disability” means any physical or mental illness, impairment or incapacity which, in the good faith determination of the Board, has prevented Executive from performing the essential functions of his position hereunder for a period of 90 or more consecutive days (or for shorter periods totaling 120 days) during any period of 12 consecutive months.

e. Termination for Cause. Notwithstanding any other provision of this Agreement, the Company may, at any time, immediately terminate Executive’s employment for Cause (as defined below). For purposes of this Agreement, “Cause” means the occurrence of any of the following by Executive: (i) fraud, misappropriation, embezzlement or acts of similar dishonesty, (ii) conviction of, or plea of nolo contendere to, a felony, (iii) excessive use of alcohol or illegal use of drugs in the workplace, (iv) gross negligence or intentional or

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willful misconduct by Executive in the performance of his duties, (v) breach of Executive’s duty of loyalty to the Company or diversion or usurpation of corporate opportunities properly belonging to the Company, (vi) the knowing breach of any Company confidentiality agreement to which Executive is a party, (vii) willful disregard of the Company’s policies and procedures, (viii) insubordination, (ix) willful failure to satisfactorily perform the duties of Executive’s position, (x) act or omission that would materially and adversely impact the business or reputation of the Company, or (xi) violation of any material provision of this Agreement or any other material provision of any other agreement between Executive and the Company; in each case, as determined by the Company in its sole discretion. The Company’s lack of immediate action with respect to conduct of Executive that would constitute Cause hereunder shall not preclude the Company from taking later action on such act or taking action with respect to another such act committed by Executive.

f. Termination Without Cause. The Company may, at any time, immediately terminate Executive’s employment without Cause.

5. COMPENSATION UPON TERMINATION. Following any termination of Executive’s employment (the date of such termination, “Termination Date”), the obligations of the Company to pay or provide Executive with compensation and benefits under Section 3 shall immediately cease, and the Company shall have no further obligations to Executive under this Agreement, except as otherwise required by law or provided for under this Section 5.

a. Death or Disability. If, during the Term, Executive’s employment is terminated (i) by reason of Executive’s death or (ii) by the Company for Disability of Executive, the Company shall pay to Executive (or to his estate or designated beneficiary in the event of Executive’s death) (A) any unpaid Base Salary accrued through the Termination Date, (B) any unpaid Benefits accrued through the Termination Date to which Executive is entitled under any plans, programs or arrangements applicable to terminated employees in which Executive participates, and (C) a lump sum amount equal to two years of Executive’s Base Salary in effect as of the Termination Date; provided that, in the event Executive is terminated by the Company for Disability during the Change of Control Tail Period, such

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amount shall be paid monthly over a period of 24 months following such termination. Executive shall also immediately vest in all options, restricted stock and other Equity Incentive Compensation (as defined below), all of which shall be immediately available to exercise during the periods provided in the applicable plans and award documents granted to Executive. All payments under clause (C) of this Section 5.a. are conditioned upon Executive executing and delivering (and not revoking) within 90 days of the Termination Date a general waiver and release agreement in the form of Exhibit A, attached, or in a form and with substance satisfactory to the Company, that is no longer subject to revocation. If Executive is unable to execute and deliver such waiver and release agreement due to death or Disability, then the waiver and release agreement shall be executed and delivered by an authorized agent or representative of Executive and/or Executive’s estate. The payments described in clauses (A) and (C) above shall be made within 90 days (or by such earlier date as may be required by applicable law) following the Termination Date, and the payments described in clause (B) above shall be made in accordance with the provisions of the applicable plans, programs and arrangements maintained by the Company with respect to such payments or as otherwise required by applicable law.

b. For Cause or Without Good Reason (not During the Change of Control Tail Period). If, during the Term (other than during the Change of Control Tail Period (as defined below)), Executive’s employment is terminated (i) by the Company for Cause or (ii) by Executive for any reason other than for Good Reason (as defined below), the Company shall pay to Executive (A) any unpaid Base Salary accrued through the Termination Date and (B) any unpaid Benefits accrued through the Termination Date to which Executive is entitled under any plans, programs or arrangements applicable to terminated employees in which Executive participates. The payments described in clause (A) above shall be made within 90 days (or by such earlier date as may be required by applicable law) following the Termination Date, and the payments described in clause (B) above shall be made in accordance with the provisions of the applicable plans, programs and arrangements maintained by the Company with respect to such payments or as otherwise required by applicable law.

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c. Without Cause or for Good Reason (not During the Change of Control Tail Period). If, during the Term (other than during the Change of Control Tail Period), Executive’s employment is terminated (i) by the Company without Cause or (ii) by Executive for Good Reason (as defined below), the Company shall pay to Executive (A) any unpaid Base Salary accrued through the Termination Date, (B) any unpaid Benefits accrued through the Termination Date to which Executive is entitled under any plans, programs or arrangements applicable to terminated employees in which Executive participates, and (C) the following severance benefits (the “Without Cause/For Good Reason Severance Benefits”): (a) two years of Executive’s Base Salary in effect as of the Termination Date and two times (2x) the previous year’s Bonus, in each case paid as a lump sum (b) 18 months of Company-paid continued coverage (COBRA) for Executive and his eligible dependents under the Company’s existing health and benefit plans. As part of the Without Cause/For Good Reason Severance Benefits, Executive shall also immediately vest in all options, restricted stock and other Equity Incentive Compensation (as defined below), all of which shall be immediately available to exercise during the periods provided in the applicable plans and award documents granted to Executive; provided, that, notwithstanding the foregoing, with respect to any options, restricted stock or other Equity Incentive Compensation that vest based on performance-based criteria (“Performance-Based Awards”), Executive shall vest in such Performance-Based Awards as part of the Without Cause/For Good Reason Severance Benefits pro rata based on the Executive’s target award for such Performance-Based Awards (irrespective of actual performance) and based on the number of days Executive was employed by the Company during the applicable performance period for such Performance-Based Awards divided by the total number of days in such performance period. All payments under clause (C) of this Section 5.c. are conditioned upon Executive executing and delivering (and not revoking) within 90 days of the Termination Date a general waiver and release agreement in the form of Exhibit A, attached, or in a form and with substance satisfactory to the Company, that is no longer subject to revocation; provided, further, that in order for Executive to terminate his employment for Good Reason (as defined below), (x) Executive must furnish written notice to the Company setting forth the facts and

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circumstances claimed to provide a basis for such resignation within 30 days following the occurrence of such facts and circumstances, (y) the Company shall have 30 days after its receipt of such written notice to cure such facts and circumstances in all material respects (and if so cured, then Executive shall not be permitted to resign for Good Reason (as defined below) in respect thereof), and (z) Executive must actually terminate his employment within 30 days following the expiration of the Company’s cure period set forth above. For purposes of this Agreement, “Good Reason” means the occurrence of any of the following events, without the express consent of Executive, (1) a material diminution in Executive’s Base Salary or (2) a material diminution in Executive’s title, position, duties, authorities or responsibilities (other than temporarily while physically or mentally incapacitated or as required by applicable law), provided, Executive agrees that any diminution or elimination of Executive’s title, position, duties, authorities or responsibilities as Chief Commercial Officer shall not constitute Good Reason under this Agreement or any other agreement by and between Executive and the Company in which a “Good Reason” definition (or equivalent thereof) is included. The payments described in clauses (A) and (C) above shall be made within 90 days (or by such earlier date as may be required by applicable law) following the Termination Date, and the payments described in clause (B) above shall be made in accordance with the provisions of the applicable plans, programs and arrangements maintained by the Company with respect to such payments or as otherwise required by applicable law.

d. Termination During Change of Control Tail Period. In the event that Executive’s employment is terminated by the Company or by Executive during the Change of Control Tail Period for any reason other than a termination by reason of Executive’s death or by the Company for Disability of Executive, this Section 5 shall not apply, and the terms and conditions of Section 6 shall govern with respect to any compensation payable to Executive as a result of such termination. For purposes of this Agreement, the “Change of Control Tail Period” shall mean the 12 month period following the occurrence of a Change of Control (as defined below). In no event shall Executive be entitled to compensation both under this Section 5 and under Section 6.

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e. Equity Incentive Compensation. Except in circumstances where termination is (i) by reason of Executive’s death or by the Company for Disability, (ii) by the Company without Cause, (iii) by Executive for Good Reason, or (iv) during the Change of Control Tail Period and subject to Section 6, upon termination of Executive’s employment during the Term, the Equity Incentive Compensation awarded to Executive shall forfeit or vest in accordance with the terms of the applicable plans and award documents with respect to such Equity Incentive Compensation, and shall be subject to such other terms and conditions of such plans and award documents that may apply as a result of such termination.

f. Benefits. Notwithstanding anything in this Section 5 to the contrary, the Benefits to which Executive is entitled upon or by reason of the termination of his employment with the Company (including during the Change of Control Tail Period) shall be subject to, and shall be governed by, the terms and conditions of the applicable plans, programs and arrangements maintained by the Company with respect to such Benefits.

g. Expiration of Term. Notwithstanding anything in this Section 5 to the contrary, the expiration of the Term by itself shall not entitle Executive to receipt of any payments under this Section 5.

6. CHANGE OF CONTROL.

a. Definition. “Change of Control” shall have the meaning prescribed to such phrase (or, if applicable, the phrase, “Change in Control”) in the 2009 Incentive Award Plan of the Company, or the latest equity incentive award plan of the Company in effect from time to time. The Board shall have full and final authority, which shall be exercised in its discretion, to determine conclusively whether a Change of Control of the Company has occurred pursuant to the above definition, and the date of the occurrence of such Change of Control and any incidental matters relating thereto.

b. Executive’s Rights Upon a Change of Control. If there should occur a Change of Control of the Company (or any successor) and Executive’s employment is terminated by the Company without Cause or Executive terminates employment with, Good Reason during the Change of Control Tail Period, Executive shall receive the Without Cause/For Good

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Reason Severance Benefits, as if he had been terminated without Cause or had terminated for Good Reason under Section 5.c. of this Agreement; provided, that the two years of Executive’s Base Salary in effect as of the Termination Date, payable as part of the Without Cause/For Good Reason Severance Benefits, shall be paid monthly over a period of 24 months following such termination; provided further that all equity awards that would have been eligible to vest under Section 5.c. shall vest immediately upon consummation of a Change of Control; and provided further that Executive shall vest in all Performance-Based Awards as part of the Without Cause/For Good Reason Severance Benefits upon consummation of a Change of Control pro rata based on the Executive’s target award for such Performance-Based Awards (irrespective of actual performance) and based on the number of days Executive was employed by the Company before the Change of Control during the applicable performance period for such Performance-Based Awards divided by the total number of days in such performance period. All of the provisions of Section 5.c., including but not limited to the notice and cure provisions, shall apply in like manner under this Section 6.b.

7. COOPERATION. Upon the receipt of reasonable notice from the Company (including outside counsel), Executive agrees that while employed by the Company and thereafter, Executive will respond and provide information with regard to matters in which Executive has knowledge as a result of Executive’s employment with the Company, and will provide reasonable assistance to the Company, its affiliates and their respective representatives in defense of all claims that may be made against the Company or its affiliates, and will assist the Company and its affiliates in the prosecution of all claims that may be made by the Company or its affiliates, to the extent that such claims may relate to the period of Executive’s employment with the Company. Executive agrees to promptly inform the Company if Executive becomes aware of any lawsuit involving such claims that may be filed or threatened against the Company or its affiliates. Executive also agrees to promptly inform the Company (to the extent that Executive is legally permitted to do so) if Executive is asked to assist in any investigation of the Company or its affiliates (or their actions), regardless of whether a lawsuit or other proceeding has then been filed against the Company or its affiliates with respect to such investigation, and shall not provide such assistance unless legally required. Upon presentation of appropriate documentation, the Company shall pay

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or reimburse Executive for all reasonable out-of-pocket travel, duplicating or telephonic expenses incurred by Executive in complying with this Section 7. For the first five hours of cooperation in any calendar month during the period of Cooperation, Executive shall provide the specified Cooperation services without hourly reimbursement. For each hour of Cooperation or part thereof after five hours, in any calendar month, Company shall reimburse Executive at the hourly rate determined by this fraction: (final Base Salary / 2,080 hours).

8. ARBITRATION. The parties hereby agree to submit all disputes, claims and controversies (“Claims”) between the parties or related to or arising out of their employment relationship (except to the extent otherwise provided in that certain Employee Obligations Agreement, dated as of July 11, 2013, by and between the Company and Executive (the “Employee Obligations Agreement”), or that certain Indemnification Agreement, dated as of December 10, 2014, by and between the Company and Executive (the “Indemnification Agreement”)) to final, binding arbitration to the fullest extent permitted by law. The Federal Arbitration Act., 9 U.S.C. § 1 et seq., shall govern the interpretation and enforcement of this Section 8. The court and not the arbitrator will determine matters of enforceability of this Section 8.

a. Statute of Limitations. The statutory limitations period applicable to a Claim asserted in a civil action shall apply to any such Claim asserted in any arbitration proceeding under this Section 8. Arbitration is commenced for limitations purposes by submitting the matter to the arbitral forum.

b. Individual Basis. All Claims that are subject to arbitration under this Section 8 must and will take place on an individual basis only.

c. Venue. Binding arbitration under this Section 8 shall be conducted in Nevada, unless required by law to be conducted elsewhere, in which case it shall be conducted where required by law.

d. Applicable Rules. The arbitration proceeding, including discovery, shall be conducted in accordance with the Federal Arbitration Act, the JAMS Policy on Employment Arbitration Minimum Standards and the JAMS Employment Arbitration Rules and Procedures then in effect (the “JAMS Rules”). Executive understands that if he wishes to receive a copy of the JAMS Rules currently in effect, he may inform the Company in

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writing, and the Company will provide them to him before he executes this Agreement. Executive also understand that JAMS Rules are available online at http://www.jamsadr.com/rules-employment-arbitration/.

e. Arbitrator Selection. The arbitration shall be conducted before a neutral arbitrator selected by all parties in accordance with JAMS Rules. The parties may also agree on an arbitrator.

f. Cost Allocation. If required by applicable law, the Company shall pay all additional costs peculiar to the arbitration to the extent such costs would not otherwise be incurred in a court proceeding (for instance, the Company shall pay the arbitrator’s fees, and the JAMS administration and filing fees, to the extent such fees exceed court filing fees).

g. Attorneys’ Fees and Costs. Each party shall pay his or its own costs and attorneys’ fees except that the arbitrator shall award costs and attorneys’ fees to the prevailing party.

h. Written Decision. The arbitrator shall follow applicable substantive law and, within 30 days after the conclusion of the arbitration, issue a written opinion setting forth the factual and legal bases for his or her decision.

i. Acknowledgement. EXECUTIVE UNDERSTANDS HE IS GIVING UP HIS RIGHT TO A JURY TRIAL BY ENTERING INTO THIS AGREEMENT. EXECUTIVE UNDERSTANDS HE IS GIVING UP HIS RIGHT TO COMMENCE OR PARTICIPATE IN A CLASS OR COLLECTIVE ACTION AND INSTEAD AGREES TO ARBITRATE ANY EMPLOYMENT-RELATED DISPUTE ON AN INDIVIDUAL BASIS ONLY TO THE MAXIMUM EXTENT PERMITTED BY LAW.

9. CODE SECTION 409A.

a. This Agreement is intended to comply with the requirements of Section 409A of the Internal Revenue Code of 1986, as amended (“Section 409A”), including the exceptions thereto, and shall be construed and administered in accordance with such intent. Notwithstanding any other provision of this Agreement, payments provided under this Agreement may only be made upon an event and in a manner that complies with Section 409A or an applicable exemption. Any payments under this Agreement that may be

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excluded from Section 409A either as separation pay due to an involuntary separation from service or as a short-term deferral shall be excluded from Section 409A to the maximum extent possible. For purposes of Section 409A, each separate payment or installment payment provided under this Agreement shall be treated as a separate payment. Any payments to be made under this Agreement in connection with a termination of employment shall only be made if such termination of employment constitutes a “separation from service” under Section 409A. Notwithstanding the foregoing, the Company makes no representations that the payments and benefits provided under this Agreement comply with Section 409A and in no event shall the Company be liable for all or any portion of any taxes, penalties, interest or other expenses that may be incurred by Executive on account of non-compliance with Section 409A.

b. Notwithstanding any other provision of this Agreement, if at the time of Executive’s termination of employment, he is a “specified employee,” determined in accordance with Section 409A, any payments and benefits provided under this Agreement that constitute “nonqualified deferred compensation” subject to Section 409A that are provided to Executive on account of his separation from service shall not be paid until the first payroll date to occur following the six-month anniversary of Executive’s termination date (“Specified Employee Payment Date”). The aggregate amount of any payments that would otherwise have been made during such six-month period shall be paid in a lump sum on the Specified Employee Payment Date and thereafter, any remaining payments shall be paid without delay in accordance with their original schedule. If Executive dies before the Specified Employee Payment Date, any delayed payments shall be paid to Executive’s estate in a lump sum within one week of Executive’s death.

c. To the extent required by Section 409A, each reimbursement or in-kind benefit provided under this Agreement shall be provided in accordance with the following: (i) the amount of expenses eligible for reimbursement, or in-kind benefits provided, during each calendar year cannot affect the expenses eligible for reimbursement, or in-kind benefits to be provided, in any other calendar year; (ii) any reimbursement of an eligible expense shall be paid to Executive on or before the last day of the calendar year following the

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calendar year in which the expense was incurred; and (iii) any right to reimbursements or in-kind benefits under this Agreement shall not be subject to liquidation or exchange for another benefit. Any tax gross-up payments provided under this Agreement shall be paid to Executive on or before December 31 of the calendar year immediately following the calendar year in which Executive remits the related taxes.

d. Whenever in this Agreement a payment or benefit is conditioned on Executive’s execution of a release of claims, such release must be executed and all revocation periods shall have expired within 90 days after the Termination Date; failing which such payment or benefit shall be forfeited. If such payment or benefit constitutes “nonqualified deferred compensation” subject to Section 409A, and if such 90-day period begins in one calendar year and ends in the next calendar year, the payment or benefit shall not be made or commence before the second such calendar year, even if the release becomes irrevocable in the first such calendar year.

10. GENERAL PROVISIONS.

a. Notices. All notices, requests, demands, statements, reports and other communications provided for by this Agreement shall be in writing (email being sufficient) and shall be sent by (i) certified mail, return receipt requested, postage prepaid, (ii) nationally recognized overnight delivery service, (iii) personal delivery or (iv) email. A notice shall be deemed to be given (x) if notice is delivered by certified mail or nationally recognized overnight delivery service, on the business day following the date of its mailing, (y) if such notice is delivered personally, upon delivery, or (z) if such notice is sent by email, upon sending. Each party may change his or its address for notices by giving notice in accordance herewith. All notices shall be addressed and mailed or delivered to the following addresses:

If to the COMPANY: 157 Technology Dr. Irvine, CA 92618

If to EXECUTIVE:    1608 Lookout Circle, Waxhaw, NC 28173

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b. Entire Agreement. This Agreement, the Employee Obligations Agreement, and the Indemnification Agreement constitute the entire agreement between the parties with respect to the subject matter hereof and thereof and supersede all prior agreements, representations and understandings (whether written or oral) of the parties with respect to the subject matter hereof and thereof, including that certain Change in Control Severance Agreement, dated as of May 4, 2015, by and between the Company and Executive, and any other agreement between Executive and the Company or any of its affiliates and subsidiaries. The above-referenced Change in Control Severance Agreement and any amendments thereto, by and between Executive and the Company, are terminated, canceled, and of no further force or effect as of the Effective Date hereof.

c. Modification and Waiver. No amendment or variation of the terms of this Agreement shall be valid unless made in writing and signed by Executive and a duly authorized representative of the Company (other than Executive). A waiver of any term or condition of this Agreement shall not be construed as a general waiver by the Company. If one or more provisions of this Agreement are held to be illegal or unenforceable under applicable law, such illegal or unenforceable provision(s) shall be limited or excluded from this Agreement to the minimum extent required so that this Agreement shall otherwise remain in full force and effect and enforceable in accordance with its terms.

d. Governing Law. This Agreement shall be governed by and construed in accordance with the laws of the State of Nevada, without giving effect to its conflict of law principles, and any dispute in the meaning, effect or validity of this Agreement shall be resolved in accordance with the laws of the State of Nevada.

e. Assignment; Binding Effect. This Agreement is fully assignable and transferable by the Company, but any purported assignment or transfer by Executive is void. It is hereby agreed that Executive’s rights and obligations under this Agreement are personal and not assignable by Executive. This Agreement shall be binding upon and inure to the benefit of the heirs, legal representatives, successors and permitted assigns of the parties. EXECUTIVE HAS READ THIS AGREEMENT CAREFULLY AND UNDERSTANDS AND ACCEPTS THE OBLIGATIONS WHICH IT IMPOSES

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UPON EXECUTIVE WITHOUT RESERVATION. NO PROMISES OR REPRESENTATIONS HAVE BEEN MADE TO EXECUTIVE TO INDUCE EXECUTIVE TO SIGN THIS AGREEMENT. EXECUTIVE SIGNS THIS AGREEMENT VOLUNTARILY AND FREELY, IN DUPLICATE, WITH THE UNDERSTANDING THAT THE COMPANY WILL RETAIN ONE COUNTERPART AND THE OTHER COUNTERPART WILL BE RETAINED BY EXECUTIVE.

f. Injunctive Relief. Executive agrees that any breach of this Agreement will cause irreparable harm to the Company for which damages would not be an adequate remedy, and, therefore, to the fullest extent permitted by applicable law, the Company will be entitled to injunctive relief with respect thereto in addition to any other remedies and without any requirement to post bond.

g. Survival. This Agreement shall terminate upon the expiration of the Term; provided that the provisions of Sections 5 through 10 shall survive termination of this Agreement and termination of Executive’s employment regardless of the reason for such termination.

h. Withholding. The Company may withhold from any and all amounts payable under this Agreement or otherwise such federal, state and local taxes as may be required to be withheld pursuant to applicable law.

[Signature page follows]

In witness whereof, parties have executed this Agreement as of the date first above written.

COMPANY:

Spectrum Pharmaceuticals, Inc.

By: /s/ Raymond W. Cohen            

Raymond W. CohenChairman, Compensation Committee

EXECUTIVE:

/s/ Thomas J. Riga            

Thomas J. Riga

EXHIBIT A

GENERAL RELEASE

I, Thomas J. Riga, in consideration of and subject to the performance by Spectrum Pharmaceuticals, Inc. (together with its subsidiaries and successors, the “Company”), of its obligations under the Executive Employment Agreement dated as of April 10, 2018 (the “Agreement”), do hereby release and forever discharge as of the date hereof the Company and its respective affiliates, subsidiaries and direct or indirect parent entities and all present, former and future directors, officers, agents, representatives, employees, successors and assigns of the Company and/or its respective affiliates, subsidiaries and direct or indirect parent entities (collectively, the “Released Parties”) to the extent provided below (this “General Release”). The Released Parties are intended to be third-party beneficiaries of this General Release, and this General Release may be enforced by each of them in accordance with the terms hereof in respect of the rights granted to such Released Parties hereunder. Terms used herein but not otherwise defined shall have the meanings given to them in the Agreement.

1.    I understand that any payments or benefits paid or granted to me under the Agreement represent, in part, consideration for signing this General Release and are not salary, wages or benefits to which I was already entitled. I understand and agree that I will not receive certain of the payments and benefits specified in the Agreement unless I execute this General Release and do not revoke this General Release within the time period permitted hereafter. Such payments and benefits will not be considered compensation for purposes of any employee benefit plan, program, policy or arrangement maintained or hereafter established by the Company or its affiliates.

2.    Except as provided in paragraphs 4 and 5 below and except for the provisions of the Agreement which expressly survive the termination of my employment with the Company, I knowingly and voluntarily (for myself, my heirs, executors, administrators and assigns) release and forever discharge the Company and the other Released Parties from any and all claims, suits, controversies, actions, causes of action, cross-claims, counter claims, demands, debts, compensatory damages, liquidated damages, punitive or exemplary damages, other damages, claims for costs and attorneys’ fees, or liabilities of any nature whatsoever in law and in equity, both past and present (through the date that this General Release becomes effective and enforceable) and whether known or unknown, suspected, or claimed against the Company or any of the Released Parties which I, my spouse, or any of my heirs, executors, administrators or assigns, may have, which arise out of or are connected with my employment with, or my separation or termination from, the Company (including, but not limited to, any allegation, claim or violation, arising under: Title VII of the Civil Rights Act of 1964, as amended; the Civil Rights Act of 1991; the Age Discrimination in Employment Act of 1967, as amended (including the Older Workers Benefit Protection Act); the Equal Pay Act of 1963, as amended; the Americans with Disabilities Act of 1990; the Americans with Disabilities Act Amendments Act of 2008; the Family and Medical Leave Act of 1993; the Labor Management Relations Act; the Worker Adjustment Retraining and Notification Act; the Employee Retirement Income Security Act of 1974; the Sarbanes-Oxley Act of 2002; any applicable Executive Order Programs; the Fair Labor Standards Act; or their state or local counterparts; or under any other federal, state or local civil or human rights law, or under any other local, state, or federal law, regulation or ordinance, as well as any amendments to any of the foregoing; or under any public policy, contract or tort, or under common law; or arising under any policies, practices or procedures of the Company; or any claim for wrongful discharge, breach of contract, infliction of emotional distress, defamation; or any claim for costs, fees, or other expenses, including attorneys’ fees incurred in these matters) (all of the foregoing collectively referred to herein as the “Claims”).

3.    I represent that I have made no assignment or transfer of any right, claim, demand, cause of action, or other matter covered by paragraph 2 above.

4.    I agree that this General Release does not waive or release any rights or claims that I may have under the Age Discrimination in Employment Act of 1967 which arise after the date I execute this General Release. I acknowledge and agree that my separation from employment with the Company in compliance with the terms of the Agreement shall not serve as the basis for any claim or action (including, without limitation, any claim under the Age Discrimination in Employment Act of 1967).

5.    I agree that I hereby waive all rights to sue or obtain equitable, remedial or punitive relief from any or all Released Parties of any kind whatsoever in respect of any Claim, including, without limitation, reinstatement, back pay, front pay, and any form of injunctive relief. Notwithstanding the above, I further acknowledge that I am not waiving and am not being required to waive any right that cannot be waived under law, including the right to file an administrative charge or participate in an administrative investigation or proceeding; provided, however, that I disclaim and waive any right to share or participate in any monetary award resulting from the prosecution of such charge or investigation or proceeding. Additionally, I am not waiving (i) any right to the severance benefits to which I am entitled under the Agreement, (ii) any claim relating to directors’ and officers’ liability insurance coverage or any right of indemnification under the Company’s organizational documents or otherwise, (iii) claims under the Consolidated Omnibus Budget Reconciliation Act of 1985, as amended, (iv) claims related to reimbursement of ordinary and reasonable business expenses in accordance with the Company’s policies in effect from time to time, and (v) claims relating to any outstanding equity-based award on the date of termination in accordance with the terms thereof.

6.    In signing this General Release, I acknowledge and intend that it shall be effective as a bar to each and every one of the Claims hereinabove mentioned or implied. I expressly consent that this General Release shall be given full force and effect according to each and all of its express terms and provisions, including those relating to unknown and unsuspected Claims (notwithstanding any state or local statute that expressly limits the effectiveness of a general release of unknown, unsuspected and unanticipated Claims), if any, as well as those relating to any other Claims hereinabove mentioned or implied. I acknowledge and agree that this waiver is an essential and material term of this General Release and that without such waiver the Company would not have agreed to the terms of the Agreement. I further agree that in the event I should bring a Claim seeking damages against the Company, or in the event I should seek to recover against the Company in any Claim brought by a governmental agency on my behalf, this General Release shall serve as a complete defense to such Claims to the maximum extent permitted by law. I further agree that I am not aware of any pending claim of the type described in paragraph 2 above as of the execution of this General Release.

7.    I agree that neither this General Release, nor the furnishing of the consideration for this General Release, shall be deemed or construed at any time to be an admission by the Company, any Released Party or myself of any improper or unlawful conduct.

8.    I agree that if I violate this General Release by suing the Company or the other Released Parties, I will pay all costs and expenses of defending against the suit incurred by the Released Parties, including reasonable attorneys’ fees.

9.    I agree that this General Release and the Agreement are confidential and agree not to disclose any information regarding the terms of this General Release or the Agreement, except to my immediate family and any tax, legal or other counsel that I have consulted regarding the meaning or effect hereof or as required by law, and I will instruct each of the foregoing not to disclose the same to anyone.

10.    Any non disclosure provision in this General Release does not prohibit or restrict me (or my attorney) from responding to any inquiry about this General Release or its underlying facts and circumstances by the Securities and Exchange Commission (SEC), the Financial Industry Regulatory Authority (FINRA), any other self regulatory organization or any governmental entity.

11.    I hereby acknowledge that Sections 4 through 10 of the Agreement shall survive my execution of this General Release.

12.    I represent that I am not aware of any claim by me other than the claims that are released by this General Release. I acknowledge that I may hereafter discover claims or facts in addition to or different than those which I now know or believe to exist with respect to the subject matter of the release set forth in paragraph 2 above and which, if known or suspected at the time of entering into this General Release, may have materially affected this General Release and my decision to enter into it.

13.    Notwithstanding anything in this General Release to the contrary, this General Release shall not relinquish, diminish, or in any way affect any rights or claims arising out of any breach by the Company or by any Released Party of the Agreement after the date hereof.

14.    Whenever possible, each provision of this General Release shall be interpreted in, such manner as to be effective and valid under applicable law, but if any provision of this General Release is held to be invalid, illegal or unenforceable in any respect under any applicable law or rule in any jurisdiction, such invalidity, illegality or unenforceability shall not affect any other provision or any other jurisdiction, but this General Release shall be reformed, construed and enforced in such jurisdiction as if such invalid, illegal or unenforceable provision had never been contained herein.

BY SIGNING THIS GENERAL RELEASE, I REPRESENT AND AGREE THAT:

1.    I HAVE READ IT CAREFULLY;

2.    I UNDERSTAND ALL OF ITS TERMS AND KNOW THAT I AM GIVING UP IMPORTANT RIGHTS, INCLUDING BUT NOT LIMITED TO, RIGHTS UNDER THE AGE DISCRIMINATION IN EMPLOYMENT ACT OF 1967, AS AMENDED, TITLE VII OF THE CIVIL RIGHTS ACT OF 1964, AS AMENDED; THE EQUAL PAY ACT OF 1963, THE AMERICANS WITH DISABILITIES ACT OF 1990; AND THE EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974, AS AMENDED;

3.    I VOLUNTARILY CONSENT TO EVERYTHING IN IT;

4.    I HAVE BEEN ADVISED TO CONSULT WITH AN ATTORNEY BEFORE EXECUTING IT AND I HAVE DONE SO OR, AFTER CAREFUL READING AND CONSIDERATION, I HAVE CHOSEN NOT TO DO SO OF MY OWN VOLITION;

5.    I HAVE HAD AT LEAST 45 DAYS FROM THE DATE OF MY RECEIPT OF THIS RELEASE TO CONSIDER IT, AND THE CHANGES MADE SINCE MY RECEIPT OF THIS RELEASE ARE NOT MATERIAL OR WERE MADE AT MY REQUEST AND WILL NOT RESTART THE REQUIRED 45 DAY PERIOD;

6.    I UNDERSTAND THAT I HAVE SEVEN (7) DAYS AFTER THE EXECUTION OF THIS RELEASE TO REVOKE IT AND THAT THIS RELEASE SHALL NOT BECOME EFFECTIVE OR ENFORCEABLE UNTIL THE REVOCATION PERIOD HAS EXPIRED;

7.    I HAVE SIGNED THIS GENERAL RELEASE KNOWINGLY AND VOLUNTARILY AND WITH THE ADVICE OF ANY COUNSEL RETAINED TO ADVISE ME WITH RESPECT TO IT; AND

8.    I AGREE THAT THE PROVISIONS OF THIS GENERAL RELEASE MAY NOT BE AMENDED, WAIVED, CHANGED OR MODIFIED EXCEPT BY AN INSTRUMENT IN WRITING SIGNED BY AN AUTHORIZED REPRESENTATIVE OF THE COMPANY AND BY ME.

SIGNED:                            DATED:            

NAME: Thomas J. Riga

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EX-10.8

Exhibit 10.8

EXECUTIVE EMPLOYMENT AGREEMENT

This Executive Employment Agreement (this “Agreement”) is dated as of April 10, 2018 by and between Spectrum Pharmaceuticals, Inc., a Delaware corporation (the “Company”), and Joseph W. Turgeon (“Executive”).

WHEREAS, the Company desires to employ Executive as President and Chief Executive Officer; and

WHEREAS, the Company and Executive desire to enter into a written employment agreement to reflect the terms upon which Executive shall provide services to the Company.

NOW, THEREFORE, in consideration of the premises and agreements contained herein, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties agree as follows:

1. EMPLOYMENT/TERM. The Company hereby employs Executive to perform the duties and responsibilities set forth below under Section 2 of this Agreement, and Executive hereby accepts such employment, in each case on the terms and conditions set forth in this Agreement. This Agreement shall have a term commencing on April 10, 2018, (the “Effective Date”) and ending on the five-year anniversary of the Effective Date, (the “Term”), unless earlier terminated pursuant to Section 4 of this Agreement.

2. POSITION AND DUTIES.

a. Description of Executive’s Position, Duties, Authorities, and Responsibilities. Executive shall serve as the President and Chief Executive Officer of the Company, subject to the direction of the Board of Directors of the Company (the “Board”). In such capacity, Executive shall (i) report to the Board, (ii) devote his full professional time and attention, best efforts, energy and skills to the services required of him as an employee of the Company, except for paid time off taken in accordance with the Company’s policies and practices, and subject to the Company’s policies pertaining to reasonable periods of absence due to sickness, personal injury or other disability; (iii) use his best efforts to promote the interests of the Company; (iv) comply with all applicable governmental

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laws, rules and regulations and with all of the Company’s policies, rules and regulations applicable to employees of the Company; and (v) discharge his responsibilities in a diligent and faithful manner, consistent with sound business practices and in accordance with the Board’s directives.

b. Performance of Duties. Executive hereby accepts such employment and agrees to render the services described above in the manner described above. It is understood and agreed that Executive may not engage in other business activities during the Term, whether or not for profit or other pecuniary advantage; provided, however, that Executive may (i) make financial investments which do not involve his active participation, (ii) participate in charitable, educational, religious, civic, or other similar organizations and activities, and (iii) with the prior written consent of the Board, serve as an outside director on the board of directors of other corporations that are not affiliates or competitors of the Company or any of its affiliates, in any case to the extent that such activities collectively do not hinder or interfere with the performance of his duties under this Agreement, conflict with the policies of the Company concerning conflicts of interest or conflict with the businesses of the Company or any of its affiliates in any material way.

3. COMPENSATION AND BENEFITS.

a. Base Salary. As of the Effective Date, Executive’s base salary (the “Base Salary”) shall be $750,000 USD per year payable in periodic installments in accordance with the Company’s regular payroll practices as in effect from time to time. The Board or a duly authorized committee thereof will review the Base Salary on an annual basis and may increase, but never decrease, the Base Salary from time to time based on merit or such other considerations as the Board or a duly authorized committee thereof may deem appropriate; provided, however, the Company makes no assurances that the Base Salary will be increased during the Term. “Base Salary” shall mean the initial base salary or the then-current base salary as later approved by the Board.

b. Bonus. Executive shall be eligible to receive an annual cash bonus in an amount up to 70% of Executive’s Base Salary for the fiscal year for which the annual cash bonus is being paid, as determined in the discretion of the Board or a duly authorized committee

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thereof, based on the performance of the Company and Executive relative to performance objectives or other metrics as the Board or a duly authorized committee thereof may deem appropriate. For the first calendar year in which this Agreement is effective, performance objectives or other metrics shall be established within 30 days of the Effective Date of this Agreement. Thereafter, performance objectives or other metrics shall be established within 60 days of the commencement of the calendar year.

c. Pro Rata Bonus. Notwithstanding any other provision in this Agreement to the contrary, should Executive’s employment be terminated by the Company without Cause (as defined below) or by Executive for Good Reason (as defined below), prior to the end of a calendar year, then the Board shall determine the amount of the target bonus for such calendar year, and the Company shall pay Executive the pro rata amount of such target bonus based on the number of days Executive was employed by the Company during the calendar year divided by 365 days (the “Pro Rata Bonus”). Such Pro Rata Bonus shall be paid when bonuses are paid to other senior executives of the Company and within two and one-half months following the end of the calendar year in which Executive is terminated.

d. Benefits and Vacation. Executive shall be eligible to participate in and receive the benefits under any deferred compensation plan, health, life, accident and disability insurance plans or programs, and any other employee benefit or fringe benefit plans or arrangements that the Company makes available generally to other senior executives of the Company, pursuant to the provisions of such plans, programs or arrangements as in effect from time to time. Executive shall be entitled to vacation and sick days in accordance with the policies of the Company for its employees generally, as in effect from time to time. The benefits described in this Section 3.d. are hereinafter referred to as the “Benefits”.

e. Equity Incentive Compensation. Executive shall be eligible to receive grants, at the discretion of the Board or a duly authorized committee thereof, under any long-term equity-based incentive compensation plans established or maintained by the Company for its senior executive officers, in each case subject to the terms and conditions of the

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applicable plans and award documents with respect to such grants. The grants described in this Section 3.e. are hereinafter referred to as the “Equity Incentive Compensation”.

f. Expenses. The Company shall pay or reimburse Executive for all reasonable, ordinary and necessary business expenses incurred or paid by Executive during the Term in the performance of Executive’s services under this Agreement in accordance with the applicable policies and procedures of the Company as in effect from time to time, upon the presentation of proper expense statements or such other supporting documentation as the Company may reasonably require.

g. Auto Allowance. Company shall pay an automotive allowance of $1,150 per month to cover costs of business travel in a personal vehicle.

h. Relocation Allowance. In the event Executive relocates to Southern California at the request of the Company within the first two and one-half years of the Term, the Company shall pay or reimburse Executive for all reasonable relocation expenses, in accordance with IRS guidelines, in connection with his and his family’s relocation, including, but not limited to, short-term hotel costs or apartment rental, not to exceed three months, travel by Executive’s spouse for house-hunting, and moving all household goods. Payment or reimbursement of usual house-selling costs may be included. The total costs of all such amounts will not exceed $200,000.

4. TERMINATION, OTHER THAN FOLLOWING A CHANGE OF CONTROL.

a. General. Executive’s employment may be terminated by either party at any time and for any reason; and upon termination of Executive’s employment, the Term shall end.

b. Resignation without Good Reason. Executive shall be required to give the Company at least 60 days’ advance written notice (the “Resignation Notice Period”) of any voluntary resignation of Executive’s employment hereunder (other than resignation for Good Reason (as defined below), in which event the procedures under Section 5.c. shall apply). During the Resignation Notice Period, the Company in its sole discretion may elect to accelerate Executive’s date of termination of employment, it being understood that any such termination shall still be treated as a voluntary resignation without Good Reason (as

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defined below) for purposes of this Agreement. Even if Executive’s date of termination is accelerated, Executive shall be paid his Base Salary, and shall receive Benefits capable of being provided to persons who are not actively employed by the Company, as if he had worked through the end of the Resignation Notice Period. The Company reserves the right to require Executive not to be in the offices of the Company or any of its affiliates and/or not to undertake all or any of Executive’s duties and/or not to contact clients, colleagues or advisors of the Company or any of its affiliates during all or part of the Resignation Notice Period. During the Resignation Notice Period, Executive’s terms and conditions of service and duties of loyalty and confidentiality to the Company shall remain in full force and effect and, during any such Resignation Notice Period, Executive shall continue to perform as an employee in compliance with the terms of this Agreement and all other agreements applicable to Executive with respect to his service with the Company or any of its affiliates.

c. Death. Executive’s employment hereunder shall terminate automatically on the date of his death.

d. Disability. At the option of the Company, Executive’s employment hereunder may be terminated immediately upon Disability (as defined below) of Executive. For purposes of this Agreement, “Disability” means any physical or mental illness, impairment or incapacity which, in the good faith determination of the Board, has prevented Executive from performing the essential functions of his position hereunder for a period of 90 or more consecutive days (or for shorter periods totaling 120 days) during any period of 12 consecutive months.

e. Termination for Cause. Notwithstanding any other provision of this Agreement, the Company may, at any time, immediately terminate Executive’s employment for Cause (as defined below). For purposes of this Agreement, “Cause” means the occurrence of any of the following by Executive: (i) fraud, misappropriation, embezzlement or acts of similar dishonesty, (ii) conviction of, or plea of nolo contendere to, a felony, (iii) excessive use of alcohol or illegal use of drugs in the workplace, (iv) gross negligence or intentional or willful misconduct by Executive in the performance of his duties, (v) breach of

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Executive’s duty of loyalty to the Company or diversion or usurpation of corporate opportunities properly belonging to the Company, (vi) the knowing breach of any Company confidentiality agreement to which Executive is a party, (vii) willful disregard of the Company’s policies and procedures, (viii) willful failure of Executive to comply with any lawful directive of the Board, (ix) willful failure to satisfactorily perform the duties of Executive’s position, (x) act or omission that would materially and adversely impact the business or reputation of the Company, or (xi) violation of any material provision of this Agreement or any other material provision of any other agreement between Executive and the Company; in each case, as determined by the Company in its sole discretion. The Company’s lack of immediate action with respect to conduct of Executive that would constitute Cause hereunder shall not preclude the Company from taking later action on such act or taking action with respect to another such act committed by Executive.

f. Termination Without Cause. The Company may, at any time, immediately terminate Executive’s employment without Cause.

