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Biotech / Medical : Sepracor-Looks very promising

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To: jayhawk969 who wrote (7383)2/28/2004 4:05:45 PM
From: Rocky9  Read Replies (2) of 10280
 
I go the other direction.

Approval make sale of the company LESS likely. I think that the stock will go too high to be attractive to another company - at least until it turns profitable (still aways away). Plus management has been pointing to the day that it will be a real company. By hiring all the sales people, it will be adding huge overhead, and make it a very expensive proposition for a prospective buyer.

If approval had not come, the company is a one-product company (counting the MDI with Xopenex). The stock would have hammered, and management would have had little or no flexibility with R&D. It would have sold.

Of course, only time will tell. I sure hope that I am right that the market will price it as too expensive.

JMO.
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