Sepracor Loss Widens

Sepracor ( SEPR) Tuesday saw its loss widen in the second quarter as product sales slowed and sales and marketing costs more than doubled.

The Massachusetts-based company had a net loss of $81.1 million, or 93 cents a share, vs. a loss of $33.8 million, or 40 cents a share, in the year-ago period. Revenue slipped to $70 million in the quarter ended June 30, from $76.5 million a year ago.

The results fell far short of analyst estimates of a loss of $69.5 million, or 81 cents a share, on revenue of $81.1 million, according to Thomson First Call.

Sales and marketing costs rose to $86.3 million from $36.8 million in the year-ago period. Income from product sales and royalties fell.

The company is known for its asthma treatment Xopenex. It is developing a treatment for insomnia called Estorra, for which it has received an "approvable" letter from the FDA. Sepracor said it recently completed expansion of its salesforce to approximately 1,250, in anticipation of the launch of Estorra.

The company also earns royalties from Aventis ( AVE) for sales of Allegra, the antihistamine, in the U.S. and other countries where Sepracor holds patents relating to fexofenadine.

Shares fell 19 cents, or 0.4%, to $43.36. Trading volume was more than three times the daily average of about 1.8 million shares.

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