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

To: chirodoc who wrote (1170)	9/17/1998 1:41:00 AM
From: John Metcalf	Read Replies (1) \| Respond to of 10280

Chiral technologies are not unique to Sepracor. What is uniquely theirs is the patent rights to enantiomers and active metabolites of big-selling drugs. It's worth the time to search Sepracor's patents on a patent-server, like IBM's. The barrier to big pharmas copying Sepracor's work is that they don't have the patent rights to use it.

To: chirodoc who wrote (1170)	9/17/1998 8:09:00 AM
From: billy d	Read Replies (1) \| Respond to of 10280

The way I see it, Barberich's answer to the question of companies making the new drugs in a fashion that need not be improved is something the street already knows. The selling yesterday was more then expected and I feel it held up quite well considering a 6 point up move the prior day. This said, IMO, it doesn't matter.Relative to other biotechs, SEPR's current pipeline is so deep that the possible royalties from these products alone is mind boggling! This is one of the few points that SEPR bears use but when you are talking 10 billion market for their pipeline its irrelevant. When you have the kind of revenues that SEPR should be getting, R and D for new drugs will be the next platform for this company. Although Barberich was not exciting, he told it like it is and IMO was very credible. Nice job Tim.

To: chirodoc who wrote (1170)	9/17/1998 8:58:00 AM
From: Biomaven	Read Replies (3) \| Respond to of 10280

chirodoc: but what do you think about the question regarding whether or not a big pharma could copy their molecule refining process Logically speaking, SEPR's "window" should have closed a few years back, when it first became clear that chiral separation and looking closely at active metabolites was a smart thing to do. However, it seems big pharma moves ponderously, and I am continually amazed that each quarter SEPR continues to pull new ICE's out of its hat. Clearly at some point they are going to wise up, and SEPR's window of opportunity will close (but maybe not before we get a few new juicy ICE's into the pipeline). This means that you have to value SEPR based only on its existing pipeline, with say ten to fifteen years of associated revenue. Now the fact is that most discounted cash flow models are "blind" to what is happening 15 years out, and so the present value implications of the missing "pipeline after this one" are minimal. Note also that SEPR is already acting to meet this criticism, with a start-up drug discovery program, and its interesting Versicor subsidiary. It is too early to tell how this is going to work out, but a combination of smart management (which they already have) and oodles of cash (which they will have) can work wonders. Peter