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

To: Bob Swift who wrote (2783)	5/15/1999 8:12:00 PM
From: BDR	Respond to of 10280

A couple of interesting comments from this site: labpuppy.com <<<<< Johnson & Johnson (JNJ) announced late today that it was terminating its co-promotion agreement on Norastemizole (a metabolite of Hismanal) with Sepracor (SEPR). Sepracor fell almost 15% on this news as investors fear that this invalidates the value of Sepracor's single isomer technology. Sepracor stated that it will continue development of this product on its own. Moreover, it still has large deals with companies such as Eli Lilly (LLY) and Schering-Plough (SGP). Something to think about – The FASB (Financial Accounting Standards Board) has voted recently on eliminating pooling types of acquisitions. This means that only purchase accounting will be used for acquisitions. This change will probably take place in 2001. While this may seem arcane, it should drive a surge of mergers and acquisitions in 2000. Pooling allowed companies to avoid goodwill (the premium they pay over book value) so they could acquire a company without diluting (hurting) their earnings. Companies will rush to acquire companies before this rule expires as the remaining method (purchase accounting) is much less beneficial to acquirers (as they must show goodwill). >>>>>>