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Biotech / Medical : Sepracor-Looks very promising

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To: David Howe who wrote (3238)6/7/1999 6:41:00 PM
From: Bob Swift  Read Replies (1) of 10280
 
At this point, it makes more sense to burn the money in marketing than more clinical test on the remaining ICEs.
Earlier this year when SEPR raked in 400 millions, the emphysis was on DISOVERING VALUE of the 20 or so ICEs by going all out on clinical trials and animal studies etc. However, with a couple of proven ICE now in hand (according to the data xopenex and Noriastemizole) perhaps SEPR should immediately shift gear and spend the rest of the money in heavily marketing the winners. When the cash flow become steady, SEPR can go back to push the other ICE discovery program. Otherwise, money is burnt, more ICE is proven but SEPR will have no money left to promote them. As such ,SEPR will likely find itself at the short ends and still be at the mercy of the marketing muscle of the giants earning a single digit return.
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