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

To: M CAHILL who wrote (3000)	5/26/1999 1:16:00 AM
From: David Howe	Respond to of 10280

<< I'd like to see the report that says this company may earn that much in the future. >> Call IR at SEPR. They will send you an investor's packet that includes numerous reports from analysts. There are 11 analysts that follow SEPR. Almost all of them have projected earnings in the $10 per share range within the next 5 years. You can also search the boards and you will find numerous references to analysts earnings per share targets. There's a lot of posts, so it could be difficult. I'd suggest a call to IR. You could also get an account at Morgan Stanley Dean Witter. They would then give you their report which will be much more detailed than the quick article below. The article mentions $10.90 per share in earnings in 2003. It isn't mentioned in the article, but 2004 estimates are above the $14 level. ------- May 24, 1999 Morgan Stanley Analyst Reiterates Strong Buy on Sepracor In a recent note, Morgan Stanley's Douglas Lind reiterated his Strong Buy on Sepracor shares, and his earlier price target of $150 per share. Lind's take on Johnson & Johnson' s (NYSE:JNJ - news) recent decision to take a royalty on norastemizole, rather than co-promote the product with Sepracor, is similar to ours: Sepracor comes out fine. Sepracor maintains all worldwide rights to norastemizole, which has done very well in trials. Moreover, development of norastemizole "remains on track," with a launch "still anticipated for late 2001." The whole hullabaloo leaves Lind's estimates unchanged; for year 2003, the analyst still expects Sepracor to post $10.90 in earnings per share. Lind's analysis of J&J is as follows: In recent months, that company appointed a new head of worldwide pharmaceuticals, replacing the individual who signed the original deal with Sepracor. The new manager, Lind thinks, is rationalizing J&J's drug portfolio, which is why the company forewent its option on norastemizole. In sum, Lind believes norastemizole "has strong commercial promise," and that "the data should dispel any concerns over the safety or efficacy of the compound." Lind says that Sepracor will conduct 4-5 more clinical trials over the next 6-12 months, including one that begins in July. While Sepracor must now pick up J&J's portion of clinical costs, probably about $12.5 million, Lind's $130 million R&D forecast for 1999 "will not change materially." Further down the road, Sepracor has to decide whether to market norastemizole on its own or to seek an additional partner. Lind sees "an attractive strategic fit" with Glaxo Wellcome (NYSE:GLX - news) Boehringer Ingelheim, or AstraZeneca (NYSE:AZN - news) , all of which have strong respiratory franchises, though lack an oral-antihistamine, such as norastemizole. Though the current uncertainty surrounding one of Sepracor's drugs in development has alienated some investors, we believe the current setback in share prices creates an attractive buying opportunity for Sepracor shares.