Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Biotech / Medical : Elan Corporation, plc (ELN) -- Ignore unavailable to you. Want to Upgrade?

To: William Partmann who wrote (798)	12/29/1999 10:27:00 AM
From: Gary Korn	Read Replies (1) \| Respond to of 10345

William, Now if we can get 6 month FDA review . . . Gary Korn

To: William Partmann who wrote (798)	1/3/2000 9:34:00 PM
From: William Partmann	Read Replies (1) \| Respond to of 10345

Ligand sells royalty rights, Elan ups equity stake SAN DIEGO, Jan 3 (Reuters) - Ligand Pharmaceuticals Inc. (NasdaqNM:LGND - news) said on Monday that it has raised cash and cut debt through the sale of drug royalty rights and the early conversion of debt. San Diego-based Ligand said the increased cash position aids the commercial launch of Targretin, its treatment for a rare type of lymphoma, which was approved last week by the U.S. Food and Drug Administration. Ligand shares rose 1 to close at 13-7/8 on Nasdaq. Ligand said that Irish drug company Elan Corp. converted on December 31, 1999, a $20 million zero coupon note into 2.4 million shares of Ligand, raising its ownership in the company to 9.8 percent. The company also said that its wholly owned subsidiary, Seragen Inc., sold its rights to receive royalties starting in January 2001, on sales of two drugs used to prevent organ transplant rejection: Zenapax, marketed by Hoffmann-La Roche Inc. , and Novartis AG's Simulect. Ligand said Pharmaceutical Partners LLC and its affiliates paid Seragen $3.25 million and may pay another $3.25 million milestone payment if net sales of Zenapax exceed an undisclosed amount for any of the calendar years 2001 through 2004. Sergen also retained the rights to up to $3 million in milestone payments that may result from the approval of Zenapax for use in the treatment of autoimmune indications. ``By monetizing in current cash terms an asset that would otherwise provide cash flow over an extended future period of time, we increase our current cash position as we continue to invest in our growing oncology franchise,' David Robinson, Ligand's chief executive officer, said in a statement. Ligand said it will take a $2.2 million charge in 1999 due to Elan's earlier than expected conversion of the zero-coupon note, which was issued August 31, 1999 for redemption in 2008, convertible at $9.15 a share. Ligand said it has $80 million in zero-coupon convertible notes, convertible at $14 a share, still outstanding that are held by Elan. If Elan were to convert all of the notes, it would own 17 percent of Ligand, a spokesman for Ligand said. Ligand said Elan's early conversion helps the adjustment of its capital structure and places Ligand in a better position to reach profitability in 2000. The conversion also reduces debt and increases shareholder equity for 1999 and lowers interest expense in 2000 and beyond, Ligand added.