Tuesday, March 17, 2009

Sepracor completes notes offer

By Mass High Tech staff

Pharmaceutical company Sepracor Inc. reports that its tender offer for its zero-percent notes due 2024 has expired, as of midnight yesterday.

Marlborough-based Sepracor (Nasdaq: SEPR) says that $143 million worth of the convertible senior subordinated notes had been validly tendered, according to Global Bondholders Services Corp., the depositary for the tender offer.

Earlier this month, Sepracor reported that its preliminary Phase 2 study for the anxiety disorder drug SEP-225441 had failed. The drug is a modified-release formulation of eszopiclone, meant to treat generalized anxiety disorder. Sepracor explained that the study didn’t meet its primary efficacy endpoint, which was the reduction of general anxiety symptoms. Although the company said it was disappointed with the preliminary analysis of the study results, it’s now further analyzing the data to determine if any of the secondary endpoints were met.

In January, Sepracor said it planned to cut 530 positions and an additional 410 contract sales positions as part of a cost-cutting plan. 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.

Sepracor, which employs approximately 2,300, reported a fiscal 2008 profit of $515 million on revenue of $1.3 billion.