Some have asked about LGND's price as well as the lack of posts here, so it might be time for me to give an update of LGND's current status to stimulate some new posts.
Many are impressed with LGND's pipeline as well as their management, but wonder why the price has remained in the $12-$14 for a few months now. I think that LGND has made steady progress, but this has not been reflected in its price because of the sector overall, as well as the size of the markets targeted by LGND's most advanced products (coupled with a "show me" attitude towards off label use).
In the past Biotechs would move in anticipation of an NDA filing or FDA review. That is why I expected LGND's price to be significantly higher by now (due to the SRGN filing and approval rec, Panretin topical filing, and anticipated Targretin topical and oral filing followed by a Panretin oral filing). However, because of the numerous Phase III failures and some FDA non-approvable recs of other Biotechs), many investors are waiting on the sidelines for final FDA approval or product launches.
In LGND's case, I think that the watchers are waiting an even longer period because, although the approvals seem very solid, the size of the potential markets and speed of product launches are at issue.
LGND has created the best pipeline in the sector and the street has trouble evaluating it. Most of the more successful Biotechs (and big pharmas) have only one or two blockbusters an there is not a company with a comparable pipeline, so that is also creating a "show me" attitude on the street.
As LGND's products move through the regulatory process, I think that the off label use will come into focus and the street will reward the patient investor. |
