Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: WTDEC who wrote (17259)	3/11/1998 6:15:00 PM
From: Flagrante Delictu	Respond to of 32384

WTDEC Re: How much will LGND receive from LLY, if LGND accepts the cash instead of the compound? I don't know because we haven't seen the contract. However, I have a strong opinion that with LLY having extended the date for the decision, which they were not required to do under the original contract, they would have no incentive to change the price already agreed upon. That is merely my surmise, but it appears logical that LLY wouldn't want to give away too much. They certainly didn't appear to be pushovers in the initial deal with LGND. It is for that reason that I assume they relented on the date, but not the price. >> I read the words to the "then market price" to mean the stock is priced when the decision is made.<< I read it, that there was an agreed upon date for the pricing of the stock, having assumed a decision by 2/27/98. I, honestly, don't know for sure. I just feel that LLY is one tough d.o.b. { daughter of etc.}, who throws around nickles as though they were sumo wrestlers. Bernie A belated thanks for the tip to learn about the cold chick & the mammagram. Bernie

To: WTDEC who wrote (17259)	3/11/1998 11:41:00 PM
From: Flagrante Delictu	Read Replies (1) \| Respond to of 32384

WTDEC, Re: a 20% premium owed by LGND? Sorry, Walter. I neglected to answer, in my prior post to you ,the question you asked of whether LGND would have had to pay LLY a 20% premium over market price, if they chose the compound rather than the stock. No, I see nothing in the release that would require that. The actual contract probably specified that the price would be computed on the same basis,without the 20% premium due from LLY , that LLY would have been obligated to pay LGND for the stock. It is my belief that this stock cost part of the deal remains unchanged from the original specifications. Bernie P.S. The contract reads that LLY could receive milestones of " up to $20 million" in LGND stock. Obviously, there are some qualifications specified that we are unaware of.