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

To: Andrew H who wrote (9825)	10/21/1997 2:11:00 AM
From: Henry Niman	Read Replies (1) \| Respond to of 32384

Andy, Speaking of notification, LGND's deal is getting quite a bit of press after the close. Here's what'sin the WSJ interactive edition: The Wall Street Journal Interactive Edition -- October 20, 1997 New Drugs Help Eli Lilly Post 9.9% Rise in 3rd-Quarter Net Dow Jones Newswires NEW YORK -- Pharmaceutical giant Eli Lilly & Co. said Monday its third-quarter earnings rose 9.9%, boosted by strong sales of its newer products as well as the antidepressant Prozac in the U.S. For the quarter ended Sept. 30, Lilly posted net income of $456.9 million, or 41 cents a share, compared with $415.6 million, or 38 cents a share, a year ago. The current quarter was adjusted for a recent 2-for-1 stock split, and beat analysts' expectations by a penny a share. The year-ago quarter included a gain of six cents a share for the sale of the U.S. marketing rights for oral antibiotics Ceclor CD and Keftab to Dura Pharmaceuticals. Overall sales jumped 20% to $2.16 billion from $1.8 billion, with new products comprising more than 74% of that growth. Sales volume growth of 22% and a 2% increase in global selling prices were partially offset by unfavorable exchange-rate comparisons of 4%. The Indianapolis-based company said earnings were affected by reduced goodwill and an interest expense resulting from the second-quarter write-down of its PCS Health Systems unit and the sale of Lilly's interest in the DowElanco agricultural joint venture with Dow Chemical Co. Total U.S. pharmaceutical sales and services rose 30%, while international sales increased 5%. Volume growth of 18% was partially offset by a 10% reduction from unfavorable exchange rates and a 3% reduction in selling prices. World-wide pharmaceutical sales and services grew 20% to $2.02 billion, led by strong sales of Gemzar, used to treat pancreatic cancer; ReoPro, used to prevent heart attacks; and the antipsychotic drug Zyprexa, which has turned out to be the company's most successful products in its first year of sales. Sales of Zyprexa rose 29% to $202 million, led by strong U.S. performance. Sales of ReoPro increased 64% to $63 million, while sales of Gemzar rose 15% to $47 million. Prozac sales increased 11% to $705 million, driven by an increase of 17% in the U.S. International sales of Prozac decreased 11% because of the strong dollar, continuing generic competition in Canada and competitive pressure in France. Sales of the drug were strong in Britain. Sales of insulin products rose 3% in the U.S. to $169 million, and international sales rose 4% to $92 million. In separate news, Lilly and San Diego-based Ligand Pharmaceuticals Inc. Monday formed an alliance to discover and develop products based on Ligand's intracellular receptor technology. The companies said the collaboration will focus on products with broad applications for metabolic diseases, including diabetes, obesity, dislipidemia, insulin resistance and cardiovascular diseases associated with insulin resistance and obesity. Lilly may make a $37.5 million equity investment in Ligand at $17.23 a share, the companies said. Last Thursday, another pharmaceutical giant, Merck & Co., posted a 19% increase in net income to $1.2 billion, or 99 cents a share, from $1 billion, or 83 cents a share, in the year earlier period. However, the profit was a penny less than Wall Street's expectations of $1 a share, according to First Call.

