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

To: tonyt who wrote (10163)	10/26/1997 10:36:00 AM
From: tonyt	Respond to of 32384

Could someone please explain how Ligand gets 60M in upfront fees when the Press Release only states 12.5 in upfront milestones: From the 10/20/97 release: Ligand may qualify to receive the following: -- 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. The price was calculated as a 20 percent premium to the market average on 20 trading days ending Sept. 12, as defined in the contract. -- $12.5 million in upfront milestones. -- Up to $75 million in additional milestone payments paid over eight years assuming successful development of Oral Targretin(TM) and five other compounds. -- Double-digit royalties for most advanced products and single-digit royalties on earlier compounds. -- An option to obtain select rights to one Lilly specialty pharmaceutical product in certain markets of interest to Ligand. The product would fit into an area of specific focus for Ligand, but not Lilly. -- Milestones, royalties and options to obtain certain co-development and co-promotion rights for a Lilly-selected RXR compound in combination with a SERM.