5. COMPENSATION UPON TERMINATION. Following any termination of Executive’s employment (the date of such termination, “Termination Date”), the obligations of the Company to pay or provide Executive with compensation and benefits under Section 3 shall immediately cease, and the Company shall have no further obligations to Executive under this Agreement, except as otherwise required by law or provided for under this Section 5.

a. Death or Disability. If, during the Term, Executive’s employment is terminated (i) by reason of Executive’s death or (ii) by the Company for Disability of Executive, the Company shall pay to Executive (or to his estate or designated beneficiary in the event of Executive’s death) (A) any unpaid Base Salary accrued through the Termination Date, (B) any unpaid Benefits accrued through the Termination Date to which Executive is entitled under any plans, programs or arrangements applicable to terminated employees in which Executive participates, and (C) a lump sum amount equal to two years of Executive’s Base Salary in effect as of the Termination Date; provided that, in the event Executive is terminated by the Company for Disability during the Change of Control Tail Period, such

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amount shall be paid monthly over a period of 24 months following such termination. Executive shall also immediately vest in all options, restricted stock and other Equity Incentive Compensation (as defined below), all of which shall be immediately available to exercise during the periods provided in the applicable plans and award documents granted to Executive. All payments under clause (C) of this Section 5.a. are conditioned upon Executive executing and delivering (and not revoking) within 90 days of the Termination Date a general waiver and release agreement in the form of Exhibit A, attached, or in a form and with substance satisfactory to the Company, that is no longer subject to revocation. If Executive is unable to execute and deliver such waiver and release agreement due to death or Disability, then the waiver and release agreement shall be executed and delivered by an authorized agent or representative of Executive and/or Executive’s estate. The payments described in clauses (A) and (C) above shall be made within 90 days (or by such earlier date as may be required by applicable law) following the Termination Date, and the payments described in clause (B) above shall be made in accordance with the provisions of the applicable plans, programs and arrangements maintained by the Company with respect to such payments or as otherwise required by applicable law.

b. For Cause or Without Good Reason (not During the Change of Control Tail Period). If, during the Term (other than during the Change of Control Tail Period (as defined below)), Executive’s employment is terminated (i) by the Company for Cause or (ii) by Executive for any reason other than for Good Reason (as defined below), the Company shall pay to Executive (A) any unpaid Base Salary accrued through the Termination Date and (B) any unpaid Benefits accrued through the Termination Date to which Executive is entitled under any plans, programs or arrangements applicable to terminated employees in which Executive participates. The payments described in clause (A) above shall be made within 90 days (or by such earlier date as may be required by applicable law) following the Termination Date, and the payments described in clause (B) above shall be made in accordance with the provisions of the applicable plans, programs and arrangements maintained by the Company with respect to such payments or as otherwise required by applicable law.

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c. Without Cause or for Good Reason (not During the Change of Control Tail Period). If, during the Term (other than during the Change of Control Tail Period), Executive’s employment is terminated (i) by the Company without Cause or (ii) by Executive for Good Reason (as defined below), the Company shall pay to Executive (A) any unpaid Base Salary accrued through the Termination Date, (B) any unpaid Benefits accrued through the Termination Date to which Executive is entitled under any plans, programs or arrangements applicable to terminated employees in which Executive participates, and (C) the following severance benefits (the “Without Cause/For Good Reason Severance Benefits”): (a) two years of Executive’s Base Salary in effect as of the Termination Date and two times (2x) the previous year’s Bonus, in each case paid as a lump sum (b) 18 months of Company-paid continued coverage (COBRA) for Executive and his eligible dependents under the Company’s existing health and benefit plans. As part of the Without Cause/For Good Reason Severance Benefits, Executive shall also immediately vest in all options, restricted stock and other Equity Incentive Compensation (as defined below), all of which shall be immediately available to exercise during the periods provided in the applicable plans and award documents granted to Executive; provided, that, notwithstanding the foregoing, with respect to any options, restricted stock or other Equity Incentive Compensation that vest based on performance-based criteria (“Performance-Based Awards”), Executive shall vest in such Performance-Based Awards as part of the Without Cause/For Good Reason Severance Benefits pro rata based on the Executive’s target award for such Performance-Based Awards (irrespective of actual performance) and based on the number of days Executive was employed by the Company during the applicable performance period for such Performance-Based Awards divided by the total number of days in such performance period. All payments under clause (C) of this Section 5.c. are conditioned upon Executive executing and delivering (and not revoking) within 90 days of the Termination Date a general waiver and release agreement in the form of Exhibit A, attached, or in a form and with substance satisfactory to the Company, that is no longer subject to revocation; provided, further, that in order for Executive to terminate his employment for Good Reason (as defined below), (x) Executive must furnish written notice to the Company setting forth the facts and

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circumstances claimed to provide a basis for such resignation within 30 days following the occurrence of such facts and circumstances, (y) the Company shall have 30 days after its receipt of such written notice to cure such facts and circumstances in all material respects (and if so cured, then Executive shall not be permitted to resign for Good Reason (as defined below) in respect thereof), and (z) Executive must actually terminate his employment within 30 days following the expiration of the Company’s cure period set forth above. For purposes of this Agreement, “Good Reason” means the occurrence of any of the following events, without the express consent of Executive, (1) a material diminution in Executive’s Base Salary or (2) a material diminution in Executive’s title, position, duties, authorities or responsibilities (other than temporarily while physically or mentally incapacitated or as required by applicable law. The payments described in clauses (A) and (C) above shall be made within 90 days (or by such earlier date as may be required by applicable law) following the Termination Date, and the payments described in clause (B) above shall be made in accordance with the provisions of the applicable plans, programs and arrangements maintained by the Company with respect to such payments or as otherwise required by applicable law.

d. Termination During Change of Control Tail Period. In the event that Executive’s employment is terminated by the Company or by Executive during the Change of Control Tail Period for any reason other than a termination by reason of Executive’s death or by the Company for Disability of Executive, this Section 5 shall not apply, and the terms and conditions of Section 6 shall govern with respect to any compensation payable to Executive as a result of such termination. For purposes of this Agreement, the “Change of Control Tail Period” shall mean the 12-month period following the occurrence of a Change of Control (as defined below). In no event shall Executive be entitled to compensation both under this Section 5 and under Section 6.

e. Equity Incentive Compensation. Except in circumstances where termination is (i) by reason of Executive’s death or by the Company for Disability, (ii) by the Company without Cause, (iii) by Executive for Good Reason, or (iv) during the Change of Control Tail Period and subject to Section 6, upon termination of Executive’s employment during

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the Term, the Equity Incentive Compensation awarded to Executive shall forfeit or vest in accordance with the terms of the applicable plans and award documents with respect to such Equity Incentive Compensation, and shall be subject to such other terms and conditions of such plans and award documents that may apply as a result of such termination.

f. Benefits. Notwithstanding anything in this Section 5 to the contrary, the Benefits to which Executive is entitled upon or by reason of the termination of his employment with the Company (including during the Change of Control Tail Period) shall be subject to, and shall be governed by, the terms and conditions of the applicable plans, programs and arrangements maintained by the Company with respect to such Benefits.

g. Expiration of Term. Notwithstanding anything in this Section 5 to the contrary, the expiration of the Term by itself shall not entitle Executive to receipt of any payments under this Section 5.

6. CHANGE OF CONTROL.

a. Definition. “Change of Control” shall have the meaning prescribed to such phrase (or, if applicable, the phrase, “Change in Control”) in the 2009 Incentive Award Plan of the Company, or the latest equity incentive award plan of the Company in effect from time to time. The Board shall have full and final authority, which shall be exercised in its discretion, to determine conclusively whether a Change of Control of the Company has occurred pursuant to the above definition, and the date of the occurrence of such Change of Control and any incidental matters relating thereto.

b. Executive’s Rights Upon a Change of Control. If there should occur a Change of Control of the Company (or any successor) and Executive’s employment is terminated by the Company without Cause or Executive terminates employment with, Good Reason during the Change of Control Tail Period, Executive shall receive the Without Cause/For Good Reason Severance Benefits, as if he had been terminated without Cause or had terminated for Good Reason under Section 5.c. of this Agreement; provided, that the two years of Executive’s Base Salary in effect as of the Termination Date, payable as part of the Without Cause/For Good Reason Severance Benefits, shall be paid monthly over a period

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of 24 months following such termination; provided further that all equity awards that would have been eligible to vest under Section 5.c. shall vest immediately upon consummation of a Change of Control; and provided further that Executive shall vest in all Performance-Based Awards as part of the Without Cause/For Good Reason Severance Benefits upon consummation of a Change of Control pro rata based on the Executive’s target award for such Performance-Based Awards (irrespective of actual performance) and based on the number of days Executive was employed by the Company before the Change of Control during the applicable performance period for such Performance-Based Awards divided by the total number of days in such performance period. All of the provisions of Section 5.c., including but not limited to the notice and cure provisions, shall apply in like manner under this Section 6.b.

7. COOPERATION. Upon the receipt of reasonable notice from the Company (including outside counsel), Executive agrees that while employed by the Company and thereafter, Executive will respond and provide information with regard to matters in which Executive has knowledge as a result of Executive’s employment with the Company, and will provide reasonable assistance to the Company, its affiliates and their respective representatives in defense of all claims that may be made against the Company or its affiliates, and will assist the Company and its affiliates in the prosecution of all claims that may be made by the Company or its affiliates, to the extent that such claims may relate to the period of Executive’s employment with the Company. Executive agrees to promptly inform the Company if Executive becomes aware of any lawsuit involving such claims that may be filed or threatened against the Company or its affiliates. Executive also agrees to promptly inform the Company (to the extent that Executive is legally permitted to do so) if Executive is asked to assist in any investigation of the Company or its affiliates (or their actions), regardless of whether a lawsuit or other proceeding has then been filed against the Company or its affiliates with respect to such investigation, and shall not provide such assistance unless legally required. Upon presentation of appropriate documentation, the Company shall pay or reimburse Executive for all reasonable out-of-pocket travel, duplicating or telephonic expenses incurred by Executive in complying with this Section 7. For the first five hours of cooperation in any calendar month during the period of Cooperation, Executive shall provide the specified Cooperation services without hourly reimbursement. For each hour of Cooperation or

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part thereof after five hours, in any calendar month, Company shall reimburse Executive at the hourly rate determined by this fraction: (final Base Salary / 2,080 hours).

8. ARBITRATION. The parties hereby agree to submit all disputes, claims and controversies (“Claims”) between the parties or related to or arising out of their employment relationship (except to the extent otherwise provided in that certain Employee Obligations Agreement, dated as of December 21, 2012, by and between the Company and Executive (the “Employee Obligations Agreement”), or that certain Indemnification Agreement, dated as of December 10, 2014, by and between the Company and Executive (the “Indemnification Agreement”)) to final, binding arbitration to the fullest extent permitted by law. The Federal Arbitration Act., 9 U.S.C. § 1 et seq., shall govern the interpretation and enforcement of this Section 8. The court and not the arbitrator will determine matters of enforceability of this Section 8.

a. Statute of Limitations. The statutory limitations period applicable to a Claim asserted in a civil action shall apply to any such Claim asserted in any arbitration proceeding under this Section 8. Arbitration is commenced for limitations purposes by submitting the matter to the arbitral forum.

b. Individual Basis. All Claims that are subject to arbitration under this Section 8 must and will take place on an individual basis only.

c. Venue. Binding arbitration under this Section 8 shall be conducted in California, unless required by law to be conducted elsewhere, in which case it shall be conducted where required by law.

d. Applicable Rules. The arbitration proceeding, including discovery, shall be conducted in accordance with the Federal Arbitration Act, the JAMS Policy on Employment Arbitration Minimum Standards and the JAMS Employment Arbitration Rules and Procedures then in effect (the “JAMS Rules”). Executive understands that if he wishes to receive a copy of the JAMS Rules currently in effect, he may inform the Company in writing, and the Company will provide them to him before he executes this Agreement. Executive also understand that JAMS Rules are available online at http://www.jamsadr.com/rules-employment-arbitration/.

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e. Arbitrator Selection. The arbitration shall be conducted before a neutral arbitrator selected by all parties in accordance with JAMS Rules. The parties may also agree on an arbitrator.

f. Cost Allocation. If required by applicable law, the Company shall pay all additional costs peculiar to the arbitration to the extent such costs would not otherwise be incurred in a court proceeding (for instance, the Company shall pay the arbitrator’s fees, and the JAMS administration and filing fees, to the extent such fees exceed court filing fees).

g. Attorneys’ Fees and Costs. Each party shall pay his or its own costs and attorneys’ fees except that the arbitrator shall award costs and attorneys’ fees to the prevailing party.

h. Written Decision. The arbitrator shall follow applicable substantive law and, within 30 days after the conclusion of the arbitration, issue a written opinion setting forth the factual and legal bases for his or her decision.

i. Acknowledgement. EXECUTIVE UNDERSTANDS HE IS GIVING UP HIS RIGHT TO A JURY TRIAL BY ENTERING INTO THIS AGREEMENT. EXECUTIVE UNDERSTANDS HE IS GIVING UP HIS RIGHT TO COMMENCE OR PARTICIPATE IN A CLASS OR COLLECTIVE ACTION AND INSTEAD AGREES TO ARBITRATE ANY EMPLOYMENT-RELATED DISPUTE ON AN INDIVIDUAL BASIS ONLY TO THE MAXIMUM EXTENT PERMITTED BY LAW.

9. CODE SECTION 409A.

a. This Agreement is intended to comply with the requirements of Section 409A of the Internal Revenue Code of 1986, as amended (“Section 409A”), including the exceptions thereto, and shall be construed and administered in accordance with such intent. Notwithstanding any other provision of this Agreement, payments provided under this Agreement may only be made upon an event and in a manner that complies with Section 409A or an applicable exemption. Any payments under this Agreement that may be excluded from Section 409A either as separation pay due to an involuntary separation from service or as a short-term deferral shall be excluded from Section 409A to the maximum extent possible. For purposes of Section 409A, each separate payment or

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installment payment provided under this Agreement shall be treated as a separate payment. Any payments to be made under this Agreement in connection with a termination of employment shall only be made if such termination of employment constitutes a “separation from service” under Section 409A. Notwithstanding the foregoing, the Company makes no representations that the payments and benefits provided under this Agreement comply with Section 409A and in no event shall the Company be liable for all or any portion of any taxes, penalties, interest or other expenses that may be incurred by Executive on account of non-compliance with Section 409A.

b. Notwithstanding any other provision of this Agreement, if at the time of Executive’s termination of employment, he is a “specified employee,” determined in accordance with Section 409A, any payments and benefits provided under this Agreement that constitute “nonqualified deferred compensation” subject to Section 409A that are provided to Executive on account of his separation from service shall not be paid until the first payroll date to occur following the six-month anniversary of Executive’s termination date (“Specified Employee Payment Date”). The aggregate amount of any payments that would otherwise have been made during such six-month period shall be paid in a lump sum on the Specified Employee Payment Date and thereafter, any remaining payments shall be paid without delay in accordance with their original schedule. If Executive dies before the Specified Employee Payment Date, any delayed payments shall be paid to Executive’s estate in a lump sum within one week of Executive’s death.

c. To the extent required by Section 409A, each reimbursement or in-kind benefit provided under this Agreement shall be provided in accordance with the following: (i) the amount of expenses eligible for reimbursement, or in-kind benefits provided, during each calendar year cannot affect the expenses eligible for reimbursement, or in-kind benefits to be provided, in any other calendar year; (ii) any reimbursement of an eligible expense shall be paid to Executive on or before the last day of the calendar year following the calendar year in which the expense was incurred; and (iii) any right to reimbursements or in-kind benefits under this Agreement shall not be subject to liquidation or exchange for another benefit. Any tax gross-up payments provided under this Agreement shall be paid

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to Executive on or before December 31 of the calendar year immediately following the calendar year in which Executive remits the related taxes.

d. Whenever in this Agreement a payment or benefit is conditioned on Executive’s execution of a release of claims, such release must be executed and all revocation periods shall have expired within 90 days after the Termination Date; failing which such payment or benefit shall be forfeited. If such payment or benefit constitutes “nonqualified deferred compensation” subject to Section 409A, and if such 90-day period begins in one calendar year and ends in the next calendar year, the payment or benefit shall not be made or commence before the second such calendar year, even if the release becomes irrevocable in the first such calendar year.

10. GENERAL PROVISIONS.

a. Notices. All notices, requests, demands, statements, reports and other communications provided for by this Agreement shall be in writing (email being sufficient) and shall be sent by (i) certified mail, return receipt requested, postage prepaid, (ii) nationally recognized overnight delivery service, (iii) personal delivery or (iv) email. A notice shall be deemed to be given (x) if notice is delivered by certified mail or nationally recognized overnight delivery service, on the business day following the date of its mailing, (y) if such notice is delivered personally, upon delivery, or (z) if such notice is sent by email, upon sending. Each party may change his or its address for notices by giving notice in accordance herewith. All notices shall be addressed and mailed or delivered to the following addresses:

If to the COMPANY: 157 Technology Dr. Irvine, CA 92618

If to EXECUTIVE:    2074 Carriage Lane, Clearwater, FL 33765

b. Entire Agreement. This Agreement, the Employee Obligations Agreement, and the Indemnification Agreement constitute the entire agreement between the parties with respect to the subject matter hereof and thereof and supersede all prior agreements,

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representations and understandings (whether written or oral) of the parties with respect to the subject matter hereof and thereof, including that certain Change in Control Severance Agreement, dated as of March 28, 2014, by and between the Company and Executive and any other agreement between Executive and the Company or any of its affiliates and subsidiaries. The above-referenced Change in Control Severance Agreement and any amendments thereto, by and between Executive and the Company, are terminated, canceled, and of no further force or effect as of the Effective Date hereof.

c. Modification and Waiver. No amendment or variation of the terms of this Agreement shall be valid unless made in writing and signed by Executive and a duly authorized representative of the Company (other than Executive). A waiver of any term or condition of this Agreement shall not be construed as a general waiver by the Company. If one or more provisions of this Agreement are held to be illegal or unenforceable under applicable law, such illegal or unenforceable provision(s) shall be limited or excluded from this Agreement to the minimum extent required so that this Agreement shall otherwise remain in full force and effect and enforceable in accordance with its terms.

d. Governing Law. This Agreement shall be governed by and construed in accordance with the laws of the State of Nevada, without giving effect to its conflict of law principles, and any dispute in the meaning, effect or validity of this Agreement shall be resolved in accordance with the laws of the State of Nevada.

e. Assignment; Binding Effect. This Agreement is fully assignable and transferable by the Company, but any purported assignment or transfer by Executive is void. It is hereby agreed that Executive’s rights and obligations under this Agreement are personal and not assignable by Executive. This Agreement shall be binding upon and inure to the benefit of the heirs, legal representatives, successors and permitted assigns of the parties. EXECUTIVE HAS READ THIS AGREEMENT CAREFULLY AND UNDERSTANDS AND ACCEPTS THE OBLIGATIONS WHICH IT IMPOSES UPON EXECUTIVE WITHOUT RESERVATION. NO PROMISES OR REPRESENTATIONS HAVE BEEN MADE TO EXECUTIVE TO INDUCE EXECUTIVE TO SIGN THIS AGREEMENT. EXECUTIVE SIGNS THIS

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AGREEMENT VOLUNTARILY AND FREELY, IN DUPLICATE, WITH THE UNDERSTANDING THAT THE COMPANY WILL RETAIN ONE COUNTERPART AND THE OTHER COUNTERPART WILL BE RETAINED BY EXECUTIVE.

f. Injunctive Relief. Executive agrees that any breach of this Agreement will cause irreparable harm to the Company for which damages would not be an adequate remedy, and, therefore, to the fullest extent permitted by applicable law, the Company will be entitled to injunctive relief with respect thereto in addition to any other remedies and without any requirement to post bond.

g. Survival. This Agreement shall terminate upon the expiration of the Term; provided that the provisions of Sections 5 through 10 shall survive termination of this Agreement and termination of Executive’s employment regardless of the reason for such termination.

h. Withholding. The Company may withhold from any and all amounts payable under this Agreement or otherwise such federal, state and local taxes as may be required to be withheld pursuant to applicable law.

[Signature page follows]

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In witness whereof, parties have executed this Agreement as of the date first above written.

COMPANY:

Spectrum Pharmaceuticals, Inc.

By: /s/ Raymond W. Cohen            

Raymond W. Cohen

Chairman, Compensation Committee

EXECUTIVE:

/s/ Joseph W. Turgeon            

Joseph W. Turgeon

Signature Page to Executive Employment Agreement    

EXHIBIT A

GENERAL RELEASE

I, Joseph W. Turgeon, in consideration of and subject to the performance by Spectrum Pharmaceuticals, Inc. (together with its subsidiaries and successors, the “Company”), of its obligations under the Executive Employment Agreement dated as of April 10, 2018 (the “Agreement”), do hereby release and forever discharge as of the date hereof the Company and its respective affiliates, subsidiaries and direct or indirect parent entities and all present, former and future directors, officers, agents, representatives, employees, successors and assigns of the Company and/or its respective affiliates, subsidiaries and direct or indirect parent entities (collectively, the “Released Parties”) to the extent provided below (this “General Release”). The Released Parties are intended to be third-party beneficiaries of this General Release, and this General Release may be enforced by each of them in accordance with the terms hereof in respect of the rights granted to such Released Parties hereunder. Terms used herein but not otherwise defined shall have the meanings given to them in the Agreement.

1.    I understand that any payments or benefits paid or granted to me under the Agreement represent, in part, consideration for signing this General Release and are not salary, wages or benefits to which I was already entitled. I understand and agree that I will not receive certain of the payments and benefits specified in the Agreement unless I execute this General Release and do not revoke this General Release within the time period permitted hereafter. Such payments and benefits will not be considered compensation for purposes of any employee benefit plan, program, policy or arrangement maintained or hereafter established by the Company or its affiliates.

2.    Except as provided in paragraphs 4 and 5 below and except for the provisions of the Agreement which expressly survive the termination of my employment with the Company, I knowingly and voluntarily (for myself, my heirs, executors, administrators and assigns) release and forever discharge the Company and the other Released Parties from any and all claims, suits, controversies, actions, causes of action, cross-claims, counter claims, demands, debts, compensatory damages, liquidated damages, punitive or exemplary damages, other damages, claims for costs and attorneys’ fees, or liabilities of any nature whatsoever in law and in equity, both past and present (through the date that this General Release becomes effective and enforceable) and whether known or unknown, suspected, or claimed against the Company or any of the Released Parties which I, my spouse, or any of my heirs, executors,

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administrators or assigns, may have, which arise out of or are connected with my employment with, or my separation or termination from, the Company (including, but not limited to, any allegation, claim or violation, arising under: Title VII of the Civil Rights Act of 1964, as amended; the Civil Rights Act of 1991; the Age Discrimination in Employment Act of 1967, as amended (including the Older Workers Benefit Protection Act); the Equal Pay Act of 1963, as amended; the Americans with Disabilities Act of 1990; the Americans with Disabilities Act Amendments Act of 2008; the Family and Medical Leave Act of 1993; the Labor Management Relations Act; the Worker Adjustment Retraining and Notification Act; the Employee Retirement Income Security Act of 1974; the Sarbanes-Oxley Act of 2002; any applicable Executive Order Programs; the Fair Labor Standards Act; or their state or local counterparts; or under any other federal, state or local civil or human rights law, or under any other local, state, or federal law, regulation or ordinance, as well as any amendments to any of the foregoing; or under any public policy, contract or tort, or under common law; or arising under any policies, practices or procedures of the Company; or any claim for wrongful discharge, breach of contract, infliction of emotional distress, defamation; or any claim for costs, fees, or other expenses, including attorneys’ fees incurred in these matters) (all of the foregoing collectively referred to herein as the “Claims”).

3.    I represent that I have made no assignment or transfer of any right, claim, demand, cause of action, or other matter covered by paragraph 2 above.

4.    I agree that this General Release does not waive or release any rights or claims that I may have under the Age Discrimination in Employment Act of 1967 which arise after the date I execute this General Release. I acknowledge and agree that my separation from employment with the Company in compliance with the terms of the Agreement shall not serve as the basis for any claim or action (including, without limitation, any claim under the Age Discrimination in Employment Act of 1967).

5.    I agree that I hereby waive all rights to sue or obtain equitable, remedial or punitive relief from any or all Released Parties of any kind whatsoever in respect of any Claim, including, without limitation, reinstatement, back pay, front pay, and any form of injunctive relief. Notwithstanding the above, I further acknowledge that I am not waiving and am not being required to waive any right that cannot be waived under law, including the right to file an administrative charge or participate in an administrative investigation or proceeding; provided, however, that I disclaim and waive any right to share or participate in any monetary award resulting from the prosecution of such charge or investigation

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or proceeding. Additionally, I am not waiving (i) any right to the severance benefits to which I am entitled under the Agreement, (ii) any claim relating to directors’ and officers’ liability insurance coverage or any right of indemnification under the Company’s organizational documents or otherwise, (iii) claims under the Consolidated Omnibus Budget Reconciliation Act of 1985, as amended, (iv) claims related to reimbursement of ordinary and reasonable business expenses in accordance with the Company’s policies in effect from time to time, and (v) claims relating to any outstanding equity-based award on the date of termination in accordance with the terms thereof.

6.    In signing this General Release, I acknowledge and intend that it shall be effective as a bar to each and every one of the Claims hereinabove mentioned or implied. I expressly consent that this General Release shall be given full force and effect according to each and all of its express terms and provisions, including those relating to unknown and unsuspected Claims (notwithstanding any state or local statute that expressly limits the effectiveness of a general release of unknown, unsuspected and unanticipated Claims), if any, as well as those relating to any other Claims hereinabove mentioned or implied. I acknowledge and agree that this waiver is an essential and material term of this General Release and that without such waiver the Company would not have agreed to the terms of the Agreement. I further agree that in the event I should bring a Claim seeking damages against the Company, or in the event I should seek to recover against the Company in any Claim brought by a governmental agency on my behalf, this General Release shall serve as a complete defense to such Claims to the maximum extent permitted by law. I further agree that I am not aware of any pending claim of the type described in paragraph 2 above as of the execution of this General Release.

7.    I agree that neither this General Release, nor the furnishing of the consideration for this General Release, shall be deemed or construed at any time to be an admission by the Company, any Released Party or myself of any improper or unlawful conduct.

8.    I agree that if I violate this General Release by suing the Company or the other Released Parties, I will pay all costs and expenses of defending against the suit incurred by the Released Parties, including reasonable attorneys’ fees.

9.    I agree that this General Release and the Agreement are confidential and agree not to disclose any information regarding the terms of this General Release or the Agreement, except to my immediate

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family and any tax, legal or other counsel that I have consulted regarding the meaning or effect hereof or as required by law, and I will instruct each of the foregoing not to disclose the same to anyone.

10.    Any non disclosure provision in this General Release does not prohibit or restrict me (or my attorney) from responding to any inquiry about this General Release or its underlying facts and circumstances by the Securities and Exchange Commission (SEC), the Financial Industry Regulatory Authority (FINRA), any other self regulatory organization or any governmental entity.

11.    I hereby acknowledge that Sections 4 through 10 of the Agreement shall survive my execution of this General Release.

12.    I represent that I am not aware of any claim by me other than the claims that are released by this General Release. I acknowledge that I may hereafter discover claims or facts in addition to or different than those which I now know or believe to exist with respect to the subject matter of the release set forth in paragraph 2 above and which, if known or suspected at the time of entering into this General Release, may have materially affected this General Release and my decision to enter into it.

13.    Notwithstanding anything in this General Release to the contrary, this General Release shall not relinquish, diminish, or in any way affect any rights or claims arising out of any breach by the Company or by any Released Party of the Agreement after the date hereof.

14.    Whenever possible, each provision of this General Release shall be interpreted in, such manner as to be effective and valid under applicable law, but if any provision of this General Release is held to be invalid, illegal or unenforceable in any respect under any applicable law or rule in any jurisdiction, such invalidity, illegality or unenforceability shall not affect any other provision or any other jurisdiction, but this General Release shall be reformed, construed and enforced in such jurisdiction as if such invalid, illegal or unenforceable provision had never been contained herein.

BY SIGNING THIS GENERAL RELEASE, I REPRESENT AND AGREE THAT:

1.    I HAVE READ IT CAREFULLY;

2.    I UNDERSTAND ALL OF ITS TERMS AND KNOW THAT I AM GIVING UP IMPORTANT RIGHTS, INCLUDING BUT NOT LIMITED TO, RIGHTS UNDER THE AGE DISCRIMINATION IN EMPLOYMENT ACT OF 1967, AS AMENDED, TITLE VII OF THE CIVIL RIGHTS ACT OF 1964, AS AMENDED; THE EQUAL PAY ACT OF 1963, THE AMERICANS WITH DISABILITIES

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ACT OF 1990; AND THE EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974, AS AMENDED;

3.    I VOLUNTARILY CONSENT TO EVERYTHING IN IT;

4.    I HAVE BEEN ADVISED TO CONSULT WITH AN ATTORNEY BEFORE EXECUTING IT AND I HAVE DONE SO OR, AFTER CAREFUL READING AND CONSIDERATION, I HAVE CHOSEN NOT TO DO SO OF MY OWN VOLITION;

5.    I HAVE HAD AT LEAST 45 DAYS FROM THE DATE OF MY RECEIPT OF THIS RELEASE TO CONSIDER IT, AND THE CHANGES MADE SINCE MY RECEIPT OF THIS RELEASE ARE NOT MATERIAL OR WERE MADE AT MY REQUEST AND WILL NOT RESTART THE REQUIRED 45 DAY PERIOD;

6.    I UNDERSTAND THAT I HAVE SEVEN (7) DAYS AFTER THE EXECUTION OF THIS RELEASE TO REVOKE IT AND THAT THIS RELEASE SHALL NOT BECOME EFFECTIVE OR ENFORCEABLE UNTIL THE REVOCATION PERIOD HAS EXPIRED;

7.    I HAVE SIGNED THIS GENERAL RELEASE KNOWINGLY AND VOLUNTARILY AND WITH THE ADVICE OF ANY COUNSEL RETAINED TO ADVISE ME WITH RESPECT TO IT; AND

8.    I AGREE THAT THE PROVISIONS OF THIS GENERAL RELEASE MAY NOT BE AMENDED, WAIVED, CHANGED OR MODIFIED EXCEPT BY AN INSTRUMENT IN WRITING SIGNED BY AN AUTHORIZED REPRESENTATIVE OF THE COMPANY AND BY ME.

SIGNED:                            DATED:            

NAME: Joseph W. Turgeon        

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EX-10.9

Exhibit 10.9

EXECUTIVE EMPLOYMENT AGREEMENT

This Executive Employment Agreement (this “Agreement”) is dated as of June 18, 2018 by and between Spectrum Pharmaceuticals, Inc., a Delaware corporation (the “Company”), and Keith M. McGahan (“Executive”).

WHEREAS, the Company desires to employ Executive as Chief Legal Officer; and

WHEREAS, the Company and Executive desire to enter into a written employment agreement to reflect the terms upon which Executive shall provide services to the Company.

NOW, THEREFORE, in consideration of the premises and agreements contained herein, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties agree as follows:

1. EMPLOYMENT/TERM. The Company hereby employs Executive to perform the duties and responsibilities set forth below under Section 2 of this Agreement, and Executive hereby accepts such employment, in each case on the terms and conditions set forth in this Agreement. This Agreement shall have a term commencing on June 18, 2018, (the “Effective Date”) and ending on the five-year anniversary of the Effective Date, (the “Term”), unless earlier terminated pursuant to Section 4 of this Agreement.

2. POSITION AND DUTIES.

a. Description of Executive’s Position, Duties, Authorities, and Responsibilities. Executive shall serve as the Chief Legal Officer of the Company, subject to the direction of the Chief Executive Officer. In such capacity, Executive shall (i) report to the Chief Executive Officer, (ii) devote his full professional time and attention, best efforts, energy and skills to the services required of him as an employee of the Company, except for paid time off taken in accordance with the Company’s policies and practices, and subject to the Company’s policies pertaining to reasonable periods of absence due to sickness, personal injury or other disability; (iii) use his best efforts to promote the interests of the Company; (iv) comply with all applicable governmental laws, rules and regulations and with all of the Company’s policies, rules and regulations applicable to employees of the Company; and (v) discharge his responsibilities in a diligent and faithful manner,

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consistent with sound business practices and in accordance with the Chief Executive Officer’s directives.

b. Performance of Duties. Executive hereby accepts such employment and agrees to render the services described above in the manner described above. It is understood and agreed that Executive may not engage in other business activities during the Term, whether or not for profit or other pecuniary advantage; provided, however, that Executive may (i) make financial investments which do not involve his active participation, (ii) participate in charitable, educational, religious, civic, or other similar organizations and activities, and (iii) with the prior written consent of the Board of Directors of the Company (the “Board”), serve as an outside director on the board of directors of other corporations that are not affiliates or competitors of the Company or any of its affiliates, in any case to the extent that such activities collectively do not hinder or interfere with the performance of his duties under this Agreement, conflict with the policies of the Company concerning conflicts of interest or conflict with the businesses of the Company or any of its affiliates in any material way.

3. COMPENSATION AND BENEFITS.

a. Base Salary. As of the Effective Date, Executive’s base salary (the “Base Salary”) shall be $470,000 USD per year payable in periodic installments in accordance with the Company’s regular payroll practices as in effect from time to time. The Board or a duly authorized committee thereof will review the Base Salary on an annual basis and may increase, but never decrease, the Base Salary from time to time based on merit or such other considerations as the Board or a duly authorized committee thereof may deem appropriate; provided, however, the Company makes no assurances that the Base Salary will be increased during the Term. “Base Salary” shall mean the initial base salary or the then-current base salary as later approved by the Board.

b. Bonus. Executive shall be eligible to receive an annual cash bonus in an amount up to 50% of Executive’s Base Salary for the fiscal year for which the annual cash bonus is being paid, as determined in the discretion of the Board or a duly authorized committee thereof, based on the performance of the Company and Executive relative to performance

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objectives or other metrics as the Board or a duly authorized committee thereof may deem appropriate. For the first calendar year in which this Agreement is effective, performance objectives or other metrics shall be established within 30 days of the Effective Date of this Agreement. Thereafter, performance objectives or other metrics shall be established within 60 days of the commencement of the calendar year.

c. Pro Rata Bonus. Notwithstanding any other provision in this Agreement to the contrary, should Executive’s employment be terminated by the Company without Cause (as defined below) or by Executive for Good Reason (as defined below), prior to the end of a calendar year, then the Board shall determine the amount of the target bonus for such calendar year, and the Company shall pay Executive the pro rata amount of such target bonus based on the number of days Executive was employed by the Company during the calendar year divided by 365 days (the “Pro Rata Bonus”). Such Pro Rata Bonus shall be paid when bonuses are paid to other senior executives of the Company and within two and one-half months following the end of the calendar year in which Executive is terminated.

d. Benefits and Vacation. Executive shall be eligible to participate in and receive the benefits under any deferred compensation plan, health, life, accident and disability insurance plans or programs, and any other employee benefit or fringe benefit plans or arrangements that the Company makes available generally to other senior executives of the Company, pursuant to the provisions of such plans, programs or arrangements as in effect from time to time. Executive shall be entitled to vacation and sick days in accordance with the policies of the Company for its employees generally, as in effect from time to time. The benefits described in this Section 3.d. are hereinafter referred to as the “Benefits”.

e. Equity Incentive Compensation. Executive shall be eligible to receive grants, at the discretion of the Board or a duly authorized committee thereof, under any long-term equity-based incentive compensation plans established or maintained by the Company for its senior executive officers, in each case subject to the terms and conditions of the

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applicable plans and award documents with respect to such grants. The grants described in this Section 3.e. are hereinafter referred to as the “Equity Incentive Compensation”.

f. Expenses. The Company shall pay or reimburse Executive for all reasonable, ordinary and necessary business expenses incurred or paid by Executive during the Term in the performance of Executive’s services under this Agreement in accordance with the applicable policies and procedures of the Company as in effect from time to time, upon the presentation of proper expense statements or such other supporting documentation as the Company may reasonably require.

g. Auto Allowance. Company shall pay an automotive allowance of $1,150 per month to cover costs of business travel in a personal vehicle.

4. TERMINATION, OTHER THAN FOLLOWING A CHANGE OF CONTROL.

a. General. Executive’s employment may be terminated by either party at any time and for any reason; and upon termination of Executive’s employment, the Term shall end.

b. Resignation without Good Reason. Executive shall be required to give the Company at least 60 days’ advance written notice (the “Resignation Notice Period”) of any voluntary resignation of Executive’s employment hereunder (other than resignation for Good Reason (as defined below), in which event the procedures under Section 5.c. shall apply). During the Resignation Notice Period, the Company in its sole discretion may elect to accelerate Executive’s date of termination of employment, it being understood that any such termination shall still be treated as a voluntary resignation without Good Reason (as defined below) for purposes of this Agreement. Even if Executive’s date of termination is accelerated, Executive shall be paid his Base Salary, and shall receive Benefits capable of being provided to persons who are not actively employed by the Company, as if he had worked through the end of the Resignation Notice Period. The Company reserves the right to require Executive not to be in the offices of the Company or any of its affiliates and/or not to undertake all or any of Executive’s duties and/or not to contact clients, colleagues or advisors of the Company or any of its affiliates during all or part of the Resignation Notice Period. During the Resignation Notice Period, Executive’s terms and conditions of service and duties of loyalty and confidentiality to the Company shall

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remain in full force and effect and, during any such Resignation Notice Period, Executive shall continue to perform as an employee in compliance with the terms of this Agreement and all other agreements applicable to Executive with respect to his service with the Company or any of its affiliates.

c. Death. Executive’s employment hereunder shall terminate automatically on the date of his death.

d. Disability. At the option of the Company, Executive’s employment hereunder may be terminated immediately upon Disability (as defined below) of Executive. For purposes of this Agreement, “Disability” means any physical or mental illness, impairment or incapacity which, in the good faith determination of the Board, has prevented Executive from performing the essential functions of his position hereunder for a period of 90 or more consecutive days (or for shorter periods totaling 120 days) during any period of 12 consecutive months.

e. Termination for Cause. Notwithstanding any other provision of this Agreement, the Company may, at any time, immediately terminate Executive’s employment for Cause (as defined below). For purposes of this Agreement, “Cause” means the occurrence of any of the following by Executive: (i) fraud, misappropriation, embezzlement or acts of similar dishonesty, (ii) conviction of, or plea of nolo contendere to, a felony, (iii) excessive use of alcohol or illegal use of drugs in the workplace, (iv) gross negligence or intentional or willful misconduct by Executive in the performance of his duties, (v) breach of Executive’s duty of loyalty to the Company or diversion or usurpation of corporate opportunities properly belonging to the Company, (vi) the knowing breach of any Company confidentiality agreement to which Executive is a party, (vii) willful disregard of the Company’s policies and procedures, (viii) insubordination, (ix) willful failure to satisfactorily perform the duties of Executive’s position, (x) act or omission that would materially and adversely impact the business or reputation of the Company, or (xi) violation of any material provision of this Agreement or any other material provision of any other agreement between Executive and the Company; in each case, as determined by the Company in its sole discretion. The Company’s lack of immediate action with

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respect to conduct of Executive that would constitute Cause hereunder shall not preclude the Company from taking later action on such act or taking action with respect to another such act committed by Executive.

f. Termination Without Cause. The Company may, at any time, immediately terminate Executive’s employment without Cause.

5. COMPENSATION UPON TERMINATION. Following any termination of Executive’s employment (the date of such termination, “Termination Date”), the obligations of the Company to pay or provide Executive with compensation and benefits under Section 3 shall immediately cease, and the Company shall have no further obligations to Executive under this Agreement, except as otherwise required by law or provided for under this Section 5.

a. Death or Disability. If, during the Term, Executive’s employment is terminated (i) by reason of Executive’s death or (ii) by the Company for Disability of Executive, the Company shall pay to Executive (or to his estate or designated beneficiary in the event of Executive’s death) (A) any unpaid Base Salary accrued through the Termination Date, (B) any unpaid Benefits accrued through the Termination Date to which Executive is entitled under any plans, programs or arrangements applicable to terminated employees in which Executive participates, and (C) a lump sum amount equal to two years of Executive’s Base Salary in effect as of the Termination Date; provided that, in the event Executive is terminated by the Company for Disability during the Change of Control Tail Period, such amount shall be paid monthly over a period of 24 months following such termination. Executive shall also immediately vest in all options, restricted stock and other Equity Incentive Compensation (as defined below), all of which shall be immediately available to exercise during the periods provided in the applicable plans and award documents granted to Executive. All payments under clause (C) of this Section 5.a. are conditioned upon Executive executing and delivering (and not revoking) within 90 days of the Termination Date a general waiver and release agreement in the form of Exhibit A, attached, or in a form and with substance satisfactory to the Company, that is no longer subject to revocation. If Executive is unable to execute and deliver such waiver and release agreement due to death or Disability, then the waiver and release agreement shall

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be executed and delivered by an authorized agent or representative of Executive and/or Executive’s estate. The payments described in clauses (A) and (C) above shall be made within 90 days (or by such earlier date as may be required by applicable law) following the Termination Date, and the payments described in clause (B) above shall be made in accordance with the provisions of the applicable plans, programs and arrangements maintained by the Company with respect to such payments or as otherwise required by applicable law.

b. For Cause or Without Good Reason (not During the Change of Control Tail Period). If, during the Term (other than during the Change of Control Tail Period (as defined below)), Executive’s employment is terminated (i) by the Company for Cause or (ii) by Executive for any reason other than for Good Reason (as defined below), the Company shall pay to Executive (A) any unpaid Base Salary accrued through the Termination Date and (B) any unpaid Benefits accrued through the Termination Date to which Executive is entitled under any plans, programs or arrangements applicable to terminated employees in which Executive participates. The payments described in clause (A) above shall be made within 90 days (or by such earlier date as may be required by applicable law) following the Termination Date, and the payments described in clause (B) above shall be made in accordance with the provisions of the applicable plans, programs and arrangements maintained by the Company with respect to such payments or as otherwise required by applicable law.

c. Without Cause or for Good Reason (not During the Change of Control Tail Period). If, during the Term (other than during the Change of Control Tail Period), Executive’s employment is terminated (i) by the Company without Cause or (ii) by Executive for Good Reason (as defined below), the Company shall pay to Executive (A) any unpaid Base Salary accrued through the Termination Date, (B) any unpaid Benefits accrued through the Termination Date to which Executive is entitled under any plans, programs or arrangements applicable to terminated employees in which Executive participates, and (C) the following severance benefits (the “Without Cause/For Good Reason Severance Benefits”): (a) two years of Executive’s Base Salary in effect as of the Termination Date

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and two times (2x) the previous year’s Bonus, in each case paid as a lump sum (b) 18 months of Company-paid continued coverage (COBRA) for Executive and his eligible dependents under the Company’s existing health and benefit plans. As part of the Without Cause/For Good Reason Severance Benefits, Executive shall also immediately vest in all options, restricted stock and other Equity Incentive Compensation (as defined below), all of which shall be immediately available to exercise during the periods provided in the applicable plans and award documents granted to Executive; provided, that, notwithstanding the foregoing, with respect to any options, restricted stock or other Equity Incentive Compensation that vest based on performance-based criteria (“Performance-Based Awards”), Executive shall vest in such Performance-Based Awards as part of the Without Cause/For Good Reason Severance Benefits pro rata based on the Executive’s target award for such Performance-Based Awards (irrespective of actual performance) and based on the number of days Executive was employed by the Company during the applicable performance period for such Performance-Based Awards divided by the total number of days in such performance period. All payments under clause (C) of this Section 5.c. are conditioned upon Executive executing and delivering (and not revoking) within 90 days of the Termination Date a general waiver and release agreement in the form of Exhibit A, attached, or in a form and with substance satisfactory to the Company, that is no longer subject to revocation; provided, further, that in order for Executive to terminate his employment for Good Reason (as defined below), (x) Executive must furnish written notice to the Company setting forth the facts and circumstances claimed to provide a basis for such resignation within 30 days following the occurrence of such facts and circumstances, (y) the Company shall have 30 days after its receipt of such written notice to cure such facts and circumstances in all material respects (and if so cured, then Executive shall not be permitted to resign for Good Reason (as defined below) in respect thereof), and (z) Executive must actually terminate his employment within 30 days following the expiration of the Company’s cure period set forth above. For purposes of this Agreement, “Good Reason” means the occurrence of any of the following events, without the express consent of Executive, (1) a material diminution in Executive’s Base Salary or (2) a material diminution in Executive’s title,

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position, duties, authorities or responsibilities (other than temporarily while physically or mentally incapacitated or as required by applicable law). The payments described in clauses (A) and (C) above shall be made within 90 days (or by such earlier date as may be required by applicable law) following the Termination Date, and the payments described in clause (B) above shall be made in accordance with the provisions of the applicable plans, programs and arrangements maintained by the Company with respect to such payments or as otherwise required by applicable law.

d. Termination During Change of Control Tail Period. In the event that Executive’s employment is terminated by the Company or by Executive during the Change of Control Tail Period for any reason other than a termination by reason of Executive’s death or by the Company for Disability of Executive, this Section 5 shall not apply, and the terms and conditions of Section 6 shall govern with respect to any compensation payable to Executive as a result of such termination. For purposes of this Agreement, the “Change of Control Tail Period” shall mean the 12 month period following the occurrence of a Change of Control (as defined below). In no event shall Executive be entitled to compensation both under this Section 5 and under Section 6.

e. Equity Incentive Compensation. Except in circumstances where termination is (i) by reason of Executive’s death or by the Company for Disability, (ii) by the Company without Cause, (iii) by Executive for Good Reason, or (iv) during the Change of Control Tail Period and subject to Section 6, upon termination of Executive’s employment during the Term, the Equity Incentive Compensation awarded to Executive shall forfeit or vest in accordance with the terms of the applicable plans and award documents with respect to such Equity Incentive Compensation, and shall be subject to such other terms and conditions of such plans and award documents that may apply as a result of such termination.

f. Benefits. Notwithstanding anything in this Section 5 to the contrary, the Benefits to which Executive is entitled upon or by reason of the termination of his employment with the Company (including during the Change of Control Tail Period) shall be subject to,

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and shall be governed by, the terms and conditions of the applicable plans, programs and arrangements maintained by the Company with respect to such Benefits.

g. Expiration of Term. Notwithstanding anything in this Section 5 to the contrary, the expiration of the Term by itself shall not entitle Executive to receipt of any payments under this Section 5.

