Ligand (LGND) Breakout! Message Board

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Biotech / Medical : Ligand (LGND) Breakout!

LGND 199.07

-3.4%

3:59 PM EST

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To: Andrew H who wrote (11379)	11/18/1997 6:27:00 PM
From: Andreas Helke	Read Replies (1) of 32384

I agree that simply applying a formula is a too simple aproach for valuing biotechs. After all Ligand stayed too cheap for years. But at least it provides another starting point for the really difficult task of valuing development stage biotechs. I have two more aproaches that point toward a undervaluation of Ligand. 1. If Ligand indeed earns $15 / share in 2006 than it is far too cheap today. 2. Ligands share price showed much less progress since IPO than Ligand as a company. Therefore either the early Ligand investors paid too much or we pay not enough now. I did take a look at Agouron. I only have R&D figures for 3 years of 215 million (compared with 166 million in 5 years for Ligand). If we optimistically assume 275 million in 5 years and a market cap of 1.3 billion we get a M score of 5 for Agouron. With 215 millions the score would be 6. Andreas

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