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

To: Andreas Helke who wrote (11384)	11/18/1997 6:39:00 PM
From: Andrew H	Respond to of 32384

>>I did take a look at Agouron. I only have R&D figures for 3 years of 215 million (compared with 166 million in 5 years for Ligand). If we optimistically assume 275 million in 5 years and a market cap of 1.3 billion we get a M ratio of 5 for Agouron. With 215 millions the ratio would be 6.<< As far as AGPH goes, one can apply more traditional means of valuation since it is already profitable. First Call estimates earnings of .88/share in June of 98 and 1.76/share in June of 99. March Q estimates are .35. My guess is that it will be growing a lot faster. If we give it a pe of 40 X next years earnings, since it will likely be growing by at least 40%/year, we get a price of 70. Of course that doesn't take into account their pipeline. We all agree that LGND is too cheap.