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

To: Machaon who wrote (15595)	2/22/1998 2:26:00 AM
From: Torben Noerup Nielsen	Read Replies (3) \| Respond to of 32384

Bob, >If LGND can grow into a LLY, it would be worth almost $2000 per >share. Why do you assume that becoming a full-blown drug company is the goal that LGND is pursuing? Looking at the deals they have made and reading their annual report, I get the impression that a full-blown drug company is not what they aim to be. Neither would this be necessary for the shares to be worth a great deal of money. My preference would be for LGND to remain as a research powerhouse that licences a lot of their products to the large drug companies at an early stage. Once LGND has earnings, they should not need to do the large up front stock issues to their partners in exchange for instant cash. Instead they could ask for higher milestone and royalty payments. Hey, they might even retire some stock if they get cash rich; I suspect most of us would prefer capital gains to dividends. There are real benefits to being able to deal with all of the major drug companies. But you do not have those benefits if you compete directly with them at their game. And competing directly with them may not lead to the optimal return for shareholders. Cheers, Torben