Ligand (LGND) Breakout! Message Board

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Biotech / Medical : Ligand (LGND) Breakout!

LGND 199.20

+0.1%

Nov 21 9:30 AM EST

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To: Henry Niman who wrote (22232)	6/14/1998 9:24:00 PM
From: WTDEC	Read Replies (1) of 32384

Henry, I believe there are objective approaches to help compare the dilution of one biotech to another. For example, before recently taking on a new business venture which has stopped my progress cold, I had started to build a valuation model based on drugs in the pipeline. Simply dividing the 'technology value' (market cap of equity less cash) by the number of drugs in the clinic yields the market value per drug, a very crude step in the right direction. We know well that some drugs are more advanced, P3, than others, P1, and some have bigger market potential than others. I was working on a simple weighting scheme to give 'rough justice' to these differences when my work stopped. (I'll spare the thread from further refinements I had in mind.) On the crude basis, I find the markets valuation of LGND on a per drug basis is now about half that of several reasonably comparable biotechs. Looks like a bargain basement price right now. Maybe I will get the chance to pick up on this approach at some point. In the meantime, perhaps others will do so and share their findings with the thread. Regards, Walter

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