6. CHANGE OF CONTROL.

a. Definition. “Change of Control” shall have the meaning prescribed to such phrase (or, if applicable, the phrase, “Change in Control”) in the 2009 Incentive Award Plan of the Company, or the latest equity incentive award plan of the Company in effect from time to time. The Board shall have full and final authority, which shall be exercised in its discretion, to determine conclusively whether a Change of Control of the Company has occurred pursuant to the above definition, and the date of the occurrence of such Change of Control and any incidental matters relating thereto.

b. Executive’s Rights Upon a Change of Control. If there should occur a Change of Control of the Company (or any successor) and Executive’s employment is terminated by the Company without Cause or Executive terminates employment with, Good Reason during the Change of Control Tail Period, Executive shall receive the Without Cause/For Good Reason Severance Benefits, as if he had been terminated without Cause or had terminated for Good Reason under Section 5.c. of this Agreement; provided, that the two years of Executive’s Base Salary in effect as of the Termination Date, payable as part of the Without Cause/For Good Reason Severance Benefits, shall be paid monthly over a period of 24 months following such termination; provided further that all equity awards that would have been eligible to vest under Section 5.c. shall vest immediately upon consummation of a Change of Control; and provided further that Executive shall vest in all Performance-Based Awards as part of the Without Cause/For Good Reason Severance Benefits upon consummation of a Change of Control pro rata based on the Executive’s target award for such Performance-Based Awards (irrespective of actual performance) and based on the number of days Executive was employed by the Company before the Change of Control during the applicable performance period for such Performance-Based

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Awards divided by the total number of days in such performance period. All of the provisions of Section 5.c., including but not limited to the notice and cure provisions, shall apply in like manner under this Section 6.b.

7. COOPERATION. Upon the receipt of reasonable notice from the Company (including outside counsel), Executive agrees that while employed by the Company and thereafter, Executive will respond and provide information with regard to matters in which Executive has knowledge as a result of Executive’s employment with the Company, and will provide reasonable assistance to the Company, its affiliates and their respective representatives in defense of all claims that may be made against the Company or its affiliates, and will assist the Company and its affiliates in the prosecution of all claims that may be made by the Company or its affiliates, to the extent that such claims may relate to the period of Executive’s employment with the Company. Executive agrees to promptly inform the Company if Executive becomes aware of any lawsuit involving such claims that may be filed or threatened against the Company or its affiliates. Executive also agrees to promptly inform the Company (to the extent that Executive is legally permitted to do so) if Executive is asked to assist in any investigation of the Company or its affiliates (or their actions), regardless of whether a lawsuit or other proceeding has then been filed against the Company or its affiliates with respect to such investigation, and shall not provide such assistance unless legally required. Upon presentation of appropriate documentation, the Company shall pay or reimburse Executive for all reasonable out-of-pocket travel, duplicating or telephonic expenses incurred by Executive in complying with this Section 7. For the first five hours of cooperation in any calendar month during the period of Cooperation, Executive shall provide the specified Cooperation services without hourly reimbursement. For each hour of Cooperation or part thereof after five hours, in any calendar month, Company shall reimburse Executive at the hourly rate determined by this fraction: (final Base Salary / 2,080 hours).

8. ARBITRATION. The parties hereby agree to submit all disputes, claims and controversies (“Claims”) between the parties or related to or arising out of their employment relationship (except to the extent otherwise provided in that certain Employee Obligations Agreement, dated as of May 23, 2013, by and between the Company and Executive (the “Employee Obligations Agreement”), or that certain Indemnification Agreement, dated as of December 10, 2014, by and

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between the Company and Executive (the “Indemnification Agreement”)) to final, binding arbitration to the fullest extent permitted by law. The Federal Arbitration Act., 9 U.S.C. § 1 et seq., shall govern the interpretation and enforcement of this Section 8. The court and not the arbitrator will determine matters of enforceability of this Section 8.

a. Statute of Limitations. The statutory limitations period applicable to a Claim asserted in a civil action shall apply to any such Claim asserted in any arbitration proceeding under this Section 8. Arbitration is commenced for limitations purposes by submitting the matter to the arbitral forum.

b. Individual Basis. All Claims that are subject to arbitration under this Section 8 must and will take place on an individual basis only.

c. Venue. Binding arbitration under this Section 8 shall be conducted in California, unless required by law to be conducted elsewhere, in which case it shall be conducted where required by law.

d. Applicable Rules. The arbitration proceeding, including discovery, shall be conducted in accordance with the Federal Arbitration Act, the JAMS Policy on Employment Arbitration Minimum Standards and the JAMS Employment Arbitration Rules and Procedures then in effect (the “JAMS Rules”). Executive understands that if he wishes to receive a copy of the JAMS Rules currently in effect, he may inform the Company in writing, and the Company will provide them to him before he executes this Agreement. Executive also understand that JAMS Rules are available online at http://www.jamsadr.com/rules-employment-arbitration/.

e. Arbitrator Selection. The arbitration shall be conducted before a neutral arbitrator selected by all parties in accordance with JAMS Rules. The parties may also agree on an arbitrator.

f. Cost Allocation. If required by applicable law, the Company shall pay all additional costs peculiar to the arbitration to the extent such costs would not otherwise be incurred in a court proceeding (for instance, the Company shall pay the arbitrator’s fees, and the JAMS administration and filing fees, to the extent such fees exceed court filing fees).

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g. Attorneys’ Fees and Costs. Each party shall pay his or its own costs and attorneys’ fees except that the arbitrator shall award costs and attorneys’ fees to the prevailing party.

h. Written Decision. The arbitrator shall follow applicable substantive law and, within 30 days after the conclusion of the arbitration, issue a written opinion setting forth the factual and legal bases for his or her decision.

i. Acknowledgement. EXECUTIVE UNDERSTANDS HE IS GIVING UP HIS RIGHT TO A JURY TRIAL BY ENTERING INTO THIS AGREEMENT. EXECUTIVE UNDERSTANDS HE IS GIVING UP HIS RIGHT TO COMMENCE OR PARTICIPATE IN A CLASS OR COLLECTIVE ACTION AND INSTEAD AGREES TO ARBITRATE ANY EMPLOYMENT-RELATED DISPUTE ON AN INDIVIDUAL BASIS ONLY TO THE MAXIMUM EXTENT PERMITTED BY LAW.

9. CODE SECTION 409A.

a. This Agreement is intended to comply with the requirements of Section 409A of the Internal Revenue Code of 1986, as amended (“Section 409A”), including the exceptions thereto, and shall be construed and administered in accordance with such intent. Notwithstanding any other provision of this Agreement, payments provided under this Agreement may only be made upon an event and in a manner that complies with Section 409A or an applicable exemption. Any payments under this Agreement that may be excluded from Section 409A either as separation pay due to an involuntary separation from service or as a short-term deferral shall be excluded from Section 409A to the maximum extent possible. For purposes of Section 409A, each separate payment or installment payment provided under this Agreement shall be treated as a separate payment. Any payments to be made under this Agreement in connection with a termination of employment shall only be made if such termination of employment constitutes a “separation from service” under Section 409A. Notwithstanding the foregoing, the Company makes no representations that the payments and benefits provided under this Agreement comply with Section 409A and in no event shall the Company be liable for all or any portion of any taxes, penalties, interest or other expenses that may be incurred by Executive on account of non-compliance with Section 409A.

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b. Notwithstanding any other provision of this Agreement, if at the time of Executive’s termination of employment, he is a “specified employee,” determined in accordance with Section 409A, any payments and benefits provided under this Agreement that constitute “nonqualified deferred compensation” subject to Section 409A that are provided to Executive on account of his separation from service shall not be paid until the first payroll date to occur following the six-month anniversary of Executive’s termination date (“Specified Employee Payment Date”). The aggregate amount of any payments that would otherwise have been made during such six-month period shall be paid in a lump sum on the Specified Employee Payment Date and thereafter, any remaining payments shall be paid without delay in accordance with their original schedule. If Executive dies before the Specified Employee Payment Date, any delayed payments shall be paid to Executive’s estate in a lump sum within one week of Executive’s death.

c. To the extent required by Section 409A, each reimbursement or in-kind benefit provided under this Agreement shall be provided in accordance with the following: (i) the amount of expenses eligible for reimbursement, or in-kind benefits provided, during each calendar year cannot affect the expenses eligible for reimbursement, or in-kind benefits to be provided, in any other calendar year; (ii) any reimbursement of an eligible expense shall be paid to Executive on or before the last day of the calendar year following the calendar year in which the expense was incurred; and (iii) any right to reimbursements or in-kind benefits under this Agreement shall not be subject to liquidation or exchange for another benefit. Any tax gross-up payments provided under this Agreement shall be paid to Executive on or before December 31 of the calendar year immediately following the calendar year in which Executive remits the related taxes.

d. Whenever in this Agreement a payment or benefit is conditioned on Executive’s execution of a release of claims, such release must be executed and all revocation periods shall have expired within 90 days after the Termination Date; failing which such payment or benefit shall be forfeited. If such payment or benefit constitutes “nonqualified deferred compensation” subject to Section 409A, and if such 90-day period begins in one calendar year and ends in the next calendar year, the payment or benefit shall not be made

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or commence before the second such calendar year, even if the release becomes irrevocable in the first such calendar year.

10. GENERAL PROVISIONS.

a. Notices. All notices, requests, demands, statements, reports and other communications provided for by this Agreement shall be in writing (email being sufficient) and shall be sent by (i) certified mail, return receipt requested, postage prepaid, (ii) nationally recognized overnight delivery service, (iii) personal delivery or (iv) email. A notice shall be deemed to be given (x) if notice is delivered by certified mail or nationally recognized overnight delivery service, on the business day following the date of its mailing, (y) if such notice is delivered personally, upon delivery, or (z) if such notice is sent by email, upon sending. Each party may change his or its address for notices by giving notice in accordance herewith. All notices shall be addressed and mailed or delivered to the following addresses:

If to the COMPANY: 157 Technology Dr. Irvine, CA 92618

If to EXECUTIVE:    39 Van Gogh Way, Coto de Caza, CA 92679

b. Entire Agreement. This Agreement, the Employee Obligations Agreement, and the Indemnification Agreement constitute the entire agreement between the parties with respect to the subject matter hereof and thereof and supersede all prior agreements, representations and understandings (whether written or oral) of the parties with respect to the subject matter hereof and thereof, including that certain Change in Control Severance Agreement, dated as of January 11, 2018, by and between the Company and Executive, and any other agreement between Executive and the Company or any of its affiliates and subsidiaries. The above-referenced Change in Control Severance Agreement and any amendments thereto, by and between Executive and the Company, are terminated, canceled, and of no further force or effect as of the Effective Date hereof.

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c. Modification and Waiver. No amendment or variation of the terms of this Agreement shall be valid unless made in writing and signed by Executive and a duly authorized representative of the Company (other than Executive). A waiver of any term or condition of this Agreement shall not be construed as a general waiver by the Company. If one or more provisions of this Agreement are held to be illegal or unenforceable under applicable law, such illegal or unenforceable provision(s) shall be limited or excluded from this Agreement to the minimum extent required so that this Agreement shall otherwise remain in full force and effect and enforceable in accordance with its terms.

d. Governing Law. This Agreement shall be governed by and construed in accordance with the laws of the State of California, without giving effect to its conflict of law principles, and any dispute in the meaning, effect or validity of this Agreement shall be resolved in accordance with the laws of the State of California.

e. Assignment; Binding Effect. This Agreement is fully assignable and transferable by the Company, but any purported assignment or transfer by Executive is void. It is hereby agreed that Executive’s rights and obligations under this Agreement are personal and not assignable by Executive. This Agreement shall be binding upon and inure to the benefit of the heirs, legal representatives, successors and permitted assigns of the parties. EXECUTIVE HAS READ THIS AGREEMENT CAREFULLY AND UNDERSTANDS AND ACCEPTS THE OBLIGATIONS WHICH IT IMPOSES UPON EXECUTIVE WITHOUT RESERVATION. NO PROMISES OR REPRESENTATIONS HAVE BEEN MADE TO EXECUTIVE TO INDUCE EXECUTIVE TO SIGN THIS AGREEMENT. EXECUTIVE SIGNS THIS AGREEMENT VOLUNTARILY AND FREELY, IN DUPLICATE, WITH THE UNDERSTANDING THAT THE COMPANY WILL RETAIN ONE COUNTERPART AND THE OTHER COUNTERPART WILL BE RETAINED BY EXECUTIVE.

f. Injunctive Relief. Executive agrees that any breach of this Agreement will cause irreparable harm to the Company for which damages would not be an adequate remedy, and, therefore, to the fullest extent permitted by applicable law, the Company will be

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entitled to injunctive relief with respect thereto in addition to any other remedies and without any requirement to post bond.

g. Survival. This Agreement shall terminate upon the expiration of the Term; provided that the provisions of Sections 5 through 10 shall survive termination of this Agreement and termination of Executive’s employment regardless of the reason for such termination.

h. Withholding. The Company may withhold from any and all amounts payable under this Agreement or otherwise such federal, state and local taxes as may be required to be withheld pursuant to applicable law.

[Signature page follows]

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In witness whereof, parties have executed this Agreement as of the date first above written.

COMPANY:

Spectrum Pharmaceuticals, Inc.

By: /s/ Raymond W. Cohen

Raymond W. Cohen

Chairman, Compensation Committee

EXECUTIVE:

/s/ Keith M. McGahan

Keith M. McGahan

Signature Page to Executive Employment Agreement    

EXHIBIT A

GENERAL RELEASE

I, Keith M. McGahan, in consideration of and subject to the performance by Spectrum Pharmaceuticals, Inc. (together with its subsidiaries and successors, the “Company”), of its obligations under the Executive Employment Agreement dated as of June 18, 2018 (the “Agreement”), do hereby release and forever discharge as of the date hereof the Company and its respective affiliates, subsidiaries and direct or indirect parent entities and all present, former and future directors, officers, agents, representatives, employees, successors and assigns of the Company and/or its respective affiliates, subsidiaries and direct or indirect parent entities (collectively, the “Released Parties”) to the extent provided below (this “General Release”). The Released Parties are intended to be third-party beneficiaries of this General Release, and this General Release may be enforced by each of them in accordance with the terms hereof in respect of the rights granted to such Released Parties hereunder. Terms used herein but not otherwise defined shall have the meanings given to them in the Agreement.

1.    I understand that any payments or benefits paid or granted to me under the Agreement represent, in part, consideration for signing this General Release and are not salary, wages or benefits to which I was already entitled. I understand and agree that I will not receive certain of the payments and benefits specified in the Agreement unless I execute this General Release and do not revoke this General Release within the time period permitted hereafter. Such payments and benefits will not be considered compensation for purposes of any employee benefit plan, program, policy or arrangement maintained or hereafter established by the Company or its affiliates.

2.    Except as provided in paragraphs 4 and 5 below and except for the provisions of the Agreement which expressly survive the termination of my employment with the Company, I knowingly and voluntarily (for myself, my heirs, executors, administrators and assigns) release and forever discharge the Company and the other Released Parties from any and all claims, suits, controversies, actions, causes of action, cross-claims, counter claims, demands, debts, compensatory damages, liquidated damages, punitive or exemplary damages, other damages, claims for costs and attorneys’ fees, or liabilities of any nature whatsoever in law and in equity, both past and present (through the date that this General Release becomes effective and enforceable) and whether known or unknown, suspected, or claimed against the Company or any of the Released Parties which I, my spouse, or any of my heirs, executors,

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administrators or assigns, may have, which arise out of or are connected with my employment with, or my separation or termination from, the Company (including, but not limited to, any allegation, claim or violation, arising under: Title VII of the Civil Rights Act of 1964, as amended; the Civil Rights Act of 1991; the Age Discrimination in Employment Act of 1967, as amended (including the Older Workers Benefit Protection Act); the Equal Pay Act of 1963, as amended; the Americans with Disabilities Act of 1990; the Americans with Disabilities Act Amendments Act of 2008; the Family and Medical Leave Act of 1993; the Labor Management Relations Act; the Worker Adjustment Retraining and Notification Act; the Employee Retirement Income Security Act of 1974; the Sarbanes-Oxley Act of 2002; the California Worker Adjustment Retraining and Notification Act; the California Fair Employment and Housing Act; the California Labor Code; the California Family Rights Act; the California Industrial Welfare Commission Wage Orders; the California Constitution; the California Government Code; any applicable Executive Order Programs; the Fair Labor Standards Act; or their state or local counterparts; or under any other federal, state or local civil or human rights law, or under any other local, state, or federal law, regulation or ordinance, as well as any amendments to any of the foregoing; or under any public policy, contract or tort, or under common law; or arising under any policies, practices or procedures of the Company; or any claim for wrongful discharge, breach of contract, infliction of emotional distress, defamation; or any claim for costs, fees, or other expenses, including attorneys’ fees incurred in these matters) (all of the foregoing collectively referred to herein as the “Claims”).

3.    I represent that I have made no assignment or transfer of any right, claim, demand, cause of action, or other matter covered by paragraph 2 above.

4.    I agree that this General Release does not waive or release any rights or claims that I may have under the Age Discrimination in Employment Act of 1967 which arise after the date I execute this General Release. I acknowledge and agree that my separation from employment with the Company in compliance with the terms of the Agreement shall not serve as the basis for any claim or action (including, without limitation, any claim under the Age Discrimination in Employment Act of 1967).

5.    I agree that I hereby waive all rights to sue or obtain equitable, remedial or punitive relief from any or all Released Parties of any kind whatsoever in respect of any Claim, including, without limitation, reinstatement, back pay, front pay, and any form of injunctive relief. Notwithstanding the above, I further acknowledge that I am not waiving and am not being required to waive any right that

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cannot be waived under law, including the right to file an administrative charge or participate in an administrative investigation or proceeding; provided, however, that I disclaim and waive any right to share or participate in any monetary award resulting from the prosecution of such charge or investigation or proceeding. Additionally, I am not waiving (i) any right to the severance benefits to which I am entitled under the Agreement, (ii) any claim relating to directors’ and officers’ liability insurance coverage or any right of indemnification under the Company’s organizational documents or otherwise, (iii) claims under the Consolidated Omnibus Budget Reconciliation Act of 1985, as amended, (iv) claims related to reimbursement of ordinary and reasonable business expenses in accordance with the Company’s policies in effect from time to time, and (v) claims relating to any outstanding equity-based award on the date of termination in accordance with the terms thereof.

6.    In signing this General Release, I acknowledge and intend that it shall be effective as a bar to each and every one of the Claims hereinabove mentioned or implied. I expressly consent that this General Release shall be given full force and effect according to each and all of its express terms and provisions, including those relating to unknown and unsuspected Claims (notwithstanding any state or local statute that expressly limits the effectiveness of a general release of unknown, unsuspected and unanticipated Claims), if any, as well as those relating to any other Claims hereinabove mentioned or implied. I acknowledge and agree that this waiver is an essential and material term of this General Release and that without such waiver the Company would not have agreed to the terms of the Agreement. I further agree that in the event I should bring a Claim seeking damages against the Company, or in the event I should seek to recover against the Company in any Claim brought by a governmental agency on my behalf, this General Release shall serve as a complete defense to such Claims to the maximum extent permitted by law. I further agree that I am not aware of any pending claim of the type described in paragraph 2 above as of the execution of this General Release.

7.    I agree that neither this General Release, nor the furnishing of the consideration for this General Release, shall be deemed or construed at any time to be an admission by the Company, any Released Party or myself of any improper or unlawful conduct.

8.    I agree that if I violate this General Release by suing the Company or the other Released Parties, I will pay all costs and expenses of defending against the suit incurred by the Released Parties, including reasonable attorneys’ fees.

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9.    I agree that this General Release and the Agreement are confidential and agree not to disclose any information regarding the terms of this General Release or the Agreement, except to my immediate family and any tax, legal or other counsel that I have consulted regarding the meaning or effect hereof or as required by law, and I will instruct each of the foregoing not to disclose the same to anyone.

10.    Any non disclosure provision in this General Release does not prohibit or restrict me (or my attorney) from responding to any inquiry about this General Release or its underlying facts and circumstances by the Securities and Exchange Commission (SEC), the Financial Industry Regulatory Authority (FINRA), any other self regulatory organization or any governmental entity.

11.    I hereby acknowledge that Sections 4 through 10 of the Agreement shall survive my execution of this General Release.

12.    I represent that I am not aware of any claim by me other than the claims that are released by this General Release. I acknowledge that I may hereafter discover claims or facts in addition to or different than those which I now know or believe to exist with respect to the subject matter of the release set forth in paragraph 2 above and which, if known or suspected at the time of entering into this General Release, may have materially affected this General Release and my decision to enter into it.

I SPECIFICALLY AND FREELY WAIVE ANY AND ALL RIGHTS I MAY HAVE UNDER CALIFORNIA CIVIL CODE SECTION 1542, WHICH STATES:

A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH THE CREDITOR DOES NOT KNOW OR SUSPECT TO EXIST IN HIS OR HER FAVOR AT THE TIME OF EXECUTING THE RELEASE, WHICH IF KNOWN BY HIM OR HER MUST HAVE MATERIALLY AFFECTED HIS OR HER SETTLEMENT WITH THE DEBTOR.

IN WAIVING THE PROTECTIONS OF CIVIL CODE SECTION 1542, I ACKNOWLEDGE AWARENESS OF THE ACTUAL FACTS AND CIRCUMSTANCES SURROUNDING THE AGREEMENT UPON WHICH THIS RELEASE IS GIVEN. TO EFFECT A FULL AND COMPLETE WAIVER AND RELEASE, I ASSUME THE RISK THAT I MAY LATER DISCOVER FACTS DIFFERENT FROM THOSE I NOW KNOW OR BELIEVE TO BE TRUE.

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13.    Notwithstanding anything in this General Release to the contrary, this General Release shall not relinquish, diminish, or in any way affect any rights or claims arising out of any breach by the Company or by any Released Party of the Agreement after the date hereof.

14.    Whenever possible, each provision of this General Release shall be interpreted in, such manner as to be effective and valid under applicable law, but if any provision of this General Release is held to be invalid, illegal or unenforceable in any respect under any applicable law or rule in any jurisdiction, such invalidity, illegality or unenforceability shall not affect any other provision or any other jurisdiction, but this General Release shall be reformed, construed and enforced in such jurisdiction as if such invalid, illegal or unenforceable provision had never been contained herein.

BY SIGNING THIS GENERAL RELEASE, I REPRESENT AND AGREE THAT:

1.    I HAVE READ IT CAREFULLY;

2.    I UNDERSTAND ALL OF ITS TERMS AND KNOW THAT I AM GIVING UP IMPORTANT RIGHTS, INCLUDING BUT NOT LIMITED TO, RIGHTS UNDER THE AGE DISCRIMINATION IN EMPLOYMENT ACT OF 1967, AS AMENDED, TITLE VII OF THE CIVIL RIGHTS ACT OF 1964, AS AMENDED; THE EQUAL PAY ACT OF 1963, THE AMERICANS WITH DISABILITIES ACT OF 1990; AND THE EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974, AS AMENDED;

3.    I VOLUNTARILY CONSENT TO EVERYTHING IN IT;

4.    I HAVE BEEN ADVISED TO CONSULT WITH AN ATTORNEY BEFORE EXECUTING IT AND I HAVE DONE SO OR, AFTER CAREFUL READING AND CONSIDERATION, I HAVE CHOSEN NOT TO DO SO OF MY OWN VOLITION;

5.    I HAVE HAD AT LEAST 45 DAYS FROM THE DATE OF MY RECEIPT OF THIS RELEASE TO CONSIDER IT, AND THE CHANGES MADE SINCE MY RECEIPT OF THIS RELEASE ARE NOT MATERIAL OR WERE MADE AT MY REQUEST AND WILL NOT RESTART THE REQUIRED 45 DAY PERIOD;

6.    I UNDERSTAND THAT I HAVE SEVEN (7) DAYS AFTER THE EXECUTION OF THIS RELEASE TO REVOKE IT AND THAT THIS RELEASE SHALL NOT BECOME EFFECTIVE OR ENFORCEABLE UNTIL THE REVOCATION PERIOD HAS EXPIRED;

5

7.    I HAVE SIGNED THIS GENERAL RELEASE KNOWINGLY AND VOLUNTARILY AND WITH THE ADVICE OF ANY COUNSEL RETAINED TO ADVISE ME WITH RESPECT TO IT; AND

8.    I AGREE THAT THE PROVISIONS OF THIS GENERAL RELEASE MAY NOT BE AMENDED, WAIVED, CHANGED OR MODIFIED EXCEPT BY AN INSTRUMENT IN WRITING SIGNED BY AN AUTHORIZED REPRESENTATIVE OF THE COMPANY AND BY ME.

SIGNED:                            DATED:            

NAME: Keith M. McGahan                 

6

EX-31.1

Exhibit 31.1

CERTIFICATION OF PRINCIPAL EXECUTIVE OFFICER

I, Joseph W. Turgeon, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Spectrum Pharmaceuticals, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

August 9, 2018	/s/ JOSEPH W. TURGEON
	Joseph W. Turgeon
	President and Chief Executive Officer
	(Chief Executive Officer)

EX-31.2

Exhibit 31.2

CERTIFICATION OF PRINCIPAL FINANCIAL OFFICER

I, Kurt A. Gustafson, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Spectrum Pharmaceuticals, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

August 9, 2018	/s/ Kurt A. Gustafson
	Kurt A. Gustafson
	Executive Vice President and Chief Financial Officer
	(Principal Financial Officer)

EX-32.1

Exhibit 32.1

CERTIFICATION OF PRINCIPAL EXECUTIVE OFFICER

I, Joseph W. Turgeon, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that, to my knowledge, the Quarterly Report of Spectrum Pharmaceuticals, Inc. on Form 10-Q for the quarterly period ended June 30, 2018 (the “Report”) fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934 and that information contained in the Report fairly presents in all material respects the financial condition and results of operations of Spectrum Pharmaceuticals, Inc.

Date:	August 9, 2018	By:	/s/ JOSEPH W. TURGEON
		Name:	Joseph W. Turgeon
		Title:	Chief Executive Officer and President

This certification accompanies the Report pursuant to Rule 13a-14(b) under the Securities Exchange Act of 1934 and 18 U.S.C. Section 1350 and shall not be deemed filed by the Company for purposes of Section 18 of the Securities and Exchange Act of 1934, or otherwise subject to the liability of that section. This certification shall not be deemed to be incorporated by reference into any filing under the Securities Act of 1933, or, the Securities Exchange Act of 1934, except to the extent that the Company specifically incorporated by reference.

EX-32.2

Exhibit 32.2

CERTIFICATION OF PRINCIPAL FINANCIAL OFFICER

I, Kurt A. Gustafson, certify, pursuant to Rule 13a-14(b) or Rule 15d-14(b) of the Securities Exchange Act of 1934 and 18 U.S.C. Section 1350, that, to my knowledge, the Quarterly Report of Spectrum Pharmaceuticals, Inc. on Form 10-Q for the quarterly period ended June 30, 2018 (the “Report”) fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934 and that information contained in the Report fairly presents in all material respects the financial condition and results of operations of Spectrum Pharmaceuticals, Inc.

Date:	August 9, 2018	By:	/s/ Kurt A. Gustafson
		Name:	Kurt A. Gustafson
		Title:	Executive Vice President and Chief Financial Officer

This certification accompanies the Report pursuant to Rule 13a-14(b) under the Securities Exchange Act of 1934 and 18 U.S.C. Section 1350 and shall not be deemed filed by the Company for purposes of Section 18 of the Securities and Exchange Act of 1934, or otherwise subject to the liability of that section. This certification shall not be deemed to be incorporated by reference into any filing under the Securities Act of 1933, or, the Securities Exchange Act of 1934, except to the extent that the Company specifically incorporated by reference.

XML

Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2018	Jul. 31, 2018
Document And Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Jun. 30, 2018
Document Fiscal Year Focus	2018
Document Fiscal Period Focus	Q2
Trading Symbol	SPPI
Entity Registrant Name	SPECTRUM PHARMACEUTICALS INC
Entity Central Index Key	0000831547
Current Fiscal Year End Date	--12-31
Entity Filer Category	Accelerated Filer
Entity Common Stock, Shares Outstanding		105,958,838

XML

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Current assets:
Cash and cash equivalents	$ 174,371	$ 227,323
Marketable securities	95,287	248
Accounts receivable, net of allowance for doubtful accounts of $70 and $71, respectively	27,658	32,260
Other receivables	2,915	2,133
Inventories	4,520	5,715
Prepaid expenses and other assets	4,769	10,067
Total current assets	309,520	277,746
Property and equipment, net of accumulated depreciation	523	589
Intangible assets, net of accumulated amortization	123,214	137,159
Goodwill	18,106	18,162
Other assets	13,159	53,783
Total assets	464,522	487,439
Current liabilities:
Accounts payable and other accrued liabilities	49,886	58,117
Accrued payroll and benefits	4,946	9,261
Deferred revenue	0	3,872
FOLOTYN development liability	211	275
Convertible senior notes	39,427	38,224
Total current liabilities	94,470	109,749
FOLOTYN development liability, less current portion	11,980	12,111
Deferred revenue, less current portion	0	315
Acquisition-related contingent obligations	6,755	6,272
Deferred tax liabilities	1,447	1,438
Other long-term liabilities	5,751	6,215
Total liabilities	120,403	136,100
Commitments and contingencies
Stockholders’ equity:
Preferred stock, $0.001 par value; 5,000,000 shares authorized; no shares issued and outstanding	0	0
Common stock, $0.001 par value; 300,000,000 shares authorized; 105,130,603 and 100,742,735 shares issued and outstanding at June 30, 2018 and December 31, 2017, respectively	103	100
Additional paid-in capital	829,052	837,347
Accumulated other comprehensive (loss) income	(3,088)	15,999
Accumulated deficit	(481,948)	(502,107)
Total stockholders’ equity	344,119	351,339
Total liabilities and stockholders’ equity	$ 464,522	$ 487,439

XML

Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Statement of Financial Position [Abstract]
Allowance for doubtful accounts receivable	$ 70	$ 71
Preferred stock, par value ($ per share)	$ 0.001	$ 0.001
Preferred stock, shares authorized (shares)	5,000,000	5,000,000
Preferred stock, shares issued (shares)	0	0
Preferred stock, shares outstanding (shares)	0	0
Common stock, par value ($ per share)	$ 0.001	$ 0.001
Common stock, shares authorized (shares)	300,000,000	300,000,000
Common stock, shares issued (shares)	105,130,603	100,742,735
Common stock, shares outstanding (shares)	105,130,603	100,742,735

XML

Condensed Consolidated Statements of Operations - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Revenue:
Total revenues	$ 24,168	$ 34,301	$ 54,662	$ 63,402
Operating costs and expenses:
Selling, general and administrative	23,451	17,421	47,556	36,525
Research and development	21,488	15,167	39,382	29,945
Amortization of intangible assets	6,934	6,901	13,880	13,790
Total operating costs and expenses	58,479	52,910	114,238	103,920
Loss from operations	(34,311)	(18,609)	(59,576)	(40,518)
Other income (expense):
Interest expense, net	(242)	(2,131)	(472)	(4,182)
Change in fair value of contingent consideration related to acquisitions	(192)	(97)	(483)	(294)
Other income, net	48,492	240	58,463	650
Total other income (expense)	48,058	(1,988)	57,508	(3,826)
Income (loss) before income taxes	13,747	(20,597)	(2,068)	(44,344)
Provision for income taxes	(3)	(255)	(6)	(54)
Net income (loss)	$ 13,744	$ (20,852)	$ (2,074)	$ (44,398)
Net income (loss) per share:
Basic ($ per share)	$ 0.13	$ (0.27)	$ (0.02)	$ (0.57)
Diluted ($ per share)	$ 0.13	$ (0.27)	$ (0.02)	$ (0.57)
Weighted average shares outstanding:
Basic (shares)	102,597,059	78,576,260	101,747,416	78,366,610
Diluted (shares)	112,617,150	78,576,260	101,747,416	78,366,610
Product [Member]
Revenue:
Total revenues	$ 23,753	$ 31,156	$ 51,863	$ 57,001
Operating costs and expenses:
Cost of sales and service revenue	6,606	11,303	13,420	19,439
License and Service [Member]
Revenue:
Total revenues	415	3,145	2,799	6,401
Service [Member]
Operating costs and expenses:
Cost of sales and service revenue	$ 0	$ 2,118	$ 0	$ 4,221

XML

Condensed Consolidated Statements of Comprehensive Loss - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Statement of Comprehensive Income [Abstract]
Net income (loss)	$ 13,744	$ (20,852)	$ (2,074)	$ (44,398)
Other comprehensive loss:
Unrealized loss on available-for-sale securities, net of income tax benefit of $960, and $0 for the three and six months ended June 30, 2017	0	(2,951)	0	(1,144)
Cumulative effect of ASU 2016-01 adoption on January 1, 2018 for unrealized gains on equity securities, net of income tax; recorded as a reclassification to accumulated deficit (see Note 3(a))	0	0	(17,211)	0
Foreign currency translation adjustments	(2,269)	792	(1,876)	944
Other comprehensive loss	(2,269)	(2,159)	(19,087)	(200)
Total comprehensive income (loss)	$ 11,475	$ (23,011)	$ (21,161)	$ (44,598)

XML

Condensed Consolidated Statements of Comprehensive Loss (Parenthetical) - USD ($) $ in Thousands	3 Months Ended	6 Months Ended
	Jun. 30, 2017	Jun. 30, 2017
Statement of Comprehensive Income [Abstract]
Tax on available-for-sale securities	$ 960	$ 0

XML

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017
Cash Flows From Operating Activities:
Net loss	$ (2,074)	$ (44,398)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization	13,993	13,961
Stock-based compensation	9,211	7,207
Accretion of debt discount on 2018 Convertible Notes, recorded to interest expense (Note 13)	1,079	2,794
Amortization of deferred financing costs on 2018 Convertible Notes, recorded to interest expense (Note 13)	124	321
Unrealized gains from transactions denominated in foreign currency	10	(15)
Change in cash surrender value of corporate-owned life insurance policy	(5)	(153)
Deferred tax liabilities	9	127
Income tax recognition on unrealized gain for available-for-sale securities	0	0
Unrealized gains on marketable securities (Note 3(a))	(58,634)	0
Change in fair value of contingent consideration related to the Talon and EVOMELA acquisitions (Note 9)	483	294
Changes in operating assets and liabilities:
Accounts receivable, net	5,087	(2,105)
Other receivables	(781)	1,299
Inventories	816	428
Prepaid expenses	1,167	(439)
Other assets	3,451	863
Accounts payable and other accrued obligations	(8,210)	3,519
Accrued payroll and benefits	(4,314)	(2,737)
FOLOTYN development liability	(195)	(567)
Deferred revenue	0	(700)
Other long-term liabilities	(464)	847
Net cash used in operating activities	(39,247)	(19,454)
Cash Flows From Investing Activities:
Proceeds from redemption of corporate-owned life insurance policy	4,130	0
Payment for corporate-owned life insurance premiums	0	(601)
Redemption of mutual funds	0	(1)
Purchases of property and equipment	(46)	(167)
Net cash provided by (used in) investing activities	4,084	(769)
Cash Flows From Financing Activities:
Proceeds from employees for exercises of stock options	4,804	1,010
Proceeds from sale of stock under employee stock purchase plan	734	406
Proceeds from employees, for our remittance to tax authorities, related to employee vesting of restricted stock and stock option exercises	4,645	0
Payments to tax authorities related to employee surrender of vested restricted stock and stock option exercises	(27,686)	(1,284)
Net cash (used in) provided by financing activities	(17,503)	132
Effect of exchange rates on cash and equivalents	(286)	182
Net decrease in cash and cash equivalents	(52,952)	(19,909)
Cash and cash equivalents—beginning of period	227,323	158,222
Cash and cash equivalents—end of period	174,371	138,313
Supplemental disclosure of cash flow information:
Cash paid for income taxes	27	10
Cash paid for interest	$ 558	$ 1,513

XML

Description of Business, Basis of Presentation, and Operating Segment

6 Months Ended

Jun. 30, 2018

Accounting Policies [Abstract]

Description of Business, Basis of Presentation, and Operating Segment

DESCRIPTION OF BUSINESS, BASIS OF PRESENTATION, AND OPERATING SEGMENT

(a) Description of Business

Spectrum Pharmaceuticals, Inc. (“Spectrum”, the “Company”, “we”, “our”, or “us”) is a biopharma company, with a primary strategy comprised of acquiring, developing, and commercializing a broad and diverse pipeline of late-stage clinical and commercial products. We have an in-house clinical development organization with regulatory and data management capabilities, in addition to commercial infrastructure and a field-based sales force for our marketed products. Currently, we have six approved oncology/hematology products (FUSILEV, FOLOTYN, ZEVALIN, MARQIBO, BELEODAQ, and EVOMELA) that target different types of cancer including: non-Hodgkin’s lymphoma (“NHL”), advanced metastatic colorectal cancer, acute lymphoblastic leukemia, and multiple myeloma (“MM”).

We also have three drugs in mid-to-late stage development (in Phase 2 or Phase 3 clinical trials):

• poziotinib, a novel pan-HER inhibitor used in the treatment of patients with a variety of solid tumors, including breast and lung cancer;

• ROLONTIS for chemotherapy-induced neutropenia; and

• QAPZOLA for immediate intravesical instillation in post-transurethral resection of bladder tumors in patients with non-muscle invasive bladder cancer (“NMIBC”).

(b) Basis of Presentation

Interim Financial Statements

The interim financial data for the three and six months ended June 30, 2018 and 2017, respectively, is unaudited, and is not necessarily indicative of our operating results for a full year. In the opinion of our management, the interim data includes normal and recurring adjustments necessary for a fair presentation of our financial results for the three and six months ended June 30, 2018 and 2017. Certain information and footnote disclosures normally included in annual financial statements prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) have been condensed or omitted pursuant to the U.S. Securities and Exchange Commission (“SEC”) rules and regulations relating to interim financial statements. The accompanying Condensed Consolidated Financial Statements should be read in conjunction with our audited Consolidated Financial Statements and Notes thereto included within our Annual Report on Form 10-K for the fiscal year ended December 31, 2017 (filed with the SEC on March 7, 2018).

Principles of Consolidation

The accompanying Condensed Consolidated Financial Statements have been prepared in accordance with GAAP and with the rules and regulations of the SEC. These financial statements include the financial position, results of operations, and cash flows of Spectrum and its subsidiaries, all of which are wholly-owned (except for Spectrum Pharma Canada (“SPC”), as discussed below). All inter-company accounts and transactions among these legal entities have been eliminated in consolidation.

Variable Interest Entity

We own fifty-percent of SPC, a legal entity organized in Quebec, Canada in January 2008. Some of our clinical studies are conducted through this “variable interest entity” (as defined under applicable GAAP). We fund all of SPC’s operating costs, and since we assume all risks and rewards for this entity, we meet the criteria as being its “primary beneficiary.” Accordingly, SPC’s balance sheets and statements of operations are included in our Condensed Consolidated Financial Statements as if it were a wholly-owned subsidiary for all periods presented.

