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

To: bob zagorin who wrote (29441)	11/19/1999 1:50:00 PM
From: Andreas Helke	Read Replies (1) \| Respond to of 32384

Currently Ligand does not have enough excess cash to buy any of its shares back. Therefore they have to issue new shares for the exercised warrants. I found the Elan deal very remarkable. At that time they wanted to pay the former Seragen shareholders with cash but did not have enough spare cash. Then they managed to buy a product candidate and instead of paying for this candidate they got a load of cash on top of it and used part of that to pay the Seragen share holders. Since neither Elan nor Ligand are stupid I am sure that Ligand will have to repay that favor. But then they will hopefully have a much higher share price and possibly free cash flow from product sales. Andreas