Being in the pharmaceutical development business has always been rough, and investors in Sepracor (SEPR) learned that lesson again today. The company’s shares are down after earnings, off 17% to $31.85. The stock has a 52-week high of $63.24.
For the three months ended June 30, 2007, total revenues increased to approximately $278.1 million, which reflected a 5.2% increase from second quarter 2006 revenues of $264.4 million. Net income for the quarter was approximately $6.1 million, or $0.05 per diluted share compared to $11.0 million, or $0.10 per diluted share for the second quarter of 2006.
Both sales and earnings missed Wall St. hopes.
According to Reuters: Revenue from Lunesta, the company’s popular insomnia drug, grew just slightly, to $143.0 million from $139.1 million a year ago as generic competition weighed.
Generics will hurt a company like SEPR more than its Big Pharma rivals because it has fewer drugs on the market and less in the pipeline. If one product starts to get hit by competition, revenue can be hit hard, and for a long time.
The prospects here look none too good, but neither does the stock price
Douglas A. McIntyre
Smart Investors Are Quietly Loading Up on These “Dividend Legends” (Sponsored)
If you want your portfolio to pay you cash like clockwork, it’s time to stop blindly following conventional wisdom like relying on Dividend Aristocrats. There’s a better option, and we want to show you. We’re offering a brand-new report on 2 stocks we believe offer the rare combination of a high dividend yield and significant stock appreciation upside. If you’re tired of feeling one step behind in this market, this free report is a must-read for you.
Click here to download your FREE copy of “2 Dividend Legends to Hold Forever” and start improving your portfolio today.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Editors' Picks
