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

To: Flagrante Delictu who wrote (17633)	3/19/1998 7:39:00 AM
From: Mudcat	Read Replies (1) \| Respond to of 32384

Hi Bernie - The point I have been trying to make is that I think many on this thread have inflated opinions of where this stocks price will be in the next few months. Lgnd management by negotiating for a 20% premium in selling their stock in the last two deals appears to be saying that they don't see the stock going over 20 at least for the next year or two (unless they its proven their drugs actually work). If they did why would they be selling at only a 20% premium? Remember that 20% on a price of 16 is only $3.20. If Lgnd mgmt had confidence that the price of my stock was going to go to the mid 20s in the next few months they should be asking for alot more than 20% premium. The type of deals Lgnd is making, selling stock for licensing rights appears to take alot of risk off the buyer. The only risk is the amount they paid for the stock plus research costs. However, the rewards are far greater than the risk. If a drug is proven successful Lgnd's price will go way up and the gain on the stock will more than pay for the research. In addition, the buyer will get 90% of the action while Lgnd gets a 10% (maybe) royalty. Also can you explain why if Lgnd's technology is so superior, as so many on the thread imply, that the deals have to be stock based and not pure cash payments for licensing rights? Sorry for being so wordy but this is just my opinion