October 30, 2007
Big sleep for 300 Sepracor salesmen
By Matthew L. Brown
Marlborough-based drug maker Sepracor Inc. will lay off about 300 members of its sales force and enact other "cost reduction initiatives" in order to save between $90 and $100 million this year.
The company, which makes the sleep drug Lunesta, among others, reported third quarter net income of $42.8 million on revenue of $283.9 million. For the same period in 2006, the company reported net income of $64.4 million on revenue of $289.2 million.
Sales of Sepracor's most prominent products were up and down, with Lunesta showing a 13.6 percent revenue gain and Xopenex revenue falling from $125.4 million in the third quarter of 2006 to $94.4 million in 2007.
The company also said its royalty revenue on sales of out-licensed products like Clarinex and Allegra were down from $9.2 million in the third quarter of last year to $8.7 million in the third quarter of 2007.
Along with the announcement of sales force reductions, the company "narrowed" its earnings outlook for stockholders from between $1.00 and $1.30 to between $1.05 and $1.15 per share. The company said it expects total revenue for 2007 between $1.23 and $1.30 billion.
The company, which makes the sleep drug Lunesta, among others, reported third quarter net income of $42.8 million on revenue of $283.9 million. For the same period in 2006, the company reported net income of $64.4 million on revenue of $289.2 million.
Sales of Sepracor's most prominent products were up and down, with Lunesta showing a 13.6 percent revenue gain and Xopenex revenue falling from $125.4 million in the third quarter of 2006 to $94.4 million in 2007.
The company also said its royalty revenue on sales of out-licensed products like Clarinex and Allegra were down from $9.2 million in the third quarter of last year to $8.7 million in the third quarter of 2007.
Along with the announcement of sales force reductions, the company "narrowed" its earnings outlook for stockholders from between $1.00 and $1.30 to between $1.05 and $1.15 per share. The company said it expects total revenue for 2007 between $1.23 and $1.30 billion.
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