Sepracor-Looks very promising Message Board

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Biotech / Medical : Sepracor-Looks very promising

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To: Ed Ajootian who wrote (2785)	5/17/1999 10:29:00 AM
From: rkrw	Read Replies (3) of 10280

<<Do you or any other serious SEPR fans know if any of SEPR's other deals with the pharma's have terms similar to this Nori deal, where the other party can back out and just take royalties?>> This is unique being their only 50/50 copromote deal. Any 50/50 deal has contingencies in place should one partner decide to move in a different direction. <<It would seem to me that a term such as that which J&J took advantage of in backing out of the Nori deal is very significant. Terms such as this should be disclosed to shareholders, in the same press release that announces the deal itself --- we shouldn't have to go wading through the actual contract to ferret this stuff out.>> The deal and original press release read that JNJ has an "Option" to compromote. As much as I'd like it to be the case, its not standard that any pharma/biotech collaboration reveals the precise details of their deals. It would be nice to know the exact facts: royalties etc of any deal and its exceedingly difficult to assess deals and impacts on companies and profitability without knowing these things but unfortunately things just aren't done that way. The deal was actually well constructed for Sepracor in that it had a contingency agreement in place that was favorable to Sepracor should JNJ decide not to move forward. The key point is that in exchange for a single digit royalty, JNJ handed over all their hismanal data and related patents allowing Sepracor to bring norastemizole to market prior to hismanal's 2007 patent expiration. Sepracor also indicated that the size of the royalty will not be prohibitive in finding another partner. i.e. Its not large enough to make another deal uneconomical for Sepr.

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