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

To: LLCF who wrote (2755)	5/14/1999 2:41:00 PM
From: Biomaven	Read Replies (2) \| Respond to of 10280

No, big difference is that before J&J was paying for everything, and now it sounds like SEPR will be paying. The crucial question is whether J&J did this because they weren't impressed with the drug, or whether it truly was a strategic decision. With the J&J imposed blanket on talking about the drug now presumably off, SEPR should now be able to disclose how the drug has been doing in its trials. Peter

To: LLCF who wrote (2755)	5/14/1999 3:12:00 PM
From: RCMac	Read Replies (2) \| Respond to of 10280

>> anyone know who was funding this thing? [Norastemizole development]<< DAK, the SEPR 10-K , issued 3/31/99, says SEPR and JNJ will "jointly fund the development of Norastemizole" , which I would ordinarily take to mean a 50-50 split of the costs of "development", but it's a bit more complicated. Here is the relevant paragraph: "In February 1998, Sepracor announced a collaboration and license agreement with Janssen relating to the development and marketing of norastemizole. Under the terms of the agreement, Sepracor and Janssen will jointly fund the development of norastemizole, and Janssen has an option to acquire certain rights regarding the product in the U.S. and abroad. Upon exercise of such option, Janssen and Sepracor will share equally the costs and profits associated with the further development, marketing and sale of norastemizole in the U.S. and Sepracor will have the right to co-promote the product in the U.S. Alternatively, in the event Sepracor decides not to co-promote the product, it is entitled to royalties, if any, on Janssen's sales of the product in the U.S. Outside of the U.S., Janssen has the right to develop and market norastemizole subject to the payment of royalties to Sepracor. In addition, Janssen has exclusive worldwide rights to sell over-the-counter forms of norastemizole subject to the payment of royalties to Sepracor. In each country in which Janssen does not exercise its option to complete the development of, and market and sell, norastemizole, Sepracor will have a license to all patent rights relating to norastemizole held by Janssen." I entirely agree with Art Vandelay's remarks: "I'm not selling a single share. I do not believe this is a reflection on other projects, and I look forward to SEPR growing their sales force in the respiratory area. They needed to anyway, since they will soon own the category, and they need a sales force to be able to negotiate on future deals or to take other products to market on their own as well. "I know that some will see this as a negative, but for those of us holding long term, this should not phase us." --RCM