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

To: rkrw who wrote (5047)	10/19/2001 10:33:06 AM
From: Biomaven	Respond to of 10280

I missed the CC - I'll try to catch it later. A couple of quick points based on the release and IJ's CC notes on YC: 1. Given a Xopenex price increase at the end of the quarter, some of the sales for this quarter might have been some advanced stocking ahead of the increase. Nevertheless, a very nice number, and Q4 must be heading for $50m. Last year Q4 sales ($23.5m) were over double Q3 sales ($10.2m). 2. It is worth noting that if R&D expense were being capitalized, SEPR would be profitable on an operating basis. They would have earned (again on an operating basis) some $20m for the 9 months and $4m for Q3. I'm calculating this by subtracting Sales & Marketing and G&A and patent costs from Gross margin. To do this properly, you'd need to also be amortizing the total Xopenex R&D over its useful life, so these numbers are somewhat high. On the other hand, the cost numbers presumably include a hefty amount for the Soltara marketing buildup, which again should be capitalized if you want to see "true" earnings. Peter