(c) Operating Segment

We operate in one reportable operating segment that is focused exclusively on developing and marketing oncology and hematology drug products. For the three and six months ended June 30, 2018 and 2017, all of our revenue and related expenses were solely attributable to these activities. Substantially all of our assets (excluding cash held in certain foreign bank accounts and ZEVALIN distribution rights for ex-U.S. territories - see Note 3(f)) are held in the United States.

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Use of Estimates and Summary of Significant Accounting Policies

6 Months Ended

Jun. 30, 2018

Accounting Policies [Abstract]

Use of Estimates and Summary of Significant Accounting Policies

USE OF ESTIMATES AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The preparation of financial statements in conformity with GAAP requires our management to make informed estimates and assumptions that affect our reported amounts of assets, liabilities, revenues, and expenses. These amounts may materially differ from the amount ultimately realized and reported due to the inherent uncertainty of any estimate or assumption. On an on-going basis, our management evaluates its most critical estimates and assumptions, including those related to (i) gross-to-net revenue adjustments; (ii) the timing of revenue recognition; (iii) the collectability of customer accounts; (iv) whether the cost of our inventories can be recovered; (v) the recoverability of our reported goodwill and intangible assets; (vi) the realization of our tax assets and estimates of our tax liabilities; (vii) the likelihood of payment and value of contingent liabilities; (viii) the fair value of our investments; (ix) the valuation of our stock options and the periodic expense recognition of stock-based compensation; and (x) the potential outcome of our ongoing or threatened litigation.

Our accounting policies and estimates that most significantly impact the presented amounts within our Condensed Consolidated Financial Statements are further described below:

(i) Revenue Recognition

Impact of the New Revenue Recognition Standard:ASU No. 2014-09, Revenue from Contracts with Customers (“Topic 606”), became effective for us on January 1, 2018. Our disclosure within the below sections to this footnote reflects our updated accounting policies that are affected by this new standard. We applied the “modified retrospective” transition method for open contracts for the implementation of Topic 606; thisresulted in the recognition of an aggregate $4.7 million, net of tax, decrease to our January 1, 2018 “accumulated deficit” on our accompanying Condensed Consolidated Balance Sheets for the cumulative impact of applying this new standard. We made no adjustments to our previously-reported total revenues, as those periods continue to be presented in accordance with our historical accounting practices under Topic 605, Revenue Recognition. See Notes 4, 5, and 19 for additional quantitative and qualitative revenue disclosures in accordance with Topic 606.

Required Elements of Our Revenue Recognition: Revenue from our (a) product sales, (b) out-license arrangements, and (c) service arrangements is recognized under Topic 606 in a manner that reasonably reflects the delivery of our goods and/or services to customers in return for expected consideration and includes the following elements:

(1) we ensure that we have an executed contract(s) with our customer that we believe is legally enforceable;

(2) we identify the “performance obligations” in the respective contract;

(3) we determine the “transaction price” for each performance obligation in the respective contract;

(4) we allocate the transaction price to each performance obligation; and

(5) we recognize revenue only when we satisfy each performance obligation.

    These five elements, as applied to each of our revenue categories, are summarized below:

(a) Product Sales: We sell our products to pharmaceutical wholesalers/distributors (i.e., our customers), except for our U.S. sales of ZEVALIN in which case the end-user (i.e., clinic or hospital) is our customer. Our wholesalers/distributors in turn sell our products directly to clinics, hospitals, and private oncology-based practices. Revenue from our product sales is recognized as physical delivery of product occurs (when our customer obtains control of the product), in return for agreed-upon consideration.

Our gross product sales (i.e., delivered units multiplied by the contractual price per unit) are reduced by our corresponding gross-to-net (“GTN”) estimates using the “expected value” method, resulting in our reported “product sales, net” in the accompanying Condensed Consolidated Statements of Operations, reflecting the amount we ultimately expect to realize in net cash proceeds, taking into account our current period gross sales and related cash receipts, and the subsequent cash disbursements on these sales that we estimate for the various GTN categories discussed below. These estimates are based upon information received from external sources (such as written or oral information obtained from our customers with respect to their period-end inventory levels and sales to end-users during the period), in combination with management’s informed judgments. Due to the inherent uncertainty of these estimates, the actual amount incurred (of some, or all) of product returns, government chargebacks, prompt pay discounts, commercial rebates, Medicaid rebates, and distribution, data, and GPO administrative fees may be materially above or below the amount estimated, then requiring prospective adjustments to our reported net product sales.

These GTN estimate categories are each discussed below:

Product Returns Allowances: Our FUSILEV, MARQIBO, and BELEODAQ customers are contractually permitted to return purchased products beginning at its expiration date and within six months thereafter. Our EVOMELA customers are permitted to return purchased product beginning at six months prior to its expiration date, and within 12 months thereafter (as well as for overstock inventory, as determined by end-users). ZEVALIN and FOLOTYN returns for expiry are not contractually permitted. Returns outside of this aforementioned criteria are not customarily allowed. We estimate expected product returns for our allowance based on our historical return rates. Returned product is typically destroyed, since substantially all returns are due to expiry and cannot be resold.

Government Chargebacks: Our products are subject to pricing limits under certain federal government programs (e.g., Medicare and 340B Drug Pricing Program). Qualifying entities (i.e., end-users) purchase products from our customers at their qualifying discounted price. The chargeback amount we incur represents the difference between our contractual sales price to our customer, and the end-user’s applicable discounted purchase price under the government program. There may be significant lag time between our reported net product sales and our receipt of the corresponding government chargeback claims from our customers.

Prompt Pay Discounts: Discounts for prompt payment are estimated at the time of sale, based on our eligible customers’ prompt payment history and the contractual discount percentage.

Commercial Rebates: Commercial rebates are based on (i) our estimates of end-user purchases through a group purchasing organization (“GPO”), (ii) the corresponding contractual rebate percentage tier we expect each GPO to achieve, and (iii) our estimates of the impact of any prospective rebate program changes made by us.

Medicaid Rebates: Our products are subject to state government-managed Medicaid programs, whereby rebates are issued to participating state governments. These rebates arise when a patient treated with our product is covered under Medicaid, resulting in a discounted price for our product under the applicable Medicaid program. Our Medicaid rebate accrual calculations require us to project the magnitude of our sales, by state, that will be subject to these rebates. There is a significant time lag in us receiving rebate notices from each state (generally several months or longer after our sale is recognized). Our estimates are based on our historical claim levels by state, as supplemented by management’s judgment.

Distribution, Data, and GPO Administrative Fees: Distribution, data, and GPO administrative fees are paid to authorized wholesalers/distributors of our products (except for U.S. sales of ZEVALIN) for various commercial services including: contract administration, inventory management, delivery of end-user sales data, and product returns processing. These fees are based on a contractually-determined percentage of our applicable sales.

(b) License Fees: Our out-license arrangements allow licensees to market our product(s) in certain territories for a specific term (representing the out-license of “functional intellectual property”). These arrangements may include one or more of the following forms of consideration: (i) upfront license fees, (ii) sales royalties, (iii) sales milestone-achievement fees, and (iv) regulatory milestone-achievement fees. We recognize revenue for each based on the contractual terms that establish our right to collect payment once the performance obligation is achieved, as follows:

(1) Upfront license fees: We determine whether upfront license fees are earned at the time of contract execution (i.e., when rights transfer to the customer) or over the actual (or implied) contractual period of the out-license. As part of this determination, we evaluate whether we have any other requirements to provide substantive services that are inseparable from the performance obligation of the license transfer. Our customers’ “distinct” rights to licensed “functional intellectual property” at the time of contract execution results in concurrent revenue recognition of all upfront license fees (assuming that there are no other performance obligations at contract execution that are inseparable from this license transfer).

(2) Royalties: Under the “sales-or-usage-based royalty exception” we recognize revenue in the same period that our

licensees complete product sales in their territory for which we are contractually entitled to a percentage-based royalty receipt.

(3) Sales milestones: Under the “sales-or-usage-based royalty exception” we recognize revenue in full within the period that our licensees achieve annual or aggregate product sales levels in their territories for which we are contractually entitled to a specified lump-sum receipt.

(4) Regulatory milestones: Under the terms of the respective out-license, regulatory achievements may either be our responsibility, or that of our licensee.

• When our licensee is responsible for the achievement of the regulatory milestone, we recognize revenue in full (for the contractual amount due from our licensee) in the period that the approval occurs (i.e., when the “performance obligation” is satisfied by our customer) under the “most likely amount” method. This revenue recognition remains “constrained” (i.e., not recognized) until regulatory approval occurs, given its inherent uncertainty and the requirement of a significant revenue reversal not being probable if achievement does not occur. At each reporting period, we re-evaluate the probability of milestone achievement and the associated revenue constraint; any resulting adjustments would be recorded on a cumulative catch-up basis, thus reflected in our financial statements in the period of adjustment.

• When we are responsible for the achievement of a regulatory milestone, the “relative selling price method” is applied for purposes of allocating the transaction price to our performance obligations. In such case, we consider (i) the extent of our effort to achieve the milestone and/or the enhancement of the value of the delivered item(s) as a result of milestone achievement and (ii) if the milestone payment is reasonable relative to all of the deliverables and payment terms (including other potential milestone consideration) within the arrangement. We have historically assessed the contractual value of these milestones upon their achievement to be identical to the allocation of value of our performance obligations and thus representing the “transaction price” for each milestone at contract inception. We recognize this revenue in the period that the regulatory approval occurs (i.e., when we complete the “performance obligation”) under the “most likely amount” method, and revenue recognition is otherwise “constrained” until regulatory approval occurs, given its inherent uncertainty and the requirement of a significant revenue reversal not being probable if achievement does not occur. At each reporting period, we re-evaluate the probability of milestone achievement and the associated revenue constraint; any resulting adjustments would be recorded on a cumulative catch-up basis, thus reflected in our financial statements in the period of adjustment.

(c) Service Revenue: We receive fees under certain arrangements for (i) sales and marketing services, (ii) supply chain services, (iii) research and development services, and (iv) clinical trial management services.

Our rights to receive payment for these services may be established by (1) a fixed-fee schedule that covers the term of the arrangement, so long as we meet ongoing performance obligations, (2) our completion of product delivery in our capacity as a procurement agent, (3) the successful completion of a phase of drug development, (4) favorable results from a clinical trial, and/or (5) regulatory approval events.

We consider whether revenue associated with these service arrangements is reportable each period, based on our completed services or deliverables (i.e., satisfied “performance obligations”) during the reporting period, and the terms of the arrangement that contractually result in fixed payments due to us. The promised service(s) within these arrangements are distinct and explicitly stated within each contract, and our customer benefits from the separable service(s) delivery/completion. Further, the nature of the promise to our customer as stated within the respective contract is to deliver each named service individually (not a transfer of combined items to which the promised goods or services are inputs), and thus are separable for revenue recognition.

(ii) Cash and Cash Equivalents

Cash and cash equivalents consist of bank deposits and highly liquid investments with maturities of three months or less from the purchase date.

(iii) Marketable Securities

Our marketable securities consist of our holdings in equity securities (beginning January 1, 2018 - see Note 3(a)), mutual funds, and bank certificates of deposit (“Bank CDs”). Beginning January 1, 2018, our realized and unrealized gains (losses) on marketable securities are included in “Other income, net” on the accompanying Condensed Consolidated Statements of Operations. Prior to January 1, 2018, our unrealized gains (losses) were included in “other comprehensive (loss) income” on our accompanying Condensed Consolidated Statements of Comprehensive Loss.

(iv) Accounts Receivable

Our accounts receivables are derived from our product sales and license fees (our service revenue is recorded in “other receivables”), and do not bear interest. The allowance for doubtful accounts is management’s best estimate of the amount of probable credit losses in our existing accounts receivable. Account balances are charged off against the allowance after appropriate collection efforts are exhausted.

(v) Inventories

We value our inventory at the lower of (i) the actual cost of its purchase or manufacture, or (ii) its net realizable value. Inventory cost is determined on the first-in, first-out method. We regularly review our inventory quantities in process of manufacture and on hand. When appropriate, we record a provision for obsolete and excess inventory to derive its new cost basis, which takes into account our sales forecast by product and corresponding expiry dates of each product lot.

Manufacturing costs of drug products that are pending U.S. Food and Drug Administration (“FDA”) approval are expensed through “research and development,” on the accompanying Condensed Consolidated Statements of Operations (rather than being capitalized to “inventories”).

(vi) Property and Equipment

Our property and equipment is stated at historical cost, and is depreciated on a straight-line basis over an estimated useful life that corresponds with its designated asset category. We evaluate the recoverability of “long-lived assets” (which includes property and equipment) whenever events or changes in circumstances in our business indicate that the asset’s carrying amount may not be recoverable through our on-going operations.

(vii) Goodwill and Intangible Assets

Our goodwill represents the excess of our business acquisition cost over the estimated fair value of the net assets acquired in the corresponding transaction. Goodwill has an indefinite accounting life and is therefore not amortized. Instead, goodwill is evaluated for impairment on an annual basis (as of each October 1st), unless we identify impairment indicators that would require earlier testing.

We evaluate the recoverability of indefinite-lived intangible assets at least annually, or whenever events or changes in our business indicate that an intangible asset’s (whether indefinite or definite-lived) carrying amount may not be recoverable. Such circumstances could include, but are not limited to the following:

(a) a significant decrease in the market value of an asset;

(b) a significant adverse change in the extent or manner in which an asset is used; or

(c) an accumulation of costs significantly in excess of the amount originally expected for the acquisition of an asset.

Intangible assets with finite useful lives are amortized over their estimated useful lives on a straight-line basis. We review these assets for potential impairment if/when facts or circumstances suggest that the carrying value of these assets may not be recoverable.

(viii) Stock-Based Compensation

Stock-based compensation expense for equity awards granted to our employees and members of our Board of Directors is recognized on a straight-line basis over each award’s vesting period. Recognized compensation expense is net of an estimated forfeiture rate, representing the percentage of awards that are expected to be forfeited prior to vesting, though is ultimately adjusted for actual forfeitures. We use the Black-Scholes option pricing model to determine the fair value of stock options (as of the date of grant) that have service conditions for vesting. We use the Monte Carlo valuation model to value equity awards (as of the date of grant) that have combined market conditions and service conditions for vesting.

The recognition of stock-based compensation expense and the initial calculation of stock option fair value requires uncertain assumptions, including (a) the pre-vesting forfeiture rate of the award, (b) the expected term that the stock option will remain outstanding, (c) our stock price volatility over the expected term (and that of our designated peer group with respect to certain market-based awards), and (d) the prevailing risk-free interest rate for the period matching the expected term.

With regard to (a)-(d): We estimate forfeiture rates based on our employees’ overall forfeiture history, which we believe will be representative of future results. We estimate the expected term of stock options granted based on our employees’ historical exercise patterns, which we believe will be representative of their future behavior. We estimate the volatility of our common stock on the date of grant based on historical volatility of our common stock for a look-back period that corresponds with the expected term. We estimate the risk-free interest rate based upon the U.S. Department of the Treasury yields in effect at award grant, for a period equaling the expected term of the stock option.

(ix) Foreign Currency Translation

We translate the assets and liabilities of our foreign subsidiaries that are stated in their functional currencies (i.e., local operating currencies), to U.S. dollars at the rates of exchange in effect at the reported balance sheet date. Revenues and expenses are translated using the monthly average exchange rates during the reported period. Unrealized gains and losses from the translation of our subsidiaries’ financial statements (that are initially denominated in the corresponding functional currency) are included as a separate component of “accumulated other comprehensive (loss) income” in the Condensed Consolidated Balance Sheets.

We record foreign currency transactions, when initially denominated in a currency other than the respective functional currency of our subsidiary, at the prevailing exchange rate on the date of the transaction. Resulting unrealized foreign exchange gains and losses from transactions with third parties are included in “accumulated other comprehensive (loss) income” in the Condensed Consolidated Balance Sheets.

All unrealized foreign exchange gains and losses associated with our intercompany loans are included in “accumulated other comprehensive (loss) income” in the Condensed Consolidated Balance Sheets, as these loans with our foreign subsidiaries are not expected to be settled in the “foreseeable future.”

(x) Basic and Diluted Net Loss per Share

We calculate basic and diluted net loss per share using the weighted average number of common shares outstanding during the periods presented. In periods of a net loss, basic and diluted loss per share are the same. For the diluted earnings per share calculation, we adjust the weighted average number of common shares outstanding to include only dilutive stock options, warrants, and other common stock equivalents outstanding during the period.

(xi) Income Taxes

Deferred tax assets and liabilities are recorded based on the estimated future tax effects of temporary differences between the tax basis of assets and liabilities and amounts reported in the financial statements, as well as operating losses and tax credit carry forwards using enacted tax rates and laws that are expected to be in effect when the differences are expected to reverse. Realization of deferred tax assets is dependent upon future earnings, the timing and amount of which are uncertain.

We have recorded a valuation allowance to reduce our deferred tax assets, because we believe that, based upon a weighting of positive and negative factors, it is more likely than not that these deferred tax assets will not be realized. If/when we were to determine that our deferred tax assets are realizable, an adjustment to the corresponding valuation allowance would increase our net income in the period that such determination was made.

In the event that we are assessed interest and/or penalties from taxing authorities that have not been previously accrued, such amounts would be included in “provision for income taxes” within the Condensed Consolidated Statements of Operations for the period in which we received the notice.

(xii) Research and Development Costs

Our research and development costs are expensed as incurred, or as certain milestone payments become due, which are generally triggered by contractual clinical or regulatory events.

(xiii) Fair Value Measurements

We determine measurement-date fair value based on the proceeds that would be received through the sale of the asset, or that we would pay to settle or transfer the liability, in an orderly transaction between market participants. We utilize valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs to the extent possible. Fair value measurements are based on a three-tier hierarchy that prioritizes the inputs used to measure fair value. These tiers include the following:

Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities that are publicly accessible at the measurement date.

Level 2: Observable prices that are based on inputs not quoted on active markets, but that are corroborated by market data. These inputs may include quoted prices for similar assets or liabilities or quoted market prices in markets that are not active to the general public.

Level 3: Unobservable inputs are used when little or no market data is available.

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Balance Sheet Account Detail

6 Months Ended

Jun. 30, 2018

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Balance Sheet Account Detail

BALANCE SHEET ACCOUNT DETAIL

The composition of selected financial statement captions that comprise the accompanying Condensed Consolidated Balance Sheets are summarized below:

(a) Cash and Cash Equivalents and Marketable Securities

As of June 30, 2018 and December 31, 2017, our “cash and cash equivalents” were held with major financial institutions. Our “marketable securities” solely relate to our equity holdings in CASI (see Note 10).

We maintain cash balances in excess of federally insured limits with reputable financial institutions. To a limited degree, the Federal Deposit Insurance Corporation (“FDIC”) and other third parties insure these investments. However, these investments are not insured against the possibility of a complete loss of earnings or principal and are inherently subject to the credit risk related to the continued credit worthiness of the underlying issuer and general credit market risks. We manage such risks in our portfolio by investing in highly liquid, highly-rated instruments, and limit investing in long-term maturity instruments.

Our investment policy requires that purchased investments in marketable securities may only be in highly-rated instruments, which are primarily U.S. treasury bills or treasury-backed securities, and also limits our investments in securities of any single issuer (excluding any debt or equity securities received from our strategic partners in connection with an out-license arrangement, as discussed in Note 10).

The carrying amount of our equity securities, money market funds, and Bank CDs approximates their fair value (utilizing “Level 1” or “Level 2” inputs – see Note 2(xiii)) because of our ability to immediately convert these instruments into cash with minimal expected change in value.

The following is a summary of our presented “cash and cash equivalents” and “marketable securities”:

	Cost		Foreign Currency Translation			Gross Unrealized Gains*		Gross Unrealized Losses		Estimated Fair Value		Cash and Cash Equivalents		Marketable Securities
June 30, 2018
Equity securities* (see Note 3(g) and Note 10)	$	8,710	$	(1,747	)	$	88,075	$	—	$	95,038	$	—	$	95,038
Bank deposits	10,769		—			—		—		10,769		10,769		—
Money market funds	163,602		—			—		—		163,602		163,602		—
Bank certificates of deposits	249		—			—		—		249		—		249
Total cash and cash equivalents and marketable securities	$	183,330	$	(1,747	)	$	88,075	$	—	$	269,658	$	174,371	$	95,287
December 31, 2017
Bank deposits	$	10,965	$	—		$	—	$	—	$	10,965	$	10,965	$	—
Money market funds	216,358		—			—		—		216,358		216,358		—
Bank certificates of deposits	248		—			—		—		248		—		248
Total cash and cash equivalents and marketable securities	$	227,571	$	—		$	—	$	—	$	227,571	$	227,323	$	248

* Beginning January 1, 2018, under the new requirements of ASU 2016-01, Recognition and Measurement of Financial Assets and Liabilities, the unrealized gains (losses) on our CASI Pharmaceuticals, Inc. (NASDAQ: CASI) (“CASI”) equity securities are recognized as an increase (decrease) to “other income, net” on the Consolidated Statements of Operations (rather than through “other comprehensive (loss) income” on the Consolidated Statements of Comprehensive Loss). Our adoption of ASU 2016-01 on January 1, 2018, resulted in a$17.2 million cumulative-effect adjustment, net of income tax, recorded as a decrease to “accumulated other comprehensive (loss) income” and a decrease to “accumulated deficit” on the accompanying Condensed Consolidated Balance Sheets. Our recognized unrealized gain on these equity securities for the three and six months ended June 30, 2018 was $48.5 million and $58.6 million, respectively, as reported in “other income, net” on the accompanying Condensed Consolidated Statements of Operations.

As of June 30, 2018, none of our securities were in an unrealized loss position.

(b) Property and Equipment, net of Accumulated Depreciation

“Property and equipment, net of accumulated depreciation” consists of the following:

	June 30, 2018			December 31, 2017
Computer hardware and software	$	3,080		$	2,994
Laboratory equipment	635			630
Office furniture	212			218
Leasehold improvements	2,938			2,938
Property and equipment, at cost	6,865			6,780
(Less): Accumulated depreciation	(6,342		)	(6,191		)
Property and equipment, net of accumulated depreciation	$	523		$	589

Depreciation expense (included within “total operating costs and expenses” in the accompanying Condensed Consolidated Statements of Operations) for the six months ended June 30, 2018 and 2017, was $112 thousand and $0.2 million, respectively.

In February 2016, the FASB issued ASU 2016-02, which amends the FASB Accounting Standards Codification and creates Topic 842, Leases. The new topic supersedes Topic 840, Leases, and requires lease assets and lease liabilities (including those for operating leases) to be presented on the balance sheet at their “gross amounts” and requires additional disclosures regarding lease arrangements. Topic 842 is effective for us beginning January 1, 2019, and mandates a “modified retrospective” transition method. We are currently assessing the quantitative impact this guidance will have on our consolidated financial statements. We presently do not have any capital lease arrangements, or have any active contracts that would contain an “embedded lease”. Our current lease arrangements affected by this “gross-up” presentation on our balance sheets, beginning January 1, 2019, are limited to our principal executive office in Henderson, Nevada, and our administrative and research and development facility in Irvine, California, in addition to several other administrative office leases.

(c) Inventories

“Inventories” consists of the following:

	June 30, 2018			December 31, 2017
Raw materials	$	2,149		$	1,077
Work-in-process	3,204			2,551
Finished goods	2,647			5,187
(Less:) Non-current portion of inventories included within "other assets" *	(3,480		)	(3,100		)
Inventories	$	4,520		$	5,715

* The “non-current” portion of inventories is presented within “other assets” in the accompanying Condensed Consolidated Balance Sheets at June 30, 2018 and December 31, 2017, respectively. This value of $3.5 million at June 30, 2018 represents product that we expect to sell beyond June 30,2019 and the value at December 31, 2017 represents product that we expect to sell beyond December 31, 2018.

.

(d) Prepaid Expenses and Other Assets

“Prepaid expenses and other assets” consists of the following:

	June 30, 2018		December 31, 2017
Other miscellaneous prepaid operating expenses	$	3,900	$	3,389
Prepaid insurance	761		645
Research and development supplies	108		1,883
Key employee life insurance - cash surrender value	—		4,150
Prepaid expenses and other assets	$	4,769	$	10,067

(e) Other Receivables

“Other receivables” consists of the following:

	June 30, 2018		December 31, 2017
Other miscellaneous receivables*	$	968	$	1,152
Income tax receivable	638		665
Insurance receivable	1,130		53
Reimbursements due from development partners for incurred research and development expenses	179		263
Other receivables	$	2,915	$	2,133

* As of June 30, 2018 and December 31, 2017, the balance is inclusive of $0.4 million and $0.4 million, respectively, of Medicaid rebate credits to be applied against future invoices for each respective state program, and $0.2 million and $0.4 million, respectively, of royalty receivables from Mundipharma International Corporation Limited (“Mundipharma”) for sales of ZEVALIN in Japan.

(f) Intangible Assets and Goodwill

Intangible assets, net of accumulated amortization and impairment charges consists of the following:

			June 30, 2018
	Historical Cost		Accumulated Amortization			Foreign Currency Translation			Impairment			Net Amount		Full Amortization Period (months)	Remaining Amortization Period (months)
MARQIBO IPR&D (NHL and other novel indications)	$	17,600	$	—		$	—		$	—		$	17,600	n/a	n/a
EVOMELA distribution rights	7,700		(1,333		)	—			—			6,367		156	129
BELEODAQ distribution rights	25,000		(7,500		)	—			—			17,500		160	112
MARQIBO distribution rights	26,900		(19,342		)	—			—			7,558		81	21
FOLOTYN distribution rights (1)	118,400		(60,649		)	—			—			57,751		152	53
ZEVALIN distribution rights – U.S.	41,900		(39,294		)	—			—			2,606		123	9
ZEVALIN distribution rights – ex-U.S.	23,490		(17,624		)	(2,994		)	—			2,872		96	21
FUSILEV distribution rights (2)	16,778		(9,618		)	—			(7,160		)	—		56	0
FOLOTYN out-license (3)	27,900		(15,917		)	—			(1,023		)	10,960		110	49
Total intangible assets	$	305,668	$	(171,277	)	$	(2,994	)	$	(8,183	)	$	123,214

(1) Beginning June 2016, we adjusted the amortization period of our FOLOTYN distribution rights to November 2022 from March 2025, representing the period through which we expect to have patent protection from generic competition (see Note 16(g)).

(2) On February 20, 2015, the United States District Court for the District of Nevada found the patent covering FUSILEV to be invalid, which was upheld on appeal. On April 24, 2015, Sandoz began to commercialize a generic version of FUSILEV. This represented a “triggering event” under applicable GAAP in evaluating the value of our FUSILEV distribution rights as of March 31, 2015, resulting in a $7.2 million impairment charge (non-cash) in the first quarter of 2015. We accelerated amortization expense recognition in 2015 for the then remaining net book value of FUSILEV distribution rights.

(3) On May 29, 2013, we amended our FOLOTYN collaboration agreement with Mundipharma. As a result of the amendment, Europe and Turkey were excluded from Mundipharma’s commercialization territory, and their royalty rates and milestone payments to us were modified. This constituted a change under which we originally valued the FOLOTYN out-license as part of business combination accounting, resulting in an impairment charge (non-cash) of $1.0 million in the second quarter of 2013.

			December 31, 2017
	Historical Cost		Accumulated Amortization			Foreign Currency Translation			Impairment			Net Amount
MARQIBO IPR&D (NHL and other novel indications)	$	17,600	$	—		$	—		$	—		$	17,600
EVOMELA distribution rights	7,700		(1,037		)	—			—			6,663
BELEODAQ distribution rights	25,000		(6,563		)	—			—			18,437
MARQIBO distribution rights	26,900		(17,182		)	—			—			9,718
FOLOTYN distribution rights	118,400		(54,111		)	—			—			64,289
ZEVALIN distribution rights – U.S.	41,900		(37,557		)	—			—			4,343
ZEVALIN distribution rights – Ex-U.S.	23,490		(17,232		)	(2,471		)	—			3,787
FUSILEV distribution rights	16,778		(9,618		)	—			(7,160		)	—
FOLOTYN out-license	27,900		(14,555		)	—			(1,023		)	12,322
Total intangible assets	$	305,668	$	(157,855	)	$	(2,471	)	$	(8,183	)	$	137,159

Intangible asset amortization expense recognized during the six months ended June 30, 2018 and 2017, was $13.9 million and $13.8 million, respectively.

Estimated intangible asset amortization expense for the remainder of 2018 and the five succeeding fiscal years and thereafter is as follows:

Years Ending December 31,
Remainder of 2018	$	13,850
2019	25,095
2020	19,756
2021	18,266
2022	15,882
2023	2,467
2024 and thereafter	10,298
	$	105,614

“Goodwill” consists of the following:

	June 30, 2018			December 31, 2017
Acquisition of Talon (MARQIBO rights)	$	10,526		$	10,526
Acquisition of ZEVALIN Ex-U.S. distribution rights	2,525			2,525
Acquisition of Allos (FOLOTYN rights)	5,346			5,346
Foreign currency exchange translation effects	(291		)	(235		)
Goodwill	$	18,106		$	18,162

(g) Other Assets

“Other assets” consists of the following:

	June 30, 2018		December 31, 2017
Equity securities (see Note 10)*	$	—	$	37,530
Key employee life insurance – cash surrender value	6,123		10,737
Inventories - non-current portion	3,480		3,100
Promissory note receivable - long term (see Note 10)	1,521		1,517
Income tax receivable**	668		668
Research & development supplies and other	1,367		231
Other assets	$	13,159	$	53,783

* As of March 31, 2018, we reclassified our presentation of these equity securities from this account caption to “marketable securities” on the face of our accompanying Condensed Consolidated Balance Sheets - see Note 3(a).

** This value represents the non-current portion of the refundable alternative minimum tax credit that is expected to be received over the next few years (see Note 16).

(h) Accounts Payable and Other Accrued Liabilities

“Accounts payable and other accrued liabilities” consists of the following:

	June 30, 2018		December 31, 2017
Trade accounts payable and other accrued liabilities	$	29,370	$	33,648
Accrued rebates	6,904		7,990
Accrued product royalty	3,427		4,339
Allowance for returns	4,378		4,045
Accrued data and distribution fees	3,036		4,305
Accrued GPO administrative fees	230		296
Accrued inventory management fee	799		1,126
Allowance for chargebacks	1,742		2,368
Accounts payable and other accrued liabilities	$	49,886	$	58,117

Amounts presented within “accounts payable and other accrued liabilities” in the accompanying Condensed Consolidated Balance Sheets for our categories of GTN estimates (see Note 2(i)) were as follows:

	Commercial/Medicaid Rebates and Government Chargebacks			Distribution, Data, Inventory and GPO Administrative Fees			Product Return Allowances
Balance as of December 31, 2016	$	9,817		$	5,146		$	2,309
Add: provisions	106,647			20,104			2,807
(Less): credits or actual allowances	(106,106		)	(19,523		)	(1,071		)
Balance as of December 31, 2017	10,358			5,727			4,045
Add: provisions	33,083			7,094			898
(Less): credits or actual allowances	(34,795		)	(8,756		)	(565		)
Balance as of June 30, 2018	$	8,646		$	4,065		$	4,378

(i) Deferred Revenue

Deferred revenue (current and non-current) consists of the following:

	June 30, 2018		December 31, 2017
EVOMELA deferred revenue	$	—	$	3,819
ZEVALIN out-license in India territory (see Note 15(b)(iii))	—		368
Deferred revenue*	$	—	$	4,187

* On January 1, 2018, we reclassified the deferred revenue related to our EVOMELA product sales and our ZEVALIN out-license in the India territory of $3.8 million and $0.4 million, respectively. These amounts were included in the $4.7 million aggregate decrease to “accumulated deficit” on January 1, 2018, in accordance with the adoption of Topic 606 (see Note 2(i)).

(j) Other Long-Term Liabilities

“Other long-term liabilities” consists of the following:

	June 30, 2018		December 31, 2017
Accrued executive deferred compensation	$	5,212	$	5,928
Deferred rent (non-current portion)	1		52
Clinical study holdback fees, non-current	62		59
Other tax liabilities	176		176
Royalty liability	300		—
Other long-term liabilities	$	5,751	$	6,215

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Gross-to-Net Product Sales

6 Months Ended

Jun. 30, 2018

Revenues [Abstract]

Gross-to-Net Product Sales

GROSS-TO-NET PRODUCT SALES

The below table presents a GTN (see Note 2(i)) product sales reconciliation for the accompanying Condensed Consolidated Statements of Operations:

	Three Months Ended June 30,						Six Months Ended June 30,
	2018			2017			2018			2017
Gross product sales	$	44,062		$	67,709		$	93,651		$	125,926
Commercial rebates and government chargebacks	(16,053		)	(30,001		)	(33,083		)	(57,324		)
Data and distribution fees, GPO fees, and inventory management fees	(3,584		)	(5,176		)	(7,094		)	(9,640		)
Prompt pay discounts	(323		)	(419		)	(713		)	(688		)
Product returns	(349		)	(957		)	(898		)	(1,273		)
Product sales, net	$	23,753		$	31,156		$	51,863		$	57,001

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Composition of Total Revenue

6 Months Ended

Jun. 30, 2018

Segment Reporting [Abstract]

Composition of Total Revenue

COMPOSITION OF TOTAL REVENUE

The below table presents our net product sales by geography for the three and six months ended June 30, 2018 and 2017:

	Three Months Ended June 30,								Six Months Ended June 30,
	2018				2017				2018				2017
United States	$	21,347	89.9	%	$	29,064	93.3	%	$	44,545	85.9	%	$	52,865	92.7	%
International:
Europe/Canada	2,406		10.1	%	2,092		6.7	%	5,894		11.4	%	4,136		7.3	%
Asia Pacific	—		—	%	—		—	%	1,424		2.7	%	—		—	%
Total International	2,406		10.1	%	2,092		6.7	%	7,318		14.1	%	4,136		7.3	%
Product sales, net	$	23,753	100.0	%	$	31,156	100.0	%	$	51,863	100.0	%	$	57,001	100.0	%

The below table presents our net sales by product for the three and six months ended June 30, 2018 and 2017:

	Three Months Ended June 30,								Six Months Ended June 30,
	2018				2017				2018				2017
FOLOTYN	$	11,680	49.2	%	$	11,181	35.9	%	$	24,402	47.1	%	$	20,455	35.9	%
EVOMELA	5,779		24.3	%	10,058		32.3	%	13,913		26.8	%	16,359		28.7	%
BELEODAQ	2,703		11.4	%	3,396		10.9	%	5,416		10.4	%	6,267		11.0	%
ZEVALIN	1,638		6.9	%	2,297		7.4	%	4,661		9.0	%	5,144		9.0	%
MARQIBO	1,149		4.8	%	2,163		6.9	%	2,043		3.9	%	4,142		7.3	%
FUSILEV	804		3.4	%	2,061		6.6	%	1,428		2.8	%	4,634		8.1	%
Product sales, net	$	23,753	100.0	%	$	31,156	100.0	%	$	51,863	100.0	%	$	57,001	100.0	%

The below table presents our license fees and service revenue by source for the three and six months ended June 30, 2018 and 2017:

	Three Months Ended June 30,								Six Months Ended June 30,
	2018				2017				2018				2017
Out-license of FOLOTYN in all countries except the United States, Canada, Europe, and Turkey: royalties (Note 14)	$	415	100.0	%	$	119	3.8	%	792		28.3	%	382		6.0	%
Out-license of ZEVALIN: recognition of milestone achievement, upfront cash receipt and subsequent royalties for Asia and certain other territories, excluding China (Note 11)	—		—	%	630		20.0	%	2,001		71.5	%	1,245		19.5	%
Out-license of ZEVALIN: amortization of upfront cash receipt related to India territory (Note 15(b)(iii)) and other	—		—	%	12		0.4	%	6		0.2	%	24		0.4	%
Out-license of ZEVALIN, FOLOTYN, BELEODAQ, MARQIBO: upfront cash receipt and subsequent royalties for the Canada territory (Note 15(b)(xiv))	—		—	%	3		0.1	%	—		—	%	3		—	%
Sales and marketing contracted services (Note 12)	—		—	%	2,381		75.7	%			—	%	4,747		74.2	%
License fees and service revenues	$	415	100.0	%	$	3,145	100.0	%	$	2,799	100.0	%	$	6,401	100.0	%

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Stock-Based Compensation

6 Months Ended

Jun. 30, 2018

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Stock-Based Compensation

STOCK-BASED COMPENSATION

We report our stock-based compensation expense (inclusive of our incentive stock plan, employee stock purchase plan, and 401(k) contribution matching program) in the accompanying Condensed Consolidated Statements of Operations, based on the assigned department of the recipient. Stock-based compensation expense included within “total operating costs and expenses” for the three and six months ended June 30, 2018 and 2017, was as follows (see Note 18 for a discussion of certain immaterial corrections affecting the presented 2017 amounts below):

	Three Months Ended June 30,				Six Months Ended June 30,
	2018		2017		2018		2017
Cost of sales	$	80	$	51	$	146	$	81
Selling, general and administrative	3,832		2,888		7,522		6,126
Research and development	822		548		1,543		1,000
Total stock-based compensation	$	4,734	$	3,487	$	9,211	$	7,207

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Net Income (Loss) Per Share

6 Months Ended

Jun. 30, 2018

Earnings Per Share [Abstract]

Net Income (Loss) Per Share

NET INCOME (LOSS) PER SHARE

Net income (loss) per share was computed by dividing net loss by the weighted average number of common shares outstanding for the three and six months ended June 30, 2018 and 2017:

	Three Months Ended June 30,					Six Months Ended June 30,
	2018		2017			2018			2017
Basic weighted average shares outstanding	102,597,059		78,576,260			101,747,416			78,366,610
Effect of dilutive securities:
2018 Convertible Notes	3,854,959		—			—			—
Common stock options	3,870,462		—			—			—
Restricted stock awards	1,797,089		—			—			—
Restricted stock units	245,214		—			—			—
Common stock warrants	252,368		—			—			—
Diluted average shares outstanding	112,617,151		78,576,260			101,747,416			78,366,610
Net income (loss) as reported	$	13,744	$	(20,852	)	$	(2,074	)	$	(44,398	)
Interest attributable to 2018 Convertible Notes	886		—			—			—
Net income (loss) for diluted earnings per share	$	14,630	$	(20,852	)	$	(2,074	)	$	(44,398	)
Net income (loss) per share – basic	$	0.13	$	(0.27	)	$	(0.02	)	$	(0.57	)
Net income (loss) per share – diluted	$	0.13	$	(0.27	)	$	(0.02	)	$	(0.57	)

The below outstanding securities for the six months ended June 30, 2018 and three and six months ended June 30, 2017 were excluded from the calculation above because their impact under the “treasury stock method” and “if-converted method” would have been anti-dilutive due to our net loss per share in each respective period, as summarized below:

	Three Months Ended June 30,		Six Months Ended June 30,
	2018	2017	2018	2017
2018 Convertible Notes	—	10,454,799	3,854,959	10,454,799
Common stock options	—	1,271,207	4,396,587	1,110,474
Restricted stock awards	—	2,166,299	1,797,089	2,166,299
Restricted stock units	—	217,206	245,214	217,206
Common stock warrants	—	13,337	257,039	1,813
Total	—	14,122,848	10,550,888	13,950,591

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Fair Value Measurements

6 Months Ended

Jun. 30, 2018

Fair Value Disclosures [Abstract]

Fair Value Measurements

FAIR VALUE MEASUREMENTS

The table below summarizes certain asset and liability fair values that are included within our accompanying Condensed Consolidated Balance Sheets, and their designations among three fair value measurement categories (see Note 2(xiii)):

	June 30, 2018 Fair Value Measurements
	Level 1		Level 2		Level 3		Total
Assets:
Bank certificates of deposits	$	—	$	249	$	—	$	249
Money market funds	—		163,602		—		163,602
Equity securities (Note 3(a))	95,038		—		—		95,038
Mutual funds	—		101		—		101
Deferred compensation investments (life insurance cash surrender value - Note 3(g))	—		6,123		—		6,123		*
	$	95,038	$	170,075	$	—	$	265,113
Liabilities:
Deferred executive compensation liability (Note 15(f))	$	—	$	5,973	$	—	$	5,973	*
Drug development liability (Note 14)	—		—		12,191		12,191
Talon CVR (Note 9(a))	—		—		6,693		6,693
Corixa Liability (Note 15(b)(i))	—		—		62		62
	$	—	$	5,973	$	18,946	$	24,919

	December 31, 2017 Fair Value Measurements
	Level 1		Level 2		Level 3		Total
Assets:
Bank certificates of deposits	$	—	$	248	$	—	$	248
Money market funds	—		216,358		—		216,358
Equity securities (Note 10)	37,530		—		—		37,530
Mutual funds	—		59		—		59
Deferred compensation investments (life insurance cash surrender value)	—		14,887		—		14,887		*
	$	37,530	$	231,552	$	—	$	269,082
Liabilities:
Deferred executive compensation liability (Note 15(f))	$	—	$	11,038	$	—	$	11,038	*
Drug development liability (Note 14)	—		—		12,386		12,386
Talon CVR (Note 9(a))	—		—		6,210		6,210
Corixa Liability (Note 15(b)(i))	—		—		62		62
	$	—	$	11,038	$	18,658	$	29,696

* The reported amount of “deferred compensation investments” is based on the cash surrender value of (ex)employee life insurance policies at period-end, while the reported amount of “deferred executive compensation liability” is based on the period-end market value of investments selected by plan participants.

We did not have any transfers between “Level 1” and “Level 2” (see Note 2(xiii)) for all periods presented.

The table below summarizes the 2017 and 2018 activity of our liabilities that are valued with unobservable inputs:

	Fair Value Measurements of Unobservable Inputs (Level 3)
Balance as of December 31, 2016	$	14,445
FOLOTYN development liability (see Note 14)	(744		)
Talon CVR fair value adjustment - MARQIBO (see Note 9(a))	4,957
Balance as of December 31, 2017	18,658
FOLOTYN development liability (see Note 14)	(195		)
Talon CVR fair value adjustment - MARQIBO (see Note 9(a))	483
Balance as of June 30, 2018	$	18,946

* This amount is comprised of the current and non-current portions of “FOLOTYN development liability” and the non-current portion of “acquisition-related contingent obligations” on our accompanying Condensed Consolidated Balance Sheets.

Our carrying amounts of financial instruments such as cash equivalents, accounts receivable, prepaid expenses, accounts payable, and accrued liabilities, excluding acquisition-related contingent obligations, approximate their related fair values due to their short-term nature.

