Ligand (LGND) Breakout! Message Board

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Biotech / Medical : Ligand (LGND) Breakout!

LGND 195.83

-0.7%

Dec 26 9:30 AM EST

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To: Machaon who wrote (24434)	8/13/1998 10:40:00 AM
From: growthvalue	Read Replies (1) of 32384

"That means that "we" as shareholders just bought around $220 million in drug development and science, and a revenue producing drug, for about $75 million, providing that ONTAK gets approved. That's a $145 million discount, otherwise known as a fire sale." Sounds like "growth flow" reasoning - the fact that $220 million was spent on SRGN's R&D in no way guarantees that the results of that R&D is worth $220 million. The market value of SRGN prior to the LGND acquisition suggests that the $220 million was not entirely well spent. You as an individual investor could have picked up shares of Seragen for even more of a "fire sale" before the acquisition. I'm not saying LGND overpaid for SRGN, but you can't conclude that LGND got a great price based on this reasoning.

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