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Biotech / Medical : Sepracor-Looks very promising

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To: BMcV who wrote (1296)10/14/1998 1:24:00 PM
From: David Howe  Read Replies (2) of 10280
 
SEPR must be trying to pressure Lilly into an agreement that pays a mighty nice royalty (IMO).

Lilly is in a tough position. Their pipeline is crap. 40% of Lilly's earnings are from Prozac. There' a lot of competition in that market. When Lilly's patent expires, they're screwed. SEPR knows this.

A deal on an "improved Prozac" would be a win / win situation for Lilly and SEPR. It would save Lilly and it should pay a very nice royalty to SEPR. SEPR is going for the big one here and it is apparent that they are not backing down on their requests. Lilly is not cooperating and so SEPR goes into phase I trials on their own.

Lilly is running out of options. They will have to come to an agreement with SEPR at some point (IMO). This just heats things up a bit.

SEPR has so many products in the pipeline that they don't need this deal. Lilly must have this deal.

Dave
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