To: Andrew H who wrote (9825)	10/21/1997 2:16:00 AM
From: Henry Niman	Respond to of 32384

Here's what Reuter's had to say: INDIANAPOLIS, Oct 20 (Reuters) - Eli Lilly and Co and Ligand Pharmaceuticals Inc <LGND.O> entered into a strategic alliance for discovery and development of products based upon Ligand's intracellular receptor technology, the companies said Monday in a joint statement. The collaboration will focus on products with broad applications across metabolic diseases, including diabetes, obesity, dislipidemia, insulin resistance and cardiovascular diseases associated with insulin resistance and obesity, the companies said. Under the pact, Lilly will get rights to Targretin, an oral diabetes therapy in early clinical development. It will also get exclusive rights to two second generation oral diabetes compounds in preclinical development and to Ligand's metabolic disease technology. Lilly will also get additional rights to use Ligand's technology to develop a compound in combination with a selective estrogen receptor modulator in cancer, they said. REUTERS 10:30 10-20-97 In exchange, Ligand may qualify to receive up to $49 million in research funding over five years plus the potential for up to three additional years of research funding; $37.5 million in an equity investment at $17.23 per share; $12.5 million in upfront milestones; and up to $75 million in additional milestone payments over eight years assuming successful development of oral Targretin and five other compounds, the companies said. REUTERS 10:30 10-20-97 Shares in Ligand, of San Diego Calif., were up 1-1/6 to 16-1/8, while Lilly shares were up 1-1/4 at 63-7/8. "Lilly's global infrastructure, strong expertise and financial commitment to this alliance will allow Ligand to more fully develop our technology in metabolic disease, to strengthen our finances for the buyout of ALRT and to continue our march toward profitability in 1999," said Ligand chairman and chief executive David Robinson. Ligand entered into an agreement in September with Allergan Inc <AGN.N> to divide assets of their joint venture, Allergan Ligand Retinoid Therapeutics <ALRI.O>, or ALRT. The agreement gave Ligand access to several promising treatments for cancer and diabetes based on retinoids, or Vitamin A-derived substances that selectively regulate cell growth. 10:33 10-20-97

To: Andrew H who wrote (9825)	10/21/1997 2:18:00 AM
From: Henry Niman	Read Replies (1) \| Respond to of 32384

LGND deal was also mentioned in Reuter's version of LLY financials: INDIANAPOLIS (Reuters) - Eli Lilly and Co. reassured drug-stock bulls on Wall Street Monday with a strong third-quarter profit report showing gains for its blockbuster antidepressant Prozac, as well as some newer products. Drug industry analysts had been warily awaiting Indianapolis-based Lilly's report after market leader Merck & Co. Inc. Thursday reported profits short of expectations. ''Everyone breathed a sigh of relief with Lilly,'' said Hambrecht & Quist industry analyst Alex Zisson, citing fears that Merck's results signaled a trend. Lilly earned $457 million, or 41 cents a share in the quarter, versus $416 million, or 38 cents, a year ago, just topping Wall Street's estimate as compiled by First Call Corp. Revenues rose 20 percent to $2.2 billion from $1.8 billion, a gain held back by declines in some older products and the negative impact of foreign exchange translations. ''The numbers looked real solid,'' Goldman Sachs & Co. drug industry analyst Prem Lachman said. Per-share results reflect a stock split that took effect Oct. 15. Year-ago results were adjusted for the split and include a one-time gain of 6 cents a share on the sale of marketing rights for two older products. Lilly's stock rose $1.75 to $64.375 in afternoon trading on the New York Stock Exchange. Prozac sales totaled $705 million in the three months ended Sept. 30, up from $638 million a year ago. During the quarter, Lilly launched a direct-to-consumer U.S. advertising campaign for Prozac that included magazine spreads featuring drawings of flowers and sunshine. Lilly will continue the campaign, but will not discuss its costs or success rates, Chief Financial Officer Charles Golden told Reuters. Prozac is Lilly's top product, accounting for nearly one-third of total revenues in the third quarter. One of Lilly's fastest-growing products is Zyprexa, a treatment for schizophrenia. The company said it plans to soon request permission from drug regulators to sell Zyprexa as a treatment for another psychological malady -- acute mania. Zyprexa sales in the third quarter totaled $202 million, up 29 percent over the second quarter. One of Lilly's oldest businesses, treatments for diabetes, was flat in the third quarter with sales of its synthetic human insulin, Humulin, unchanged at $226 million. ''We're aware that our growth has slowed down a touch perhaps from prior years,'' Golden said, adding that a research pact unveiled Monday with Ligand Pharmaceuticals Inc. is a key to future growth in the diabetes market. Quarterly sales of Humatrope, Lilly's synthetic growth hormone, were also flat at $66 million. ''One of the things that hurt us there, more than other compounds, is the adverse exchange-rate impact of the yen as the dollar strengthens against it,'' Golden said. Humatrope sales in the first nine months of the year were $189 million, with $123 million coming from non-U.S. markets, including the key market of Japan. Sales growth was led Zyprexa, Prozac and two other newer products: Gemzar for pancreatic cancer, and ReoPro, a blood-clot dissolving drug used in angioplasty that Lilly markets for biotech firm Centocor Inc., of Malvern, Pa. Third-quarter ReoPro sales rose to $63 million from $39 million a year ago, while sales of Gemzar rose to $47 million from $20 million, the company said. ''Of our total sales growth in the third quarter, new-product sales accounted for more than 74 percent of that growth,'' Chief Executive Randall Tobias said in a statement accompanying the results. Sales of anti-infective products continued to decline in the quarter, Lilly said. Antibiotics Ceclor/cafaclor, Keflex/keftab and Vancocin all had lower sales on the quarter compared with last year. Sales of peptic ulcer medication Axid rose to $132 million from $127 million, Lilly said. Lilly reported stronger revenues from its healthcare management unit, which is dominated by PCS Health Systems, a drug benefits management business that Lilly acquired for $4.1 billion in 1994. The company took a $2.4-billion write-off on the unit earlier this year. Healthcare management posted third-quarter revenues of $135 million, up from $96 million a year ago. The PCS unit is profitable, but its profit margins remain below those typical for the drug industry, Golden said. ^REUTERS@ 14:36 10-20-97

