Although LGND has quite a bit on its plate in the area of near term product approvals, its underlying technology, which has produced one of the best, if not the best pipelines in the industry, is LGND's long term mover. Unfortunately, I don't think that retail buyers have a very good handle on technology development. They do know that it is expensive, but they haven't really figured out that a developmental company must sell technology and stock to get the required resources and they have trouble relating dilution to product pipeline.
LGND has elected to develop some of its niche areas (cancer and dermatology) in house, and has farmed out some of the larger multi billion dollar metabolic disease markets. In many of the older alliances (PFE, AGN, GLX, ABT, AHP) LGND has already done its share (discovery and pre-clinicals) and they now are in a position to collect milestone and eventually royalty payments. PFE has two drugs (Droloxifene and CP-366,156) in the clinic and AHP has one (CP-366,156). LGND is developing the most advanced compounds under the AGN deal (oral and topical Panretin and Targretin as well as LGD1550), and LLY is expected to move rexinoids (Targretin, LGD1268, and LGD1324) forward in the metabolic disease areas. LGND has already recommended compounds to GLX for treating atherosclerosis and altered lipid metabolism and advancing all of these compounds will bring in funds.
LGND's many internal programs will generate significant future programs. Internally, their androgen program is considered by some to be the biggest in the world, and of course their mimic program under the SBH hematopoietic growth factor alliance is causing considerable excitement in the scientific community, and concern or interest in major players in targeted markets. |
