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

To: Webhead who wrote (15857)	2/25/1998 12:34:00 PM
From: Henry Niman	Respond to of 32384

ed, The recent deal is just pure cream for LGND, but so are the 7 drugs that will entering the clinic this year for multi-billion dollar indications (diabetes, atherosclerosis, inflammation), so the response is relative. The new compounds require no addition outlays for LGND (other than supplying the raw material which can be produced at pennies per dose).

To: Webhead who wrote (15857)	2/25/1998 12:58:00 PM
From: Peter Silsbee	Read Replies (1) \| Respond to of 32384

Re: "ho hum" reaction to licensing deal. The question is not, how many pipette tips can you buy for $900K, but how many pipette tips can you buy for $900K worth of "restricted" Cytel stock. There is no guarantee of any cash in this deal. All payments "may also be made, at Cytel's option, in its common stock." (from release). There could be royalties, eventually. Anyone know about CYTL? LGND could own a significant chunk at some time in the future. If this is not a highly regarded company (market cap 46.8M per Yahoo, with nearly as many oustanding shares as LGND), then "ho hum" may in fact be appropriate. PLS

To: Webhead who wrote (15857)	2/25/1998 1:15:00 PM
From: Andreas Helke	Respond to of 32384

I more or less expected that one more positive press release would be used as an excuse to move the Ligand share price up a little. But if you compare it with the 5 point move that the 200 million from Eli Lilly created you should not expect more than 1/32 for 1 million. Andreas

To: Webhead who wrote (15857)	2/25/1998 2:33:00 PM
From: Torben Noerup Nielsen	Respond to of 32384

>I'm kind of surprised about the (thusfar) "ho hum" reaction to >Ligand's licensing via Glyomed. After all, $900,000 will buy a lot >of disposable pipette tips for Ligand's screening program and >obligates ligand to nothing other that accepting future milestone >and royalties should Cytel move anything through phaseIII. Isn't >this just pure cream!? I think I overreacted to this too; having checked it more carefully, it is now clear that it is more of a patent protection issue than an example of outlicensing. Also, it is not really $900,000. It is ''$900,000 paid in restricted Cytel stock". Not entirely sure what it means, but I would suspect it means Ligand can't sell it for a while. Note also that Cytel can make all future payments in their stock at their option. So this may mean that Ligand has another asset on the books. But it is not a liquid asset. Cheers, Torben