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

To: Henry Niman who wrote (20340)	5/10/1998 1:52:00 PM
From: WTDEC	Respond to of 32384

H, tomorrow's Barons has a major cover page article on duPont, which has huge implications for biotechs. I was going to do a summary here, but noticed one of the solid contributors to several other bt threads, George Wohanka, had posted one on the Xoma site. Here it is: "The implications are important for biotechs. 1. The article alone will focus attention on them. Expect sector will do well Monday relative to rest of the market. 2. Every company that has ever considered the acquisition of a biotech company will revisit its plans. 3. Those chemical and drug companies that have not, will immediately begin to think about what DuPont is doing and many will conclude that they should do so even if acquisitions may only serve to make themselves less attractive to DuPont. 4. duPonts statements will speed up German plans to buy other drug or biotech companies in the U.S. 5. If duPont or another company, (beating them to the punch), actually merges with a biotech, large or small, interest in other biotechs will become even greater. 6. The fact that duPont even mentioned small biotechs is important and may stimulate horizontal mergers of smaller companies in what will be a futile effort to prevent being taken over by someone else. While all of this is sucked out of my thumb, I believe it. I also believe that the acquisition of a company like XOMA at present levels would not be beneficial to shareholders."