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Biotech / Medical : Sepracor-Looks very promising -- Ignore unavailable to you. Want to Upgrade?

To: M. Ramle who wrote (3807)	10/25/1999 12:41:00 PM
From: rkrw	Read Replies (1) \| Respond to of 10280

<<rkrw: Please correct me if I am wrong, but I personally believe that for SEPR to make any acquisitions (be it another company, another product etc.) at this time, they would have to do it via two options only: 1. Issue more stock which IMHO would be very bad and dilutive; or 2. Pay cash which would be very disasterous. Any comments.>> Addressing number 1. You are brush stroking any possible acquisition or merger as bad. I find this to be a rigid way of thinking. Number 2. A cash acquisition of a product need not necessarily be disastrous. I think it would depend on the product, the cash outlay, the present value of the profit stream generated, all factored into the expected budget and cash levels of Sepracor over the next several years. Southwell mentioned a third option which is "quid." This refers to exchanging a licensing candidate for a product and sharing the pie (all the products involved). Warner Lambert made such a deal with Pfizer for 50% of Lipitor. Pfizer still owes WLA the quid. An ideal area for Sepracor to work such a deal would be in the allergy and respiratory arena (think norastemizole, formoterol, xopenex, zyrtec) where they possess great non-partnered depth, and where Xopenex lies. A fourth option could be a pharma handing a product over to Sepracor to market in a non-cash transaction. This would most likely involve a small product and a profit sharing arrangement. COCN and SCIO are two companies which have niche sales forces detailing big pharma products.