To: Andrew H who wrote (9825)	10/21/1997 2:19:00 AM
From: Henry Niman	Respond to of 32384

Here's what Dow Jones had to say about the "big" deal: SAN DIEGO -(Dow Jones)- Eli Lilly & Co. and Ligand Pharmaceuticals Inc. said Monday they formed an alliance to create products based on Ligand's technology for developing drugs for diabetes and other metabolic diseases, in a complex deal that could be worth as much as $174 million to the biotech firm. The companies said the collaboration will focus on products with broad applications for metabolic diseases, including diabetes, obesity, dislipidemia, insulin resistance and cardiovascular diseases associated with insulin resistance and obesity. The focus of the project will be on technology for intracellular receptors, the companies said. Intracellular receptors are members of a family of hormone-activated proteins that act inside the cell. When they are activated, intracellular receptors control gene expression to maintain and restore balanced physiologic function, the companies said. Drugs that mimic or block hormone action are useful in treating a variety of diseases that result from hormonal and other imbalances, the companies said. According to terms of the deal, Lilly (LLY) may make a $37.5 million equity investment in Ligand at $17.23 a share, the companies said. Ligand (LGND) may also receive up to $49 million in research funding over five years, plus the potential for up to three additional years of research funding; $12.5 million in upfront milestones and up to $75 million in additional milestone payments paid over eight years assuming successful development of Ligand's oral diabetes drug Targretin and five other compounds. Targretin, which is also being tested for a type of lymphoma, belongs to a new class of drugs known as retinoid X receptors, or RXRs. Retinoids are hormones known to control cellular activities through activation of intracellular receptors. RXRs are linked to programmed cell death, or apoptosis. Ligand may also be eligible to receive royalties on most advanced products and earlier compounds; an option to obtain select rights to one Lilly specialty pharmaceutical product in specific markets of interest to Ligand, but not Lilly; and milestones, royalties and options to obtain certain co-development and co-promotion rights for a Lilly-selected RXR compound. Lilly will receive: rights to Targretin; exclusive rights to two second-generation oral diabetes drugs in preclinical development and to Ligand's metabolic disease technology to develop more advanced diabetes, cardiovascular and related therapies; and additional rights to use Ligand technology to develop a compound in combination with a selective estrogen receptor modulator in cancer. Also, Lilly will receive world- wide, exclusive rights to Ligand's compounds and genetic technology.

