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

To: Hippieslayer who wrote (9884)	10/21/1997 1:00:00 PM
From: Henry Niman	Read Replies (2) \| Respond to of 32384

Stephen, The Lehman Bothers reiterated BUY addresses some questions. They clearly liked the terms and provided some details on the prospective LLY compound. The compound would fit into LGND's area of strategic focus. LGND would have North American and European rights. LLY would manufacture it and LGND would sell it. LGND would book $30 million if they exercise the option. The report also indicates that the Targretin royalty rate is 15% (which would increase to 16 1/2 % if the option for the new product wasn't exercised, but it sounds like LGND will exercise the option - the product should be FDA approved next year). The report also indicates that much of the $75 million in milestones are related to LGND's most advanced rexinoids and LGND should begin to receive royalties next year (when Targretin starts its US diabetes trial and LGD1268 and LGD1324 enter the clinic).

To: Hippieslayer who wrote (9884)	10/21/1997 3:05:00 PM
From: Andrew H	Read Replies (2) \| Respond to of 32384

>>Every analyst, so far, is praising the deal. This is like a review of a movie. The critics rave yet no one is seeing it. I think this is a case of wall st just doesn't understand biotechs that well ro that they just don't like LGNd. Case in point, CORR. Once they came out with the postive clinical on their drug, the stock took off. I know they are expecting fda approval, but is CORR anywhere near the company lgnd is?<< We don't need praise from the analysts, we need some new buy recs. If the Street doesn't understand it, they will be hesitant to buy it. These new pr guys should be making it comprehensible to the Street, but they probably don't understand it themselves. (:>) As for CORR, they took a big dive a while ago, because one of their clinicals looked bad. Situation is different with LGND. All their clinicals have been good, but the indications for clinicals so far are fairly small markets. The lung cancer market for Targretin will be a big one, however. If the tobacco companies were smart, they would include a few Targretin oral capsules with each pack of cigarettes. (:>)