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

To: Russian Bear who wrote (11629)	11/25/1997 7:39:00 AM
From: Henry Niman	Read Replies (1) \| Respond to of 32384

RB, The Dow version of yesterday's press release is also out: Ligand Pharma Exercises Option For 3.3M Allergan Ligand Shrs SAN DIEGO (Dow Jones)--Ligand Pharmaceuticals Inc. (LGND) exercised its option to purchase all of the 3.3 million outstanding callable common shares of Allergan Ligand Retinoid Therapeutics Inc. (ALRI) at $21.97 a share. In a press release Monday, Ligand said it paid about $25 million in cash and issued about 3.2 million common shares to complete the buyout. Following the transaction, Ligand has about 36 million common shares outstanding. For each Allergan Ligand share held, shareholders will receive $7.69 in cash and about 0.97 of a Ligand common share. Ligand's stock was priced at $14.65625 a share based on its average closing price for the 20 trading days immediately prior to the closing date of the buyout. The record date for the purchase was Oct. 14. In addition, Allergan Inc. (AGN) exercised its option to purchase an undivided one-half stake in Allergan Ligand assets and technologies. To exercise this option, Allergan paid $8.9 million to Allergan Ligand. Allergan Inc. and Ligand Pharmaceuticals amended their previous joint development and commercialization agreement, which was to become effective following the exercise of the buyout option. Under the revised agreement, Allergan Ligand's compounds and development programs were divided, some by lottery, between Allergan and Ligand. Allergan and Ligand both received exclusive rights to the technology they received. Ligand's compounds include Panretin Topical Gel and Oral Capsules, ALRT268, ALRT324, and ALRT1550. Allergan's compound include ALRT4310, ALRT326 and ALRT4204. The companies will pay royalties to each other on net sales, if any, of the compounds received directly or in the lottery. For the year ended Dec. 31, 1996, Allergan Ligand lost $29.4 million, or $9.06 a share. For the year ended Dec. 31, 1996, Allergan Inc. earned $77.1 million, or $1.17 a share, on sales of $1.15 billion. Earnings include pretax restructuring charges of $70.1 million and the writeoff of $7.4 million. Excluding the items, Allergan earned $2.00 a share. For the year ended Dec. 31, 1996, Ligand Pharmaceuticals lost $32.9 million, or $1.30 a share, on revenues of $36.8 million, including $37.1 million, or $1.56 a share, for the writeoff of in-process technology and contributions to a research and development joint venture. Allergan Ligand was formed in 1994 by Ligand Pharmaceuticals and Allergan Inc. to accelerate development of retinoid products previously being pursued in the companies' joint venture. Ligand, San Diego, develops gene transcription technology. Allergan, Irvine, Calif., makes and sells eye-care products.