<< I invite the thread to respond constructively to help analyze the expected dilution and forecasted cash flows. >>
From the 2nd quarter report:
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As of June 30, 1998, Ligand had cash, cash equivalents, short-term investments and restricted cash of $52.0 million, a decrease of $34.3 million from year-end 1997.
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Ligand burned about $30 million in the first 6th months. They had about $20 million in current liabilities. In the 1997 annual report Robinson said "We expect revenues to be strong in 1998, though stronger in the second half, reflecting expansion of existing and new collaborations and milestone payments from alliances"
I think that Wall Street was disappointed that Ligand's first half revenues weren't higher. Hopefully, the "strong" revenue that Robinson was predicting for 1998 is still expected, but in the second half. This would be a good item to ask Ligand's IR.
This is very important. If Ligand can get strong revenues in the second half of 1998, then they might be able to put off dilution until the second quarter of 1999, or beyond, depending upon the size of their revenues and their burn rate.
Because they are preparing to file two NDAs, their expenses will probably remain high.
Perhaps a call to Ligand, asking about "what happened to their strong revenues for 1998" and "when do they expect to need additional financing", would be warranted.
Regards, Bob |
