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

To: WTDEC who wrote (18380)	3/31/1998 11:53:00 PM
From: Henry Niman	Respond to of 32384

Walter, On the surface it looked like SRGN could be bought for a song, but i think that the number of outstanding preferred shares is significant. However, I assume that the company could be acquired through a stock transaction. Here's an early press release on the LLY/SRGN deal: July 1994: Lilly licenses Seragen's IL-2 fusion toxin for $45 million Lilly has licensed Seragen's IL-2 fusion toxin (Phase III, T-cell lymphoma) for exclusive worldwide marketing outside the Far East in exchange for up to $45 million in research and equity payments. Lilly will pay (uf)$5mm for 5% of Seragen's stock and $5mm toward the bulk purchase of the product for development and marketing. A further $10mm is contingent upon research milestones, and Lilly will pay up to $25mm more to exercise certain options regarding the further license of other fusion toxins. Lilly will assume all development costs while Seragen retains manufacturing rights and rights to all non-cancer indications. Update 4/97: Lilly has relinquished all development and marketing rights for non-cancer indications and SRGN molecules. SRGN has agreed to issue $1mm shares to Lilly raising its stake in Seragen to 10% in return Lilly has agreed to assist Seragen in making certain third-party payments which are due soon.