Dura’s Stock Surges on Drug Purchase

Dura Pharmaceuticals Inc. shares soared 17% after the respiratory drug company said it will buy two injectable antibiotics from Bristol-Myers Squibb Co., an acquisition that would boost profit next year. San Diego-based Dura said it plans to hire 100 to 150 new sales representatives to market the products to hospitals, expanding a current sales force of 400 into a new area of marketing. That would help the drug maker market to hospitals a battery-powered asthma inhaler that it’s now developing and allow it to acquire other products generally used in hospitals. “They’re getting a hospital sales force without having to pay for it out of current earnings,” said Donald Ellis, a BancBoston Robertson Stephens analyst with a “long-term attractive” recommendation on Dura shares. News of the $130-million purchase was tempered by the accompanying announcement that Dura expects to take a charge of 43 cents to 47 cents a share against its earnings in the fourth quarter. Dura said the acquisition should double its sales of branded drugs and boost earnings next year. Dura shares rose $2 to close at $13.50 in heavy Nasdaq trading.