SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Biotech / Medical : Sepracor-Looks very promising
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: rkrw who wrote (3073)5/27/1999 3:41:00 PM
From: Bob Swift  Read Replies (1) of 10280
 
I did not include many of the companies you mentioned for the reason stated in my previous post - sales and administration eat up profits and this has been the problem for those struggling small generics. Looking at the company you mentioned. Total sale for Duramed was $49 millions in 1998, $60 millions for PRX and 133 millions for Coply. Duramed has the problem of too many different drug area (cardivascular, oncology, hormone replacement etc etc = 13 area) and each only give them 1-3 products (different doses or formulation of the same drug). Little wonder they lost money left and right.

IVAX was terrible but since has turned profit and was included in the calculation ($637 millions sale and 11% profit). Not included was FRX which has too few drugs although what they have generated a 9% profit last year ($427 millions sale).

SEPR on the other hand, will have(per my previous estimation) over 2.4 billions generic equivalent of sales and many are concentrated in one area and can thus more effectively use the sales force.

For starter lets take the middle road of 11% and 25 % = 18%.That would still give us over $10.4 a share. At a PE of 27, that is ...fill in the blank.... a share.
When time allows, may be the DCL ICE pushing by SGP and the ICE for Prozac to be pushed by LLY should be added to the bottom line before the generic scenario takes effect.
There may be blockbuster in SEPR's pipeline. I do think it is a more than likely possibility. For those that are not, they will be sold in competition with the generics and I am not sure if this stream of income is in the analysts' model.

I think SEPR is going to be more than OK.
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News