Business fundamentals at Sepracor (
SEPR) have been poor over the past several quarters. Lunesta growth disappointed throughout 2008 and guidance for 2009 assumes sales will decline between 5% and 10%. Likewise, Xopenex and Xopenex HFA also disappointed throughout 2008.Sales will also decline in 2009. Brovana, a product which on the cusp seems to offer blockbuster potential, continues to struggle with sales tracking far below $100 million - a level we originally believed Brovana would eclipse only a few quarters after launch.New products, Alvesco and Omnaris, which management believes offer multi-hundred million dollar potential, also continue to struggle, and guidance for 2009 sales was very disappointing. In fact, total revenues in 2009 will likely decline between 5% and 10%.Earnings in 2009, however, will skyrocket by 55% to our forecast of $2.50. This is driven by a massive cost-cutting and workforce restructuring announced in ...
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