Sepracor tops analysts' biotech stocks

Shares in Sepracor have been hitting new highs in recent weeks after thefirm unveiled plans to begin clinical trials independently this year on improved versions of treatments such as the hypnotic zopiclone, Knoll's antiobesity drug Meridia (sibutramine), Johnson & Johnson's antifungal Sporanox (itraconazole), American Home Products' analgesic Orudis (ketoprofen) and Pfizer's prostate treatment Cardura (doxazosin). Analysts have been impressed, saying the new products may prove to be safer than those currently available.

Indeed, Sergio Traversa of Mehta Partners says that the company is one of the safest investments in the biotechnology universe as it is developing altered forms of drugs that have already been exhaustively tested by their innovators. He noted that it only takes Sepracor half the time to develop its Improved Chemical Entities (about three years), so these cost less and get to market faster. Mr Traversa has set a conservative price target of $108 per share for 1999 and an estimate of $135 for 2000.

Lilly, S-P deals show strength of Sepracor