Larry, Here's the front end of the Top Story: Ligand Closing In On Diabetes Drug
Deal by Jesse Eisenger:
Henry Niman wants to know.
An obsessive Internet poster who dominates several sites with his exegeses in Ligand
Pharmaceuticals (LGND:NASDAQ), Niman serves the online world as data analyst,
biotech sage, unabashed tout, - and sometimes nuisance - of a stock he owns. Lately,
Niman, who also posts HenryNFox on America Online, has been wondering aloud
about whom the San Diego biotech firm will choose as a partner for its new diabetes
drug.
Well, Henry, its true that Ligands is very close to signing a partnership on the diabetes
compound, with Eli Lilly (LLY:NYSE), the major insulin player, seemingly emerging as
the top candidate. The deal is said to include several preclinical compounds and
emcompass metabolic diseases.
A spokeswomen would not comment on the rumors about a deal, but says the
company hopes "it will be by the end of the third quarter."
Negotiations between the company and Warner-Lambert (WLA:NYSE) are said to
have been recently switched off, with Ligand asking for too much upfront for the big
drug company's taste, according to people familiar with the discussions. Ligand
president and Chief Executive David Robinson is respected in the biotech world as a
tough and savvy negotiator capable of brinksmanship, so negotiations with any of the
three major players in diabetes, including Johnson & Johnson (JNJ:NYSE) - or even a
dark-horse candidate - could still be going on, analysts say. Which company wins out
may not be determined until the last moment.
"Its true they're asking a lot. But they're offering a lot," says David Molowa, an analyst
for Bear Stearns, which has acted as a banker for Ligand. "I'm pretty sure it isn't
Warner Lambert. They've gotten a lot of interest from people who don't have an oral
play (in diabetes). My thoughts move to Lilly."
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