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

To: Biomaven who wrote (4234)	3/1/2000 2:57:00 PM
From: LLCF	Respond to of 10280

<"SEPR 100" party.> Better hurry so we can fit the '200' party in... [hicup]. Congrats all those who have hung in there. DAK

To: Biomaven who wrote (4234)	3/1/2000 4:17:00 PM
From: jayhawk969	Respond to of 10280

Peter I am in this one because of you, Thanks for buying my house. J.D.

To: Biomaven who wrote (4234)	3/5/2000 10:31:00 AM
From: Ed Ajootian	Respond to of 10280

We rate SEPR a STRONG BUY/SBI for the following reasons: * In our view, certain compounds developed by Sepracor could have a major impact in the treatment of common respiratory illnesses, especially in the $2.5billion antihistamine category. The company's first product, Allegra, has beenlicensed to Hoechst Marion Roussel, which launched it worldwide to replaceSeldane. * Sepracor received a considerable amount of publicity when it signed a dealwith Eli Lilly (LLY) for the rights to R-fluoxetine, an improved version ofProzac, Lilly's top-selling drug, for an estimated $90 million, not includingroyalties on future sales. We believe this program is of great developmentalimportance to Lilly, as Prozac's patents expire in 2003. However, we awaitclearance of the agreement by the Federal Trade Commission, an event that willtrigger the payment to Sepracor of $21 million in milestone payments. * SEPR's worldwide development and marketing partner, Schering-Plough (SGP),has filed for approval in the U.S. and Europe for SEPR's desloratadine (DCL)an improved version of Claritin--the world's top-selling antihistamine. Weanticipate U.S. approval late in 2000 with SEPR receiving estimated royaltiesof $6M. Claritin sales are estimated to be $4B in 2003. We forecast that SGPwill launch DCL in 2001 and switch Claritin users to DCL in order to protectits franchise from generic competition. * SEPR's pipeline includes an ongoing full allergy season trial ofnorastemizole. Additionally, data from a chamber study is believed todemonstrate a 20-minute onset of action, which is materially better than the100 minutes seen with Claritin. We anticipate an NDA filing by the end of2000, assuming favorable results from the ongoing carcinogenicity studies. * SEPR has licensed important clinical and commercial data from Rhone-PoulencRorer (RPR) that it needs in the development of its sleeping disorder agent,zopiclone. The market for sleep disorder hypnotics is currently $600M andgrowing 20% annually. SEPR initiated a large efficacy trial with zopiclone,thus a new drug application (NDA) could be filed in 2001. We conservatively estimate $40M revenue contribution from zopiclone in 2003. RISKS: Should Sepracor have trouble marketing Xopenex, there will be concernsas to the company's ability to market other respiratory and urology products. -------------------------------------------------------------------------------- Important Statistics Industry: BiotechnologyTarget Price: 88.000Risk/Volatility: High Prudential Securities Incorporated and/or its officers or its employees may have positions in any security of this issuer. Prudential Securities Incorporated makes a market in this security. ********************************************************** Above update from Pru put out on 2/29. I would hope that the price target is a typo! "SBI" stands for Single Best Idea, which is the stock that the particular Pru analyst is most positive about. Talking about parties, how about a "$10 Billion Fully Diluted Market Cap" party? I never thought I'd be even speaking of such until this company turned profitable. I'm too lazy to figure out the new number of fully diluted shares out on this turkey -- does anyone know what this is? Remember to include the latest convertible notes since they're now in the money.