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

To: david nordic who wrote (31566)	3/30/2005 11:36:13 AM
From: Ian@SI	Read Replies (1) \| Respond to of 32384

Biotechs with huge sunk costs in a worthless molecule often take too long to kill a project. This could be another example; or they may really have something. Recent evidence seems to indicate otherwise. First Albany's take follows. Their price target is for almost an 80% increase yet the stock rating is NEUTRAL. If I thought I'd get 80% in a year, I'd call it a BUY. Ligand Sinks as Key Drug Trials Fail Ligand Pharmaceuticals Inc. (LGND: Nasdaq) By First Albany Capital ($8.23, March 28, 2005) WE ARE LOWERING our rating on Ligand Pharmaceuticals to Neutral from Buy, following the failure of Targretin to increase survival in Phase III trials in front-line therapy of non-small-cell lung cancer. Targretin plus doublet chemotherapy failed to increase overall survival or two-year survival; specific data were not disclosed. Ligand intends to continue ongoing studies of Targretin in second- and third-line therapy of lung cancer, but investors are very likely to be skeptical. The dependence of Ligand's outlook on Avinza is problematic, as the pain drug has been struggling to increase market share in a changing competitive environment. Also, Ligand has been subject to unusually large sales allowances in recent quarters, and may be restated following last week's failure to file the 2004 10-K. Consequently, we are lowering our rating and our fair value price target to $9.