Hi Folks. Seems that SEPR is dropping like a rock on NO NEWS. At least no news that I have seen. I would love to sell some May contracts (Yes, you heard right, May contracts! Only several hours left) as IV is sky high, but with no news, I'm not so sure. Anyone have any idea what's going on with this one? AZD
SEPR has lost some reimbursement funding on their drug...also got downgraded and price target slashed. Sepracor downgrade details -Update- Firm downgrading SEPR Neutral from Outperform based on new information regarding Xopenex reimbursement that firm has learned today. Appears that CMS has decided to lower pricing for Xopenex nebules in line with that of generic albuterol. Firm thinks this would be the negative scenario that firm did not expect. Although firm not completely sure that this is the ultimate scenario given the confusion interpreting the CMS website, it is clear that pricing will be worse than firm expected. Tgt goes to $47 from $65.
Thanks Longhorns. I'm tempted to pick up some pocket change on the OTM contracts but I'll wait for some "stability" LOL in the underlying. AZD