Rising sales and shrinking losses propelled the stock of
to a midafternoon gain of 17% on Tuesday.
The cause for celebration was the drug company's second-quarter report, in which total revenue -- from products, royalties and other sources -- climbed 59% to $76.5 million from $48.1 million for the same period last year.
Even more stunning was the company's loss reduction -- down to $33.8 million, or 40 cents a share, from $93.8 million, or $1.12 a share, for the same period last year. The consensus of nine analysts polled by Thomson First Call predicted a loss of 60 cents a share for the quarter.
Last week, the company said it paid $116 million to complete the redemption of all its remaining 7% convertible subordinated debentures due Dec. 15, 2005. Paying off the debentures means Sepracor won't have to issue 1.79 million shares of common stock, which would have been issuable at a conversion rate of $62.44 a share had the debentures been converted into stock.
Sepracor is involved in the development and marketing of several prescription products related to respiratory diseases and ailments, including Xopenex, for asthma and other respiratory obstructions; Astelin, an antihistamine; Allegra, an antihistamine; Clarinex, a treatment for allergic rhinitis and a form of hives; and Xyzal/Xusal, also a treatment for allergic rhinitis and a type of hives.
Earlier this year, the company submitted to the Food and Drug Administration an application for Estorra, a treatment for insomnia.
Shares of the Marlborough, Mass.-based company were up $3.19 at $22.04 in afternoon trading, after rising as high as $22.47.