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Biotech / Medical : Sepracor-Looks very promising

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To: Ed Ajootian who wrote (5001)8/12/2001 8:45:10 PM
From: Biomaven  Read Replies (1) of 10280
 
Ed,

some seasonality to the Albuterol sales

There is huge seasonality in SEPR's principle market (pediatric asthma). 3Q is the worst quarter of the year. Once they break into the COPD market the seasonality should lessen a little.

loss levels in the next few quarters are very important

To my mind these are essentially irrelevant when looking at the long term picture. At this point the losses are being driven by the timing of R&D expenditures. Income should be helped a little by ramping European Clarinex sales and continued strength in worldwide Allegra. I agree that Xopenex should start giving us some good numbers, but not until 4Q and 1Q02.

buy back some stock

Again I don't agree with you here. They say they have enough cash to reach profitability without selling more stock, but they clearly don't have much margin for error. Why make it even tighter than it is?

sold sometime before the end of '02

I sure hope you are wrong. That's just before they should be entering the golden era of sharply rising profits for several years.

Peter
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