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

To: cav who wrote (994)	7/9/1998 4:06:00 PM
From: BMcV	Respond to of 10280

I agree that for those of us who are holding long-term to see how the SEPR story plays out the short-term movements are just noise. They may be unimportant in the grand scheme but they are interesting. And for traders they are vital. And traders include all of us who use options, short-term trades, and margin debt to augment returns from our capital. I am in long-term, but the short-term movements help or hurt me too. Short-term, something seems to be affecting the price right at the bond conversion level. Does it matter in the big picture? No. Long-term, market acceptance may prove a tougher obstacle than FDA approval, since these aren't novel compounds, and potential benefits will be harder to prove, and sell, as we have already seen in the case of r-ketoprofen, which Bayer passed on in late '95. If Dan Root's feeling are widespread in the respiratory medical community, levalbuterol may also grow slowly unless the new study shows clearly that albuterol causes problems in long-term patients. That is my greatest worry with SEPR, that we wind up with a portfolio of products with only marginal benefits and no real marketing edge. I agree with you that is where the battle will be won or lost.

To: cav who wrote (994)	7/9/1998 11:24:00 PM
From: Ed Ajootian	Respond to of 10280

cav, Didn't mean to over-emphasize the issue about the convertible notes. Not as significant as folks are making it out to be, in the long run. Buying the July 50 options was one of my dumber trades. Just got carried away and thought that they'd have lined up Lilly by now. SEPR options do not usually have all that much open interest. So if you get any SEPR options you can't expect to be able to trade them very much, just buy & hold until close to expiration and hope they are in the money at the end.