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Business Combinations and Contingent Consideration

6 Months Ended

Jun. 30, 2018

Business Combinations [Abstract]

Business Combinations and Contingent Consideration

BUSINESS COMBINATIONS AND CONTINGENT CONSIDERATION

(a) Acquisition of Talon Therapeutics, Inc.

Overview of Talon Acquisition

On July 17, 2013, we purchased all of the outstanding shares of common stock of Talon Therapeutics, Inc. (“Talon”). Through the acquisition of Talon, we gained worldwide rights to MARQIBO. The Talon purchase consideration consisted of (i) an aggregate upfront cash amount of $11.3 million, (ii) issuance of 3.0 million shares of our common stock, then equivalent to $26.3 million (based on a closing price of $8.77 per share on July 17, 2013), and (iii) the issuance of a contingent value right (“CVR”) initially valued at $6.5 million.

The CVR was valued using a valuation model that probability-weights expected outcomes (ranging from 50% to 100%) and discounts those amounts to their present value, using an appropriate discount rate (these represent unobservable inputs and are therefore classified as Level 3 inputs – see Note 2 (xiii)). The CVR has a maximum payout of $195 million if all sales and regulatory approval milestones are achieved, as summarized below:

• $5 million upon the achievement of net sales of MARQIBO in excess of $30 million in any calendar year

• $10 million upon the achievement of net sales of MARQIBO in excess of $60 million in any calendar year

• $25 million upon the achievement of net sales of MARQIBO in excess of $100 million in any calendar year

• $50 million upon the achievement of net sales of MARQIBO in excess of $200 million in any calendar year

• $100 million upon the achievement of net sales of MARQIBO in excess of $400 million in any calendar year; and

• $5 million upon receipt of marketing authorization from the FDA regarding Menadione Topical Lotion

Talon CVR Fair Value as of June 30, 2018 and December 31, 2017

The CVR fair value will continue to be evaluated on a quarterly basis. Current and future changes in its fair value results from the likelihood and timing of milestone achievement and/or the corresponding discount rate applied thereon. Adjustments to CVR fair value are recognized within “change in fair value of contingent consideration related to acquisitions” in the accompanying Condensed Consolidated Statements of Operations.

	Fair Value of Talon CVR
December 31, 2017	$	6,210
Fair value adjustment for the six months ended June 30, 2018	483
June 30, 2018	$	6,693

(b) Acquisition of Rights to EVOMELA and Related Contingent Consideration

Overview of Acquisition of Rights to EVOMELA

In March 2013, we completed the acquisition of exclusive global development and commercialization rights to Captisol-enabled®, propylene glycol-free MELPHALAN (which we branded as “EVOMELA”) for use as a conditioning treatment prior to autologous stem cell transplant for patients with MM. We acquired these rights from CyDex a wholly-owned subsidiary of Ligand for an initial license fee of $3 million, and assumed responsibility for EVOMELA’s then-ongoing clinical and regulatory development program. We accounted for this transaction as a business combination, which required that assets acquired and liabilities assumed be recognized on the balance sheet at their fair values as of the transaction date.

We are required to pay Ligand additional amounts up to an aggregate $60 million upon the achievement of annual net sales thresholds (exclusive of the $6 million milestone payment triggered in March 2016, as discussed below), however, we do not expect to achieve these sales thresholds based on our estimated market size for this product and our projected market share at the time of the acquisition and to date. We also must pay Ligand royalties of 20% on our net sales of EVOMELA in all territories.

Our EVOMELA royalty obligation and sales-based milestones are jointly treated as part of an “executory contract” (as defined under GAAP) that is connected with an at-market supply agreement for Captisol that was executed concurrently with this acquisition (requiring the continuing involvement of CyDex). As a result, our royalty obligation and sales-based milestone arrangements are treated as separate transactions, distinct from the consideration for the EVOMELA rights. Our royalty expenses are reported through “cost of sales” in our Condensed Consolidated Statements of Operations in the same period of our recognized revenue for the product sale.

Consideration Transferred

The acquisition-date fair value of the consideration transferred consisted of the following:

Cash consideration	$	3,000
Ligand contingent consideration	4,700
Total purchase consideration	$	7,700

Fair Value Estimate of Asset Acquired and Liability Assumed

The total purchase consideration is allocated to the acquisition of the net tangible and intangible assets based on their estimated fair values as of the transaction date. The allocation of the total purchase price to the net assets acquired is as follows:

EVOMELA IPR&D rights $ 7,700

We estimated the fair value of the in-process research and development using the income approach. The income approach uses valuation techniques to convert future net cash flows to a single present value (discounted) amount.  We applied our net cash flow projections for EVOMELA over 10 years and a discount rate of 25%, taking into account our estimates of future incremental earnings that may be achieved upon regulatory approval and commercialization of the product(s). The fair value of the Ligand Contingent Consideration (as defined below) liability was determined using the probability of success and the discounted cash flow method of the income approach (representing unobservable “Level 3” inputs (see Note 2(xiii))for regulatory and sales-based milestones due to Ligand upon achievement).

In March 2016, the FDA approved EVOMELA, triggering a $6 million milestone payment to Ligand (“Ligand Contingent Consideration”) that was paid in April 2016. “EVOMELA IPR&D” of $7.7 million was reclassified in April 2016 to “EVOMELA distribution rights” that is reported within “Intangible assets, net of accumulated amortization” in the accompanying Condensed Consolidated Balance Sheets as of June 30, 2018 (see Note 3(f)). Amortization related to this intangible asset commenced on April 1, 2016.

(c) Allos Acquisition

We acquired Allos Therapeutics, Inc. (“Allos”) in September 2012 for cash consideration of $205.2 million and assumed its FOLOTYN distribution rights (see Note 14). We accounted for this transaction as a business combination, which required that assets acquired and liabilities assumed be reported on our balance sheet at their fair values as of the transaction date. We have no ongoing contingent consideration obligations from this transaction.

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Out-License of Marqibo, Zevalin, & Evolema in China Territory

6 Months Ended

Jun. 30, 2018

Other Commitments [Abstract]

Out-License of Marqibo, Zevalin, & Evolema in China Territory

OUT-LICENSE OF MARQIBO, ZEVALIN, & EVOMELA IN CHINA TERRITORY

Overview of CASI Out-License

In September 2014, we executed three product out-license agreements with a perpetual term with CASI, a publicly-traded biopharmaceutical company (NASDAQ: CASI) with a primary focus on the China market (collectively, the “CASI Out-License”). Under the CASI Out-License, we granted CASI the exclusive rights to distribute ZEVALIN, MARQIBO, and EVOMELA (“CASI Out-Licensed Products”), in greater China (which includes Taiwan, Hong Kong and Macau). CASI is responsible for the development and commercialization of these drugs, including the submission of import drug registration applications to regulatory authorities and conducting any confirmatory clinical studies in greater China. We will provide CASI with future commercial supply of the CASI Out-Licensed Products under typical market terms. Our consideration consisted of CASI common stock in return for their distribution rights of ZEVALIN and EVOMELA, and a secured promissory note for their distribution rights of MARQIBO.

Our Ownership in CASI at June 30, 2018

Under certain conditions that expired in December 2017, we had a right to purchase additional shares of CASI common stock in order to maintain our post-investment ownership percentage if CASI issued additional securities. During 2017 and 2016, we acquired an additional 1.5 million and 4.6 million common shares of CASI, respectively, at par value. Our aggregate holding of 11.5 million CASI common shares as of June 30, 2018 represented an approximate 13.3% ownership, with a fair market value of $95.0 million (see Note 3(a)).

Proceeds Received from CASI in 2014

The proceeds we received in 2014, and its fair value on the CASI Out-License execution date, consisted of the following:

CASI common stock (5.4 million shares)	$	8,649	(a)
CASI secured promissory note, net of fair value discount ($1.5 million face value and 0.5% annual coupon)	1,310		(b)
Total consideration received, net of fair value discount	$	9,959	(c)

(a) Value determined based on the September 17, 2014 closing price of 5.4 million shares of CASI common stock on the NASDAQ Capital Market of $1.60 per share.

(b) Value estimated using the terms of the $1.5 million promissory note, the application of a synthetic debt rating based on CASI’s publicly-available financial information, and the prevailing interest yields on similar public debt securities as of September 17, 2014. This full balance was reclassified beginning December 31, 2017 to “other assets” (presented within non-current assets on the accompanying Condensed Consolidated Balance Sheets) from “other receivables” (presented within current assets) due to an amended maturity date of September 17, 2019.

(c) Presented within “license fees and service revenue” in the Consolidated Statements of Operations for the year ended December 31, 2015 (see below).

In addition, CASI will be responsible for paying any royalties or milestones that we are obligated to pay to our third-party licensors resulting from the achievement of certain milestones and/or sales of CASI Out-Licensed Products, but only to the extent of the greater China portion of such royalties or milestones.

License Fee Revenue Recognized in 2015

The $9.7 million value of the upfront proceeds (undiscounted, and net of certain foreign exchange adjustments) from CASI were recognized in 2015 within “license fees and service revenue” on our Consolidated Statements of Operations. The delayed timing of this revenue recognition corresponded with the execution of certain supply agreements with CASI for ZEVALIN, MARQIBO, and EVOMELA. These agreements allow CASI to procure CASI Out-Licensed Products directly from approved third parties, and in such case, do not require our future involvement for its commercial supply.

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Out-License Of Zevalin In Certain Ex-U.S. Territories

6 Months Ended

Jun. 30, 2018

Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]

Out-License Of Zevalin In Certain Ex-U.S. Territories

OUT-LICENSE OF MARQIBO, ZEVALIN, & EVOMELA IN CHINA TERRITORY

Overview of CASI Out-License

In September 2014, we executed three product out-license agreements with a perpetual term with CASI, a publicly-traded biopharmaceutical company (NASDAQ: CASI) with a primary focus on the China market (collectively, the “CASI Out-License”). Under the CASI Out-License, we granted CASI the exclusive rights to distribute ZEVALIN, MARQIBO, and EVOMELA (“CASI Out-Licensed Products”), in greater China (which includes Taiwan, Hong Kong and Macau). CASI is responsible for the development and commercialization of these drugs, including the submission of import drug registration applications to regulatory authorities and conducting any confirmatory clinical studies in greater China. We will provide CASI with future commercial supply of the CASI Out-Licensed Products under typical market terms. Our consideration consisted of CASI common stock in return for their distribution rights of ZEVALIN and EVOMELA, and a secured promissory note for their distribution rights of MARQIBO.

Our Ownership in CASI at June 30, 2018

Under certain conditions that expired in December 2017, we had a right to purchase additional shares of CASI common stock in order to maintain our post-investment ownership percentage if CASI issued additional securities. During 2017 and 2016, we acquired an additional 1.5 million and 4.6 million common shares of CASI, respectively, at par value. Our aggregate holding of 11.5 million CASI common shares as of June 30, 2018 represented an approximate 13.3% ownership, with a fair market value of $95.0 million (see Note 3(a)).

Proceeds Received from CASI in 2014

The proceeds we received in 2014, and its fair value on the CASI Out-License execution date, consisted of the following:

CASI common stock (5.4 million shares)	$	8,649	(a)
CASI secured promissory note, net of fair value discount ($1.5 million face value and 0.5% annual coupon)	1,310		(b)
Total consideration received, net of fair value discount	$	9,959	(c)

(a) Value determined based on the September 17, 2014 closing price of 5.4 million shares of CASI common stock on the NASDAQ Capital Market of $1.60 per share.

(b) Value estimated using the terms of the $1.5 million promissory note, the application of a synthetic debt rating based on CASI’s publicly-available financial information, and the prevailing interest yields on similar public debt securities as of September 17, 2014. This full balance was reclassified beginning December 31, 2017 to “other assets” (presented within non-current assets on the accompanying Condensed Consolidated Balance Sheets) from “other receivables” (presented within current assets) due to an amended maturity date of September 17, 2019.

(c) Presented within “license fees and service revenue” in the Consolidated Statements of Operations for the year ended December 31, 2015 (see below).

In addition, CASI will be responsible for paying any royalties or milestones that we are obligated to pay to our third-party licensors resulting from the achievement of certain milestones and/or sales of CASI Out-Licensed Products, but only to the extent of the greater China portion of such royalties or milestones.

License Fee Revenue Recognized in 2015

The $9.7 million value of the upfront proceeds (undiscounted, and net of certain foreign exchange adjustments) from CASI were recognized in 2015 within “license fees and service revenue” on our Consolidated Statements of Operations. The delayed timing of this revenue recognition corresponded with the execution of certain supply agreements with CASI for ZEVALIN, MARQIBO, and EVOMELA. These agreements allow CASI to procure CASI Out-Licensed Products directly from approved third parties, and in such case, do not require our future involvement for its commercial supply.

Mundipharma [Member]

Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]

Out-License Of Zevalin In Certain Ex-U.S. Territories

OUT-LICENSE OF ZEVALIN IN CERTAIN EX-U.S. TERRITORIES

In November 2015, we entered into an out-license agreement with Mundipharma for its commercialization of ZEVALIN in Asia (excluding India and greater China), Australia, New Zealand, Africa, the Middle East, and Latin America (including the Caribbean). In return, we received $18 million (comprised of $15 million received in December 2015 and $3 million received in January 2016). Of these proceeds, $15 million was recognized and reported within “license fees and service revenue” in the fourth quarter of 2015, and the remaining $3 million payment was recognized in full by June 30, 2017.

In April 2018, we received $2 million due to Mundipharma’s achievement of a specified sales milestone which was recognized in the first quarter of 2018 and reported within “license fees and service revenue” on our accompanying Condensed Consolidated Statements of Operations for the six months ended June 30, 2018 (see Note 5). Mundipharma is required to reimburse us for our payment of royalties due to Bayer Pharma AG (“Bayer”) from its ZEVALIN sales - see Note 15(b)(ii).

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Co-Promotion Arrangement With Eagle Pharmaceuticals

6 Months Ended

Jun. 30, 2018

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Co-Promotion Arrangement With Eagle Pharmaceuticals

CO-PROMOTION ARRANGEMENT WITH EAGLE PHARMACEUTICALS

In November 2015, we executed an agreement with Eagle Pharmaceuticals, Inc. (“Eagle”) whereby designated members of our sales force will concurrently market up to six of Eagle’s products along with our products, in return for fixed monthly payments (aggregating $12.8 million), as well as variable sales-based milestones, over an 18 month contract term that commenced on January 1, 2016 and ended on June 30, 2017 (the “Eagle Agreement”). On July 1, 2017, our sales force ceased marketing Eagle products and the Eagle Agreement expired under its terms.

The fixed receipts from Eagle for our sales activities, as well as reimbursements of third-party marketing services, are recognized within “license fees and service revenue” on our accompanying Condensed Consolidated Statements of Operations, and was $2.4 million and $4.7 million for the three and six months ended June 30, 2017. No sales-based milestones were achieved.

An allocation of our sales personnel costs that are dedicated to Eagle sales activities are reported within “cost of service revenue” on our accompanying Condensed Consolidated Statements of Operations, as are reimbursable costs for Eagle marketing activities. These were an aggregate $2.1 million and $4.2 million for the three and six months ended June 30, 2017.

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Convertible Senior Notes

6 Months Ended

Jun. 30, 2018

Debt Disclosure [Abstract]

Convertible Senior Notes

CONVERTIBLE SENIOR NOTES

Overview of Convertible Notes and Conversion Hedge

On December 17, 2013, we entered into an agreement for the sale of $120 million aggregate principal amount of 2.75% Convertible Senior Notes (equaling 120,000 notes, denominated in $1,000 principal units) due December 2018 (the “2018 Convertible Notes”). As of June 30, 2018 and December 31, 2017, $40.6 million of principal of the 2018 Convertible Notes was outstanding due to our open market purchases discussed below.

The 2018 Convertible Notes are convertible into shares of our common stock at a conversion rate of 95 shares per $1,000 principal units, equating to 3.9 million common shares if fully converted at June 30, 2018. The in-the-money conversion price is equivalent to $10.53 per common share. The conversion rate and conversion price is subject to adjustment under certain limited circumstances. The 2018 Convertible Notes bear interest at a rate of 2.75% per year, payable semiannually in arrears on June 15 and December 15 of each year. The 2018 Convertible Notes will mature and become payable on December 15, 2018, subject to earlier conversion into common stock at the holders’ option.

The sale of the 2018 Convertible Notes closed on December 23, 2013 and we received net proceeds of $115.4 million, after deducting banker and professional fees of $4.6 million. We used a portion of these net proceeds to simultaneously enter into “bought call” and “sold warrant” transactions with Royal Bank of Canada (collectively, the “Conversion Hedge”). We recorded the Conversion Hedge on a net cost basis of $13.1 million, as a reduction to “additional paid-in capital” in our accompanying Condensed Consolidated Balance Sheets. Under applicable GAAP, the Conversion Hedge transaction has not been (and is not expected to be) marked-to-market through earnings or comprehensive income.

On and after June 15, 2018, and until the close of business on the second scheduled trading day immediately preceding the maturity date, holders may convert all or a portion of their 2018 Convertible Notes. Our stockholders’ approved “flexible settlement” at our Annual Meeting of Stockholders on June 29, 2015. As a result, we may (at our election) settle any future conversions of the 2018 Convertible Notes by paying or delivering cash, shares of our common stock, or a combination of cash and shares of common stock. However, if the holders of the 2018 Convertible Notes do not elect to convert into shares of our common stock, our December 2018 obligation to repay the principal amount of $40.6 million in cash, plus any accrued and unpaid interest, will remain unchanged.

Open Market Purchases of 2018 Convertible Notes and Conversion Hedge Unwind in December 2016 and October 2017

In December 2016, we completed two open market purchases of our 2018 Convertible Notes, aggregating 9,963 note units (equivalent to $10 million principal value) for $9.0 million. We recognized an aggregate loss of $25 thousand on the retirement of these 2018 Convertible Notes (based on its carrying value under GAAP), which is included in “other income (expense), net” on the Consolidated Statements of Operations for the year ended December 31, 2016. Concurrent with these two open market purchases in December 2016, we unwound a portion of our previously sold warrants and previously purchased call options (which were part of our Conversion Hedge described below) for aggregate net proceeds of $21 thousand. We recorded a corresponding net increase to “additional paid-in capital” in the Consolidated Balance Sheets as of December 31, 2016.

In October 2017, we completed an additional open market purchase of our 2018 Convertible Notes, aggregating 69,472 note units (equivalent to $69.5 million principal value) for $27.3 million in cash and 5.4 million newly-issued shares of our common stock, then worth $73 million. We recognized a loss of $0.8 million on the retirement of these 2018 Convertible Notes (based on its carrying value under GAAP), which was included in “other (expense) income, net” on the Consolidated Statements of Operations for the year ended December 31, 2017. Accordingly, as of June 30, 2018 and December 31, 2017, $40.6 million in principal of our 2018 Convertible Notes remained outstanding.

Concurrent with this open market purchase in October 2017, we also unwound a portion of the previously sold warrants and previously purchased call options that were part of our Conversion Hedge for aggregate net proceeds of $5.8 million. We recorded a corresponding net increase to “additional paid-in capital” in the Consolidated Balance Sheets as of December 31, 2017.

We entered into Conversion Hedge transactions in December 2013 to reduce the potential dilution to our stockholders and/or offset any cash payments that we are required to make in excess of the principal amount, upon conversion of the 2018 Convertible Notes (in the event that the market price of our common stock is greater than the conversion price). The strike price of the “bought call” is equal to the conversion price and conversion rate of the 2018 Convertible Notes (at such time, it matched the 11.4 million common shares into which the holders could convert the 2018 Convertible Notes); the strike price of our “sold warrant” is $14.03 per share of our common stock, and is also for 11.4 million common shares (reduced by the partial unwinding of these instruments, as discussed above).

Carrying Value and Fair Value of 2018 Convertible Notes at June 30, 2018 and December 31, 2017

The carrying value of the 2018 Convertible Notes as of June 30, 2018 and December 31, 2017, is summarized as follows:

	June 30, 2018			December 31, 2017
Principal amount	$	40,565		$	40,565
(Less): Unamortized debt discount (amortized through December 2018)	(1,022		)	(2,101		)
(Less): Debt issuance costs	(116		)	(240		)
Carrying value	$	39,427		$	38,224

As of June 30, 2018 and December 31, 2017, the estimated aggregate fair value of the 2018 Notes is $81.0 million and $74.3 million, respectively. These estimated fair values represent a Level 2 measurement (see Note 2(xiii)), based upon the 2018 Convertible Notes quoted bid price at each date in a thinly-traded market.

Components of Interest Expense on 2018 Convertible Notes

The following table sets forth the components of interest expense recognized in the accompanying Condensed Consolidated Statements of Operations for the 2018 Convertible Notes for the three and six months ended June 30, 2018 and 2017: 

	Three months ended June 30,						Six months ended June 30,
	2018			2017			2018			2017
Contractual coupon interest expense	$	279		$	757		$	558		$	1,513
Amortization of debt issuance costs	62			155			124			321
Accretion of debt discount	545			1,412			1,079			2,794
Total	$	886		$	2,324		$	1,761		$	4,628
Effective interest rate	8.41		%	8.65		%	8.41		%	8.65		%

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FOLOTYN License Agreement And Development Liability

6 Months Ended

Jun. 30, 2018

Business Combinations [Abstract]

FOLOTYN License Agreement And Development Liability

FOLOTYN LICENSE AGREEMENT AND DEVELOPMENT LIABILITY

As the result of our acquisition of Allos Therapeutics, Inc. on September 5, 2012 (see Note 9(c)), we assumed a strategic collaboration agreement with Mundipharma (as amended and/or restated, the “Mundipharma Collaboration Agreement”), as well as certain FOLOTYN clinical development obligations (the “FOLOTYN Development Liability”).

Mundipharma Collaboration Agreement Summary

Under the Mundipharma Collaboration Agreement, we retained full commercialization rights for FOLOTYN in the United States and Canada, with Mundipharma having exclusive rights to commercialize FOLOTYN in all other countries in the world (the “Mundipharma Territories”). On May 29, 2013, the Mundipharma Collaboration Agreement was amended and restated, in order to modify: (i) the scope of the licensed territory, (ii) milestone payments, (iii) royalty rates, and (iv) drug development obligations. In connection with the amendment and restatement of the Mundipharma Collaboration Agreement, we received a one-time $7 million payment from Mundipharma for certain research and development activities to be performed by us.

As a result of the amendment and restatement of the Mundipharma Collaboration Agreement, (a) Europe and Turkey were excluded from Mundipharma’s commercialization territory, (b) we may receive regulatory milestone payments of up to $16 million, and commercial progress and sales-dependent milestone payments of up to $107 million (see Note 15(b)(vii) for July 2017 achievement), (c) we will receive tiered double-digit royalties based on net sales of FOLOTYN within Mundipharma’s licensed territories, and (d) we and Mundipharma will each bear our own FOLOTYN development costs. Effective as of May 1, 2015, we modified the Mundipharma Collaboration Agreement to revise the conditions for our exercise of the option to gain commercialization rights in Switzerland from Mundipharma, as well as royalties payable to us (in the tiered double-digits) on Mundipharma’s net sales in Switzerland.

FOLOTYN Development Liability

The fair value of the FOLOTYN Development Liability within the accompanying Consolidated Balance Sheets was estimated using the discounted income approach model. The unobservable inputs (i.e., “Level 3” inputs - see Note 2(xiii)) in this valuation model that have the most significant effect on these liabilities include (i) estimates of research and development personnel costs needed to perform the research and development services contractually required, (ii) estimates of expected cash outflows to third parties for these clinical services and supplies during the expected period of performance through 2031, and (iii) an appropriate discount rate for these expenditures. These inputs are reviewed by management on a quarterly basis for continued applicability.

We adjust this liability at each quarter-end, with corresponding adjustments for incurred costs recorded as credits to “research and development” expense in our accompanying Condensed Consolidated Statements of Operations. 

	FOLOTYN Development Liability, Current			FOLOTYN Development Liability, Long Term			FOLOTYN Development Liability, Total
Balance as of December 31, 2017	$	275		$	12,111		$	12,386
Transfer from long-term to current in 2018	131			(131		)	—
(Less): Expenses incurred in 2018	(195		)	—			(195		)
Balance as of June 30, 2018	$	211		$	11,980		$	12,191

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Financial Commitments & Contingencies And License Agreements

6 Months Ended

Jun. 30, 2018

Commitments and Contingencies Disclosure [Abstract]

Financial Commitments & Contingencies And License Agreements

FINANCIAL COMMITMENTS & CONTINGENCIES AND LICENSE AGREEMENTS

(a) Facility Leases

We lease our principal executive office in Henderson, Nevada under a non-cancelable operating lease expiring April 30, 2019. We also lease our research and development facility in Irvine, California under a non-cancelable operating lease expiring May 31, 2019, in addition to several other administrative office leases. Each lease agreement contains scheduled rent increases which are accounted for on a straight-line basis.

(b) In/Out Licensing Agreements and Co-Development Arrangements

The in-license agreements for our commercialized and development-stage drug products provide us with territory-specific rights to their manufacture and distribution (including further sub-licensing/out-licensing, rights). We are generally responsible for all related clinical development costs, patent filings and maintenance costs, marketing costs, and liability insurance costs. We are also obligated to make specified milestone payments to our licensors upon the achievement of certain regulatory and sales milestones, and to pay royalties based on our net sales of all in-licensed products. We also enter into out-license agreements for territory-specific rights to our drug products which include one or more of: upfront license fees, royalties from our licensees’ sales, and/or milestone payments from our licensees’ sales or regulatory achievements. For certain development-stage drug products, we may enter into cost-sharing arrangements with our licensees and licensors.

Our most significant of these agreements, and the key financial terms and our accounting for each, are summarized below:

(i) ZEVALIN U.S.: In-Licensing and Development in the United States

In December 2008, we acquired rights to commercialize and develop ZEVALIN in the United States as the result of a transaction with Cell Therapeutics, Inc. through our wholly-owned subsidiary, RIT Oncology LLC. In accordance with the terms of assumed contracts, we are required to meet specified payment obligations, including a milestone payment to Corixa Corporation of $5 million based on ZEVALIN sales in the United States. This milestone has not yet been met, and $0.1 million for this potential milestone achievement is included within “acquisition-related contingent obligations” in our accompanying Condensed Consolidated Balance Sheets as of June 30, 2018 and December 31, 2017, respectively. Our U.S. net sales-based royalties are in the low to mid-single digits to Genentech, Inc. and mid-teens to Biogen.

(ii) ZEVALIN Ex-U.S.: In-License and Asset Purchase Agreement with Bayer Pharma

In April 2012, through our wholly-owned subsidiary, Spectrum Pharmaceuticals Cayman, L.P., we completed a €19 million acquisition of licensing rights to market ZEVALIN outside of the United States from Bayer. ZEVALIN is currently approved in approximately 40 countries outside the United States for the treatment of B-cell NHL, including countries in Europe, Latin America, and Asia.

We amended the agreement in February 2016, which adjusted our tiered royalty to Bayer from the single-digits to 20%. The term of the agreement, as amended, continues until the expiration of the last-to-expire ZEVALIN patent in the relevant country, or 15 years from the date of first commercial sale of ZEVALIN in such country, whichever is longer.

(iii) ZEVALIN Ex-U.S.: Out-License Agreement with Dr. Reddy’s

In June 2014, we executed an exclusive License Agreement with Dr. Reddy’s Laboratories Ltd. (“Dr. Reddy’s”) for ZEVALIN distribution rights within India. The agreement term is 15 years from the receipt of pending approval of ZEVALIN from the Drug Controller General of India. In December 2014, upon our execution of a drug supply agreement, an upfront and non-refundable payment of $0.5 million was triggered and paid to us in February 2015. The recognition of the applicable portion of this upfront receipt is no longer reported on a straight-line basis within “license fees and service revenue” on our accompanying Condensed Consolidated Statements of Operations, due to the adoption of Topic 606 as of January 1, 2018 (see Note 2(i)). Additionally, sales and regulatory milestones, each aggregating $1.5 million (for a total of $3 million if both achieved) are due to us upon Dr. Reddy’s achievement, as well as a 20% royalty on its net sales of ZEVALIN in India.

(iv) ZEVALIN Ex-U.S.: Out-License Agreement with Mundipharma

In November 2015, we entered into an out-license agreement with Mundipharma for its commercialization of ZEVALIN in Asia (excluding India and Greater China), Australia, New Zealand, Africa, the Middle East, and Latin America (including the Caribbean islands). In return, we received $18 million (comprised of $15 million received in December 2015 and $3 million received in January 2016). Of these proceeds, $15 million was recognized within “license fees and service revenue” in the fourth quarter of 2015, and the remaining $3 million payment was recognized in full by June 30, 2017. Mundipharma is required to reimburse us for our payment of royalties due to Bayer from its ZEVALIN sales (see Note 15(b)(ii)).

In March 2018, Mundipharma achieved a specified sales milestone, resulting in a $2 million receipt due to us (subsequently received in April 2018); this amount was recognized within “license fees and service revenue” on our accompanying Condensed Statements of Operations for the six months ended June 30, 2018 (see Note 5).

(v) FUSILEV: In-License Agreement with Merck & Cie AG

In May 2006, we amended and restated a license agreement with Merck & Cie AG (“Merck”), which we assumed in connection with our March 2006 acquisition of the assets of Targent, Inc. This provided us with an exclusive license to use regulatory filings related to FUSILEV, and a non-exclusive license under certain patents and know-how to develop, manufacture, and sell FUSILEV in the field of oncology in North America.

The contractual royalty percentage on our FUSILEV net sales due to Merck is set at the mid-single digits; however, in September 2017, we paid Merck $2.6 million in full settlement of all royalty obligations under the agreement. We are no longer contractually obligated to pay Merck any royalties on our future net sales of FUSILEV, though we remain obligated to remit a $0.2 million payment upon FDA approval of our oral form of FUSILEV. This regulatory milestone has not been met, and no amounts have been accrued in our accompanying Condensed Consolidated Balance Sheets for its potential achievement.

(vi) FOLOTYN: In-License Agreement with Sloan-Kettering Institute, SRI International and Southern Research Institute

In December 2002, Allos entered into an in-license agreement for the drug now marketed as FOLOTYN with Sloan-Kettering Institute for Cancer Research, SRI International, and Southern Research Institute. We assumed this agreement when we acquired Allos in September 2012. The agreement provides for our exclusive worldwide rights to a portfolio of patents and patent applications related to FOLOTYN, though we are required to fund certain drug development programs. In addition, we pay graduated royalties to our licensors based on our worldwide annual net sales of FOLOTYN (including our sub- licensees). These royalties are 8% of annual worldwide net sales up to $150 million; 9% of annual worldwide net sales of $150 million through $300 million; and 11% of annual worldwide net sales in excess of $300 million.

(vii) FOLOTYN: Out-License Agreement with Mundipharma

As a result of our acquisition of Allos (see Note 10(c)), we assumed “the Mundipharma Collaboration Agreement” as well as certain FOLOTYN clinical development obligations. Under the Mundipharma Collaboration Agreement (see Note 15), we retained full commercialization rights for FOLOTYN in the United States and Canada, with Mundipharma having exclusive rights to commercialize FOLOTYN in all other countries in the world, except in Europe and Turkey. We are contractually entitled to receive regulatory and sales milestone payments from Mundipharma upon its achievement of such milestones, which aggregate $16 million and $107 million, respectively, as well as tiered double-digit royalties on Mundipharma’s net sales.

In July 2017, FOLOTYN was approved in Japan for the treatment of adult patients with relapsed or refractory peripheral T-cell lymphoma. Consequently, we received $3 million from Mundipharma in August 2017 for this milestone achievement. This amount was recognized within “license fees and service revenue” on our Consolidated Statements of Operations for the year ended December 31, 2017.

In August 2017, FOLOTYN was commercially launched in Japan. This triggered a contractual milestone of $2.0 million from Mundipharma. This amount was recorded within “license fees and service revenue” on our Consolidated Statements of Operations for the year ended December 31, 2017.

(viii) EVOMELA: In-License Agreement with CyDex Pharmaceuticals, Inc.

In March 2013, we completed the acquisition of exclusive global development rights to EVOMELA from CyDex, a wholly-owned subsidiary of Ligand (see Note 9(b)), and assumed responsibility for its then-ongoing clinical and regulatory development program. We filed a New Drug Application (“NDA”) with the FDA in December 2015 for its use as a conditioning treatment prior to autologous stem cell transplant for patients with MM, and in March 2016, the FDA communicated its approval. Consequently, we made a $6 million contractual milestone payment to Ligand in April 2016. We reclassified $7.7 million from “EVOMELA IPR&D rights” to “EVOMELA distribution rights” which is presented within “intangible assets, net of accumulated amortization and impairment charges” (see Note 3(f)) within our accompanying Condensed Consolidated Balance Sheets as of June 30, 2018.

We are required to pay Ligand additional amounts of up to $60 million (exclusive of the $6 million milestone paid in April 2016), upon our achievement of specified net sales thresholds. We are also responsible to pay Ligand royalties of 20% on our net sales of EVOMELA in all territories.

(ix) MARQIBO: Acquisition of Talon Therapeutics, Inc. and Related Contingent Consideration Agreement

In July 2013, we completed the acquisition of Talon, through which we obtained exclusive global development and commercialization rights to MARQIBO (see Note 9(a)). As part of this acquisition, the former Talon stockholders have contingent financial rights that we have valued and presented on our accompanying Condensed Consolidated Balance Sheets as a $6.7 million and $6.2 million liability within “acquisition-related contingent obligations” as of June 30, 2018 and December 31, 2017, respectively. The maximum payout value of the contingent financial rights to the former Talon shareholders is $195 million, assuming we achieve all sales and regulatory approval milestones. In addition, we are contractually obligated to pay royalties in the single digits on our net sales of MARQIBO and a portion of sublicensing revenue may be due upon our receipt of such revenue for MARQIBO.

(x) QAPZOLA: License Agreements with Allergan, Inc. and NDDO Research Foundation

In October 2008, we entered into an exclusive development and commercialization collaboration agreement with Allergan, Inc. (“Allergan”) for QAPZOLA pursuant to which Allergan paid us an up-front non-refundable fee of $41.5 million at execution (which we had recognized in full within “license fees and service revenue” by December 31, 2013).

Concurrently we also entered into a letter agreement with NDDO Research Foundation (“NDDO”), pursuant to which we agreed to pay NDDO the following in relation to QAPZOLA milestones: (a) upon FDA acceptance of our NDA, the issuance of 25,000 of our common shares (which occurred in March 2016 and the $0.1 million value of these shares was included in “research and development” expense for the year ended December 31, 2016), and (b) upon FDA approval, a one-time payment of $0.3 million (which has not yet been met, and no amounts have been accrued in our accompanying Consolidated Balance Sheets for its potential achievement).

In January 2013, we entered into a second amendment to the license, development, supply and distribution agreement with Allergan. This amendment relieved Allergan of its development and commercialization obligations and resulted in our acquisition of its rights in the United States, Europe, and other territories, in exchange for our agreement to pay a tiered single-digit royalty on our sales of certain products containing QAPZOLA.

(xi) QAPZOLA: Collaboration Agreement with Nippon Kayaku Co. LTD.

In November 2009, we entered into a collaboration agreement with Nippon Kayaku Co., LTD. (“Nippon Kayaku”) for the development and commercialization of QAPZOLA in Asia, except North and South Korea (the “Nippon Kayaku Territory”). In addition, Nippon Kayaku received exclusive rights to QAPZOLA for the treatment of NMIBC in the Nippon Kayaku Territory, including Japan and China. Nippon Kayaku will conduct QAPZOLA clinical trials in the Nippon Kayaku Territory pursuant to a development plan. Further, Nippon Kayaku will be responsible for all expenses relating to the development and commercialization of QAPZOLA in the Nippon Kayaku Territory.

Under the terms of this agreement, Nippon Kayaku paid us an upfront fee of $15 million (which we recognized within “license fees and service revenue” in full by December 31, 2013). Under the terms of the agreement, we are entitled to receive $10 million and $126 million from Nippon Kayaku upon the achievement of certain regulatory and commercialization milestones, respectively (some of which are our responsibility to achieve). Nippon Kayaku is also obligated to pay us royalties on its net sales of QAPZOLA in the mid-teen digits.

(xii) BELEODAQ: In-License and Collaboration Agreement with Onxeo

In February 2010, we entered into an in-license and collaboration agreement with TopoTarget A/S (now Onxeo DK) (“Onxeo”), for the development and commercialization of BELEODAQ, as amended in October 2013. We paid Onxeo an upfront fee of $30 million (and agreed to additional payments described below) for rights in North America and India, with an option for China. We are contractually obligated to pay royalties in the mid-teen digits on our net sales of BELEODAQ.

All development and studies of BELEODAQ are conducted under a joint development plan (of which we fund 70% and Onxeo funds 30%). We have final decision-making authority for all developmental activities in North America and India (and China upon exercise of its option). Onxeo has final decision-making authority for all developmental activities in all other jurisdictions. In February 2014, upon FDA acceptance of our NDA, we were contractually obligated to issue Onxeo one million shares of our common stock and to make a $10 million milestone payment. The aggregate value of this milestone at achievement was $17.8 million, and was recognized within “research and development” expense in the first quarter of 2014.

In July 2014, we received approval from the FDA for BELEODAQ’s use for injection and treatment of relapsed or refractory peripheral T-cell lymphoma. As a result, we made a second milestone payment to Onxeo of $25 million in November 2014. This amount was capitalized as “BELEODAQ distribution rights” and is presented within “intangible assets, net of accumulated amortization and impairment charges” (see Note 3(f)). We are also contractually obligated to pay Onxeo upon our achievements of other regulatory events and sales thresholds, up to $88 million and $190 million, respectively. These milestone amounts are not included within “total liabilities” in our accompanying Consolidated Balance Sheets.

(xiii) ROLONTIS: Co-Development and Commercialization Agreement with Hanmi Pharmaceutical Co. Ltd

In October 2014, we exercised our option under a License Option and Research Collaboration Agreement dated January 2012 (as amended) with Hanmi Pharmaceutical Co. Ltd., or Hanmi, for ROLONTIS (formerly referred to as “LAPS-G-CSF” or “SPI-2012”), a drug based on Hanmi’s proprietary LAPSCOVERY™ technology for the treatment of chemotherapy induced neutropenia. Under the terms of this agreement, as amended, we have primary financial responsibility for the ROLONTIS development plan and hold its worldwide rights (except for Korea, China, and Japan). We are contractually obligated to pay Hanmi royalties in the mid-teen digits on our net sales of ROLONTIS.

In January 2016, the first patient was dosed with ROLONTIS in a clinical trial. This triggered our contractual milestone payment to Hanmi, and in April 2016, we (i) issued 318,750 shares of our common stock, then valued at $2.3 million, and (ii) remitted a $0.4 million payment to the Internal Revenue Service (the IRS) on its behalf for related tax obligations. This aggregate $2.7 million value was recognized within “research and development” expense in our Consolidated Statements of Operations for the year ended December 31, 2016. We are responsible for further contractual payments upon our achievement of regulatory and sales milestones, up to $13 million and $225 million, respectively. These amounts are not included within “total liabilities” in our accompanying Condensed Consolidated Balance Sheets.

(xiv) Poziotinib: In-License Agreement with Hanmi and Exclusive Patent and Technology License Agreement with MD Anderson

In February 2015, we executed an in-license agreement with Hanmi for poziotinib, a pan-HER inhibitor in Phase 2 clinical trials, (which has also shown single agent activity in the treatment of various cancer types during Phase I studies, including breast, gastric, colorectal, and lung cancers), and made an upfront payment for these rights. This payment was recognized within “research and development” expense in the Consolidated Statements of Operations for the year ended December 31, 2015. We are also contractually obligated to pay Hanmi royalties in the low to mid-teen digits on our net sales of poziotinib.

Under the terms of this agreement, we received the exclusive rights to commercialize poziotinib, excluding Korea and China. Hanmi and its development partners are fully responsible for the completion of on-going Phase 2 trials in Korea. We are financially responsible for all other clinical studies. We are contractually obligated to make payments to Hanmi upon our achievement of certain regulatory and sales milestones, aggregating $33 million and $325 million, respectively, which are not included within “total liabilities” in our accompanying Condensed Consolidated Balance Sheets. We will pay Hanmi royalties in the low to mid-teen digits on our net sales of poziotinib. These amounts are not included within “total liabilities” in our accompanying Condensed Consolidated Balance Sheets.

In April 2018, we we executed an exclusive patent and technology agreement for poziotinib’s use in treating patients with EGFR and HER2 exon 20 mutations in cancer and HER2 exon 19 mutations in cancer with The University of Texas M.D. Anderson Cancer Center (“MD Anderson”) that had discovered its use in treating these patient-types (“Exon 19/20 Patients”). We made an upfront payment of $0.5 million upon this agreement’s execution that was recognized within “research and development” expense in the accompanying Condensed Consolidated Statements of Operations for the three and six months ended June 30, 2018.

We are contractually obligated to make payments to MD Anderson upon our achievement of certain regulatory and sales milestones, aggregating $11 million and $23 million, respectively, which are not included within “total liabilities” in our accompanying Condensed Consolidated Balance Sheets. We will also pay MD Anderson royalties in the low single-digits on our net sales of poziotinib that relate to the treatment of Exon 19/20 Patients.

(xv) ZEVALIN, FOLOTYN, BELEODAQ, and MARQIBO: Out-License Agreement with Servier in Canada, Inc. in Canada

In January 2016, we entered into a strategic partnership with Servier Canada, Inc. (“Servier”) for the out-licenses of ZEVALIN, FOLOTYN, BELEODAQ, and MARQIBO. We received an aggregate $6 million of upfront proceeds in the first quarter of 2016, which was recognized within “license fees and service revenue” in our Consolidated Statements of Operations for the year ended December 31, 2016. We are also entitled to milestone receipts (aggregating $2.0 million) upon Servier’s achievement of specific regulatory approvals, and a high single-digit royalty on its sales of these products.

(c) Service Agreements

In connection with the research and development of our drug products, we have entered into contracts with numerous third party service providers, such as radio-pharmacies, distributors, clinical trial centers, clinical research organizations, data monitoring centers, and with drug formulation, development and testing laboratories. The financial terms of these agreements are varied and generally obligate us to pay in stages, depending on achievement of certain events specified in the agreements, such as contract execution, reservation of service or production capacity, actual performance of service, or the successful accrual and dosing of patients.

