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

To: Robert L. Ray who wrote (1230)	10/3/1998 7:27:00 PM
From: Bob Swift	Read Replies (1) \| Respond to of 10280

Interesting reading.The CFO's comment that "....at least one partnership will be announced by year end (out of the five they are discussing with various companies)" should push the stock price further up. If the prediction that SEPR is expected to earn 300-400 millions pretax by 2003 is correct, it means $10/share and at a 30 P/E multiple, gives SEPR a price of $300. To quote "...That's just from the company's work on the antihistamine category, and doesn't even count Sepracor's work on bronchodilators, or in the urology and anti-depressive categories...." We are probably looking at a $500-600 stock by 2003 which is attainable IMHO. So far I have only accumulated 75% of my intended number of shares. DM at BS is serving a useful function -- it give us longs another chance to buy more at a deflated price.

To: Robert L. Ray who wrote (1230)	10/4/1998 10:37:00 AM
From: chirodoc	Respond to of 10280

i copied the story from ii for those who don't want the hassle of signing on sounds to me like in 3-5 years, all of these improved meds should provide a very rich cash flow to turn sepr into one of the big pharmas! i suspect they will look a lot like mrk, pfe, wla etc. in 5 years. curtis SEPRACOR INC develops improved forms of existing, widely-sold pharmaceuticals. Sepracor CFO Details Growth Strategy; Buy (10/2) On October 1, Sepracor (NASDAQ: SEPR) CFO David Southwell addressed an investment luncheon in New York City, where he reiterated the keys aspects of the company's growth strategy. Southwell agreed with analysts who estimate the company will turn profitable in 2001 and earn about $5 per share by 2002. He said the company's burn rate, which looks to be $90 million, is actually closer to $300 million when one takes partnership contributions into account. The CFO said Sepracor is finding wider approval for its drug improvement strategy, and is shrinking the times needed for drug research to three years from about ten years. Southwell said Sepracor's "event-rich" news flow of the past few months would continue and that at least one new partnership would be announced by year-end. He added that partnership discussions were ongoing for at least four other drugs. Looking forward, the CFO mentioned six drugs as candidates for Sepracor-improved version INDs for 1999, including Imovane from Rhone Poulenc (NYSE:RP), Zrytex from Pfizer (NYSE: PFE), and Sporonox from Johnson and Johnson (NYSE: JNJ). Annual sales from these three drugs alone are in excess of $1.4 billion. Southwell spoke about the different types of deals Sepracor is putting together. The company's second deal is for an improved version of Claritin with ,Schering-Plough (NYSE: SGP). Here, Phase III trials are underway and Sepracor expects that royalties from 4%, ramping to 7%, will bring in estimated revenue of around $150 million by 2003. In contrast, Sepracor's deal with Johnson & Johnson for an improved version of Hismanal, for which approval and launch are expected in late 2000, is a co-marketing deal. Here, company estimates call for revenue of $1.4 billion by 2003. Adding Claritin-derived revenues and Hismanal revenue, Sepracor expects to earn between $300 and $400 million pre-tax by 2003. That's just from the company's work on the antihistamine category, and doesn't even count Sepracor's work on bronchodilators, or in the urology and anti-depressive categories. The presentation of this deal-heavy, low-risk, event-rich company only increases our confidence in management's ability to hit its future numbers. We reiterate our Buy rating. Analyst: Bob Hirschfeld Updated 10/2/98 with SEPR at $60.56. Recommended 11/18/97 at $38.88.