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

To: Yussef who wrote (976)	7/7/1998 8:25:00 PM
From: M. Ramle	Respond to of 10280

Yussef: Instead of trying to predict how high the shares could jump on any collaboration announcement between Lilly and SEPR (which I personally think is like shooting darts), I would rather make the following assumptions: Any collaboration on the Prozac ICE could increase the projected EPS by approximately $1.00 to around $6.25-6.75 in year 2002. Taking an average EPS of about $6.50 in year 2002 and discounting it back using an average PE ratio of 30 (average for biotechs) and a discount rate of 25%, would give you a current price of approximately $75-80. Now the closer we get to the end of this year and to actual positive revenues from the launch of Levalbuterol, the faster the "pop" will be towards these prices. Good Luck. Mazen