Monday, February 16, 2009

Generic drugs aimed at Sepracor’s Lunesta

By Mass High Tech staff

Sepracor Inc., maker of the Lunesta sleep drug, has reported two filings from other companies to create generic versions of Lunesta. The Boston Business Journal reports that a regulatory filing cites Teva Pharmaceuticals USA Inc. and Cobalt Laboratories Inc. According to the report, one of the U.S. Food and Drug Administration new drug applications alleges that Lunesta is not protected from proposed generic versions.

In response, Sepracor said it may take legal action, slowing both companies’ prospects of generic drug production.

Sepracor (Nasdaq: SEPR) announced last month that the company plans to cut 530 positions, and an additional 410 contract sales positions, as part of a cost-cutting plan. The Marlborough-based company said that the staff cuts would be comprised of 180 corporate positions and about 350 field positions, and amount to approximately 20 percent of the company’s global work force.

The company said that overall planned expense reductions will amount to about $210 million, of which approximately $20 million has already been achieved in the fourth quarter of 2008, with the remaining $190 million expected in 2009.