Deciphering the vague Press Release ...
Bob, you had pretty much the same questions I did.
And we came to some (but not all) of the same deductions.
The decision not to proceed with full development of the first generation compounds was based upon a thorough review of the pre-clinical and Phase II clinical data on Ligand's RXR modulators, Targretin, LGD1268 and LGD1324.
The press release is calling LGD1268 and LGD1324 "FIRST generation compounds." We all thought they were SECOND generation. Did we misunderstand something? Not!
businesswire.com
The 10-25-97 press release for the Lilly deal says:
Lilly will receive ...
-- Exclusive rights to two second generation oral diabetes
compounds -- LGD1268 and LGD1324 -- in preclinical development that
could offer further improvements over currently available products.
This week's announcement says:
... we understand Lilly's preference for second generation compounds with a better therapeutic index, particularly as it relates to insulin sensitization without triglyceride elevations
I'm guessing that LGD1268 and LGD1324 did NOT "offer further improvements" regarding the triglyceride problem (or had some other problems), and so all three are now defined as "first generation."
At H&Q, Robinson was right. Much progress WAS made in studying LGD1268 and LGD1324, enough to disqualify them as suitable diabetes drugs. That's progress.
Better find that out now, than after Phase I/II tests!
So now, it's back to deeper in the pipeline, to identify a better diabetes candidate.
If they MIGHT do an IND by year-END, I'd guess a lot of basic work remains.
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As to what gets returned to Ligand, I'd say only Targretin.
You said, "Targretin rights were returned to Ligand along with LGD1268 and LGD1324."
My take is that all TARGRETIN rights are returned, but the other two
return to the pool of eligible RXR modulators for possible use in oncology in combination with a selective estrogen receptor modulator [likely Raloxifene] under the separate collaboration agreement.
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Then there's the enigma: I can't make sense out of this either.
Sure, the pricing will be straightforward now. But ....
... the return of Targretin rights will now permit us to rapidly generate revenues from distribution agreements pending in territories in which we will not directly market Targretin in oncology and dermatology,'' said Ligand Chairman, President and CEO David E. Robinson.
Rapidly?? WHAT revenues?
I also wonder if the "not" is a typo for "now."
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<< The characterization of the release as "vague" is charitable. >>
Not in my book. Nothing "charitable" about calling speech "vague."
Vague speech mis-communicates, confuses and delays (or wrecks) projects,
causes misunderstandings and wars ....
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Luckily, the stock price held up pretty good Friday -- better than I expected -- though I expect it will keep oscillating until several uncertainties are out of the picture.
Cheryl |
