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Biotech / Medical : Sepracor-Looks very promising
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To: BMcV who wrote (4357)4/27/2000 10:59:00 AM
From: Biomaven  Read Replies (1) of 10280
 
Nice earnings number (beat consensus of -0.96). However quarterly earnings numbers at this point are pretty meaningless - when different trial costs kick in makes a big difference.

Revenue growth in Xopenex was excellent, but bear in mind this quarter was the seasonal high for albuterol, and further gains from the remaining quarters are going to be much harder to come by. Note that sales and marketing costs still exceeded revenues. As the costs of actually building a sales force decline and the drug matures some, I would expect the high sales costs as a function of revenue to decline.

Note that one estimate I saw of annual albuterol neb sales was $200 million. By this measure, Xopenex already has nearly 25% of the market in dollar terms. (It's a little hard to give precise numbers because I don't know the seasonality adjustments).

No sign yet of the Phase IV results or of a partner for the MDI form. I'm wondering if Merck might not be a good partner - they have an existing asthma sales force for Singulair, and are also looking at combinations of Singulair and anthistamines (but not norastemizole as far as I know). They also (unlike say Glaxo) have no existing albuterol sales to cannibalize. (Of course there would always be a little tension because Singulair is an indirect competitor for the inhalers.)

Peter
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