Marlboro-based drug company Sepracor Inc. reported first quarter net income of $22.5 million on revenue of $331.4 million.
The company’s first quarter results include an after-tax charge of $32.9 million related to a class action lawsuit.
Purchasers of Sepracor equity and debt securities alleged that the company made false and misleading statements regarding the testing, safety and likelihood of approval of the company’s Soltara brand tecastemizole antihistamine.
Sepracor has agreed to pay the plaintiffs in the case a $52.5 million settlement.
The company itself plans to pay $34 million, and said its insurance company would pay the remaining $18.5 million.
In the fourth quarter of 2002, the U.S. Food and Drug Administration issued a “not approvable” letter to Sepracor regarding Soltara.
After further testing of the drug, Sepracor discontinued its development, and incurred a one-time non-cash charge of $19 million as a result.
Sepracor admits no wrongdoing in its memorandum of understanding with the plaintiffs in the class action suit.
The company also makes the sleep drug Lunesta and others.
