Through TheFLY's Eyes: Sepracor Inc.
from Theflyonthewall.com







The Rumor Mill

An FDA non-approvable letter for Neurocrine Biosciences' (NBIX) Indiplon tablets has created rumors that Neurocrine partner Pfizer (PFE) will end its partnership with the company and purchase rival drugmaker Sepracor (SEPR), which makes the insomnia drug Lunesta. Early last year, Bloomberg reported that Sepracor hired Morgan Stanley (MS) to explore a sale, but neither company confirmed the report.

Sepracor's intra-day call option volume of 42,447 contracts compares to intra-day put volume of 5,132 contracts. The June 60 calls are bid 75c, above its theoretical value of .09 cents, implying speculators are positioning for an upside event.

As this is written, shares of Sepracor are up $1.34 to $50.