At each period end, we accrue for all services received, with such accruals based on factors such as estimates of work performed, patient enrollment, completion of patient studies and other events. Should we decide to discontinue and/or slow-down the work on any project, the associated costs for those projects would be limited to the extent of the work completed. Generally, we are able to terminate these contracts due to the discontinuance of the related project(s) and thus avoid paying for the services that have not yet been rendered.

(d) Supply Agreements

We have entered into certain supply agreements, or have issued purchase orders, which require us to make minimum purchases from vendors for the manufacture of our products. These commitments do not exceed our planned commercial requirements, and the contracted prices do not exceed their fair market value.

(e) Employment Agreements

We previously entered into an employment agreement with our former Chief Executive Officer, Rajesh C. Shrotriya, M.D., under which cash compensation and benefits would become payable in the event of termination by us for any reason other than cause, his resignation for good reason, or upon a change in control of our Company. Effective December 17, 2017, Dr. Shrotriya’s employment was terminated without cause. As of December 31, 2017, we accrued for all contractual cash amounts due and unpaid to him within “accrued payroll and benefits” on the accompanying Condensed Consolidated Balance Sheets.

We entered into new employment agreements with each of our named executive officers (CEO, COO, CFO, and CLO) in April and June 2018, which supersede any prior Change in Control Severance Agreements with such individuals. These new agreements provide for the payment of certain benefits to each executive upon his separation of employment under specified circumstances. These arrangements are designed to encourage each to act in the best interests of our stockholders at all times during the course of a change in control event or other significant transactions.

(f) Deferred Compensation Plan

The Spectrum Pharmaceuticals, Inc. Deferred Compensation Plan (the “DC Plan”) is administered by the Compensation Committee of our Board of Directors and is intended to comply with the requirements of Section 409A of the Internal Revenue Code of 1986, as amended.

The DC Plan is maintained to provide special benefits for a select group of our employees (the “DC Participants”). DC Participants make annual elections to defer a portion of their eligible cash compensation which is then placed into their DC Plan accounts. We match a fixed percentage of these deferrals, and may make additional discretionary contributions. At June 30, 2018 and December 31, 2017, the aggregate value of this DC Plan liability totaled $6.0 million and $11.0 million, respectively, and is included within “accounts payable and other accrued liabilities” and “other long-term liabilities” in the accompanying Condensed Consolidated Balance Sheets.

(g) Litigation

We are involved from time-to-time with various legal matters arising in the ordinary course of business. These claims and legal proceedings are of a nature we believe are normal and incidental to a pharmaceutical business, and may include product liability, intellectual property, employment matters, and other general claims.

We make provisions for liabilities when it is both probable that a liability has been incurred and the amount of the loss can be reasonably estimated. Such provisions are assessed at least quarterly and adjusted to reflect the impact of any settlement negotiations, judicial and administrative rulings, advice of legal counsel, and other information and events pertaining to a particular case. Litigation is inherently unpredictable. Although the ultimate resolution of these various matters cannot be determined at this time, we do not believe that such matters, individually or in the aggregate, will have a material adverse effect on our consolidated results of operations, cash flows, or financial condition.

Stockholder Litigation

Olutayo Ayeni v. Spectrum Pharmaceuticals, Inc., et al. (Filed September 21, 2016 in the United States District Court, Central District of California; Case No. 2:16-cv-07074) (the “Ayeni Action”) and Glen Hartsock v. Spectrum Pharmaceuticals, Inc., et al. (Filed September 28, 2016 in the United States District Court, District Court of Nevada Case; No. 2:16-cv-02279-RFB-GWF) (the “Hartsock Action”). On November 15, 2016, the Ayeni Action was transferred to the United States District Court for the District of Nevada. The parties have stipulated to a consolidation of the Ayeni Action with the Hartsock Action. These class action lawsuits allege that we and certain of our executive officers made false or misleading statements and failed to disclose material facts about our business and the prospects of approval for our NDA to the FDA for QAPZOLA in violation of Section 10(b) (and Rule 10b-5 promulgated thereunder) and 20(a) of the Securities Exchange Act of 1934, as amended. The plaintiffs seek damages, interest, costs, attorneys’ fees, and other unspecified equitable relief. We believe that these claims are without merit, and intend to vigorously defend against these claims. Furthermore, as of June 30, 2018, the value of a potential settlement cannot be reasonably estimated given its highly uncertain nature.

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Income Taxes

6 Months Ended

Jun. 30, 2018

Income Tax Disclosure [Abstract]

Income Taxes

INCOME TAXES

We apply an estimated annual effective tax rate (“ETR”) approach for calculating a tax provision for interim periods, as required under GAAP. We recorded a provision for income taxes of $0.0 million and $0.1 million for the six months ended June 30, 2018 and 2017, respectively. Our ETR differs from the U.S. federal statutory tax rate of 21% primarily as a result of nondeductible expenses, state income taxes, foreign income taxes, and the impact of a valuation allowance on our deferred tax assets.

Our provision for income taxes is computed using the asset and liability method, under which deferred tax assets and liabilities are recognized for the expected future tax consequences of temporary differences between the financial reporting and tax bases of assets and liabilities, and for the expected future tax benefit to be derived from tax loss and credit carryforwards.

Deferred tax assets and liabilities are determined using the enacted tax rates in effect for the years in which those tax assets are expected to be realized. A valuation allowance is established when it is more likely than not the future realization of all or some of the deferred tax assets will not be achieved. The evaluation of the need for a valuation allowance is performed on a jurisdiction by jurisdiction basis, and includes a review of all available positive and negative evidence.

We recognize the impact of a tax position in our financial statements only if that position is more likely than not to be sustained upon examination by taxing authorities, based on the technical merits of the position. Any interest and penalties related to uncertain tax positions will be reflected in income tax expense.

The intraperiod tax allocation rules require that we allocate the provision for income taxes between continuing operations and other categories of earnings. In prior periods where we have a year-to-date pre-tax loss from continuing operations and year-to-date pre-tax income in other categories of earnings, such as other comprehensive income, ASC 740-20-45-7 requires that we allocate the income tax provision to other categories of earnings, and then record a related tax benefit in continuing operations. For the three and six months ended June 30, 2017, we recognized net losses from investments and currency transactions within the Condensed Consolidated Statement of Comprehensive Income (Loss). As a result, during the quarter ended June 30, 2017, we reversed $0.2 million of tax benefit previously recognized during the three months ended March 31, 2017 pursuant to allocations under ASC 740-20-45-7 andrecorded tax expense of $0.3 million within “provision for income taxes” on the Condensed Consolidated Statements of Operations. Beginning January 1, 2018, as a result of the adoption of ASU 2016-01,and related reclassification of gains on investments in equity securities to the Consolidated Statements of Operations, we have recognized currency translation losses in our Condensed Consolidated Statement of Comprehensive Income (Loss). Thus, during the three and six months ended June 30, 2018, there has been no allocation of tax benefits to the Condensed Consolidated Statements of Operations pursuant to the required allocations under ASC 740-20-45-7.

On December 22, 2017, the U.S. government enacted comprehensive tax legislation commonly referred to as the Tax Cuts and Jobs Act (the “Tax Act”). Changes include, but are not limited to, a corporate tax rate decrease from 35% to 21% effective for tax years beginning in 2018, the transition of U.S. international taxation from a worldwide tax system to a territorial system, which includes a new federal tax on global intangible low-taxed income (Global Minimum Tax or GMT), and a one-time transition tax on the mandatory deemed repatriation of cumulative foreign earnings as of December 31, 2017.

The SEC Staff issued SAB 118, which provides guidance on accounting for the tax effects of the Tax Act. SAB 118 provides a measurement period that should not extend beyond one year from the Tax Act enactment date for companies to complete the accounting under ASC 740. In accordance with SAB 118, a company must reflect the income tax effects of those aspects of the Tax Act for which the accounting under ASC 740 is complete. To the extent that a company’s accounting for certain income tax effects of the Tax Act is incomplete but it is able to determine a reasonable estimate, it must record a provisional estimate in the financial statements. If a company cannot determine a provisional estimate to be included in the financial statements, it should continue to apply ASC 740 on the basis of the provisions of the tax laws that were in effect immediately before the enactment of the Tax Act.

At December 31, 2017, we were able to make reasonable estimates of certain effects and, therefore, recorded provisional adjustments. The provisional amounts described below are subject to revisions as we complete our analysis of the Tax Act, collect data, and interpret any additional guidance issued by the United States Treasury Department, Internal Revenue Service, or IRS, FASB, and other standard-setting and regulatory bodies. Adjustments to the provisional amounts may materially impact our consolidated income tax provision (benefit) and effective tax rates in the period(s) in which such adjustments are made. Our accounting for the tax effects of the Tax Act will be completed during the one-year measurement period.

Reduction of U.S. federal corporate tax rate: For certain of our deferred tax assets and deferred tax liabilities, we have recorded a provisional decrease in net deferred tax assets of $38.9 million, with a corresponding decrease in the valuation allowance of $41.4 million and a benefit to income tax expense of $2.5 million for the year ended December 31, 2017. This provisional estimate may be affected by other analyses related to the Tax Act, including, but not limited to, the state tax effect of adjustments made to federal temporary differences.

Deemed repatriation transition tax: Based upon our preliminary analysis, we have concluded that a net accumulated E&P deficit exists as of December 31, 2017 for our foreign subsidiaries. As a result, we did not accrue any provisional transition tax liabilities. We will continue to gather additional and perform additional analyses to more precisely determine past foreign earnings and related taxes and will update our provisional estimate with respect to the transition tax liability when such work is completed within the one-year measurement period.

Valuation allowance: The Tax Act limits the amount taxpayers are able to deduct for net operating loss carryforwards generated in taxable years beginning after December 31, 2017 to 80% of the taxpayer’s taxable income. However, net operating loss carryforwards generated in taxable years ending after December 31, 2017 can be carried forward indefinitely. A taxable temporary difference associated with an indefinite-lived asset is generally considered to be a source of taxable income to support realization of a net operating loss with an unlimited carryforward period. Due to the restriction on the ability to use the net operating loss with unlimited carryforward periods arising in taxable years beginning after December 31, 2017, only 80% of the indefinite-lived taxable temporary difference would serve as a source of taxable income. As a result, the valuation allowance decreased by $2.9 million related to the 80% utilization of the indefinite-lived taxable temporary as a source of taxable income.

Under GAAP, we are allowed to make an accounting policy choice with respect to the GMT of either (1) treating taxes due on future U.S. inclusions in taxable income related to GMT as a current-period expense when incurred or (2) as a component of deferred income taxes. We will make our accounting policy election for this item when our analysis is complete, during the measurement period.

Due to the valuation allowance on deferred tax assets, the was no net impact to the tax provision for income taxes arising from the Tax Act for the three and six months ended June 30, 2018.

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Stockholders' Equity

6 Months Ended

Jun. 30, 2018

Equity [Abstract]

Stockholders' Equity

STOCKHOLDERS’ EQUITY

Sale of Common Stock Under ATM Agreements

In December 2015 and August 2017, we entered into collective at-market-issuance sales agreements with FBR Capital Markets & Co., MLV & Co. LLC, and H.C. Wainwright & Co., LLC. (the “December 2015 ATM Agreement” and the “August 2017 ATM Agreement”, respectively). These agreements allowed us to raise aggregate gross proceeds through these brokers of up to $250 million from the sale of our common stock on the public market.

Through June 30, 2018, we had raised aggregate gross net proceeds of $202.1 million through these at-market sales, of which $128.3 million was raised during the year ended December 31, 2017. We are using these proceeds to continue to develop our product pipeline and to provide additional capital structure flexibility.

We sold and issued shares of our common stock under both the December 2015 ATM Agreement and August 2017 ATM Agreement, summarized as follows:

Description of Financing Transaction	No. of Common Shares Issued	Proceeds Received (Net of Broker Commissions and Fees )
Common shares issued pursuant to the December 2015 ATM Agreement during the year ended December 31, 2016	10,890,915	$	73,869
Common shares issued pursuant to the December 2015 ATM Agreement between July 1, 2017 and July 31, 2017	3,243,882	$	23,745
Common shares issued pursuant to the August 2017 ATM Agreement between August 1, 2017 and December 31, 2017	10,314,250	$	104,527

There were no sales of our common stock under the August 2017 ATM Agreement during the six months ended June 30, 2018.

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Immaterial Restatement Of Prior Period Financial Statements For Stock-Based Compensation

6 Months Ended

Jun. 30, 2018

Accounting Changes and Error Corrections [Abstract]

Immaterial Restatement Of Prior Period Financial Statements For Stock-Based Compensation

IMMATERIAL RESTATEMENT OF PRIOR PERIOD FINANCIAL STATEMENTS FOR STOCK-BASED COMPENSATION

Subsequent to the issuance of our unaudited interim financial statements for the quarter and year-to-date periods ended September 30, 2017, our management identified certain immaterial errors within previously reported operating expense captions of “selling, general, and administrative” and “research and development” that solely relate to our stock-based compensation recognition (see Note 6). These errors were primarily the result of an improper system setting during our 2012 implementation of our then-new stock-based compensation software. Consequently, incremental expense for the reversal of previously applied forfeiture estimates was not timely recognized upon the full vesting of each award, as required; this error persisted through September 30, 2017. We considered these errors from a qualitative and quantitative perspective, and concluded they were not material to each prior period. However, we have restated our accompanying Condensed Consolidated Financial Statements to correct for these immaterial errors for the prior-year interim period presented.

Restated Condensed Consolidated Statements of Operations for the three and six months ended June 30, 2017:

	Three Months Ended June 30, 2017						Six Months Ended June 30, 2017
	As Previously Reported			As Restated			As Previously Reported			As Restated
Operating costs and expenses:
Selling, general and administrative	$	17,107		$	17,421		$	35,715		$	36,525
Research and development	15,097			15,167			29,792			29,945
Total operating costs and expenses	52,526			52,910			102,957			103,920
Loss from operations	(18,225		)	(18,609		)	(39,555		)	(40,518		)
Loss before income taxes	(20,213		)	(20,597		)	(43,381		)	(44,344		)
Net loss	$	(20,468	)	$	(20,852	)	$	(43,435	)	$	(44,398	)
Net loss per share:
Basic	$	(0.26	)	$	(0.27	)	$	(0.55	)	$	(0.57	)
Diluted	$	(0.26	)	$	(0.27	)	$	(0.55	)	$	(0.57	)

Restated Condensed Consolidated Statements of Comprehensive Loss for the three and six months ended June 30, 2017:

	Three Months Ended June 30, 2017						Six Months Ended June 30, 2017
	As Previously Reported			As Restated			As Previously Reported			As Restated
Net loss	$	(20,468	)	$	(20,852	)	$	(43,435	)	$	(44,398	)
Total comprehensive loss	$	(22,627	)	$	(23,011	)	$	(43,635	)	$	(44,598	)

Other than for the correction to net loss and stock-based compensation, the restatement adjustments had no impact on cash flows from operating, investing, or financing activities for the six months ended June 30, 2017. Furthermore, such restatement adjustments had no impact to prior period total assets, total liabilities or total stockholders’ equity.

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New Revenue Recognition Standard

6 Months Ended

Jun. 30, 2018

Revenue from Contract with Customer [Abstract]

New Revenue Recognition

NEW REVENUE RECOGNITION STANDARD

As discussed in Note 2(i), Topic 606 became effective for us on January 1, 2018. We applied the “modified retrospective” transition method for the accounting of open contracts at implementation. This resulted in the recognition of an aggregate $4.7 million increase to our January 1, 2018 retained earnings (for the tax-effected cumulative impact of initially applying this new standard, with no adjustments to our prior period face financial statements). Our prior periods continue to be presented in accordance with our historical revenue accounting practices under Topic 605.

Had we continued to apply Topic 605 for our revenue recognition for the three and six months ended June 30, 2018, the “proforma” impact to our Condensed Consolidated Statements of Operations is presented in the table below:

	Three Months Ended June 30, 2018
	As Reported Under Topic 606			Adjustments			If Reported Under Topic 605
Revenue:
Product sales, net	$	23,753		$	1,165		$	24,918
License fees and service revenue	415			(56		)	359
Total revenues	$	24,168		$	1,109		$	25,277
Loss from operations	(34,311		)	1,109			(33,202		)
Loss before income taxes	13,747			1,109			14,856
Net income	$	13,744		$	1,109		$	14,853
Net income per share:
Basic	$	0.13		$	0.01		$	0.14
Diluted	$	0.13		$	0.01		$	0.14

	Six Months Ended June 30, 2018
	As Reported Under Topic 606			Adjustments		If Reported Under Topic 605
Revenue:
Product sales, net	51,863			1,562		53,425
License fees and service revenue	2,799			64		2,863
Total revenues	54,662			1,626		56,288
Loss from operations	(59,576		)	1,626		(57,950		)
Loss before income taxes	(2,068		)	1,626		(442		)
Net loss	(2,074		)	1,626		(448		)
Net loss per share:
Basic	$	(0.02	)	$	0.02	$	0.00
Diluted	$	(0.02	)	$	0.02	$	0.00

Had we continued to apply Topic 605 for our revenue recognition for the three and six months ended June 30, 2018, the “proforma” impact to our Condensed Consolidated Balance Sheets as of June 30, 2018 is presented in the table below.

	June 30, 2018
	As Reported Under Topic 606			Adjustments			If Reported Under Topic 605
Current assets:
Accounts receivable, net of allowance for doubtful accounts	27,658			38			27,696
Total current assets	$	309,520		$	38		$	309,558
Total assets	$	464,522		$	38		$	464,560
Current liabilities:
Deferred revenue	—			2,308			2,308
Total current liabilities	$	94,470		$	2,308		$	96,778
Deferred revenue, less current portion	—			282			282
Total liabilities	$	120,403		$	2,590		$	122,993
Stockholders’ equity:
Accumulated deficit	(481,948		)	(2,552		)	(484,500		)
Total stockholders’ equity	344,119			(2,552		)	341,567
Total liabilities and stockholders’ equity	$	464,522		$	38		$	464,560

Had we continued to apply Topic 605 for our revenue recognition for the six months ended June 30, 2018, the “proforma” impact to our Condensed Consolidated Statements of Cash Flows for the six months ended June 30, 2018 is presented in the table below:

	Six Months Ended June 30, 2018
	As Reported Under Topic 606			Adjustments			If Reported Under Topic 605
Net loss	$	(2,074	)	$	1,626		$	(448	)
Changes in operating assets and liabilities:
Accounts receivable, net	5,087			(38		)	5,049
Deferred revenue	—			1,588			1,588

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Description of Business, Basis of Presentation, and Operating Segment (Policies)

6 Months Ended

Jun. 30, 2018

Accounting Policies [Abstract]

Description of Business

Description of Business

Spectrum Pharmaceuticals, Inc. (“Spectrum”, the “Company”, “we”, “our”, or “us”) is a biopharma company, with a primary strategy comprised of acquiring, developing, and commercializing a broad and diverse pipeline of late-stage clinical and commercial products. We have an in-house clinical development organization with regulatory and data management capabilities, in addition to commercial infrastructure and a field-based sales force for our marketed products. Currently, we have six approved oncology/hematology products (FUSILEV, FOLOTYN, ZEVALIN, MARQIBO, BELEODAQ, and EVOMELA) that target different types of cancer including: non-Hodgkin’s lymphoma (“NHL”), advanced metastatic colorectal cancer, acute lymphoblastic leukemia, and multiple myeloma (“MM”).

We also have three drugs in mid-to-late stage development (in Phase 2 or Phase 3 clinical trials):

• poziotinib, a novel pan-HER inhibitor used in the treatment of patients with a variety of solid tumors, including breast and lung cancer;

• ROLONTIS for chemotherapy-induced neutropenia; and

• QAPZOLA for immediate intravesical instillation in post-transurethral resection of bladder tumors in patients with non-muscle invasive bladder cancer (“NMIBC”).

Basis of Presentation

Basis of Presentation

Interim Financial Statements

The interim financial data for the three and six months ended June 30, 2018 and 2017, respectively, is unaudited, and is not necessarily indicative of our operating results for a full year. In the opinion of our management, the interim data includes normal and recurring adjustments necessary for a fair presentation of our financial results for the three and six months ended June 30, 2018 and 2017. Certain information and footnote disclosures normally included in annual financial statements prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) have been condensed or omitted pursuant to the U.S. Securities and Exchange Commission (“SEC”) rules and regulations relating to interim financial statements. The accompanying Condensed Consolidated Financial Statements should be read in conjunction with our audited Consolidated Financial Statements and Notes thereto included within our Annual Report on Form 10-K for the fiscal year ended December 31, 2017 (filed with the SEC on March 7, 2018).

Principles of Consolidation

The accompanying Condensed Consolidated Financial Statements have been prepared in accordance with GAAP and with the rules and regulations of the SEC. These financial statements include the financial position, results of operations, and cash flows of Spectrum and its subsidiaries, all of which are wholly-owned (except for Spectrum Pharma Canada (“SPC”), as discussed below). All inter-company accounts and transactions among these legal entities have been eliminated in consolidation.

Variable Interest Entity

We own fifty-percent of SPC, a legal entity organized in Quebec, Canada in January 2008. Some of our clinical studies are conducted through this “variable interest entity” (as defined under applicable GAAP). We fund all of SPC’s operating costs, and since we assume all risks and rewards for this entity, we meet the criteria as being its “primary beneficiary.” Accordingly, SPC’s balance sheets and statements of operations are included in our Condensed Consolidated Financial Statements as if it were a wholly-owned subsidiary for all periods presented.

Operating Segment

Operating Segment

We operate in one reportable operating segment that is focused exclusively on developing and marketing oncology and hematology drug products. For the three and six months ended June 30, 2018 and 2017, all of our revenue and related expenses were solely attributable to these activities. Substantially all of our assets (excluding cash held in certain foreign bank accounts and ZEVALIN distribution rights for ex-U.S. territories - see Note 3(f)) are held in the United States.

Revenue Recognition

Revenue Recognition

Impact of the New Revenue Recognition Standard:ASU No. 2014-09, Revenue from Contracts with Customers (“Topic 606”), became effective for us on January 1, 2018. Our disclosure within the below sections to this footnote reflects our updated accounting policies that are affected by this new standard. We applied the “modified retrospective” transition method for open contracts for the implementation of Topic 606; thisresulted in the recognition of an aggregate $4.7 million, net of tax, decrease to our January 1, 2018 “accumulated deficit” on our accompanying Condensed Consolidated Balance Sheets for the cumulative impact of applying this new standard. We made no adjustments to our previously-reported total revenues, as those periods continue to be presented in accordance with our historical accounting practices under Topic 605, Revenue Recognition. See Notes 4, 5, and 19 for additional quantitative and qualitative revenue disclosures in accordance with Topic 606.

Required Elements of Our Revenue Recognition: Revenue from our (a) product sales, (b) out-license arrangements, and (c) service arrangements is recognized under Topic 606 in a manner that reasonably reflects the delivery of our goods and/or services to customers in return for expected consideration and includes the following elements:

(1) we ensure that we have an executed contract(s) with our customer that we believe is legally enforceable;

(2) we identify the “performance obligations” in the respective contract;

(3) we determine the “transaction price” for each performance obligation in the respective contract;

(4) we allocate the transaction price to each performance obligation; and

(5) we recognize revenue only when we satisfy each performance obligation.

    These five elements, as applied to each of our revenue categories, are summarized below:

(a) Product Sales: We sell our products to pharmaceutical wholesalers/distributors (i.e., our customers), except for our U.S. sales of ZEVALIN in which case the end-user (i.e., clinic or hospital) is our customer. Our wholesalers/distributors in turn sell our products directly to clinics, hospitals, and private oncology-based practices. Revenue from our product sales is recognized as physical delivery of product occurs (when our customer obtains control of the product), in return for agreed-upon consideration.

Our gross product sales (i.e., delivered units multiplied by the contractual price per unit) are reduced by our corresponding gross-to-net (“GTN”) estimates using the “expected value” method, resulting in our reported “product sales, net” in the accompanying Condensed Consolidated Statements of Operations, reflecting the amount we ultimately expect to realize in net cash proceeds, taking into account our current period gross sales and related cash receipts, and the subsequent cash disbursements on these sales that we estimate for the various GTN categories discussed below. These estimates are based upon information received from external sources (such as written or oral information obtained from our customers with respect to their period-end inventory levels and sales to end-users during the period), in combination with management’s informed judgments. Due to the inherent uncertainty of these estimates, the actual amount incurred (of some, or all) of product returns, government chargebacks, prompt pay discounts, commercial rebates, Medicaid rebates, and distribution, data, and GPO administrative fees may be materially above or below the amount estimated, then requiring prospective adjustments to our reported net product sales.

These GTN estimate categories are each discussed below:

Product Returns Allowances: Our FUSILEV, MARQIBO, and BELEODAQ customers are contractually permitted to return purchased products beginning at its expiration date and within six months thereafter. Our EVOMELA customers are permitted to return purchased product beginning at six months prior to its expiration date, and within 12 months thereafter (as well as for overstock inventory, as determined by end-users). ZEVALIN and FOLOTYN returns for expiry are not contractually permitted. Returns outside of this aforementioned criteria are not customarily allowed. We estimate expected product returns for our allowance based on our historical return rates. Returned product is typically destroyed, since substantially all returns are due to expiry and cannot be resold.

Government Chargebacks: Our products are subject to pricing limits under certain federal government programs (e.g., Medicare and 340B Drug Pricing Program). Qualifying entities (i.e., end-users) purchase products from our customers at their qualifying discounted price. The chargeback amount we incur represents the difference between our contractual sales price to our customer, and the end-user’s applicable discounted purchase price under the government program. There may be significant lag time between our reported net product sales and our receipt of the corresponding government chargeback claims from our customers.

Prompt Pay Discounts: Discounts for prompt payment are estimated at the time of sale, based on our eligible customers’ prompt payment history and the contractual discount percentage.

Commercial Rebates: Commercial rebates are based on (i) our estimates of end-user purchases through a group purchasing organization (“GPO”), (ii) the corresponding contractual rebate percentage tier we expect each GPO to achieve, and (iii) our estimates of the impact of any prospective rebate program changes made by us.

Medicaid Rebates: Our products are subject to state government-managed Medicaid programs, whereby rebates are issued to participating state governments. These rebates arise when a patient treated with our product is covered under Medicaid, resulting in a discounted price for our product under the applicable Medicaid program. Our Medicaid rebate accrual calculations require us to project the magnitude of our sales, by state, that will be subject to these rebates. There is a significant time lag in us receiving rebate notices from each state (generally several months or longer after our sale is recognized). Our estimates are based on our historical claim levels by state, as supplemented by management’s judgment.

Distribution, Data, and GPO Administrative Fees: Distribution, data, and GPO administrative fees are paid to authorized wholesalers/distributors of our products (except for U.S. sales of ZEVALIN) for various commercial services including: contract administration, inventory management, delivery of end-user sales data, and product returns processing. These fees are based on a contractually-determined percentage of our applicable sales.

(b) License Fees: Our out-license arrangements allow licensees to market our product(s) in certain territories for a specific term (representing the out-license of “functional intellectual property”). These arrangements may include one or more of the following forms of consideration: (i) upfront license fees, (ii) sales royalties, (iii) sales milestone-achievement fees, and (iv) regulatory milestone-achievement fees. We recognize revenue for each based on the contractual terms that establish our right to collect payment once the performance obligation is achieved, as follows:

(1) Upfront license fees: We determine whether upfront license fees are earned at the time of contract execution (i.e., when rights transfer to the customer) or over the actual (or implied) contractual period of the out-license. As part of this determination, we evaluate whether we have any other requirements to provide substantive services that are inseparable from the performance obligation of the license transfer. Our customers’ “distinct” rights to licensed “functional intellectual property” at the time of contract execution results in concurrent revenue recognition of all upfront license fees (assuming that there are no other performance obligations at contract execution that are inseparable from this license transfer).

(2) Royalties: Under the “sales-or-usage-based royalty exception” we recognize revenue in the same period that our

licensees complete product sales in their territory for which we are contractually entitled to a percentage-based royalty receipt.

(3) Sales milestones: Under the “sales-or-usage-based royalty exception” we recognize revenue in full within the period that our licensees achieve annual or aggregate product sales levels in their territories for which we are contractually entitled to a specified lump-sum receipt.

(4) Regulatory milestones: Under the terms of the respective out-license, regulatory achievements may either be our responsibility, or that of our licensee.

• When our licensee is responsible for the achievement of the regulatory milestone, we recognize revenue in full (for the contractual amount due from our licensee) in the period that the approval occurs (i.e., when the “performance obligation” is satisfied by our customer) under the “most likely amount” method. This revenue recognition remains “constrained” (i.e., not recognized) until regulatory approval occurs, given its inherent uncertainty and the requirement of a significant revenue reversal not being probable if achievement does not occur. At each reporting period, we re-evaluate the probability of milestone achievement and the associated revenue constraint; any resulting adjustments would be recorded on a cumulative catch-up basis, thus reflected in our financial statements in the period of adjustment.

• When we are responsible for the achievement of a regulatory milestone, the “relative selling price method” is applied for purposes of allocating the transaction price to our performance obligations. In such case, we consider (i) the extent of our effort to achieve the milestone and/or the enhancement of the value of the delivered item(s) as a result of milestone achievement and (ii) if the milestone payment is reasonable relative to all of the deliverables and payment terms (including other potential milestone consideration) within the arrangement. We have historically assessed the contractual value of these milestones upon their achievement to be identical to the allocation of value of our performance obligations and thus representing the “transaction price” for each milestone at contract inception. We recognize this revenue in the period that the regulatory approval occurs (i.e., when we complete the “performance obligation”) under the “most likely amount” method, and revenue recognition is otherwise “constrained” until regulatory approval occurs, given its inherent uncertainty and the requirement of a significant revenue reversal not being probable if achievement does not occur. At each reporting period, we re-evaluate the probability of milestone achievement and the associated revenue constraint; any resulting adjustments would be recorded on a cumulative catch-up basis, thus reflected in our financial statements in the period of adjustment.

(c) Service Revenue: We receive fees under certain arrangements for (i) sales and marketing services, (ii) supply chain services, (iii) research and development services, and (iv) clinical trial management services.

Our rights to receive payment for these services may be established by (1) a fixed-fee schedule that covers the term of the arrangement, so long as we meet ongoing performance obligations, (2) our completion of product delivery in our capacity as a procurement agent, (3) the successful completion of a phase of drug development, (4) favorable results from a clinical trial, and/or (5) regulatory approval events.

We consider whether revenue associated with these service arrangements is reportable each period, based on our completed services or deliverables (i.e., satisfied “performance obligations”) during the reporting period, and the terms of the arrangement that contractually result in fixed payments due to us. The promised service(s) within these arrangements are distinct and explicitly stated within each contract, and our customer benefits from the separable service(s) delivery/completion. Further, the nature of the promise to our customer as stated within the respective contract is to deliver each named service individually (not a transfer of combined items to which the promised goods or services are inputs), and thus are separable for revenue recognition.

Cash and Cash Equivalents

Cash and Cash Equivalents

Cash and cash equivalents consist of bank deposits and highly liquid investments with maturities of three months or less from the purchase date.

Marketable Securities

Marketable Securities

Our marketable securities consist of our holdings in equity securities (beginning January 1, 2018 - see Note 3(a)), mutual funds, and bank certificates of deposit (“Bank CDs”). Beginning January 1, 2018, our realized and unrealized gains (losses) on marketable securities are included in “Other income, net” on the accompanying Condensed Consolidated Statements of Operations. Prior to January 1, 2018, our unrealized gains (losses) were included in “other comprehensive (loss) income” on our accompanying Condensed Consolidated Statements of Comprehensive Loss.

Accounts Receivable

Accounts Receivable

Our accounts receivables are derived from our product sales and license fees (our service revenue is recorded in “other receivables”), and do not bear interest. The allowance for doubtful accounts is management’s best estimate of the amount of probable credit losses in our existing accounts receivable. Account balances are charged off against the allowance after appropriate collection efforts are exhausted.

Inventories

Inventories

We value our inventory at the lower of (i) the actual cost of its purchase or manufacture, or (ii) its net realizable value. Inventory cost is determined on the first-in, first-out method. We regularly review our inventory quantities in process of manufacture and on hand. When appropriate, we record a provision for obsolete and excess inventory to derive its new cost basis, which takes into account our sales forecast by product and corresponding expiry dates of each product lot.

Manufacturing costs of drug products that are pending U.S. Food and Drug Administration (“FDA”) approval are expensed through “research and development,” on the accompanying Condensed Consolidated Statements of Operations (rather than being capitalized to “inventories”).

Property and Equipment

Property and Equipment

Our property and equipment is stated at historical cost, and is depreciated on a straight-line basis over an estimated useful life that corresponds with its designated asset category. We evaluate the recoverability of “long-lived assets” (which includes property and equipment) whenever events or changes in circumstances in our business indicate that the asset’s carrying amount may not be recoverable through our on-going operations.

Goodwill and Intangible Assets

Goodwill and Intangible Assets

Our goodwill represents the excess of our business acquisition cost over the estimated fair value of the net assets acquired in the corresponding transaction. Goodwill has an indefinite accounting life and is therefore not amortized. Instead, goodwill is evaluated for impairment on an annual basis (as of each October 1st), unless we identify impairment indicators that would require earlier testing.

We evaluate the recoverability of indefinite-lived intangible assets at least annually, or whenever events or changes in our business indicate that an intangible asset’s (whether indefinite or definite-lived) carrying amount may not be recoverable. Such circumstances could include, but are not limited to the following:

(a) a significant decrease in the market value of an asset;

(b) a significant adverse change in the extent or manner in which an asset is used; or

(c) an accumulation of costs significantly in excess of the amount originally expected for the acquisition of an asset.

Intangible assets with finite useful lives are amortized over their estimated useful lives on a straight-line basis. We review these assets for potential impairment if/when facts or circumstances suggest that the carrying value of these assets may not be recoverable.

Stock-Based Compensation

Stock-Based Compensation

Stock-based compensation expense for equity awards granted to our employees and members of our Board of Directors is recognized on a straight-line basis over each award’s vesting period. Recognized compensation expense is net of an estimated forfeiture rate, representing the percentage of awards that are expected to be forfeited prior to vesting, though is ultimately adjusted for actual forfeitures. We use the Black-Scholes option pricing model to determine the fair value of stock options (as of the date of grant) that have service conditions for vesting. We use the Monte Carlo valuation model to value equity awards (as of the date of grant) that have combined market conditions and service conditions for vesting.

The recognition of stock-based compensation expense and the initial calculation of stock option fair value requires uncertain assumptions, including (a) the pre-vesting forfeiture rate of the award, (b) the expected term that the stock option will remain outstanding, (c) our stock price volatility over the expected term (and that of our designated peer group with respect to certain market-based awards), and (d) the prevailing risk-free interest rate for the period matching the expected term.

With regard to (a)-(d): We estimate forfeiture rates based on our employees’ overall forfeiture history, which we believe will be representative of future results. We estimate the expected term of stock options granted based on our employees’ historical exercise patterns, which we believe will be representative of their future behavior. We estimate the volatility of our common stock on the date of grant based on historical volatility of our common stock for a look-back period that corresponds with the expected term. We estimate the risk-free interest rate based upon the U.S. Department of the Treasury yields in effect at award grant, for a period equaling the expected term of the stock option.

Foreign Currency Translation

Foreign Currency Translation

We translate the assets and liabilities of our foreign subsidiaries that are stated in their functional currencies (i.e., local operating currencies), to U.S. dollars at the rates of exchange in effect at the reported balance sheet date. Revenues and expenses are translated using the monthly average exchange rates during the reported period. Unrealized gains and losses from the translation of our subsidiaries’ financial statements (that are initially denominated in the corresponding functional currency) are included as a separate component of “accumulated other comprehensive (loss) income” in the Condensed Consolidated Balance Sheets.

We record foreign currency transactions, when initially denominated in a currency other than the respective functional currency of our subsidiary, at the prevailing exchange rate on the date of the transaction. Resulting unrealized foreign exchange gains and losses from transactions with third parties are included in “accumulated other comprehensive (loss) income” in the Condensed Consolidated Balance Sheets.

All unrealized foreign exchange gains and losses associated with our intercompany loans are included in “accumulated other comprehensive (loss) income” in the Condensed Consolidated Balance Sheets, as these loans with our foreign subsidiaries are not expected to be settled in the “foreseeable future.”

Basic and Diluted Net Loss per Share

Basic and Diluted Net Loss per Share

We calculate basic and diluted net loss per share using the weighted average number of common shares outstanding during the periods presented. In periods of a net loss, basic and diluted loss per share are the same. For the diluted earnings per share calculation, we adjust the weighted average number of common shares outstanding to include only dilutive stock options, warrants, and other common stock equivalents outstanding during the period.

Income Taxes

Income Taxes

Deferred tax assets and liabilities are recorded based on the estimated future tax effects of temporary differences between the tax basis of assets and liabilities and amounts reported in the financial statements, as well as operating losses and tax credit carry forwards using enacted tax rates and laws that are expected to be in effect when the differences are expected to reverse. Realization of deferred tax assets is dependent upon future earnings, the timing and amount of which are uncertain.

We have recorded a valuation allowance to reduce our deferred tax assets, because we believe that, based upon a weighting of positive and negative factors, it is more likely than not that these deferred tax assets will not be realized. If/when we were to determine that our deferred tax assets are realizable, an adjustment to the corresponding valuation allowance would increase our net income in the period that such determination was made.

In the event that we are assessed interest and/or penalties from taxing authorities that have not been previously accrued, such amounts would be included in “provision for income taxes” within the Condensed Consolidated Statements of Operations for the period in which we received the notice.

Research and Development Costs

Research and Development Costs

Our research and development costs are expensed as incurred, or as certain milestone payments become due, which are generally triggered by contractual clinical or regulatory events.

Fair Value Measurements

Fair Value Measurements

We determine measurement-date fair value based on the proceeds that would be received through the sale of the asset, or that we would pay to settle or transfer the liability, in an orderly transaction between market participants. We utilize valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs to the extent possible. Fair value measurements are based on a three-tier hierarchy that prioritizes the inputs used to measure fair value. These tiers include the following:

Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities that are publicly accessible at the measurement date.

Level 2: Observable prices that are based on inputs not quoted on active markets, but that are corroborated by market data. These inputs may include quoted prices for similar assets or liabilities or quoted market prices in markets that are not active to the general public.

Level 3: Unobservable inputs are used when little or no market data is available.

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Balance Sheet Account Detail (Tables)

6 Months Ended

Jun. 30, 2018

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Cash And Cash Equivalent Marketable Securities Unrealized Gain Table

The following is a summary of our presented “cash and cash equivalents” and “marketable securities”:

	Cost		Foreign Currency Translation			Gross Unrealized Gains*		Gross Unrealized Losses		Estimated Fair Value		Cash and Cash Equivalents		Marketable Securities
June 30, 2018
Equity securities* (see Note 3(g) and Note 10)	$	8,710	$	(1,747	)	$	88,075	$	—	$	95,038	$	—	$	95,038
Bank deposits	10,769		—			—		—		10,769		10,769		—
Money market funds	163,602		—			—		—		163,602		163,602		—
Bank certificates of deposits	249		—			—		—		249		—		249
Total cash and cash equivalents and marketable securities	$	183,330	$	(1,747	)	$	88,075	$	—	$	269,658	$	174,371	$	95,287
December 31, 2017
Bank deposits	$	10,965	$	—		$	—	$	—	$	10,965	$	10,965	$	—
Money market funds	216,358		—			—		—		216,358		216,358		—
Bank certificates of deposits	248		—			—		—		248		—		248
Total cash and cash equivalents and marketable securities	$	227,571	$	—		$	—	$	—	$	227,571	$	227,323	$	248

* Beginning January 1, 2018, under the new requirements of ASU 2016-01, Recognition and Measurement of Financial Assets and Liabilities, the unrealized gains (losses) on our CASI Pharmaceuticals, Inc. (NASDAQ: CASI) (“CASI”) equity securities are recognized as an increase (decrease) to “other income, net” on the Consolidated Statements of Operations (rather than through “other comprehensive (loss) income” on the Consolidated Statements of Comprehensive Loss). Our adoption of ASU 2016-01 on January 1, 2018, resulted in a$17.2 million cumulative-effect adjustment, net of income tax, recorded as a decrease to “accumulated other comprehensive (loss) income” and a decrease to “accumulated deficit” on the accompanying Condensed Consolidated Balance Sheets. Our recognized unrealized gain on these equity securities for the three and six months ended June 30, 2018 was $48.5 million and $58.6 million, respectively, as reported in “other income, net” on the accompanying Condensed Consolidated Statements of Operations.

Schedule of Property and Equipment Net of Accumulated Depreciation

“Property and equipment, net of accumulated depreciation” consists of the following:

	June 30, 2018			December 31, 2017
Computer hardware and software	$	3,080		$	2,994
Laboratory equipment	635			630
Office furniture	212			218
Leasehold improvements	2,938			2,938
Property and equipment, at cost	6,865			6,780
(Less): Accumulated depreciation	(6,342		)	(6,191		)
Property and equipment, net of accumulated depreciation	$	523		$	589

Components of Inventories

“Inventories” consists of the following:

	June 30, 2018			December 31, 2017
Raw materials	$	2,149		$	1,077
Work-in-process	3,204			2,551
Finished goods	2,647			5,187
(Less:) Non-current portion of inventories included within "other assets" *	(3,480		)	(3,100		)
Inventories	$	4,520		$	5,715

* The “non-current” portion of inventories is presented within “other assets” in the accompanying Condensed Consolidated Balance Sheets at June 30, 2018 and December 31, 2017, respectively. This value of $3.5 million at June 30, 2018 represents product that we expect to sell beyond June 30,2019 and the value at December 31, 2017 represents product that we expect to sell beyond December 31, 2018.

.

Prepaid Expenses and Other Assets

“Prepaid expenses and other assets” consists of the following:

	June 30, 2018		December 31, 2017
Other miscellaneous prepaid operating expenses	$	3,900	$	3,389
Prepaid insurance	761		645
Research and development supplies	108		1,883
Key employee life insurance - cash surrender value	—		4,150
Prepaid expenses and other assets	$	4,769	$	10,067

Schedule of Other Receivables

“Other receivables” consists of the following:

	June 30, 2018		December 31, 2017
Other miscellaneous receivables*	$	968	$	1,152
Income tax receivable	638		665
Insurance receivable	1,130		53
Reimbursements due from development partners for incurred research and development expenses	179		263
Other receivables	$	2,915	$	2,133

* As of June 30, 2018 and December 31, 2017, the balance is inclusive of $0.4 million and $0.4 million, respectively, of Medicaid rebate credits to be applied against future invoices for each respective state program, and $0.2 million and $0.4 million, respectively, of royalty receivables from Mundipharma International Corporation Limited (“Mundipharma”) for sales of ZEVALIN in Japan.

