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

To: Andrew H who wrote (13519)	1/20/1998 11:55:00 AM
From: Henry Niman	Read Replies (1) \| Respond to of 32384

Andy, I believe that the H&Q news involved Targretin for breast, prostate, NSCLC, and ovarian cancer.

To: Andrew H who wrote (13519)	1/20/1998 11:59:00 AM
From: Henry Niman	Read Replies (1) \| Respond to of 32384

I also expect the merger of AHP with SBH to be a major plus for LGND. AHP has licensed progestin agonosist and antagonist form LGND and they are slated to start TSE424 in the clinic. SBH has been working on small molecules to mimic Epogen. Kevin Wilson emphasized drug discovery and rapid drug development as being very important in today's environment, and as you know, LGND is grossly underfunded and really needs help from tehh big boys. If the merger goes through, they will have two alliances with the biggest boy (at least in terms of pharmaceutical sales).

To: Andrew H who wrote (13519)	1/20/1998 11:59:00 AM
From: Henry Niman	Respond to of 32384

Here's the latest from WSJ: January 20, 1998 SmithKline Says It Is in Talks To Merge With American Home An INTERACTIVE JOURNAL News Roundup SmithKline Beecham PLC Tuesday said it is in merger talks with American Home Products Corp., a marriage that would create one of the world's largest drug companies. SmithKline's statement confirmed rumors of a deal that have swept through financial markets since Friday. But SmithKline Beecham sought to cast the discussions as preliminary. "There can be no assurances that any such transaction will be agreed or as to what the terms of such transaction would be," it said. SmithKline said it won't comment further until talks are complete. American Home Products, based in Madison, N.J., didn't make any immediate comment on Tuesday. It refused to comment on Monday. SmithKline broke its silence in response to the market speculation, which has lifted many drug stocks since Friday. The rumors first surfaced late Friday in the U.S. and prompted an immediate 7% surge in SmithKline shares. SmithKline shares also jumped Monday in London, and they continued to advance on Tuesday. The U.S. market was closed Monday. Through midday in London on Tuesday, Smithkline was up 51 pence, or 6.9%, to 794 pence. Other drug stocks continued to rally in London, including Zeneca, up 146 pence, or 6.4%, to 2,443 pence, and Glaxo Wellcome, up 54 pence, or 3.3%, to 1,693 pence. Analysts, who had been skeptical about the merger rumors, moved quickly on Tuesday to examine the potential synergies between SmithKline and American Home Products. The most obvious overlap lies in vaccines, in which both companies are world leaders, they said. They also believe American Home Products is eager to get its hands on SmithKline's U.S. pharmacy-benefit manager unit, Diversified Pharmaceutical Services Inc. Pharmacy-benefit managers are much sought after by drug companies because of the influence they have over which medicines are prescribed, and how much they cost. Other drug companies with pharmacy benefit units include Merck and Co. and Eli Lilly & Co. American Home Products has told analysts it has 60 potential products in its pipeline that could be launched in the next six years. Joining forces with SmithKline would ensure those products have a ready market if they gain approval from the U.S. Food & Drug Administration. For SmithKline Beecham, the merger would catapult the company back among the heavy hitters of the drug industry. In the past few years, SmithKline has slipped from its spot as the world's second-largest drug company to around ninth currently. A few questions remain, however, before a deal can be stitched up. Will U.K. and U.S. regulatory authorities approve a deal that creates a company with such a powerful position in the vaccines market? And it isn't clear how the companies plan on dealing with the potential liabilities facing American Home Products from class-action lawsuits following the withdrawal of the diet drug Redux last year, which had been linked with heart valve problems.

