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John O'Neill, Re: LGND picking a LLY compound. At one of the fall bio conferences at which LGND spoke, in the breakout session, David Robinson stated that it would take no longer than about 2 weeks for the LGND scientists to decide on which , if any, compound they would select. Since they have waited this long without announcing a selection, I suspect they have decided not to do so. Should they select one, they have reported that they will have to take a $30,000,000 charge against earnings & make specified payments to Lilly. If they don't select one, they can sell more stock to Lilly at a premium and also choose one of 3 rexinoids , including Targretin, to receive an extra 1 1/2 % royalty from Lilly for the uses of the compound that are licensed to Lilly. I prefer this course of action, because the stated reason for selecting the compound was to guarantee that they would be profitable in '99. I don't think that's a noble reason for doing it. And, I think that they could have already announced the selected compound had they planned to select one. The LGND chart looks very exciting with an unfilled gap up from the bottom on huge volume followed by another unfilled gap subsequently. Moreover, the subsequent volume is substantially larger than the volume on the way down. The weekly chart looks as least as good,showing a high volume reversal out of a multi-year base with a price projection that will make Andreas happy & a noted predictor, after we break out to new highs. Bernie. |
