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Biotech / Medical : Ligand (LGND) Breakout! -- Ignore unavailable to you. Want to Upgrade?

To: bob zagorin who wrote (28899)	6/15/1999 3:56:00 PM
From: Henry Niman	Respond to of 32384

LGND's LLY deal was valued at $200 million based on upfront payments and milestones (no royalties were included in the valuation). LGND received $50 million up front and then was slated to receive research funds over a 3 or 5 year time frame (I think that it was another $50 million). These funds were not milestone dependent. The remaining funds were tied to moving compounds into or through the clinic and LLY's decision not to move Targretin, LGD1268, or LGD1324 forward eliminated or delayed those royalty payments. Even if a rexinoids fail to enter the clinic to treat metabolic diseases, LGND still gets about 1/2 of the "Biotech Bucks". I believe that they will get the full $200 million if 2nd generation rexinoids move through clinical trials associated with metabolic diseases. LGND's deal was one of the largest Biotech deals ever done, and was unlike the "typical" deal described in the article (most of the LGND/LLY money was committed and independent of milestones).