Andy, I hit most of the "new" items earlier. Robinson did indicate that LGND had the deepest and broadest pipeline in Biotechnology, and explaining its value to the street was a most difficult task. LGND could talk about its top 2 or 3 products, but it was hard to get into any specifics after that.
The interview began by talking about the three major transactions which were the ALRT buyback, the dividing of rights to the compounds, and the LLY deal. He indicated that the LLY deal closed on Nov 23 and they received a $50 million check on Nov 28.
He described the splitup of ALRI as a win/win/win situation. LGND benefited from one of the most productive R&D program that he has seen. ALRI shareholders saw their $10 investment grow to $42 in 2 1/2 years. AGN shareholders saw their pipeline grow and had a royalty stream in place from the compounds that LGND would develope.
Robinson thought that the LLY deal was a major plus which would create a formidable force in the oral diabetes market. 40 LGND scientists would join the research team from LLY to target one of the top 3 diseases. LGND would get up front-fees as well as significant milestone payments.
He then talked about profitablity in 1999 and indicated it would be achieved through sale of the 4 retinoid products that would be on sale by then. Those profits would be added to the income from their various alliances. He did not mention the LLY compound.
When asked if the new drugs would be used as monotherapy or in combination he indicated that 7 compounds were in advanced clinical trials (5 retinoid/rexinoids plus the two designer estrogens). He indicated that in cancer they would be used as monotherapy as well as combinations. The current trials were montherapy because of associated costs, but indications would expand (NCI has started breast cancer trails with Panretin or Targretin in combination with Tamoxifen). Psoriasis would be monotherapy, while diabetes indications would be combination as well as monotherapy. Osteoporosis would be monotherapy and he mentioned 3 SERMs in the clinic, which I interpreted as a signal that AHP's TSE424 trial had begun.
When asked about the aspect of the business or technology that the street just didn't get, he cited the breadth and depth of the pipeline, which he stated was undeniably #1 in Biotechnology. He said he could talk about 2 or 3 compounds, but the street didn't appreciate the value in the rest of the pipeline, which consisted of 2 or 3 dozen additional compounds.
He also tallked about the FDA approval process amd how cancer approval times had been helped, but it was a mixed picture for other diseases and the 6-9 month speed-up was a only a small portion of the 5-7 years required for product approval. |
