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

To: billy d who wrote (1099)	8/28/1998 1:28:00 AM
From: Bob Swift	Read Replies (1) \| Respond to of 10280

Billy and Mazen, Both of you are old timers of this board and it is interesting to see that you two have diverge opinions. I can see Mazen's points regarding the interest rate, inflation and US dollar value etc.which historically more or less determine the price of stocks. That said, even by historical standard, these three years the market is getting way ahead of itself (that is what my crude chart tells me). At this moment, I am not so sure that the world finanical melt down has been totally factored into stock prices which are quite expensive even after the correction.I have looked but not see any in depth analysis of how the world's problem may have an effect on the US economy.Is it really true that it won't have an effect because we are doing well by ourselves ? We are a net importer but that does not mean it does not hurt the export side of the equation. On the import side of the equation, how is a cheaper Japanese car going to affect GM ? We are getting kill both ways.Also, I suspect that part of the reason we are doing so well is because of our inflated stock gain which give us the impluse to consume and Washington more tax $ to flush down the toilet. Will this market correction dampen this stock wealth effect? If the growth of profit is limited, so will the surge in price of stocks. I am sure the US economy will do OK but not at a rate to justify the surge in stock prices as years past. I may be wrong, but I do worry about the possibility that the Prozac story is already in the price of the stock since it is now almost common knowledge that Prozac is in our bag with or without Lily.I am just mindful of the Clartin licensing last year when the stock failed to rally and people start to sell on the news from 41 7/8 down to 33 or so.To me the thing I am looking forward to is the 21 days or three month sales figure of levalbuterol after launch. Meanwhile, anxious money to get in SEPR is keeping us afloat, for now.

To: billy d who wrote (1099)	8/31/1998 6:03:00 PM
From: Ed Ajootian	Read Replies (1) \| Respond to of 10280

Billy, I really feel this is nothing more than the market doing a very healthy, belated, correction. And because it got delayed the correction is gonna hurt that much more. Needless to say I feel that SEPR is a phenomenal buy at this price. As long as you can believe that the world as we know it will not be coming to an end, that is. If SEPR goes down any more you will be able to buy without getting diluted out by the convertible bond holders that bought in during February. This is mind-boggling given the fantastic company news that has come out since then. I can't wait for the July calls to come out so I can snap up some of them. The word I hear is that J&J is still on track to filing an NDA on Norastemizole by 6/30/99. I don't care if the Dow is 5,000 at that point, this sort of news is gonna rock the stock. The thing we need to keep in mind is, thanks to the conservative, yet, as it turns out, brilliant, actions of SEPR management to go out and raise the $189 mm of funds in February, years before they would need such funds, SEPR is now in the enviable position of having enough money to make it all the way to the point that they become cash-flow positive. So, contrary to most biotechs, the price of the stock is of little concern. The stock prices of a lot of other great little biotech companies are getting whacked all to hell. Wondering whether SEPR ought to take advantage of this and do some acquisitions. It would be a cheap, easy, low-risk way to diversify their long-term pipeline. ÿ