Components of Intangible Assets Net of Accumulated Amortization

Intangible assets, net of accumulated amortization and impairment charges consists of the following:

			June 30, 2018
	Historical Cost		Accumulated Amortization			Foreign Currency Translation			Impairment			Net Amount		Full Amortization Period (months)	Remaining Amortization Period (months)
MARQIBO IPR&D (NHL and other novel indications)	$	17,600	$	—		$	—		$	—		$	17,600	n/a	n/a
EVOMELA distribution rights	7,700		(1,333		)	—			—			6,367		156	129
BELEODAQ distribution rights	25,000		(7,500		)	—			—			17,500		160	112
MARQIBO distribution rights	26,900		(19,342		)	—			—			7,558		81	21
FOLOTYN distribution rights (1)	118,400		(60,649		)	—			—			57,751		152	53
ZEVALIN distribution rights – U.S.	41,900		(39,294		)	—			—			2,606		123	9
ZEVALIN distribution rights – ex-U.S.	23,490		(17,624		)	(2,994		)	—			2,872		96	21
FUSILEV distribution rights (2)	16,778		(9,618		)	—			(7,160		)	—		56	0
FOLOTYN out-license (3)	27,900		(15,917		)	—			(1,023		)	10,960		110	49
Total intangible assets	$	305,668	$	(171,277	)	$	(2,994	)	$	(8,183	)	$	123,214

(1) Beginning June 2016, we adjusted the amortization period of our FOLOTYN distribution rights to November 2022 from March 2025, representing the period through which we expect to have patent protection from generic competition (see Note 16(g)).

(2) On February 20, 2015, the United States District Court for the District of Nevada found the patent covering FUSILEV to be invalid, which was upheld on appeal. On April 24, 2015, Sandoz began to commercialize a generic version of FUSILEV. This represented a “triggering event” under applicable GAAP in evaluating the value of our FUSILEV distribution rights as of March 31, 2015, resulting in a $7.2 million impairment charge (non-cash) in the first quarter of 2015. We accelerated amortization expense recognition in 2015 for the then remaining net book value of FUSILEV distribution rights.

(3) On May 29, 2013, we amended our FOLOTYN collaboration agreement with Mundipharma. As a result of the amendment, Europe and Turkey were excluded from Mundipharma’s commercialization territory, and their royalty rates and milestone payments to us were modified. This constituted a change under which we originally valued the FOLOTYN out-license as part of business combination accounting, resulting in an impairment charge (non-cash) of $1.0 million in the second quarter of 2013.

			December 31, 2017
	Historical Cost		Accumulated Amortization			Foreign Currency Translation			Impairment			Net Amount
MARQIBO IPR&D (NHL and other novel indications)	$	17,600	$	—		$	—		$	—		$	17,600
EVOMELA distribution rights	7,700		(1,037		)	—			—			6,663
BELEODAQ distribution rights	25,000		(6,563		)	—			—			18,437
MARQIBO distribution rights	26,900		(17,182		)	—			—			9,718
FOLOTYN distribution rights	118,400		(54,111		)	—			—			64,289
ZEVALIN distribution rights – U.S.	41,900		(37,557		)	—			—			4,343
ZEVALIN distribution rights – Ex-U.S.	23,490		(17,232		)	(2,471		)	—			3,787
FUSILEV distribution rights	16,778		(9,618		)	—			(7,160		)	—
FOLOTYN out-license	27,900		(14,555		)	—			(1,023		)	12,322
Total intangible assets	$	305,668	$	(157,855	)	$	(2,471	)	$	(8,183	)	$	137,159

Estimated Intangible Asset Amortization Expense

Estimated intangible asset amortization expense for the remainder of 2018 and the five succeeding fiscal years and thereafter is as follows:

Years Ending December 31,
Remainder of 2018	$	13,850
2019	25,095
2020	19,756
2021	18,266
2022	15,882
2023	2,467
2024 and thereafter	10,298
	$	105,614

Schedule of Goodwill

“Goodwill” consists of the following:

	June 30, 2018			December 31, 2017
Acquisition of Talon (MARQIBO rights)	$	10,526		$	10,526
Acquisition of ZEVALIN Ex-U.S. distribution rights	2,525			2,525
Acquisition of Allos (FOLOTYN rights)	5,346			5,346
Foreign currency exchange translation effects	(291		)	(235		)
Goodwill	$	18,106		$	18,162

Summary of Other Assets

“Other assets” consists of the following:

	June 30, 2018		December 31, 2017
Equity securities (see Note 10)*	$	—	$	37,530
Key employee life insurance – cash surrender value	6,123		10,737
Inventories - non-current portion	3,480		3,100
Promissory note receivable - long term (see Note 10)	1,521		1,517
Income tax receivable**	668		668
Research & development supplies and other	1,367		231
Other assets	$	13,159	$	53,783

* As of March 31, 2018, we reclassified our presentation of these equity securities from this account caption to “marketable securities” on the face of our accompanying Condensed Consolidated Balance Sheets - see Note 3(a).

** This value represents the non-current portion of the refundable alternative minimum tax credit that is expected to be received over the next few years (see Note 16).

Schedule of Accounts Payable and Other Accrued Liabilities

“Accounts payable and other accrued liabilities” consists of the following:

	June 30, 2018		December 31, 2017
Trade accounts payable and other accrued liabilities	$	29,370	$	33,648
Accrued rebates	6,904		7,990
Accrued product royalty	3,427		4,339
Allowance for returns	4,378		4,045
Accrued data and distribution fees	3,036		4,305
Accrued GPO administrative fees	230		296
Accrued inventory management fee	799		1,126
Allowance for chargebacks	1,742		2,368
Accounts payable and other accrued liabilities	$	49,886	$	58,117

Schedule of Amounts Presented in Accounts Payable and Other Accrued Liabilities

Amounts presented within “accounts payable and other accrued liabilities” in the accompanying Condensed Consolidated Balance Sheets for our categories of GTN estimates (see Note 2(i)) were as follows:

	Commercial/Medicaid Rebates and Government Chargebacks			Distribution, Data, Inventory and GPO Administrative Fees			Product Return Allowances
Balance as of December 31, 2016	$	9,817		$	5,146		$	2,309
Add: provisions	106,647			20,104			2,807
(Less): credits or actual allowances	(106,106		)	(19,523		)	(1,071		)
Balance as of December 31, 2017	10,358			5,727			4,045
Add: provisions	33,083			7,094			898
(Less): credits or actual allowances	(34,795		)	(8,756		)	(565		)
Balance as of June 30, 2018	$	8,646		$	4,065		$	4,378

Deferred Revenue, by Arrangement, Disclosure

Deferred revenue (current and non-current) consists of the following:

	June 30, 2018		December 31, 2017
EVOMELA deferred revenue	$	—	$	3,819
ZEVALIN out-license in India territory (see Note 15(b)(iii))	—		368
Deferred revenue*	$	—	$	4,187

* On January 1, 2018, we reclassified the deferred revenue related to our EVOMELA product sales and our ZEVALIN out-license in the India territory of $3.8 million and $0.4 million, respectively. These amounts were included in the $4.7 million aggregate decrease to “accumulated deficit” on January 1, 2018, in accordance with the adoption of Topic 606 (see Note 2(i)).

Summary of Other Long-Term Liabilities

“Other long-term liabilities” consists of the following:

	June 30, 2018		December 31, 2017
Accrued executive deferred compensation	$	5,212	$	5,928
Deferred rent (non-current portion)	1		52
Clinical study holdback fees, non-current	62		59
Other tax liabilities	176		176
Royalty liability	300		—
Other long-term liabilities	$	5,751	$	6,215

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Gross-to-Net Product Sales (Tables)

6 Months Ended

Jun. 30, 2018

Revenues [Abstract]

Reconciliation of Gross to Net Product Sales

The below table presents a GTN (see Note 2(i)) product sales reconciliation for the accompanying Condensed Consolidated Statements of Operations:

	Three Months Ended June 30,						Six Months Ended June 30,
	2018			2017			2018			2017
Gross product sales	$	44,062		$	67,709		$	93,651		$	125,926
Commercial rebates and government chargebacks	(16,053		)	(30,001		)	(33,083		)	(57,324		)
Data and distribution fees, GPO fees, and inventory management fees	(3,584		)	(5,176		)	(7,094		)	(9,640		)
Prompt pay discounts	(323		)	(419		)	(713		)	(688		)
Product returns	(349		)	(957		)	(898		)	(1,273		)
Product sales, net	$	23,753		$	31,156		$	51,863		$	57,001

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Composition of Total Revenue (Tables)

6 Months Ended

Jun. 30, 2018

Segment Reporting [Abstract]

Schedule of Product Sales, Net by Geography

The below table presents our net product sales by geography for the three and six months ended June 30, 2018 and 2017:

	Three Months Ended June 30,								Six Months Ended June 30,
	2018				2017				2018				2017
United States	$	21,347	89.9	%	$	29,064	93.3	%	$	44,545	85.9	%	$	52,865	92.7	%
International:
Europe/Canada	2,406		10.1	%	2,092		6.7	%	5,894		11.4	%	4,136		7.3	%
Asia Pacific	—		—	%	—		—	%	1,424		2.7	%	—		—	%
Total International	2,406		10.1	%	2,092		6.7	%	7,318		14.1	%	4,136		7.3	%
Product sales, net	$	23,753	100.0	%	$	31,156	100.0	%	$	51,863	100.0	%	$	57,001	100.0	%

Schedule Of Net Sales By Product Line Table

The below table presents our net sales by product for the three and six months ended June 30, 2018 and 2017:

	Three Months Ended June 30,								Six Months Ended June 30,
	2018				2017				2018				2017
FOLOTYN	$	11,680	49.2	%	$	11,181	35.9	%	$	24,402	47.1	%	$	20,455	35.9	%
EVOMELA	5,779		24.3	%	10,058		32.3	%	13,913		26.8	%	16,359		28.7	%
BELEODAQ	2,703		11.4	%	3,396		10.9	%	5,416		10.4	%	6,267		11.0	%
ZEVALIN	1,638		6.9	%	2,297		7.4	%	4,661		9.0	%	5,144		9.0	%
MARQIBO	1,149		4.8	%	2,163		6.9	%	2,043		3.9	%	4,142		7.3	%
FUSILEV	804		3.4	%	2,061		6.6	%	1,428		2.8	%	4,634		8.1	%
Product sales, net	$	23,753	100.0	%	$	31,156	100.0	%	$	51,863	100.0	%	$	57,001	100.0	%

The below table presents our license fees and service revenue by source for the three and six months ended June 30, 2018 and 2017:

	Three Months Ended June 30,								Six Months Ended June 30,
	2018				2017				2018				2017
Out-license of FOLOTYN in all countries except the United States, Canada, Europe, and Turkey: royalties (Note 14)	$	415	100.0	%	$	119	3.8	%	792		28.3	%	382		6.0	%
Out-license of ZEVALIN: recognition of milestone achievement, upfront cash receipt and subsequent royalties for Asia and certain other territories, excluding China (Note 11)	—		—	%	630		20.0	%	2,001		71.5	%	1,245		19.5	%
Out-license of ZEVALIN: amortization of upfront cash receipt related to India territory (Note 15(b)(iii)) and other	—		—	%	12		0.4	%	6		0.2	%	24		0.4	%
Out-license of ZEVALIN, FOLOTYN, BELEODAQ, MARQIBO: upfront cash receipt and subsequent royalties for the Canada territory (Note 15(b)(xiv))	—		—	%	3		0.1	%	—		—	%	3		—	%
Sales and marketing contracted services (Note 12)	—		—	%	2,381		75.7	%			—	%	4,747		74.2	%
License fees and service revenues	$	415	100.0	%	$	3,145	100.0	%	$	2,799	100.0	%	$	6,401	100.0	%

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Stock-Based Compensation (Tables)

6 Months Ended

Jun. 30, 2018

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Summary of Stock-Based Compensation Expense

Stock-based compensation expense included within “total operating costs and expenses” for the three and six months ended June 30, 2018 and 2017, was as follows (see Note 18 for a discussion of certain immaterial corrections affecting the presented 2017 amounts below):

	Three Months Ended June 30,				Six Months Ended June 30,
	2018		2017		2018		2017
Cost of sales	$	80	$	51	$	146	$	81
Selling, general and administrative	3,832		2,888		7,522		6,126
Research and development	822		548		1,543		1,000
Total stock-based compensation	$	4,734	$	3,487	$	9,211	$	7,207

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Net Income (Loss) Per Share (Tables)

6 Months Ended

Jun. 30, 2018

Earnings Per Share [Abstract]

Computation of Net Loss Per Share

Net income (loss) per share was computed by dividing net loss by the weighted average number of common shares outstanding for the three and six months ended June 30, 2018 and 2017:

	Three Months Ended June 30,					Six Months Ended June 30,
	2018		2017			2018			2017
Basic weighted average shares outstanding	102,597,059		78,576,260			101,747,416			78,366,610
Effect of dilutive securities:
2018 Convertible Notes	3,854,959		—			—			—
Common stock options	3,870,462		—			—			—
Restricted stock awards	1,797,089		—			—			—
Restricted stock units	245,214		—			—			—
Common stock warrants	252,368		—			—			—
Diluted average shares outstanding	112,617,151		78,576,260			101,747,416			78,366,610
Net income (loss) as reported	$	13,744	$	(20,852	)	$	(2,074	)	$	(44,398	)
Interest attributable to 2018 Convertible Notes	886		—			—			—
Net income (loss) for diluted earnings per share	$	14,630	$	(20,852	)	$	(2,074	)	$	(44,398	)
Net income (loss) per share – basic	$	0.13	$	(0.27	)	$	(0.02	)	$	(0.57	)
Net income (loss) per share – diluted	$	0.13	$	(0.27	)	$	(0.02	)	$	(0.57	)

Schedule of Securities Excluded from Calculation of Net Loss Per Share

The below outstanding securities for the six months ended June 30, 2018 and three and six months ended June 30, 2017 were excluded from the calculation above because their impact under the “treasury stock method” and “if-converted method” would have been anti-dilutive due to our net loss per share in each respective period, as summarized below:

	Three Months Ended June 30,		Six Months Ended June 30,
	2018	2017	2018	2017
2018 Convertible Notes	—	10,454,799	3,854,959	10,454,799
Common stock options	—	1,271,207	4,396,587	1,110,474
Restricted stock awards	—	2,166,299	1,797,089	2,166,299
Restricted stock units	—	217,206	245,214	217,206
Common stock warrants	—	13,337	257,039	1,813
Total	—	14,122,848	10,550,888	13,950,591

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Fair Value Measurements (Tables)

6 Months Ended

Jun. 30, 2018

Fair Value Disclosures [Abstract]

Summary of Asset and Liability Fair Values

The table below summarizes certain asset and liability fair values that are included within our accompanying Condensed Consolidated Balance Sheets, and their designations among three fair value measurement categories (see Note 2(xiii)):

	June 30, 2018 Fair Value Measurements
	Level 1		Level 2		Level 3		Total
Assets:
Bank certificates of deposits	$	—	$	249	$	—	$	249
Money market funds	—		163,602		—		163,602
Equity securities (Note 3(a))	95,038		—		—		95,038
Mutual funds	—		101		—		101
Deferred compensation investments (life insurance cash surrender value - Note 3(g))	—		6,123		—		6,123		*
	$	95,038	$	170,075	$	—	$	265,113
Liabilities:
Deferred executive compensation liability (Note 15(f))	$	—	$	5,973	$	—	$	5,973	*
Drug development liability (Note 14)	—		—		12,191		12,191
Talon CVR (Note 9(a))	—		—		6,693		6,693
Corixa Liability (Note 15(b)(i))	—		—		62		62
	$	—	$	5,973	$	18,946	$	24,919

	December 31, 2017 Fair Value Measurements
	Level 1		Level 2		Level 3		Total
Assets:
Bank certificates of deposits	$	—	$	248	$	—	$	248
Money market funds	—		216,358		—		216,358
Equity securities (Note 10)	37,530		—		—		37,530
Mutual funds	—		59		—		59
Deferred compensation investments (life insurance cash surrender value)	—		14,887		—		14,887		*
	$	37,530	$	231,552	$	—	$	269,082
Liabilities:
Deferred executive compensation liability (Note 15(f))	$	—	$	11,038	$	—	$	11,038	*
Drug development liability (Note 14)	—		—		12,386		12,386
Talon CVR (Note 9(a))	—		—		6,210		6,210
Corixa Liability (Note 15(b)(i))	—		—		62		62
	$	—	$	11,038	$	18,658	$	29,696

* The reported amount of “deferred compensation investments” is based on the cash surrender value of (ex)employee life insurance policies at period-end, while the reported amount of “deferred executive compensation liability” is based on the period-end market value of investments selected by plan participants.

Fair Value Measurement Activity for Liabilities Utilize Level 3 Inputs

The table below summarizes the 2017 and 2018 activity of our liabilities that are valued with unobservable inputs:

	Fair Value Measurements of Unobservable Inputs (Level 3)
Balance as of December 31, 2016	$	14,445
FOLOTYN development liability (see Note 14)	(744		)
Talon CVR fair value adjustment - MARQIBO (see Note 9(a))	4,957
Balance as of December 31, 2017	18,658
FOLOTYN development liability (see Note 14)	(195		)
Talon CVR fair value adjustment - MARQIBO (see Note 9(a))	483
Balance as of June 30, 2018	$	18,946

* This amount is comprised of the current and non-current portions of “FOLOTYN development liability” and the non-current portion of “acquisition-related contingent obligations” on our accompanying Condensed Consolidated Balance Sheets.

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Business Combinations and Contingent Consideration (Tables)

6 Months Ended

Jun. 30, 2018

Talon Therapeutics, Inc. [Member]

Business Acquisition [Line Items]

Change in Fair Value of Contingent Consideration Related to Acquisitions

	Fair Value of Talon CVR
December 31, 2017	$	6,210
Fair value adjustment for the six months ended June 30, 2018	483
June 30, 2018	$	6,693

Acquisition-Date Fair Value of Consideration Transferred

The acquisition-date fair value of the consideration transferred consisted of the following:

Cash consideration	$	3,000
Ligand contingent consideration	4,700
Total purchase consideration	$	7,700

Melphalan license [Member]

Business Acquisition [Line Items]

Summary of Allocation of Total Purchase Price to Net Assets Acquired

The allocation of the total purchase price to the net assets acquired is as follows:

EVOMELA IPR&D rights $ 7,700

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Out-License of Marqibo, Zevalin, & Evolema in China Territory (Tables)

6 Months Ended

Jun. 30, 2018

Other Commitments [Abstract]

Schedule of Proceeds Received and Fair Value on CASI Out-License Execution Date

The proceeds we received in 2014, and its fair value on the CASI Out-License execution date, consisted of the following:

CASI common stock (5.4 million shares)	$	8,649	(a)
CASI secured promissory note, net of fair value discount ($1.5 million face value and 0.5% annual coupon)	1,310		(b)
Total consideration received, net of fair value discount	$	9,959	(c)

(a) Value determined based on the September 17, 2014 closing price of 5.4 million shares of CASI common stock on the NASDAQ Capital Market of $1.60 per share.

(b) Value estimated using the terms of the $1.5 million promissory note, the application of a synthetic debt rating based on CASI’s publicly-available financial information, and the prevailing interest yields on similar public debt securities as of September 17, 2014. This full balance was reclassified beginning December 31, 2017 to “other assets” (presented within non-current assets on the accompanying Condensed Consolidated Balance Sheets) from “other receivables” (presented within current assets) due to an amended maturity date of September 17, 2019.

(c) Presented within “license fees and service revenue” in the Consolidated Statements of Operations for the year ended December 31, 2015 (see below).

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Convertible Senior Notes (Tables)

6 Months Ended

Jun. 30, 2018

Debt Disclosure [Abstract]

Carrying Value of 2018 Convertible Notes

The carrying value of the 2018 Convertible Notes as of June 30, 2018 and December 31, 2017, is summarized as follows:

	June 30, 2018			December 31, 2017
Principal amount	$	40,565		$	40,565
(Less): Unamortized debt discount (amortized through December 2018)	(1,022		)	(2,101		)
(Less): Debt issuance costs	(116		)	(240		)
Carrying value	$	39,427		$	38,224

Components of the Interest Expense Recognized

The following table sets forth the components of interest expense recognized in the accompanying Condensed Consolidated Statements of Operations for the 2018 Convertible Notes for the three and six months ended June 30, 2018 and 2017: 

	Three months ended June 30,						Six months ended June 30,
	2018			2017			2018			2017
Contractual coupon interest expense	$	279		$	757		$	558		$	1,513
Amortization of debt issuance costs	62			155			124			321
Accretion of debt discount	545			1,412			1,079			2,794
Total	$	886		$	2,324		$	1,761		$	4,628
Effective interest rate	8.41		%	8.65		%	8.41		%	8.65		%

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FOLOTYN License Agreement And Development Liability (Tables)

6 Months Ended

Jun. 30, 2018

Business Combinations [Abstract]

Schedule of Drug Development Liability Adjustments

	FOLOTYN Development Liability, Current			FOLOTYN Development Liability, Long Term			FOLOTYN Development Liability, Total
Balance as of December 31, 2017	$	275		$	12,111		$	12,386
Transfer from long-term to current in 2018	131			(131		)	—
(Less): Expenses incurred in 2018	(195		)	—			(195		)
Balance as of June 30, 2018	$	211		$	11,980		$	12,191

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Stockholders' Equity (Tables)

6 Months Ended

Jun. 30, 2018

Equity [Abstract]

Summary of Shares Sold and Issued

We sold and issued shares of our common stock under both the December 2015 ATM Agreement and August 2017 ATM Agreement, summarized as follows:

Description of Financing Transaction	No. of Common Shares Issued	Proceeds Received (Net of Broker Commissions and Fees )
Common shares issued pursuant to the December 2015 ATM Agreement during the year ended December 31, 2016	10,890,915	$	73,869
Common shares issued pursuant to the December 2015 ATM Agreement between July 1, 2017 and July 31, 2017	3,243,882	$	23,745
Common shares issued pursuant to the August 2017 ATM Agreement between August 1, 2017 and December 31, 2017	10,314,250	$	104,527

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Immaterial Restatement Of Prior Period Financial Statements For Stock-Based Compensation (Tables)

6 Months Ended

Jun. 30, 2018

Accounting Changes and Error Corrections [Abstract]

Schedule of error corrections and prior period adjustments

Restated Condensed Consolidated Statements of Operations for the three and six months ended June 30, 2017:

	Three Months Ended June 30, 2017						Six Months Ended June 30, 2017
	As Previously Reported			As Restated			As Previously Reported			As Restated
Operating costs and expenses:
Selling, general and administrative	$	17,107		$	17,421		$	35,715		$	36,525
Research and development	15,097			15,167			29,792			29,945
Total operating costs and expenses	52,526			52,910			102,957			103,920
Loss from operations	(18,225		)	(18,609		)	(39,555		)	(40,518		)
Loss before income taxes	(20,213		)	(20,597		)	(43,381		)	(44,344		)
Net loss	$	(20,468	)	$	(20,852	)	$	(43,435	)	$	(44,398	)
Net loss per share:
Basic	$	(0.26	)	$	(0.27	)	$	(0.55	)	$	(0.57	)
Diluted	$	(0.26	)	$	(0.27	)	$	(0.55	)	$	(0.57	)

Restated Condensed Consolidated Statements of Comprehensive Loss for the three and six months ended June 30, 2017:

	Three Months Ended June 30, 2017						Six Months Ended June 30, 2017
	As Previously Reported			As Restated			As Previously Reported			As Restated
Net loss	$	(20,468	)	$	(20,852	)	$	(43,435	)	$	(44,398	)
Total comprehensive loss	$	(22,627	)	$	(23,011	)	$	(43,635	)	$	(44,598	)

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New Revenue Recognition Standard (Tables)

6 Months Ended

Jun. 30, 2018

Revenue from Contract with Customer [Abstract]

Schedule of New Accounting Pronouncements and Changes in Accounting Principles

Had we continued to apply Topic 605 for our revenue recognition for the three and six months ended June 30, 2018, the “proforma” impact to our Condensed Consolidated Statements of Operations is presented in the table below:

	Three Months Ended June 30, 2018
	As Reported Under Topic 606			Adjustments			If Reported Under Topic 605
Revenue:
Product sales, net	$	23,753		$	1,165		$	24,918
License fees and service revenue	415			(56		)	359
Total revenues	$	24,168		$	1,109		$	25,277
Loss from operations	(34,311		)	1,109			(33,202		)
Loss before income taxes	13,747			1,109			14,856
Net income	$	13,744		$	1,109		$	14,853
Net income per share:
Basic	$	0.13		$	0.01		$	0.14
Diluted	$	0.13		$	0.01		$	0.14

	Six Months Ended June 30, 2018
	As Reported Under Topic 606			Adjustments		If Reported Under Topic 605
Revenue:
Product sales, net	51,863			1,562		53,425
License fees and service revenue	2,799			64		2,863
Total revenues	54,662			1,626		56,288
Loss from operations	(59,576		)	1,626		(57,950		)
Loss before income taxes	(2,068		)	1,626		(442		)
Net loss	(2,074		)	1,626		(448		)
Net loss per share:
Basic	$	(0.02	)	$	0.02	$	0.00
Diluted	$	(0.02	)	$	0.02	$	0.00

Had we continued to apply Topic 605 for our revenue recognition for the three and six months ended June 30, 2018, the “proforma” impact to our Condensed Consolidated Balance Sheets as of June 30, 2018 is presented in the table below.

	June 30, 2018
	As Reported Under Topic 606			Adjustments			If Reported Under Topic 605
Current assets:
Accounts receivable, net of allowance for doubtful accounts	27,658			38			27,696
Total current assets	$	309,520		$	38		$	309,558
Total assets	$	464,522		$	38		$	464,560
Current liabilities:
Deferred revenue	—			2,308			2,308
Total current liabilities	$	94,470		$	2,308		$	96,778
Deferred revenue, less current portion	—			282			282
Total liabilities	$	120,403		$	2,590		$	122,993
Stockholders’ equity:
Accumulated deficit	(481,948		)	(2,552		)	(484,500		)
Total stockholders’ equity	344,119			(2,552		)	341,567
Total liabilities and stockholders’ equity	$	464,522		$	38		$	464,560

Had we continued to apply Topic 605 for our revenue recognition for the six months ended June 30, 2018, the “proforma” impact to our Condensed Consolidated Statements of Cash Flows for the six months ended June 30, 2018 is presented in the table below:

	Six Months Ended June 30, 2018
	As Reported Under Topic 606			Adjustments			If Reported Under Topic 605
Net loss	$	(2,074	)	$	1,626		$	(448	)
Changes in operating assets and liabilities:
Accounts receivable, net	5,087			(38		)	5,049
Deferred revenue	—			1,588			1,588

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Description of Business, Basis of Presentation, and Operating Segment - Additional Information (Detail)	6 Months Ended
	Jun. 30, 2018 Segment product
Segment Reporting Information [Line Items]
Number of late stage development products	3
Number of reportable operating segment | Segment	1
Spectrum Pharma Canada [Member]
Segment Reporting Information [Line Items]
Ownership interest, percentage	50.00%
Cancer Drugs [Member]
Segment Reporting Information [Line Items]
Number of products for sale	6

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Use of Estimates and Summary of Significant Accounting Policies - Additional Information (Detail) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2018	Jan. 01, 2018	Dec. 31, 2017
Accounting Policies [Line Items]
Increase (decrease) in retained earnings due to revenue recognition	$ (481,948)		$ (502,107)
Cash and equivalents maturities period	3 months
FUSILEV, MARQIBO, and BELEODAQ [Member]
Accounting Policies [Line Items]
Number of months customers are allowed to return products	6 months
EVOMELA [Member]
Accounting Policies [Line Items]
Number of months customers are allowed to return products	12 months
Number of months prior to product expiration during which customer can return product	6 months
Difference between Revenue Guidance in Effect before and after Topic 606 [Member] | Accounting Standards Update 2014-09 [Member]
Accounting Policies [Line Items]
Increase (decrease) in retained earnings due to revenue recognition	$ (2,552)	$ 4,700

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Balance Sheet Account Detail - Summary of Cash and Cash Equivalents and Marketable Securities (Detail) - USD ($) $ in Thousands	3 Months Ended	6 Months Ended
	Jun. 30, 2018	Jun. 30, 2018	Dec. 31, 2017
Schedule of Investments [Line Items]
Cost of equity securities	$ 8,710	$ 8,710
Foreign currency translation on equity securities	(1,747)	(1,747)
Gross unrealized gain on equity securities	88,075	88,075
Gross unrealized losses on equity securities	0	0
Equity securities	95,038	95,038
Available-for-sale securities, amortized cost			$ 227,571
Available-for-sale securities, gross unrealized gain			0
Available-for-sale securities, gross unrealized loss			0
Cash, cash equivalents and short-term investments, amortized cost	183,330	183,330
Cash, cash equivalents, and short-term investments	269,658	269,658	227,571
Unrealized gains on marketable securities	48,500	58,600
Retained Earnings [Member] | Accounting Standards Update 2016-01 [Member]
Schedule of Investments [Line Items]
Cumulative effect of new accounting principle in period of adoption			17,200
AOCI Attributable to Parent [Member] | Accounting Standards Update 2016-01 [Member]
Schedule of Investments [Line Items]
Cumulative effect of new accounting principle in period of adoption			(17,200)
Bank Deposits [Member]
Schedule of Investments [Line Items]
Available-for-sale, debt securities, amortized cost	10,769	10,769
Available-for-sale, debt securities, estimated fair value	10,769	10,769
Available-for-sale securities, amortized cost			10,965
Available-for-sale securities, gross unrealized gain			0
Available-for-sale securities, gross unrealized loss			0
Available-for-sale securities			10,965
Money market funds [Member]
Schedule of Investments [Line Items]
Available-for-sale, debt securities, amortized cost	163,602	163,602
Available-for-sale, debt securities, estimated fair value	163,602	163,602
Available-for-sale securities, amortized cost			216,358
Available-for-sale securities, gross unrealized gain			0
Available-for-sale securities, gross unrealized loss			0
Available-for-sale securities			216,358
Bank certificates of deposit [Member]
Schedule of Investments [Line Items]
Available-for-sale, debt securities, amortized cost	249	249
Available-for-sale, debt securities, estimated fair value	249	249
Available-for-sale securities, amortized cost			248
Available-for-sale securities, gross unrealized gain			0
Available-for-sale securities, gross unrealized loss			0
Available-for-sale securities			248
Cash and Cash Equivalents [Member]
Schedule of Investments [Line Items]
Cash, cash equivalents, and short-term investments	174,371	174,371	227,323
Cash and Cash Equivalents [Member] | Bank Deposits [Member]
Schedule of Investments [Line Items]
Available-for-sale, debt securities, estimated fair value	10,769	10,769
Available-for-sale securities			10,965
Cash and Cash Equivalents [Member] | Money market funds [Member]
Schedule of Investments [Line Items]
Available-for-sale, debt securities, estimated fair value	163,602	163,602
Available-for-sale securities			216,358
Marketable Securities [Member]
Schedule of Investments [Line Items]
Equity securities	95,038	95,038
Cash, cash equivalents, and short-term investments	95,287	95,287	248
Marketable Securities [Member] | Bank certificates of deposit [Member]
Schedule of Investments [Line Items]
Available-for-sale, debt securities, estimated fair value	$ 249	$ 249
Available-for-sale securities			$ 248

XML

Balance Sheet Account Detail - Additional Information (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Securities in continuous unrealized loss position, period			0
Depreciation expense			$ 112	$ 200
Amortization of intangible assets	$ 6,934	$ 6,901	$ 13,880	$ 13,790

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Balance Sheet Account Detail - Schedule of Property and Equipment Net of Accumulated Depreciation (Detail) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Property, Plant and Equipment [Line Items]
Property and equipment, at cost	$ 6,865	$ 6,780
(Less): Accumulated depreciation	(6,342)	(6,191)
Property and equipment, net of accumulated depreciation	523	589
Computer hardware and software [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, at cost	3,080	2,994
Laboratory equipment [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, at cost	635	630
Office furniture [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, at cost	212	218
Leasehold improvements [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, at cost	$ 2,938	$ 2,938

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Balance Sheet Account Detail - Components of Inventories (Detail) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Raw materials	$ 2,149	$ 1,077
Work-in-process	3,204	2,551
Finished goods	2,647	5,187
(Less:) Non-current portion of inventories included within other assets	(3,480)	(3,100)
Inventories	$ 4,520	$ 5,715

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Balance Sheet Account Detail - Prepaid Expenses (Detail) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Other miscellaneous prepaid operating expenses	$ 3,900	$ 3,389
Prepaid insurance	761	645
Research and development supplies	108	1,883
Key employee life insurance - cash surrender value	0	4,150
Prepaid expenses and other assets	$ 4,769	$ 10,067

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Balance Sheet Account Detail - Schedule of Other Receivables (Detail) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Other miscellaneous receivables	$ 968	$ 1,152
Income tax receivable	638	665
Insurance receivable	1,130	53
Reimbursements due from development partners for incurred research and development expenses	179	263
Other receivables	2,915	2,133
Medicaid rebate credit	400	400
Royalty receivable	$ 200	$ 400

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Balance Sheet Account Detail - Components of Intangible Assets Net of Accumulated Amortization (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended	12 Months Ended
	Mar. 31, 2015	Jun. 30, 2013	Jun. 30, 2018	Dec. 31, 2017	Apr. 30, 2016
Product Rights [Line Items]
Historical Cost			$ 305,668	$ 305,668
Accumulated Amortization			(171,277)	(157,855)
Foreign Currency Translation			(2,994)	(2,471)
Impairment			(8,183)	(8,183)
Net Amount			123,214	137,159
MARQIBO IPR&D (NHL indication) [Member]
Product Rights [Line Items]
Historical Cost			17,600	17,600
Accumulated Amortization			0	0
Foreign Currency Translation			0	0
Impairment			0	0
Net Amount			17,600	17,600
EVOMELA distribution rights [Member]
Product Rights [Line Items]
Historical Cost			7,700	7,700	$ 7,700
Accumulated Amortization			(1,333)	(1,037)
Foreign Currency Translation			0	0
Impairment			0	0
Net Amount			$ 6,367	6,663
Full Amortization Period (months)			156 months
Remaining Amortization Period (months)			129 months
BELEODAQ distribution rights [Member]
Product Rights [Line Items]
Historical Cost			$ 25,000	25,000
Accumulated Amortization			(7,500)	(6,563)
Foreign Currency Translation			0	0
Impairment			0	0
Net Amount			$ 17,500	18,437
Full Amortization Period (months)			160 months
Remaining Amortization Period (months)			112 months
MARQIBO distribution rights [Member]
Product Rights [Line Items]
Historical Cost			$ 26,900	26,900
Accumulated Amortization			(19,342)	(17,182)
Foreign Currency Translation			0	0
Impairment			0	0
Net Amount			$ 7,558	9,718
Full Amortization Period (months)			81 months
Remaining Amortization Period (months)			21 months
FOLOTYN distribution rights [Member]
Product Rights [Line Items]
Historical Cost			$ 118,400	118,400
Accumulated Amortization			(60,649)	(54,111)
Foreign Currency Translation			0	0
Impairment		$ (1,000)	0	0
Net Amount			$ 57,751	64,289
Full Amortization Period (months)			152 months
Remaining Amortization Period (months)			53 months
ZEVALIN distribution rights [Member] | United States [Member]
Product Rights [Line Items]
Historical Cost			$ 41,900	41,900
Accumulated Amortization			(39,294)	(37,557)
Foreign Currency Translation			0	0
Impairment			0	0
Net Amount			$ 2,606	4,343
Full Amortization Period (months)			123 months
Remaining Amortization Period (months)			9 months
ZEVALIN distribution rights [Member] | Ex-U.S. [Member]
Product Rights [Line Items]
Historical Cost			$ 23,490	23,490
Accumulated Amortization			(17,624)	(17,232)
Foreign Currency Translation			(2,994)	(2,471)
Impairment			0	0
Net Amount			$ 2,872	3,787
Full Amortization Period (months)			96 months
Remaining Amortization Period (months)			21 months
FUSILEV distribution rights [Member]
Product Rights [Line Items]
Historical Cost			$ 16,778	16,778
Accumulated Amortization			(9,618)	(9,618)
Foreign Currency Translation			0	0
Impairment			(7,160)	(7,160)
Net Amount			$ 0	0
Full Amortization Period (months)			56 months
Remaining Amortization Period (months)			0 months
FOLOTYN out-License [Member]
Product Rights [Line Items]
Historical Cost			$ 27,900	27,900
Accumulated Amortization			(15,917)	(14,555)
Foreign Currency Translation			0	0
Impairment			(1,023)	(1,023)
Net Amount			$ 10,960	$ 12,322
Full Amortization Period (months)			110 months
Remaining Amortization Period (months)			49 months
FUSILEV [Member]
Product Rights [Line Items]
Impairment	$ (7,200)

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Balance Sheet Account Detail - Estimated Intangible Asset Amortization Expense (Detail) $ in Thousands	Jun. 30, 2018 USD ($)
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Remainder of 2018	$ 13,850
2019	25,095
2020	19,756
2021	18,266
2022	15,882
2023	2,467
2024 and thereafter	10,298
Intangible assets, net total	$ 105,614

XML

Balance Sheet Account Detail - Schedule of Goodwill (Detail) - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2018	Dec. 31, 2017
Goodwill [Line Items]
Foreign currency exchange translation effects	$ (291)	$ (235)
Goodwill	18,106	18,162
ZEVALIN Ex-U.S. Distribution Rights [Member]
Goodwill [Line Items]
Acquisition	2,525	2,525
Allos Therapeutics, Inc. [Member]
Goodwill [Line Items]
Acquisition	5,346	5,346
Talon [Member]
Goodwill [Line Items]
Acquisition	$ 10,526	$ 10,526

XML

Balance Sheet Account Detail - Summary of Other Assets (Detail) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Equity securities	$ 0	$ 37,530
Key employee life insurance – cash surrender value	6,123	10,737
Inventories - non-current portion	3,480	3,100
Promissory note receivable - long term (see Note 10)	1,521	1,517
Income tax receivable	668	668
Research & development supplies and other	1,367	231
Other assets	$ 13,159	$ 53,783

XML

Balance Sheet Account Detail - Schedule of Accounts Payable and Other Accrued Liabilities (Detail) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Trade accounts payable and other accrued liabilities	$ 29,370	$ 33,648
Accrued rebates	6,904	7,990
Accrued product royalty	3,427	4,339
Allowance for returns	4,378	4,045
Accrued data and distribution fees	3,036	4,305
Accrued GPO administrative fees	230	296
Accrued inventory management fee	799	1,126
Allowance for chargebacks	1,742	2,368
Accounts payable and other accrued liabilities	$ 49,886	$ 58,117

XML

Balance Sheet Account Detail - Schedule of Amounts Presented in Accounts Payable and Other Accrued Liabilities (Detail) - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2018	Dec. 31, 2017
Commercial/Medicaid Rebates and Government Chargebacks [Member]
Accounts Payable and Other Liabilities [Roll Forward]
Beginning balance	$ 10,358	$ 9,817
Add: provisions	33,083	106,647
(Less): credits or actual allowances	(34,795)	(106,106)
Ending balance	8,646	10,358
Distribution, Data, Inventory and GPO Administrative Fees [Member]
Accounts Payable and Other Liabilities [Roll Forward]
Beginning balance	5,727	5,146
Add: provisions	7,094	20,104
(Less): credits or actual allowances	(8,756)	(19,523)
Ending balance	4,065	5,727
Product Return Allowances [Member]
Accounts Payable and Other Liabilities [Roll Forward]
Beginning balance	4,045	2,309
Add: provisions	898	2,807
(Less): credits or actual allowances	(565)	(1,071)
Ending balance	$ 4,378	$ 4,045

XML

Balance Sheet Account Detail - Deferred Revenue (Detail) - USD ($) $ in Thousands	Jun. 30, 2018	Jan. 01, 2018	Dec. 31, 2017
Disaggregation of Revenue [Line Items]
Deferred revenue	$ 0		$ 4,187
Increase (decrease) in retained earnings due to revenue recognition	(481,948)		(502,107)
EVOMELA [Member]
Disaggregation of Revenue [Line Items]
Deferred revenue	0		3,819
ZEVALIN, in India Territory [Member]
Disaggregation of Revenue [Line Items]
Deferred revenue	0		$ 368
Difference between Revenue Guidance in Effect before and after Topic 606 [Member] | Accounting Standards Update 2014-09 [Member]
Disaggregation of Revenue [Line Items]
Increase (decrease) in retained earnings due to revenue recognition	$ (2,552)	$ 4,700

XML

Balance Sheet Account Detail - Summary of Other Long-Term Liabilities (Detail) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Accrued executive deferred compensation	$ 5,212	$ 5,928
Deferred rent (non-current portion)	1	52
Clinical study holdback fees, non-current	62	59
Other tax liabilities	176	176
Royalty liability	300	0
Other long-term liabilities	$ 5,751	$ 6,215

XML

Gross-to-Net Product Sales - Reconciliation of Gross-to-Net Product Sales (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Schedule of Reconciliation of Gross Sales [Line Items]
Product sales, net	$ 24,168	$ 34,301	$ 54,662	$ 63,402
Product [Member]
Schedule of Reconciliation of Gross Sales [Line Items]
Gross product sales	44,062	67,709	93,651	125,926
Commercial rebates and government chargebacks	(16,053)	(30,001)	(33,083)	(57,324)
Data and distribution fees, GPO fees, and inventory management fees	(3,584)	(5,176)	(7,094)	(9,640)
Prompt pay discounts	(323)	(419)	(713)	(688)
Product returns	(349)	(957)	(898)	(1,273)
Product sales, net	$ 23,753	$ 31,156	$ 51,863	$ 57,001

