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

To: Ed Ajootian who wrote (1138)	9/8/1998 10:47:00 PM
From: John Metcalf	Respond to of 10280

Sepracor has begun to trade like a OEX darling; up big with MSFT and CSCO, down big on the bad days. Does anyone have recent institutional ownership information? As Ed said, $3B market cap seems big, and limiting, at first glance. SEPR has several advantages over other biotechs without products: 1) A $500mm drug on the market (Allegra) with a sure, though small, revenue stream in the future. 2) A proprietary product, Levalbuterol, coming to market. 3) In combination with partners, hundreds of millions in annual R&D spending which is not burning much of Sepracor's cash. 4) A chock-full pipeline, which can make earnings grow geometrically for years, once revenues begin. These special circumstances justify a larger valuation than other biotechs have.

To: Ed Ajootian who wrote (1138)	9/9/1998 12:45:00 AM
From: M. Ramle	Read Replies (2) \| Respond to of 10280

Ed: Unfortunately, I totally disagree with your over-valuation forecast for SEPR. Keep in mind that with all the products in their pipeline, along with the launch of Levalbuterol very shortly, and coupled with Allegra-D, Claritin-D and possibly Hissmanal, this company is gearing up for a major revenue build-up. This is NOT counting any possible joint-venture with Lilly or others for Prozac Isomer. Having said that and knowing that WallStreet is a discounting mechanism for future earnings, I would estimate IMHO that SEPR hasn't even begun it's ascend towards the $200 by year 2001. If you want to see over-valuation, just look at Amazon.com (which I am getting very close to short the hell out of), Yahoo & possibly Dell. Good Luck Mazen