Spectrum Pharmaceuticals Inc. (NASDAQ: SPPI) shares made a handy gain early Thursday after the firm announced that it would be selling its portfolio of seven FDA-approved hematology/oncology products to Acrotech Biopharma. This is a sizable portfolio, and Spectrum is getting a big payout for it.

The boards of directors of Spectrum and Aurobindo have both approved the transaction, which is subject to regulatory approvals and expected to close within 90 days.

The seven products included in the sale are:

• Fusilev (levoleucovorin)
• Folotyn (pralatrexate injection)
• Zevalin (ibritumomab tiuxetan)
• Marqibo (vinCRIStine sulfate Liposome injection)
• Beleodaq (belinostat) for injection
• Evomela (melphalan) for injection
• Khapzory (levoleucovorin)

Under the terms of the deal, Spectrum will receive $160 million in an upfront cash payment and up to $140 million in regulatory and sales-based milestones. If everything goes as planned, the company could earn a total of $300 million, or roughly 27% of its total market cap.

Note that these products generated combined sales of $76.4 million during the first nine months of 2018. Analysts expect revenues of $104.18 million for the 2018 full year, with $25.6 million of these revenues coming in the fourth quarter.

Additionally, most of impacted staff will transition to Acrotech, or about 40% of Spectrum’s full staff. Management believes that this will right-size Spectrum for its development efforts. The firm is retaining a core group of commercial talent to lead the launch of Rolontis and poziotinib.

Joe Turgeon, president and CEO of Spectrum, commented:

This divestiture marks a major strategic shift for Spectrum to ensure laser-focus on novel, oncology drug development and commercialization. The proceeds generated by the sale will significantly strengthen the financial position of the company, providing the capital to develop and commercialize our two late-stage pipeline assets, and placing us in a solid position to evaluate additional growth opportunities.

Shares of Spectrum were last seen down fractionally at $10.46, in a 52-week range of $6.22 to $25.29. The consensus analyst price target is $28.50.

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