Rick, Like most Biotechs, LGND is not profitable. The most recent
analyst report by Roberston Stephens projects profitability in 2000
($0.10). However, EPS is projected to grow in excess of 100% per
year for the next 6 years. In 2006, EPS is projected to be $14.55.
LGND's initial profits will come from its two lead retinoids, Targretin
and Panretin. Sales of these two compounds alone are exected to grow
to $500 million over the next 10 years. In last year's annual report,
LGND reported progress on 29 compounds at various stages of development.
Although they won't all generate $100's of millions in annual sales,
LGND's pipeline is one of the largest of any Biotceh even though it
is young (founded in 1987 and public in 1992) and has not produced
a profit. LGND has seven alliance partners (all have equity positions) -
PFE, GLX, AGN, ABT, AHP, SBH, Sankyo and several more are expect
(a leptin deal is expected within the next several weeks and
at least one blockbuster diabetes deal is expect later this year).
I was the scientific founder of LGND's parent company, Progenx, and
I have a significant position in LGND (and a minor position in their
retinoid R&D company, ALRIZ).
Henry |
