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

To: Flagrante Delictu who wrote (17241)	3/11/1998 3:56:00 PM
From: Torben Noerup Nielsen	Read Replies (1) \| Respond to of 32384

On thing I don't understand about this extension of the deadline to pick a compound: what is in it for LLY? I am assuming - a version of the efficient market theory - that both LLY and LGND stand to gain by the extension. But while LGND's motivations are obvious, LLY's are less so. Is it that they really don't want to pony up the money for additional stock now? The amount isn't that large for a company like LLY so I wonder. Also, if LGND takes the extension and opts for the cash and an additional royalty anyway, the stock price might be higher by the time they exercise this option. Or is the stock price determined by using the average over the original period? Thanks, Torben