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

To: John O'Neill who wrote (13994)	1/30/1998 10:26:00 PM
From: Henry Niman	Respond to of 32384

John, If LGND doesn't take the drug, then LLY pays them $20 million and LGND gives LLY more stock (20% premium?). In addition, the royalty rate on one of the rexinoids goes up 1.5% (LGND gets to pick the rexinoid).

To: John O'Neill who wrote (13994)	1/30/1998 11:44:00 PM
From: Andrew H	Read Replies (3) \| Respond to of 32384

John, I see Henry has answered your question. I believe LGND had 90 days from the close of the deal to decide, so its getting close. A 20% premium to market value of 11 would be 13.2 which would equal 1.5M shares for the 20M. If LGND were at 16.5, we would be looking at 1M shares. So ruight now we are looking at dilution of 1.5M shares for 20M dollars. LGND can certainly use the money but they don't need more dilution. In any case, this would make the chances excellent that we will see no more dilution. If more partners want LGND, let's hope LGND demands cash and higher royalties. Any more shares out will tank this baby, IMO.