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Politics : Ask Michael Burke -- Ignore unavailable to you. Want to Upgrade?

To: Knighty Tin who wrote (80834)	5/18/2000 12:04:00 AM
From: Spekulatius	Read Replies (1) \| Respond to of 132070

VRTX and LGND valuation - I strongly disagree that LGND is cheap and VRTX expensive. In my opinion VRTX is undervalued relative to LGND. Lets compare: VRTX Market cap: 1.75B$ Cash :350M$ Debt:170m$ (convertible) Resulting Business value : 1.6B$ LGND Market cap:700M$ Cash: 50M$ Debt: 140M$ Resulting Business Value: 790M$ VRTX has made very good licencing deals in the past and has kept share dilution to a minimum. Very cash rich plus a monster deal worth up to 800M$ plus royalities with Novartis LGND has mostly made (low?) single digit licensing deals and has had a horroble dilution of 20% per annum. Cash for a couple more quarters. I'll take VRTX in a heartbeat.The Novartis deal is very significant and could well propel VRTX in a new league. I don't know either VRTX nor LGND at this time but plan to buy VRTX after a correction.