XML

Composition of Total Revenue - Schedule of Product Sales, Net by Geography (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Segment Reporting Information [Line Items]
Product sales, net	$ 24,168	$ 34,301	$ 54,662	$ 63,402
Sales Revenue, Goods, Net [Member]
Segment Reporting Information [Line Items]
Percentage of sales	100.00%	100.00%	100.00%	100.00%
Sales Revenue, Goods, Net [Member] | Geographic Concentration Risk [Member]
Segment Reporting Information [Line Items]
Percentage of sales	100.00%	100.00%	100.00%	100.00%
Sales Revenue, Goods, Net [Member] | Geographic Concentration Risk [Member] | United States [Member]
Segment Reporting Information [Line Items]
Percentage of sales	89.90%	93.30%	85.90%	92.70%
Sales Revenue, Goods, Net [Member] | Geographic Concentration Risk [Member] | Total International [Member]
Segment Reporting Information [Line Items]
Percentage of sales	10.10%	6.70%	14.10%	7.30%
Sales Revenue, Goods, Net [Member] | Geographic Concentration Risk [Member] | Total International [Member] | Europe and Canada [Member]
Segment Reporting Information [Line Items]
Percentage of sales	10.10%	6.70%	11.40%	7.30%
Sales Revenue, Goods, Net [Member] | Geographic Concentration Risk [Member] | Total International [Member] | Asia Pacific [Member]
Segment Reporting Information [Line Items]
Percentage of sales	0.00%	0.00%	2.70%	0.00%
Product [Member]
Segment Reporting Information [Line Items]
Product sales, net	$ 23,753	$ 31,156	$ 51,863	$ 57,001
Product [Member] | United States [Member]
Segment Reporting Information [Line Items]
Product sales, net	21,347	29,064	44,545	52,865
Product [Member] | Total International [Member]
Segment Reporting Information [Line Items]
Product sales, net	2,406	2,092	7,318	4,136
Product [Member] | Total International [Member] | Europe and Canada [Member]
Segment Reporting Information [Line Items]
Product sales, net	2,406	2,092	5,894	4,136
Product [Member] | Total International [Member] | Asia Pacific [Member]
Segment Reporting Information [Line Items]
Product sales, net	$ 0	$ 0	$ 1,424	$ 0

XML

Composition of Total Revenue - Schedule of Product Sales, Net by Product Line (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Segment Reporting Information [Line Items]
Product sales, net	$ 24,168	$ 34,301	$ 54,662	$ 63,402
Product [Member]
Segment Reporting Information [Line Items]
Product sales, net	23,753	31,156	51,863	57,001
FOLOTYN [Member]
Segment Reporting Information [Line Items]
Product sales, net	11,680	11,181	24,402	20,455
EVOMELA [Member]
Segment Reporting Information [Line Items]
Product sales, net	5,779	10,058	13,913	16,359
BELEODAQ [Member]
Segment Reporting Information [Line Items]
Product sales, net	2,703	3,396	5,416	6,267
ZEVALIN [Member]
Segment Reporting Information [Line Items]
Product sales, net	1,638	2,297	4,661	5,144
MARQIBO [Member]
Segment Reporting Information [Line Items]
Product sales, net	1,149	2,163	2,043	4,142
FUSILEV [Member]
Segment Reporting Information [Line Items]
Product sales, net	$ 804	$ 2,061	$ 1,428	$ 4,634
Sales Revenue, Goods, Net [Member]
Segment Reporting Information [Line Items]
Percentage of sales	100.00%	100.00%	100.00%	100.00%
Sales Revenue, Goods, Net [Member] | FOLOTYN [Member]
Segment Reporting Information [Line Items]
Percentage of sales	49.20%	35.90%	47.10%	35.90%
Sales Revenue, Goods, Net [Member] | EVOMELA [Member]
Segment Reporting Information [Line Items]
Percentage of sales	24.30%	32.30%	26.80%	28.70%
Sales Revenue, Goods, Net [Member] | BELEODAQ [Member]
Segment Reporting Information [Line Items]
Percentage of sales	11.40%	10.90%	10.40%	11.00%
Sales Revenue, Goods, Net [Member] | ZEVALIN [Member]
Segment Reporting Information [Line Items]
Percentage of sales	6.90%	7.40%	9.00%	9.00%
Sales Revenue, Goods, Net [Member] | MARQIBO [Member]
Segment Reporting Information [Line Items]
Percentage of sales	4.80%	6.90%	3.90%	7.30%
Sales Revenue, Goods, Net [Member] | FUSILEV [Member]
Segment Reporting Information [Line Items]
Percentage of sales	3.40%	6.60%	2.80%	8.10%

XML

Composition of Total Revenue - By Product Line (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Concentration Risk [Line Items]
Total revenues	$ 24,168	$ 34,301	$ 54,662	$ 63,402
Sales Revenue, Services, Net [Member]
Concentration Risk [Line Items]
Percentage of sales	100.00%	100.00%	100.00%	100.00%
License and Service [Member]
Concentration Risk [Line Items]
Total revenues	$ 415	$ 3,145	$ 2,799	$ 6,401
FOLOTYN in all Countries Except the U.S., Canada, Europe, and Turkey [Member]
Concentration Risk [Line Items]
Total revenues	$ 415	$ 119	$ 792	$ 382
FOLOTYN in all Countries Except the U.S., Canada, Europe, and Turkey [Member] | Sales Revenue, Services, Net [Member]
Concentration Risk [Line Items]
Percentage of sales	100.00%	3.80%	28.30%	6.00%
ZEVALIN, in Asia and Certain Other Territories, Excluding China [Member]
Concentration Risk [Line Items]
Total revenues	$ 0	$ 630	$ 2,001	$ 1,245
ZEVALIN, in Asia and Certain Other Territories, Excluding China [Member] | Sales Revenue, Services, Net [Member]
Concentration Risk [Line Items]
Percentage of sales	0.00%	20.00%	71.50%	19.50%
ZEVALIN, in India Territory [Member]
Concentration Risk [Line Items]
Total revenues	$ 0	$ 12	$ 6	$ 24
ZEVALIN, in India Territory [Member] | Sales Revenue, Services, Net [Member]
Concentration Risk [Line Items]
Percentage of sales	0.00%	0.40%	0.20%	0.40%
ZEVALIN, FOLOTYN, BELEODAQ, MARQIBO, in Canada Territory [Member]
Concentration Risk [Line Items]
Total revenues	$ 0	$ 3	$ 0	$ 3
ZEVALIN, FOLOTYN, BELEODAQ, MARQIBO, in Canada Territory [Member] | Sales Revenue, Services, Net [Member]
Concentration Risk [Line Items]
Percentage of sales	0.00%	0.10%	0.00%	0.00%
Sales and Marketing Contracted Services [Member]
Concentration Risk [Line Items]
Total revenues	$ 0	$ 2,381		$ 4,747
Sales and Marketing Contracted Services [Member] | Sales Revenue, Services, Net [Member]
Concentration Risk [Line Items]
Percentage of sales	0.00%	75.70%	0.00%	74.20%

XML

Stock-Based Compensation - Summary of Stock-Based Compensation Expense (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total share-based compensation	$ 4,734	$ 3,487	$ 9,211	$ 7,207
Cost of sales [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total share-based compensation	80	51	146	81
Selling, general and administrative [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total share-based compensation	3,832	2,888	7,522	6,126
Research and development [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total share-based compensation	$ 822	$ 548	$ 1,543	$ 1,000

XML

Net Income (Loss) Per Share - Computation of Net Loss Per Share (Detail) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Basic weighted average shares outstanding (in shares)	102,597,059	78,576,260	101,747,416	78,366,610
Diluted average shares outstanding (in shares)	112,617,151	78,576,260	101,747,416	78,366,610
Net income (loss) as reported	$ 13,744	$ (20,852)	$ (2,074)	$ (44,398)
Interest attributable to 2018 Convertible Notes	886	0	0	0
Net income (loss) for diluted earnings per share	$ 14,630	$ (20,852)	$ (2,074)	$ (44,398)
Net income (loss) per share - basic ($ per share)	$ 0.13	$ (0.27)	$ (0.02)	$ (0.57)
Net income (loss) per share - diluted ($ per share)	$ 0.13	$ (0.27)	$ (0.02)	$ (0.57)
Common Stock Warrant [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Diluted average shares outstanding (in shares)	252,368	0	0	0
Restricted stock units [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Diluted average shares outstanding (in shares)	245,214	0	0	0
Restricted stock awards [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Diluted average shares outstanding (in shares)	1,797,089	0	0	0
Common stock options [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Diluted average shares outstanding (in shares)	3,870,462	0	0	0
2018 Convertible Notes [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Diluted average shares outstanding (in shares)	3,854,959	0	0	0

XML

Net Income (Loss) Per Share - Schedule of Securities Excluded from Calculation of Net Loss Per Share (Detail) - shares	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Anti-dilutive excluded from computation of earnings per share amount (shares)	0	14,122,848	10,550,888	13,950,591
2018 Convertible Notes [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Anti-dilutive excluded from computation of earnings per share amount (shares)	0	10,454,799	3,854,959	10,454,799
Common stock options [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Anti-dilutive excluded from computation of earnings per share amount (shares)	0	1,271,207	4,396,587	1,110,474
Restricted stock awards [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Anti-dilutive excluded from computation of earnings per share amount (shares)	0	2,166,299	1,797,089	2,166,299
Restricted stock units [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Anti-dilutive excluded from computation of earnings per share amount (shares)	0	217,206	245,214	217,206
Common Stock Warrant [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Anti-dilutive excluded from computation of earnings per share amount (shares)	0	13,337	257,039	1,813

XML

Fair Value Measurements - Summary of Asset and Liability Fair Values (Detail) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Assets:
Equity securities (Note 3(a))	$ 95,038
Equity securities (Note 10)		$ 37,530
Deferred compensation investments (life insurance cash surrender value - Note 3(g))	6,123	14,887
Total Assets	265,113	269,082
Liabilities:
Deferred executive compensation liability (Note 15(f))	5,973	11,038
Drug development liability (Note 14)	12,191	12,386
Talon CVR (Note 9(a))	6,693	6,210
Corixa Liability (Note 15(b)(i))	62	62
Total Liabilities	24,919	29,696
Bank certificates of deposit [Member]
Assets:
Available-for-sale	249	248
Money market funds [Member]
Assets:
Available-for-sale	163,602	216,358
Mutual Funds [Member]
Assets:
Available-for-sale	101	59
Level 1 [Member]
Assets:
Equity securities (Note 3(a))	95,038
Equity securities (Note 10)		37,530
Deferred compensation investments (life insurance cash surrender value - Note 3(g))	0	0
Total Assets	95,038	37,530
Liabilities:
Deferred executive compensation liability (Note 15(f))	0	0
Drug development liability (Note 14)	0	0
Talon CVR (Note 9(a))	0	0
Corixa Liability (Note 15(b)(i))	0	0
Total Liabilities	0	0
Level 1 [Member] | Bank certificates of deposit [Member]
Assets:
Available-for-sale	0	0
Level 1 [Member] | Money market funds [Member]
Assets:
Available-for-sale	0	0
Level 1 [Member] | Mutual Funds [Member]
Assets:
Available-for-sale	0	0
Level 2 [Member]
Assets:
Equity securities (Note 3(a))	0
Equity securities (Note 10)		0
Deferred compensation investments (life insurance cash surrender value - Note 3(g))	6,123	14,887
Total Assets	170,075	231,552
Liabilities:
Deferred executive compensation liability (Note 15(f))	5,973	11,038
Drug development liability (Note 14)	0	0
Talon CVR (Note 9(a))	0	0
Corixa Liability (Note 15(b)(i))	0	0
Total Liabilities	5,973	11,038
Level 2 [Member] | Bank certificates of deposit [Member]
Assets:
Available-for-sale	249	248
Level 2 [Member] | Money market funds [Member]
Assets:
Available-for-sale	163,602	216,358
Level 2 [Member] | Mutual Funds [Member]
Assets:
Available-for-sale	101	59
Level 3 [Member]
Assets:
Equity securities (Note 3(a))	0
Equity securities (Note 10)		0
Deferred compensation investments (life insurance cash surrender value - Note 3(g))	0	0
Total Assets	0	0
Liabilities:
Deferred executive compensation liability (Note 15(f))	0	0
Drug development liability (Note 14)	12,191	12,386
Talon CVR (Note 9(a))	6,693	6,210
Corixa Liability (Note 15(b)(i))	62	62
Total Liabilities	18,946	18,658
Level 3 [Member] | Bank certificates of deposit [Member]
Assets:
Available-for-sale	0	0
Level 3 [Member] | Money market funds [Member]
Assets:
Available-for-sale	0	0
Level 3 [Member] | Mutual Funds [Member]
Assets:
Available-for-sale	$ 0	$ 0

XML

Fair Value Measurements - Fair Value Measurement Activity for Liabilities Utilize Level 3 Inputs (Detail) - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2018	Dec. 31, 2017
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Beginning	$ 18,658	$ 14,445
Ending	18,946	18,658
Deferred development costs [Member]
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Transfers in (out) of Level 3	(195)	(744)
Talon CVR [Member]
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Transfers in (out) of Level 3	$ 483	$ 4,957

XML

Business Combinations and Contingent Consideration - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Thousands, shares in Millions		1 Months Ended			6 Months Ended
	Jul. 17, 2013	Apr. 30, 2016	Mar. 31, 2013	Sep. 30, 2012	Jun. 30, 2018	Dec. 31, 2017	Mar. 31, 2016
Business Acquisition [Line Items]
License fees received			$ 3,000
Historical Cost					$ 305,668	$ 305,668
In-process research and development [Member]
Business Acquisition [Line Items]
Estimated cash flow period			10 years
Estimated cash flow discount rate			25.00%
Ligand Pharmaceuticals Inc [Member]
Business Acquisition [Line Items]
Milestone payments		$ 6,000
Melphalan In Process Research and Development [Member]
Business Acquisition [Line Items]
Historical Cost		$ 7,700			$ 7,700	$ 7,700
Minimum [Member]
Business Acquisition [Line Items]
Royalties payout percentage on our future net sales of licensed products					20.00%
Milestone Payments [Member]
Business Acquisition [Line Items]
Milestone payments	$ 5,000				$ 60,000
Milestone net sales achievement	30,000
Ligand contingent consideration							$ 6,000
Milestone Payment One [Member]
Business Acquisition [Line Items]
Milestone payments	10,000
Milestone net sales achievement	60,000
Milestone Payment Two [Member]
Business Acquisition [Line Items]
Milestone payments	25,000
Milestone net sales achievement	100,000
Milestone Payment Three [Member]
Business Acquisition [Line Items]
Milestone payments	50,000
Milestone net sales achievement	200,000
Milestone Payment Four [Member]
Business Acquisition [Line Items]
Milestone payments	100,000
Milestone net sales achievement	400,000
Menadione Topical Lotion [Member]
Business Acquisition [Line Items]
Milestone payments	5,000
Talon Therapeutics, Inc. [Member]
Business Acquisition [Line Items]
Additional shares business acquisition date					Jul. 17, 2013
Cash consideration	$ 11,300
Shares issued in acquisition (shares)	3.0
Common stock value assigned	$ 26,300
Common stock value, per share ($ per share)	$ 8.77
Estimated fair value of acquisition	$ 6,500
Contingent value rights future cash payments	$ 195,000				$ 195,000
Talon Therapeutics, Inc. [Member] | Minimum [Member]
Business Acquisition [Line Items]
Contingent value rights expected rate	50.00%
Talon Therapeutics, Inc. [Member] | Maximum [Member]
Business Acquisition [Line Items]
Contingent value rights expected rate	100.00%
Allos Therapeutics, Inc. [Member]
Business Acquisition [Line Items]
Cash consideration				$ 205,200

XML

Business Combinations and Contingent Consideration - Change in Fair Value of Contingent Consideration Related to Acquisitions (Detail) $ in Thousands	6 Months Ended
	Jun. 30, 2018 USD ($)
Change in Fair Value of Contingent Consideration [Roll Forward]
Beginning	$ 18,658
Ending	18,946
Contingent Consideration [Member] | Talon Therapeutics, Inc. [Member]
Change in Fair Value of Contingent Consideration [Roll Forward]
Beginning	6,210
Fair value adjustment	483
Ending	$ 6,693

XML

Business Combinations and Contingent Consideration - Acquisition-Date Fair Value of Consideration Transferred (Detail) - Captisol-enabled, propylene glycol-free melphalan rights [Member] $ in Thousands	1 Months Ended
	Mar. 31, 2013 USD ($)
Business Acquisition [Line Items]
Cash consideration	$ 3,000
Ligand contingent consideration	4,700
Total purchase consideration	$ 7,700

XML

Business Combinations and Contingent Consideration - Summary of Allocation of Total Purchase Price to Net Assets Acquired (Detail) - Captisol-enabled, propylene glycol-free melphalan rights [Member] $ in Thousands	Mar. 31, 2013 USD ($)
Business Acquisition, Contingent Consideration [Line Items]
Total purchase consideration	$ 7,700
In-process research and development [Member]
Business Acquisition, Contingent Consideration [Line Items]
Total purchase consideration	$ 7,700

XML

Out-License of Marqibo, Zevalin, & Evolema in China Territory - Additional Information (Detail) $ in Thousands, shares in Millions		1 Months Ended	6 Months Ended	12 Months Ended
	Sep. 17, 2014 shares	Sep. 30, 2014 agreement	Jun. 30, 2018 USD ($) shares	Dec. 31, 2017 shares	Dec. 31, 2016 shares	Dec. 31, 2015 USD ($)
Other Commitments [Line Items]
Equity securities			$ 95,038
CASI Out-License [Member]
Other Commitments [Line Items]
Number of agreements | agreement		3
Shares received (shares) | shares	5.4			1.5	4.6
Number of shares held in investment (shares) | shares			11.5
Percentage of ownership			13.30%
Equity securities			$ 95,000
Undiscounted proceeds						$ 9,700

XML

Out-License of Marqibo, Zevalin, & Evolema in China Territory - Schedule of Proceeds Received and Fair Value on CASI Out-License Execution Date (Detail) - USD ($) $ / shares in Units, $ in Thousands, shares in Millions		12 Months Ended
	Sep. 17, 2014	Dec. 31, 2017	Dec. 31, 2016
Secured Promissory Note Due March 17, 2016 [Member]
Other Commitments [Line Items]
Debt instrument face value	$ 1,500
CASI Out-License [Member]
Other Commitments [Line Items]
Total consideration received	$ 9,959
Shares received (shares)	5.4	1.5	4.6
Share price ($ per share)	$ 1.6
CASI Out-License [Member] | Secured Promissory Note Due March 17, 2016 [Member]
Other Commitments [Line Items]
Total consideration received	$ 1,310
Debt instrument coupon rate	0.50%
CASI Out-License [Member] | Common Stock [Member]
Other Commitments [Line Items]
Total consideration received	$ 8,649

XML

Out-License Of Zevalin In Certain Ex-U.S. Territories (Detail) - USD ($) $ in Thousands		1 Months Ended			2 Months Ended	3 Months Ended			6 Months Ended
	Jun. 30, 2017	Apr. 30, 2018	Jan. 31, 2016	Dec. 31, 2015	Jan. 31, 2016	Jun. 30, 2018	Jun. 30, 2017	Dec. 31, 2015	Jun. 30, 2018	Jun. 30, 2017
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Milestone net sales achievement						$ 24,168	$ 34,301		$ 54,662	$ 63,402
Zevalin Rights [Member] | Total Consideration [Member]
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Total consideration received					$ 18,000
Zevalin Rights [Member] | Payment One [Member]
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Total consideration received				$ 15,000
Zevalin Rights [Member] | Payment Two [Member]
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Total consideration received			$ 3,000
License and Service [Member]
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Milestone net sales achievement						$ 415	$ 3,145		$ 2,799	$ 6,401
License and Service [Member] | Zevalin Rights [Member]
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Milestone net sales achievement		$ 2,000
License and Service [Member] | Zevalin Rights [Member] | Total Consideration [Member]
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Milestone net sales achievement								$ 15,000
License and Service [Member] | Zevalin Rights [Member] | Payment Two [Member]
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Milestone net sales achievement	$ 3,000

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Co-Promotion Arrangement With Eagle Pharmaceuticals (Detail)	1 Months Ended	3 Months Ended		6 Months Ended
	Nov. 30, 2015 USD ($) product	Jun. 30, 2018 USD ($)	Jun. 30, 2017 USD ($)	Jun. 30, 2018 USD ($)	Jun. 30, 2017 USD ($)
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Term of contract	18 months
Total revenues		$ 24,168,000	$ 34,301,000	$ 54,662,000	$ 63,402,000
Collaborative Arrangement, Co-promotion [Member]
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Number of products | product	6
Fixed payment	$ 12,800,000
License and Service [Member]
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Total revenues		415,000	3,145,000	2,799,000	6,401,000
License and Service [Member] | Collaborative Arrangement, Co-promotion [Member]
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Total revenues			2,400,000		4,700,000
Product [Member]
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Total revenues		23,753,000	31,156,000	51,863,000	57,001,000
Reimbursable expense		$ 6,606,000	11,303,000	$ 13,420,000	19,439,000
Product [Member] | Collaborative Arrangement, Co-promotion [Member]
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Total revenues			0		0
Reimbursable Expenses [Member] | Collaborative Arrangement, Co-promotion [Member]
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Reimbursable expense			$ 2,100,000		$ 4,200,000

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Convertible Senior Notes - Additional Information (Detail)			1 Months Ended				5 Months Ended	6 Months Ended	12 Months Ended
	Dec. 23, 2013 USD ($)	Dec. 17, 2013 USD ($) note	Oct. 31, 2017 USD ($) shares	Jul. 31, 2017 shares	Dec. 31, 2016 USD ($) open_market_purchase shares	Dec. 31, 2013 USD ($) $ / shares	Dec. 31, 2017 USD ($) shares	Jun. 30, 2018 USD ($) $ / shares shares	Dec. 31, 2017 USD ($)	Dec. 31, 2016 USD ($) shares
Debt Disclosure [Line Items]
Stock issued during period, shares, new issues (shares) | shares				3,243,882			10,314,250			10,890,915
Common shares sold (shares)							$ 100,000	$ 103,000	$ 100,000
2018 Convertible Notes [Member]
Debt Disclosure [Line Items]
Principal							40,565,000	40,565,000	40,565,000
Fair value							74,300,000	$ 81,000,000	74,300,000
2.75% Convertible Senior Notes Due 2018 [Member]
Debt Disclosure [Line Items]
Sale of convertible notes, principal amount		$ 120,000,000
Interest rate		2.75%						2.75%
Number of notes if converted | note		120,000
Debt instrument face value							$ 40,600,000	$ 40,600,000	40,600,000
Conversion rate, shares (shares) | shares								95
Conversion rate, price per share ($ per share) | $ / shares								$ 1,000
Common shares converted value (shares)						$ 11,400,000		$ 3,900,000
Money conversion price per share ($ per share) | $ / shares								$ 10.53
Net proceeds from convertible notes	$ 115,400,000
Professional fee	4,600,000
Additional paid-in capital	$ (13,100,000)
Number of open market purchases | open_market_purchase					2
Number of instruments (shares) | shares			69,472		9,963
Repurchase of principal			$ 69,500,000		$ 10,000,000
Repayments			$ 27,300,000		9,000,000
Gain (loss) on retirement									(800,000)	$ (25,000)
Proceeds from unwinding					$ 21,000				$ 5,800,000
Stock issued during period, shares, new issues (shares) | shares			5,400,000
Stock issued, value			$ 73,000,000
Strike price per share ($ per share) | $ / shares						$ 14.03
Common shares sold (shares)						$ 11,400,000

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Convertible Senior Notes - Carrying Value of 2018 Convertible Notes (Detail) - 2018 Convertible Notes [Member] - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Debt Instrument [Line Items]
Principal amount	$ 40,565	$ 40,565
(Less): Unamortized debt discount (amortized through December 2018)	(1,022)	(2,101)
(Less): Debt issuance costs	(116)	(240)
Carrying value	$ 39,427	$ 38,224

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Convertible Senior Notes - Components of the Interest Expense Recognized (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Debt Disclosure [Abstract]
Contractual coupon interest expense	$ 279	$ 757	$ 558	$ 1,513
Amortization of debt issuance costs	62	155	124	321
Accretion of debt discount	545	1,412	1,079	2,794
Total	$ 886	$ 2,324	$ 1,761	$ 4,628
Effective interest rate	8.41%	8.65%	8.41%	8.65%

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FOLOTYN License Agreement And Development Liability - Additional Information (Detail) - USD ($) $ in Thousands		3 Months Ended		6 Months Ended
	May 29, 2013	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Total operating costs and expenses		$ 58,479	$ 52,910	$ 114,238	$ 103,920
Mundipharma [Member]
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Total operating costs and expenses	$ 7,000
Maximum [Member] | Regulatory [Member]
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Potential milestone payments				16,000
Maximum [Member] | Commercial progress and sales-dependent [Member]
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Potential milestone payments				$ 107,000

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FOLOTYN License Agreement And Development Liability - Schedule of Drug Development Liability Adjustments (Detail) $ in Thousands	6 Months Ended
	Jun. 30, 2018 USD ($)
Accrued Drug Development Expenses [Roll Forward]
Balance as of December 31, 2017	$ 275
Balance as of June 30, 2018	211
FOLOTYN [Member]
Accrued Drug Development Expenses [Roll Forward]
Balance as of December 31, 2017	12,386
Transfer from long-term to current in 2018	0
(Less): Expenses incurred in 2018	(195)
Balance as of June 30, 2018	12,191
FOLOTYN [Member] | Drug Development Liability Current [Member]
Accrued Drug Development Expenses [Roll Forward]
Balance as of December 31, 2017	275
Transfer from long-term to current in 2018	131
(Less): Expenses incurred in 2018	(195)
Balance as of June 30, 2018	211
FOLOTYN [Member] | Drug Development Liability Long Term [Member]
Accrued Drug Development Expenses [Roll Forward]
Balance as of December 31, 2017	12,111
Transfer from long-term to current in 2018	(131)
(Less): Expenses incurred in 2018	0
Balance as of June 30, 2018	$ 11,980

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Financial Commitments & Contingencies And License Agreements - Additional Information (Detail) $ in Thousands, € in Millions		1 Months Ended															2 Months Ended	3 Months Ended					5 Months Ended	6 Months Ended		12 Months Ended
	Jun. 30, 2017 USD ($)	Apr. 30, 2018 USD ($)	Sep. 30, 2017 USD ($)	Aug. 31, 2017 USD ($)	Jul. 31, 2017 USD ($) shares	Apr. 30, 2016 USD ($) shares	Feb. 29, 2016	Jan. 31, 2016 USD ($)	Dec. 31, 2015 USD ($)	Feb. 28, 2015 USD ($)	Jun. 30, 2014	Feb. 28, 2014 USD ($)	Apr. 30, 2012 EUR (€)	Feb. 28, 2010 USD ($)	Nov. 30, 2009 USD ($)	Oct. 31, 2008 USD ($) shares	Jan. 31, 2016 USD ($)	Jun. 30, 2018 USD ($)	Jun. 30, 2017 USD ($)	Mar. 31, 2016 USD ($)	Dec. 31, 2015 USD ($)	Mar. 31, 2014 USD ($)	Dec. 31, 2017 USD ($) shares	Jun. 30, 2018 USD ($) Country	Jun. 30, 2017 USD ($)	Dec. 31, 2016 USD ($) shares	Nov. 30, 2014 USD ($)	Jul. 17, 2013 USD ($)
Long-term Purchase Commitment [Line Items]
Potential payments based on achievement of sales milestones																								$ 325,000
Acquisition-related contingent obligations																		$ 6,755					$ 6,272	6,755
Total revenues																		24,168	$ 34,301					54,662	$ 63,402
Payment of all royalty fees			$ 2,600
Amount receivable on approval of oral form of FUSILEV																		200						200
Intangible assets																		305,668					$ 305,668	305,668
Additional license fees																								60,000
Common stock issued (shares) | shares					3,243,882																		10,314,250			10,890,915
Consideration paid for the rights granted (shares)												$ 1,000
Proceeds from common shares sold under an at-market-issuance sales agreement					$ 23,745																		$ 104,527			$ 73,869
Cash paid for income taxes																								27	10
Deferrals and contributions																		$ 6,000					11,000	$ 6,000
FOLOTYN [Member]
Long-term Purchase Commitment [Line Items]
Percentage of royalty on annual worldwide sales under condition one																		8.00%						8.00%
Percentage of royalty on annual worldwide sales under condition two																		9.00%						9.00%
Percentage of royalty on annual worldwide sales under condition three																		11.00%						11.00%
EVOMELA distribution rights [Member]
Long-term Purchase Commitment [Line Items]
Intangible assets						$ 7,700												$ 7,700					7,700	$ 7,700
ZEVALIN, FOLOTYN, BELEODAQ, And MARQIBO [Member]
Long-term Purchase Commitment [Line Items]
Payments receivable on achievement of potential regulatory milestones																								2,000
Total consideration received																				$ 6,000
Regulatory [Member]
Long-term Purchase Commitment [Line Items]
Receivable for contracted sales and marketing services				$ 2,000
Total Consideration [Member] | Zevalin Rights [Member]
Long-term Purchase Commitment [Line Items]
Total consideration received																	$ 18,000
Payment One [Member] | Zevalin Rights [Member]
Long-term Purchase Commitment [Line Items]
Total consideration received									$ 15,000
Payment Two [Member] | Zevalin Rights [Member]
Long-term Purchase Commitment [Line Items]
Total consideration received								$ 3,000
Ligand Pharmaceuticals Inc [Member]
Long-term Purchase Commitment [Line Items]
Milestone payments						6,000
ZEVALIN [Member]
Long-term Purchase Commitment [Line Items]
Potential payments based on achievement of sales milestones																								5,000
Acquisition-related contingent obligations																		100					100	$ 100
ZEVALIN [Member] | Licensing Agreements [Member]
Long-term Purchase Commitment [Line Items]
Fees paid to Bayer for acquiring licensing rights | €													€ 19
Minimum number of countries outside U.S. approved ZEVALIN for treatment | Country																								40
Percentage of royalty							20.00%
License agreement contractual terms							15 years
Payments receivable on achievement of potential sales milestones																		1,500						$ 1,500
Payments receivable on achievement of potential regulatory milestones																								1,500
Aggregate amount receivable based on achievement of milestones																								3,000
Talon Therapeutics, Inc. [Member]
Long-term Purchase Commitment [Line Items]
Acquisition-related contingent obligations																		6,700					$ 6,200	6,700
Contingent value rights future cash payments																		$ 195,000						195,000				$ 195,000
SPI-2012 [Member]
Long-term Purchase Commitment [Line Items]
Milestone payments						$ 2,700
Issuance (shares) | shares						318,750
Proceeds from common shares sold under an at-market-issuance sales agreement						$ 2,300
Cash paid for income taxes						$ 400
Spi Two Thousand Twelve [Member]
Long-term Purchase Commitment [Line Items]
Potential payments based on achievement of sales milestones																								225,000
Potential payments based on achievement of regulatory milestones																								13,000
Poziotinib [Member] | Licensing Agreements [Member]
Long-term Purchase Commitment [Line Items]
Potential payments based on achievement of regulatory milestones																								$ 33,000
Minimum [Member]
Long-term Purchase Commitment [Line Items]
Percentage of royalty on annual worldwide sales under condition one																		20.00%						20.00%
Percentage of royalties on net sale of licensed products																								20.00%
Minimum [Member] | FOLOTYN [Member]
Long-term Purchase Commitment [Line Items]
Amount of annual worldwide sales on which royalty is payable under condition two																								$ 150,000
Amount of annual worldwide sales on which royalty is payable under condition three																								300,000
Maximum [Member] | FOLOTYN [Member]
Long-term Purchase Commitment [Line Items]
Amount of annual worldwide sales on which royalty is payable under condition one																								150,000
Amount of annual worldwide sales on which royalty is payable under condition two																								300,000
Maximum [Member] | Regulatory [Member]
Long-term Purchase Commitment [Line Items]
Potential milestone payments																								16,000
Maximum [Member] | Commercial progress and sales-dependent [Member]
Long-term Purchase Commitment [Line Items]
Potential milestone payments																								$ 107,000
INDIA [Member] | ZEVALIN [Member] | Licensing Agreements [Member]
Long-term Purchase Commitment [Line Items]
Percentage of royalty																								20.00%
License agreement contractual terms											15 years
Up-front non-refundable payment										$ 500
Allergan [Member]
Long-term Purchase Commitment [Line Items]
Up-front non-refundable payment																$ 41,500
Allergan [Member] | Common Class A
Long-term Purchase Commitment [Line Items]
Common stock issued (shares) | shares																25,000
Stock issued, value																$ 100
Nippon Kayaku [Member]
Long-term Purchase Commitment [Line Items]
Payments receivable on achievement of potential regulatory milestones																								$ 10,000
Upfront fee															$ 15,000
Payment on achievement of commercialization milestones																								126,000
TopoTarget [Member]
Long-term Purchase Commitment [Line Items]
Payments receivable on achievement of potential sales milestones																		$ 190,000						190,000
Payments receivable on achievement of potential regulatory milestones																								$ 88,000
Payment of all royalty fees														$ 30,000
Percentage of development cost																								70.00%
Percentage of development cost that is funded by TopoTarget for joint development plan																								30.00%
Additional payments based on the achievement of certain development												$ 10,000
Aggregate payout value																						$ 17,800
Second milestone payment																											$ 25,000
Restatement Adjustment [Member] | EVOMELA distribution rights [Member]
Long-term Purchase Commitment [Line Items]
Intangible assets																		(7,700)						$ (7,700)
License and Service [Member]
Long-term Purchase Commitment [Line Items]
Total revenues																		$ 415	$ 3,145					$ 2,799	$ 6,401
License and Service [Member] | Zevalin Rights [Member]
Long-term Purchase Commitment [Line Items]
Total revenues		$ 2,000
License and Service [Member] | Total Consideration [Member] | Zevalin Rights [Member]
Long-term Purchase Commitment [Line Items]
Total revenues																					$ 15,000
License and Service [Member] | Payment Two [Member] | Zevalin Rights [Member]
Long-term Purchase Commitment [Line Items]
Total revenues	$ 3,000
License and Service [Member] | Maximum [Member] | Regulatory [Member]
Long-term Purchase Commitment [Line Items]
Total revenues				$ 3,000
License [Member] | Allergan [Member]
Long-term Purchase Commitment [Line Items]
License fee																$ 300
MD Anderson [Member]
Long-term Purchase Commitment [Line Items]
Potential payments based on achievement of sales milestones		23,000
Payment of all royalty fees		500
Potential payments based on achievement of regulatory milestones		$ 11,000

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Income Taxes - Additional Information (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017	Dec. 31, 2017
Income Tax Disclosure [Abstract]
Provision (benefit) for income taxes	$ 3	$ 255	$ 6	$ 54
Income tax expense			$ 200
Provisional decrease in deferred tax assets					$ 38,900
Provisional decrease in valuation allowance					41,400
Income tax benefit due to reduction in tax rate					2,500
Increase (decrease) in valuation allowance due to deferred tax assets					$ (2,900)

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Stockholders' Equity (Detail) - USD ($) $ in Thousands	1 Months Ended	5 Months Ended	12 Months Ended		21 Months Ended	31 Months Ended
	Jul. 31, 2017	Dec. 31, 2017	Dec. 31, 2017	Dec. 31, 2016	Aug. 31, 2017	Jun. 30, 2018
Equity [Abstract]
Maximum proceeds			$ 128,300		$ 250,000	$ 202,100
Common stock issued (shares)	3,243,882	10,314,250		10,890,915
Proceeds Received (Net of Broker Commissions and Fees )	$ 23,745	$ 104,527		$ 73,869

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Immaterial Restatement Of Prior Period Financial Statements For Stock-Based Compensation - Summary of Revisions to the Consolidated Statements of Operations (Detail) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Operating costs and expenses:
Selling, general and administrative	$ 23,451	$ 17,421	$ 47,556	$ 36,525
Research and development	21,488	15,167	39,382	29,945
Total operating costs and expenses	58,479	52,910	114,238	103,920
Loss from operations	(34,311)	(18,609)	(59,576)	(40,518)
Loss before income taxes	13,747	(20,597)	(2,068)	(44,344)
Net loss	$ 13,744	$ (20,852)	$ (2,074)	$ (44,398)
Net income (loss) per share:
Basic ($ per share)	$ 0.13	$ (0.27)	$ (0.02)	$ (0.57)
Diluted ($ per share)	$ 0.13	$ (0.27)	$ (0.02)	$ (0.57)
Previously Reported [Member]
Operating costs and expenses:
Selling, general and administrative		$ 17,107		$ 35,715
Research and development		15,097		29,792
Total operating costs and expenses		52,526		102,957
Loss from operations		(18,225)		(39,555)
Loss before income taxes		(20,213)		(43,381)
Net loss		$ (20,468)		$ (43,435)
Net income (loss) per share:
Basic ($ per share)		$ (0.26)		$ (0.55)
Diluted ($ per share)		$ (0.26)		$ (0.55)

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Immaterial Restatement Of Prior Period Financial Statements For Stock-Based Compensation - Summary of Revisions to the Consolidated Statements of Comprehensive Loss (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Net loss	$ 13,744	$ (20,852)	$ (2,074)	$ (44,398)
Total comprehensive loss		(23,011)		(44,598)
Previously Reported [Member]
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Net loss		(20,468)		(43,435)
Total comprehensive loss		$ (22,627)		$ (43,635)

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New Revenue Recognition Standard - Additional Information (Detail) - USD ($) $ in Thousands	Jun. 30, 2018	Jan. 01, 2018	Dec. 31, 2017
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Increase (decrease) in retained earnings due to revenue recognition	$ (481,948)		$ (502,107)
Difference between Revenue Guidance in Effect before and after Topic 606 [Member] | Accounting Standards Update 2014-09 [Member]
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Increase (decrease) in retained earnings due to revenue recognition	$ (2,552)	$ 4,700

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New Revenue Recognition Standard - Condensed Consolidated Statement of Operations (Detail) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Revenue:
Total revenues	$ 24,168	$ 34,301	$ 54,662	$ 63,402
Loss from operations	(34,311)	(18,609)	(59,576)	(40,518)
Loss before income taxes	13,747	(20,597)	(2,068)	(44,344)
Net loss	$ 13,744	$ (20,852)	$ (2,074)	$ (44,398)
Net income per share:
Basic ($ per share)	$ 0.13	$ (0.27)	$ (0.02)	$ (0.57)
Diluted ($ per share)	$ 0.13	$ (0.27)	$ (0.02)	$ (0.57)
Difference between Revenue Guidance in Effect before and after Topic 606 [Member] | Accounting Standards Update 2014-09 [Member]
Revenue:
Total revenues	$ 1,109		$ 1,626
Loss from operations	1,109		1,626
Loss before income taxes	1,109		1,626
Net loss	$ 1,109		$ 1,626
Net income per share:
Basic ($ per share)	$ 0.01		$ 0.02
Diluted ($ per share)	$ 0.01		$ 0.02
Calculated under Revenue Guidance in Effect before Topic 606 [Member]
Revenue:
Total revenues	$ 25,277		$ 56,288
Loss from operations	(33,202)		(57,950)
Loss before income taxes	14,856		(442)
Net loss	$ 14,853		$ (448)
Net income per share:
Basic ($ per share)	$ 0.14		$ 0.00
Diluted ($ per share)	$ 0.14		$ 0.00
Product [Member]
Revenue:
Total revenues	$ 23,753	$ 31,156	$ 51,863	$ 57,001
Product [Member] | Difference between Revenue Guidance in Effect before and after Topic 606 [Member] | Accounting Standards Update 2014-09 [Member]
Revenue:
Total revenues	1,165		1,562
Product [Member] | Calculated under Revenue Guidance in Effect before Topic 606 [Member]
Revenue:
Total revenues	24,918		53,425
License and Service [Member]
Revenue:
Total revenues	415	$ 3,145	2,799	$ 6,401
License and Service [Member] | Difference between Revenue Guidance in Effect before and after Topic 606 [Member] | Accounting Standards Update 2014-09 [Member]
Revenue:
Total revenues	(56)		64
License and Service [Member] | Calculated under Revenue Guidance in Effect before Topic 606 [Member]
Revenue:
Total revenues	$ 359		$ 2,863

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New Revenue Recognition Standard - Condensed Consolidated Balance Sheet (Detail) - USD ($) $ in Thousands	Jun. 30, 2018	Jan. 01, 2018	Dec. 31, 2017
Current assets:
Accounts receivable, net of allowance for doubtful accounts	$ 27,658		$ 32,260
Total current assets	309,520		277,746
Total assets	464,522		487,439
Current liabilities:
Deferred revenue	0		3,872
Total current liabilities	94,470		109,749
Deferred revenue, less current portion	0		315
Total liabilities	120,403		136,100
Stockholders’ equity:
Accumulated deficit	(481,948)		(502,107)
Total stockholders’ equity	344,119		351,339
Total liabilities and stockholders’ equity	464,522		$ 487,439
Difference between Revenue Guidance in Effect before and after Topic 606 [Member] | Accounting Standards Update 2014-09 [Member]
Current assets:
Accounts receivable, net of allowance for doubtful accounts	38
Total current assets	38
Total assets	38
Current liabilities:
Deferred revenue	2,308
Total current liabilities	2,308
Deferred revenue, less current portion	282
Total liabilities	2,590
Stockholders’ equity:
Accumulated deficit	(2,552)	$ 4,700
Total stockholders’ equity	(2,552)
Total liabilities and stockholders’ equity	38
Calculated under Revenue Guidance in Effect before Topic 606 [Member]
Current assets:
Accounts receivable, net of allowance for doubtful accounts	27,696
Total current assets	309,558
Total assets	464,560
Current liabilities:
Deferred revenue	2,308
Total current liabilities	96,778
Deferred revenue, less current portion	282
Total liabilities	122,993
Stockholders’ equity:
Accumulated deficit	(484,500)
Total stockholders’ equity	341,567
Total liabilities and stockholders’ equity	$ 464,560

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New Revenue Recognition Standard - Condensed Consolidated Cash Flows (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Net loss	$ 13,744	$ (20,852)	$ (2,074)	$ (44,398)
Changes in operating assets and liabilities:
Accounts receivable, net			5,087	(2,105)
Deferred revenue			0	$ (700)
Difference between Revenue Guidance in Effect before and after Topic 606 [Member] | Accounting Standards Update 2014-09 [Member]
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Net loss	1,109		1,626
Changes in operating assets and liabilities:
Accounts receivable, net			(38)
Deferred revenue			1,588
Calculated under Revenue Guidance in Effect before Topic 606 [Member]
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Net loss	$ 14,853		(448)
Changes in operating assets and liabilities:
Accounts receivable, net			5,049
Deferred revenue			$ 1,588