TABLE OF CONTENTS
CHAPTER 1 EXECUTIVE SUMMARY 2
Key findings 2
Historical and forecast ethical sales performance 3
Therapeutic strategy 4
Launch and expiry outlook 6
Externalization, geographic and molecule type strategies 8
Externalization strategy 9
Geographic strategy 9
Molecule type strategy 10
SWOT analysis 10
CHAPTER 2 CORPORATE HISTORY 14
Key findings 14
Background 15
Key corporate developments 15
M&A history 16
IBF Biotechnics acquired 17
Spin off of BioSepra and HemaSure 17
Merger of SepraChem with Sterling Organics 17
Divestment of Versicor Pharmaceuticals 17
M&A strategy 17
Current corporate structure 18
Pharmaceuticals 18
Current management team 18
CHAPTER 3 HISTORICAL PERFORMANCE 19
Key findings 19
Introduction 20
Revenue and growth rate analysis, 2001-06 20
Revenue and growth rate vs. peer set 21
Product analysis, 2001-06 23
Growth drivers 23
Lunesta 23
Xopenex 23
Growth resistors 24
Operating revenue and cost analysis, 2001-06 24
Operating revenue/cost analysis 26
CHAPTER 4 FORECAST PERFORMANCE 27
Key findings 27
Introduction 28
Revenue and growth rate, 2006-12 28
Product analysis, 2006-12 29
Therapy area analysis, 2006-12 34
Central nervous system 35
Respiratory 35
Therapy area focus 37
Launches and expiries analysis, 2006-12 40
Launch portfolio 40
Core portfolio 42
Expiry portfolio 44
Launch/core/expiry configuration 46
Externalization analysis, 2006-12 49
Geographic analysis, 2006-12 54
Molecule type analysis, 2006-12 58
CHAPTER 5 KEY PRODUCTS AND COMPETITORS 63
Key findings 63
Overview 64
Central nervous system 65
Lunesta 65
Overview 65
Sales forecast 66
Respiratory 67
Xopenex 67
Overview 67
Sales forecast 68
Brovana 69
Overview 69
Sales forecast 70
CHAPTER 6 APPENDIX 71
Abbreviations 71
List of Tables
Table 1: Sepracor's Corporate Executive Committee 18
Table 2: Peer set overview 21
Table 3: Operating revenue/cost analysis ($m), 2001-06 24
Table 4: Operating cost ratio analysis (% of total revenues), 2001-06 26
Table 5: Product portfolio overview, sales ($m), 2006-12 29
Table 6: Therapy area overview, sales ($m), 2006-12 34
Table 7: Launch portfolio overview, sales ($m), 2006-12 40
Table 8: Core portfolio overview, sales ($m), 2006-12 42
Table 9: Expiry portfolio overview, sales ($m), 2006-12 44
Table 10: Externally discovered portfolio ($m), 2006-12 49
Table 11: Molecule type overview, sales ($m), 2006-12 58
Table 12: Key products overview 64
Table 13: Lunesta: overview 65
Table 14: Lunesta: sales forecast ($m), 2006-12 66
Table 15: Xopenex: overview 67
Table 16: Xopenex: sales forecast ($m), 2006-12 68
Table 17: Brovana: overview 69
Table 18: Brovana: sales forecast ($m), 2006-12 70
List of Figures
Figure 1: Historical and forecast ethical sales performance (% CAGR), Sepracor and Mid Pharma peer set 3
Figure 2: Therapeutic focus vs. Mid Pharma peer set (%), 2006 4
Figure 3: Launch, core and expiry, absolute sales growth, 2006-12 (sales as % of 2006 sales), Sepracor 6
Figure 4: Launch, core and expiry, absolute sales growth, 2006-12 (sales as % of 2006 sales), peer set 7
Figure 5: Molecule type, externalization and geographic market dependency (%) vs. peer set, 2006 8
Figure 6: Molecule type, externalization and geographic market dependency (%) vs. peer set, 2012 9
Figure 7: SWOT analysis of Sepracor 10
Figure 8: M&A/divestment history 16
Figure 9: Revenue & growth rate (ethical sales) ($m), 2001-06 20
Figure 10: Ethical revenue ($m) and growth rate (%) vs. peer set, 2001-06 22
Figure 11: Growth drivers/resistor products of historical revenue performance ($m), 2001-06 23
Figure 12: Operating revenue/cost analysis ($m), 2001-06 25
Figure 13: Ethical revenue ($m) and growth rate (%), 2006-12 28
Figure 14: Top five products by sales ($m), 2006 30
Figure 15: Top five products by sales ($m), 2012 31
Figure 16: Growth drivers and resistors by product, 2006-12 32
Figure 17: Key strategic products, sales ($m), 2006-12 33
Figure 18: Ethical sales by therapy area ($m), 2006-12 34
Figure 19: Growth drivers and resistors by therapy area ($m), 2006-12 36
Figure 20: Ethical sales by therapy area (%), 2006-12 37
Figure 21: Therapy area focus compared with peer set (% total ethical sales), 2006 38
Figure 22: Therapy area focus compared with peer set (% total ethical sales), 2012 39
Figure 23: Launch schedule, sales ($m), 2006-12 41
Figure 24: Core products sales growth ($m), 2006-12 43
Figure 25: Expiry schedule, sales ($m), 2006-12 45
Figure 26: Launch, core and expiry, sales ($m), 2006-12 46
Figure 27: Launch, core and expiry, absolute sales growth, 2006-12 (sales as % of 2006 sales), Sepracor 47
Figure 28: Launch, core and expiry, absolute sales growth, 2006-12 (sales as % of 2006 sales), peer set 48
Figure 29: Externalization dependency, sales ($m), 2006-12 50
Figure 30: Growth drivers and resistors, externally vs. internally discovered products, sales ($m), 2006-12 51
Figure 31: Externalization dependency vs. peer set, % total sales, 2006 52
Figure 32: Externalization dependency vs. peer set, % total sales, 2012 53
Figure 33: Geographical sales breakdown ($m), 2006-12 54
Figure 34: Growth drivers and resistors by geography, sales ($m), 2006-12 55
Figure 35: US dependency vs. peer set, % total sales, 2006 56
Figure 36: US dependency vs. peer set, % total sales, 2012 57
Figure 37: Molecule type sales breakdown ($m), 2006-12 59
Figure 38: Growth drivers and resistors by molecule type, sales ($m), 2006-12 60
Figure 39: Biologics dependency vs. peer set, % total sales, 2006 61
Figure 40: Biologics dependency vs. peer set, % total sales, 2012 62