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Biotech / Medical : Sepracor-Looks very promising

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To: M. Ramle who wrote (3787)10/25/1999 11:17:00 AM
From: rkrw  Read Replies (1) of 10280
 
<<IMHO, I think that would be very foolish for the Management to even be considering any acquisitions at this time. They (SEPR) are NOT even out of the woods yet, and they need to rack up more interest in their own stock first. Any comments !!!! Thanks and Good Luck.>>

M.
The xopenex sales force, at least for the moment, is inefficient selling just one product, xopenex nebulizer. Their selling and marketing expenses last quarter were very high. In other words, they are losing money marketing xopenex and may well continue to do so through all of next year. If they can leverage the force against a second or third product, via acquisition, product acquisition, product purchase, quid, whatever, they could achieve greater sales efficiencies and downstream profitability. The alternative is to sit and wait for internally developed follow on products which are approximately 2-3 years away from market.
Managements sole pursuit should be maximizing long term shareholder wealth not prioritizing the share price for the next few weeks. If a product acquisition arises that will benefit shareholders I'd hope it would be strongly considered.
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