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: Russian Bear who wrote (20267)	5/8/1998 6:10:00 PM
From: Machaon	Respond to of 32384

<< What took Legg Mason so long to recognize the obvious? >> Sounds like the other analysts had a leg up on Legg! Also, if LGND rallies smartly, and Legg hadn't issued an earlier "buy", they wouldn't have a leg to stand on. <g> Almost 1/2 million shares. Hmmm!? NDA coming out soon, earnings report due Wednesday...... Stock accumulation all week. It sure would be nice to seeing increased volume, starting next week, also. Good luck, Bob

To: Russian Bear who wrote (20267)	5/8/1998 7:55:00 PM
From: RXGOLF	Respond to of 32384

RB, Some are just slow. Maybe we should get out the etch-a sketch and draw the rest a picture before it is too late!! Enjoy your weekend, Greg

To: Russian Bear who wrote (20267)	5/8/1998 10:57:00 PM
From: Henry Niman	Read Replies (1) \| Respond to of 32384

Here's part of Legg Mason's morning notes: LIGAND PHARMACEUTICALS, INC. (LGND) Analyst: Stefan D. Loren, Ph.D. PRICE 52-WEEK EPS - (FY Dec) P/E RATIO DIV SHRS MKT CAP LT DEBT INV./RISK TARGET 5/7/98 PRICE RANGE 1997A 1998E 1999E 1998E 1999E YIELD OUT(M) $M TO CAP RATINGS PRICE $13 15/16 $18-$10 ($1.06) ($1.03) $0.08 NM NM Nil 38.6 $536 60% B/4 $20 Legg Mason Wood Walker, Inc. makes a market in this security. ú Ligand currently has four products in mid- to late-stage clinical trials providing a framework for near-term revenue growth. ú The company has a strong research pipeline, an essential factor for long-term revenue growth. ú A steady flow of clinical and regulatory announcements, and potential new strategic alliances should lead to increased visibility of Ligand and its discovery and development efforts. ú The company utilizes a strong proprietary platform technology base that has an established track record for lead discovery, and has attracted corporate partners. ú Strategic alliances with six of the top-20 companies provide R&D funds, added technical expertise, and validation of Ligand's drug discovery efforts. ú Our 10-year discounted cash flow model yields a 12-18 month price target of $20 per share

To: Russian Bear who wrote (20267)	5/8/1998 11:00:00 PM
From: Henry Niman	Respond to of 32384

Here are some of the reasons that they like LGND: ú Strong research product pipeline. Ligand has a very active research pipeline, a feature essential to the long-term success of a pharmaceutical company. Currently, the company by itself or with collaborators has nine projects beyond the lead identification stage addressing a number of large markets including diabetes, osteoporosis, psoriasis, and benign prostatic hyperplasia. In addition to these areas, the company also has a number of early-stage projects at the assay and lead discovery stages. The depth of the pipeline, as well as Ligand's research strengths, has left the company well-positioned to produce a steady stream of products. ú The achievement of important milestones will lead to increased corporate visibility in 1998 and 1999. Despite a few very positive events in 1997, the company had very little media exposure. Perhaps the most important event of the year, the announcement of the alliance with Lilly, was overshadowed two days later by the start of the market's steep downturn in October. We believe that the company will receive a great deal more attention in the coming years. Ligand has a number of key events coming in 1998 and 1999 including: (i) four anticipated IND filings in 1998-1999; (ii) clinical results expected for six products in 1998-1999; (iii) further revenues received from the Lilly collaboration; (iv) four NDAs planned for the 1998-1999 time frame; and (v) potential new alliances in 1998 and 1999. ú Impressive R&D effort utilizing key pharmacogenomic platform technologies, and an established track record for lead discovery. Ligand has two primary proprietary technologies that it uses to discover novel drugs. Both approaches involve the study and utilization of naturally occurring components of gene expression, the processes by which genes manifest themselves and effect cellular function, as drug targets. The components of key interest to Ligand are hormone-activated Intracellular Receptors ("IRs"), and cytokine-activated Signal Transducers and Activators of Transcription ("STATs"). The company seeks to exploit IRs and STATs to discover small-molecule, orally active therapeutics. ú Eight strategic alliances, six with top-20 companies, provide R&D funds, added technical expertise, and validation of Ligand's drug discovery efforts. Ligand has eight corporate strategic alliances, four of which are still in the active research phase. The other four (Allergan, Sankyo, Pfizer, and Glaxo) have concluded research activities and Ligand is eligible for milestone payments and/or royalties on any drugs discovered during the collaborations that continue to progress through development. Some of the company's partners have committed internal scientific manpower and resources in addition to research funding. The extra scientific resources enable the Ligand to cover a great deal more ground than if it had to work alone. In addition, joint research represents an important validation of Ligand's technology as corporate partners have chosen to allocate resources to the collaboration, rather than an internal project.