To: Andrew H who wrote (9825)	10/21/1997 2:21:00 AM
From: Henry Niman	Read Replies (1) \| Respond to of 32384

AP also had coverage: .c The Associated Press INDIANAPOLIS (AP) - Eli Lilly & Co. said Monday its third-quarter earnings rose almost 10 percent, due in part to strong sales of its newest products including Zyprexa, a drug used to treat schizophrenia. Strong worldwide sales also helped boost earnings. The Indianapolis-based drug manufacturer earned $456.9 million, or 41 cents per share, on net sales of $2.1 billion. That compares with earnings of $415.6 million, or 38 cents per share, on net sales of $1.8 billion in the third quarter of 1996. The results were in line with Wall Street expectations. Eli Lilly's stock rose $1.87 1/2 to close at $64.62 1/2 on the New York Stock Exchange. ''Our new products continue to grow strongly in the marketplace highlighted by the success of Zyprexa. In its first 12 months on the market, Zyprexa sales totaled $550 million,'' Randall L. Tobias, Lilly chairman and chief executive, said in a statement. ''Of our total sales growth in the third quarter, new-product sales accounted for more than 74 percent of that growth.'' Zyprexa had sales totalling $202 million in the third quarter, up 29 percent from the second quarter. Zyprexa is being marketed in 26 countries, and is cleared for marketing in 49 countries throughout the world. Lilly also announced Monday it has entered into a strategic alliance with Ligand Pharmaceuticals Inc. to develop new products to treat advanced diabetes, cardiovascular and related therapies. Lilly will get the rights to Targretin, an oral therapy currently in early clinical development for Type II diabetes; two second generation oral diabetes compounds in preclinical development; and the rights to Ligand's metabolic disease technology to develop more advanced diabetes, cardiovascular and related therapies. For the first nine months of the year, Lilly lost $842.6 million, or 77 cents per share, on sales of $6.1 billion. That compares with earnings of $1.15 billion, or $1.05 per share, on sales of $5.3 billion during the same period in 1996. The losses this year reflect the impact of Lilly's $2.4 billion writedown of a pharmacy benefits subsidiary. AP-NY-10-20-97 1819EDT

To: Andrew H who wrote (9825)	10/21/1997 2:23:00 AM
From: Henry Niman	Respond to of 32384

Here's an earlier Raloxifene (Evista) story: INDIANAPOLIS, June 5 (Reuter) - Eli Lilly and Co. said Thursday results from trials of its new anti-osteoporosis drug raloxifene showed that it increased bone mass while producing fewer side effects than estrogen replacement therapy currently in use. The results, presented to a Washington symposium on osteoporosis, showed the compound, currently seeking U.S. Food and Drug Administration approval under the brand name Evista, prevented bone loss in the subjects' spines and hips and increased bone mineral density by up to 3 percent. Assessing side effects from the drug in Phase III trials, the company said raloxifene did not stimulate tissue in the uterus, nor did it induce spotting or bleeding. It also spared women breast swelling, tenderness and pain, which are common complaints of women undergoing estrogen replacement therapy. The most commonly observed side effect from the drug was that 24 percent of the women reported a higher rate of hot flashes, compared to 18 percent taking a placebo. Raloxifene produced similar beneficial results to estrogen therapy in terms of protecting post-menopausal women from conditions leading to cardiovascular disease. The drug is among a new group of compounds designed for menopausal women at risk of losing up to 20 percent of their bone mass. Osteoporosis affects about 25 million Americans, mostly older women during or after menopause. Merck & Co. Inc <MRK.N> received FDA approval in 1995 for its Fosamax treatment for osteoporosis, and other drug makers have similar bisphosophonate therapy drugs in development. 20:12 06-05-97

