I agree with you to a point. In the whole realm of "stocks", lgnd takes a back seat to other companies in other industries that are not determined by the approval of regulatory committees such as the FDA. But, if you are looking at biotechs in particular, Lgnd has to be one of the best picks out there. There is a lot of risk to lgnd. I don't want anyone to think that there isn't. But, there is less risk to lgnd in comparison to a lot of other biotechs out there. Why? Look at the number of partners; number of drugs in the pipeline; the distance and clinical success that their lead drugs have gone (ie Panretin and Targretin) and the level of management. These facts alone will not guarantee that LGND will be successful as a company, but the crucial pieces of the puzzle are in place to make lgnd a successful company, imho.
And you are right to state that lgnd isn't making any money because, at the moment, they aren't making one red cent. The hope is that if and when their drugs are approved and their drugs are heavily used because they work so well, lgnd will be a cash cow and will have a growth rate many companies could only dream of having. Having a deep pipeline of drugs will help LGND, in theory, maintain a nice growth level by introducing new drugs every 3 or 4 years(which might be highly speculative on my part).
Lgnd needs to get a NDA for their first drug. From there, things will look a lot different for this stock. |
