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Biotech / Medical : ANDRX-Reaffirm Outperform Recommendation-Gruntal Research

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To: PAUL ROBERT ST. ONGE who wrote (14)11/14/1996 8:10:00 PM
From: James Silverman   of 23
 
Paul Robert St. Onge wrote:
It appears to be that Andrx will share at least half the royalties, and I would expect a continued relationship with Sepracor. Yes, the Gatt ruling has clouded the drug horizon for many companies, including
Sepracor & Andrx. I have to do further research on the deal in order
to advise, my opinion on the situation. The anlaysis is obviously focused on the European market,
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First, Paul, ADRX will AT BEST receive equal royalties as SEPR. The drug is not necessarily only geared towards the European markets. As I stated, SEPR is using it as a potential negotiating tool with Hoechst. They placed "intended for european markets" in the release pretty conspicuously. Part of an agreement could possibly include rights to the once daily for U.S. markets as well. We will not know what the story is until SEPR and Hoechst settle the European patents.
Should Hoechst win european rights, all bets are off.
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