To: Andrew H who wrote (9825)	10/21/1997 2:38:00 AM
From: Henry Niman	Read Replies (1) \| Respond to of 32384

Here's anothe Dow Jones version: Dow Jones Newswires -- October 20, 1997 Eli Lilly, Ligand In Intracellular Receptor Alliance SAN DIEGO (Dow Jones)--Eli Lilly & Co. (LLY) and Ligand Pharmaceuticals Inc. (LGND) formed an alliance to discover and develop products based on Ligand's intracellular receptor technology. In a joint press release Monday, the companies said the collaboration will focus on products with broad applications for metabolic diseases, including diabetes, obesity, dislipidemia, insulin resistance and cardiovascular diseases associated with insulin resistance and obesity. Lilly may make a $37.5 million equity investment in Ligand at $17.23 a share, the companies said. Ligand may also receive up to $49 million in research funding over five years plus the potential for up to three additional years of research funding; $12.5 million in upfront milestones and up to $75 million in additional milestone payments paid over eight years assuming successful development of Oral Targretin and five other compounds. Ligand may also be eligible to receive royalties on most advanced products and earlier compounds; an option to obtain select rights to one Lilly specialty pharmaceutical product in certain markets of interest to Ligand, (fitting into an area of specific focus for Ligand, but not Lilly) and milestones, royalties and options to obtain certain co-development and co-promotion rights for a Lilly-selected RXR compound in combination with a SERM. Eli Lilly & Co. (LLY) will receive: rights to Targretin, an oral therapy currently in early clinical development for Type II diabetes; exclusive rights to two second generation oral diabetes compounds in preclinical development and to Ligand's metabolic disease technology to develop more advanced diabetes, cardiovascular and related therapies and additional rights to use Ligand technology to develop a compound in combination with a selective estrogen receptor modulator in cancer. Lilly will receive worldwide, exclusive rights to: Ligand's compounds; technology associated with the Retinoid X Receptor, a new target for the treatment of Type II diabetes, and in certain areas, to Ligand's peroxisome proliferator activated receptor technology, with rights to use PPAR research technology with the RXR technology. Finally, Lilly will receive exclusive rights to the hepatic nuclear factor 4 receptor and the obesity gene promoter technology. Lilly and Ligand will join their research programs to discover more advanced RXR compounds, the companies said. Ligand will retain exclusive rights to independently research, develop and commercialize Targretin and other RXR compounds in the fields of cancer and dermatology. Lilly and Ligand will also begin research programs aimed at discovering novel compounds that therapeutically activate PPAR subtypes for treatment of cardiovascular disease. Ligand Pharmaceutical Inc. (LGND) may also obtain select rights to one Lilly specialty pharmaceutical product that would fit a current area of Ligand's focus and be marketed within the next several years. If Ligand elects to obtain selected rights to the product, Lilly could receive milestones of up to $20 million in Ligand stock. If Ligand does not exercise the product option during the first 90 days after the effective date of the agreements, Ligand will sell an additional $20 million in equity to Lilly at a 20% premium to the then market price, and qualify for certain additional royalties of up to 1.5% on net sales on Ligand's Targretin, LGD1268 or LGD1324. The milestone calculations are net of payments to third parties, and a percentage of certain royalty payments are due to third parties as a result of the restructured rights to compounds currently held by Allergan Ligand Retinoid Therapeutics Inc. (ALRI). The transaction's closing is subject to receipt of necessary regulatory approvals and is contingent upon Ligand successfully completing its buyback of Allergan Ligand outstanding shares and the restructured rights to compounds currently held by Allergan Ligand. Ligand Pharmaceuticals engages in gene transcription technology. Lilly, Indianapolis, is a global research-based pharmaceutical company.