424B3
Filed pursuant to rule 424(b)(3)
Registration Statement No. 333-135029
PROSPECTUS SUPPLEMENT NO. 3
(TO PROSPECTUS DATED AUGUST 21, 2006)
PROSPECTUS
UP TO 1,550,134 SHARES OF
SPECTRUM PHARMACEUTICALS, INC.
COMMON STOCK
This prospectus supplement no. 3 relates to the offer and sale of up to 1,550,134 shares of our common stock by the selling stockholders named in the prospectus dated August 21, 2006, as supplemented by prospectus supplement no. 1 dated October 22, 2007 and no. 2 dated March 31, 2008 (the “Prospectus”). This prospectus supplement no. 3 should be read in conjunction with the Prospectus.
In connection with our 2006 acquisition of all the oncology drug assets of Targent, LLC, as the successor to Targent, Inc. (“Targent”), Targent is eligible to receive contingent consideration, in the form of either cash or shares, upon the satisfaction of certain milestones. As a result of the satisfaction of one such milestone in 2009, we are issuing 125,000 shares of our common stock, as directed by Targent, to the individuals named in the Selling Stockholders table below. Pursuant to this prospectus supplement no. 3, as required by the registration rights agreement with Targent, we are registering for resale 41,665 of those 125,000 shares. Other than the asset purchase agreement relating to the acquisition and transactions contemplated thereby, there are no material relationships between the Company and Targent or its stockholders.
The information appearing in the table below, as of the date hereof, supplements the information in the table appearing under the heading “Selling Stockholders” in the Prospectus. This table only provides beneficial ownership information with respect to selling stockholders who are receiving shares of our common stock in connection with the achievement of a milestone related to the acquisition of certain assets from Targent, as described above.
                                         
    Shares of Common Stock             Shares of Common Stock  
    Beneficially Owned             Beneficially Owned  
    Before Offering     Number of Shares     Following the Offering(1)  
            % of     of Common Stock             % of  
Name   Number     Class     Offered Hereby     Number     Class  
The Robert Fowler Johnston Living Trust (2)
     376,941       1.16 %     21,416       355,525       1.09 %
Hephaestos II Trust UAD 12/31/1991
     32,565       *       1,868       30,697       *  
The Lynn Dixon Johnston Living Trust (2)
     41,561       *       2,328       39,233       *  
Trust F/B/O William Johnston 11/6/1978
     13,531       *       705       12,826       *  
William Johnston Trust 07-15-1999
     15,704       *       1,630       14,074       *  
William M. Johnston GST 6-1-2004
     3,625       *       590       3,035       *  
Trust F/B/O Bradford Johnston 11/6/1978
     43,890       *       2,463       41,427       *  
Bradford D. Johnston GST DTD 1/29/02
     8,009       *       461       7,548       *  
Trust F/B/O Alexandra Johnston 11/06/78
     43,890       *       2,463       41,427       *  
Alexandra F. Johnston Trust DTD 2-25-2004
     8,011       *       462       7,549       *  

 

 

 

                                         
    Shares of Common Stock             Shares of Common Stock  
    Beneficially Owned             Beneficially Owned  
    Before Offering     Number of Shares     Following the Offering(1)  
            % of     of Common Stock             % of  
Name   Number     Class     Offered Hereby     Number     Class  
Targent Pharmaceuticals, LLC
     33,782       *       1,157       32,625       *  
Seth Lederman
     35,334       *       391       34,943       *  
Eli R. Lederman
     36,491       *       2,000       34,491       *  
James Bell
     631       *       36       595       *  
Bayard Henry
     6,523       *       369       6,154       *  
Peter Melhado
     2,540       *       72       2,468       *  
Lysander, LLC
     17,644       *       645       16,999       *  
Patrick Maguire
     2,407       *       139       2,268       *  
Ernest Mario
     9,571       *       2,331       7,240       *  
Stephen K. Carter
     2,407       *       139       2,268       *  
     
*  
less than 1%
 
(1)  
Assumes the sale by the selling stockholders of all of the shares of common stock available for resale under this prospectus supplement.
 
(2)  
Lynn Dixon Johnston and Robert Fowler Johnston are co-trustees and hold the dispositive voting and investment power over the shares of common stock.
INVESTING IN OUR COMMON STOCK INVOLVES A HIGH DEGREE OF RISK. SEE “RISK FACTORS” IN OUR FORM 10-K FOR THE YEAR ENDED DECEMBER 31, 2008 AND OTHER DOCUMENTS INCORPORATED BY REFERENCE INTO THE PROSPECTUS.
Neither the Securities and Exchange Commission nor any state securities commission has approved or disapproved of these securities or passed upon the accuracy or adequacy of the prospectus. Any representation to the contrary is a criminal offense.
The date of this prospectus supplement is April 20, 2009.