To: Andrew H who wrote (13519)	1/20/1998 2:11:00 PM
From: Flagrante Delictu	Read Replies (2) \| Respond to of 32384

Andy, I gave as complete a report as I could via telephine to Henry Niman shortly after the breakout session ended last Tuesday. Henry did his usual extremely competent & professional job of recording & interpreting what I told him & presented it to you threadsters that same day. And fortunately so, because I left {accidently}, on the van that took me to the airport, my bag containing my notes. I will readily admit that the combination of 3 observers reporting back on a conference gives a wider perspective than only one. I think that is somewhat related to the fact that the presentations include quite a bit of info in their alloted 25 mins. & each observer has to try to synthesize & write down that which he or she finds most interesting while trying to listen also to what is continuing to be said while the synthesizing & notetaking are going on. I don't envy those whose livelihoods depend on their ability to acquire & report the most important aspects of the presentation. Lastly, my congatulations to medsunman & Vector 1 for the excellence of their reports. Bernie.

To: Andrew H who wrote (13519)	1/21/1998 12:39:00 AM
From: Henry Niman	Respond to of 32384

Dow Jones on CEO Styles: American Home, SmithKline CEOs Must Bridge Gap In Styles By Stephane Fitch NEW YORK (Dow Jones)--Right now, two corporate chieftains, one a tight-lipped former corporate lawyer from New Jersey, the other a garrulous former tennis champion from Denmark, are trying to figure out if they can work together. That question is probably running through the minds of several people involved in merger talks between pharmaceutical companies American Home Products Corp. (AHP), headed by John Stafford, and SmithKline Beecham PLC (SBH), with Jan Leschly at its helm. Industry analysts say Stafford and Leschly are friendly. And Stafford is believed to be considering retirement. Both factors might make it easier for the two men to figure out who would be boss after a merger. But until Stafford or Leschly leave the merged company, they'll have to find a way to bridge the big gap between their backgrounds and their management styles. Stafford, 60, is invariably described as stoic. He started as American Home's general counsel in 1970, and according to analysts who follow the company, he has maintained a lawyer's guardedness since becoming the company's chairman and chief executive in 1986. In an age when many managements are talking about decentralizing and promoting more initiative in the lower ranks, "American Home tends to be a little more of a clear line-of-command-type management.," said Aros Securities analyst David Maris. "They give their people a great amount of leeway, but Stafford watches things closely." Discussions about Stafford's strengths usually center on his intelligence and toughness as a negotiator. "He's very direct and honest," Maris said. "He's not a glad-handing manager who slaps you on the back a lot." Years ago, Stafford's drug industry colleagues presented him with a Louisville Slugger wrapped in a black velvet bag after he played a key role in negotiating a controversial patent bill with Congress. Stafford's reticence with the press fits in with tradition at American Home. Though the company's products include medicine-cabinet staples like Anacin, Chap Stick, and Robitussin, the company has always presented a publicity-shy corporate image. When Stafford underwent successful surgery for prostate cancer last November, a statement about the operation said simply that Stafford would return to work in four weeks. SmithKline's Leschly is from a whole other country, literally and figuratively. Born in Denmark in 1940 and trained as pharmacist in Copenhagen, he gained prominence as a tennis player, becoming the 10th-highest ranked player in the world in the 1960s. His fierce competitiveness stayed with him when he entered business. So did his ability to perform for an audience - he often gives thoughtful interviews to the press. Leschly says he encourages a "team" approach at SmithKline. That management style has helped the company's employees enjoy their work, he likes to say. He told the Financial Times of London last year that he resented the "autocratic" management style at Squibb, where he worked before. He left that company when it was swallowed up by rival Bristol-Meyers, now Bristol-Myers Squibb Co. (BMY), in 1989. Leschly is often described as "colorful" and "philosophical" by people who have met him. Between his jobs at Squibb and SmithKline, he took courses at Princeton University. SmithKline hired him because it needed a top executive who could pull together the company's offices in London and Philadelphia. Leschly has homes in both cities, and a beach house north of Copenhagen. He and Stafford may have at least one important thing in common: Both have been criticized for being paid too much. Leschly, who was paid GBP 8 million in 1996, topped a list of most "overpaid" executives published by the Sunday Times of London last year. Executives at similarly sized companies got paid an average of GBP 6.5 million less, the paper reported. In 1996, after Stafford was granted more than 500,000 stock options, Graef Chystal, a compensation analyst, calculated that the American Home executive was paid 53% more than most other chief executives at similarly sized companies. -By Stephane Fitch; 201-938-2202