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Biotech / Medical : Sepracor-Looks very promising

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From: tom pope1/16/2009 6:10:22 PM
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Merrill, 1/14

Rating Changes
Sepracor Inc. (SEPR, US$13.37, C-2-9) Upgrading SEPR to
Neutral.
We are upgrading Sepracor Inc. from Underperform to Neutral & Raising PO from
$13 to $15. In our view, investors are already well aware of disappointing
prescription trends for some of SEPR’s marketed products, which could lead to
negative estimate revisions for revenues. With the stock down almost 60% in ‘08,
it is tough to imagine investor sentiment getting much worse than it has been
recently. We believe that sentiment & stock performance could improve in ’09
based on some combination of cost control initiatives, as SG&A & R&D as a
percentage of sales are high relative to the sector, progression of the R&D
pipeline, & business development
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