Dan, Maybe my earlier post needs a bit more of an explanation. The street has had a hard time understanding LGND for quite some time. Consequently, its price has always been cheap. LGND has a couple of core technologies that target huge markets. They are under funded, so some of the larger indications have been partnered out. Big pharmas have a better understanding of LGND's technology, so they have created many alliances (PFE, GLX, AGN, ABT, AHP, SBH, Sankyo, LLY and WLA through AGN). The street isn't even close to understanding the implications of the polypeptide hormone mimics.
Consequently, LGND's price is extremely cheap now, and was cheap even when selling for prices much closer to $20. When LGND really breaks out, I expect the move to be very sharp and very quick. The FDA reform could create some major surprises on off-label sales. Right now the street is focusing on the size of LGND's niche markets. When they realize the magnitude of the off label sales, LGND will be off and running.
So far the street has been very slow on the learning curve, but even they can calculate EPS's, which I expect to produce some pleasant surprises in the not too distant future. |
