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

To: squetch who wrote (20514)	5/11/1998 9:07:00 PM
From: Henry Niman	Read Replies (1) \| Respond to of 32384

Stan, I saw SRGN as a poorly managed LGND that had spread itself much to thin. Last year I had speculated that LGND could just buy SRGN: Message 2595886 (I told you that they read this board :-)). Seriously, LGND could do something with SRGN's technology if they had the cash, and I think that they expect to develop some revenue. There is considerable overlap with ONTAK and Targretin (for CTCL and psoriasis) and when I heard that LLY did not have the rights to psoriasis, I thought that a buyout was a real possibility. I have said for some time that future treatment of most diseases will involve combination therapies. I was not surprised to see LGND mention the three potential treatments (ONTAK, oral Targretin, topical Targretin) for CTCL. They have a good shot at doing the same thing for psoriasis (actually, they could have 5 treatments - oral and topical Panretin and Targretin as well as ONTAK). New cancer treatments are definitely in the news and LGND should be able to get significant mileage out of a new approved treatment in a few weeks. LGND acquired GLYC primarily for GLYC's bank account. In the case of SRGN, I think that they want the advanced products. Next years' annual report will be a logistical challenge (to fit the pipeline on one fold out page). LGND has said that they have the broadest and deepest pipeline in the industry, and this acquisition will strengthen that claim. I wasn't all that happy with the ONTAK side effects, but it does sound like the patients were in fairly bad shape. I think that the street will be cautiously optimistic and the June 2 meeting will go a long way toward validating (or invalidating), the technology. I find the timing of the announcement somewhat curious. I don't know the details, but the timing would seem to be better suited to coincide with the LLY compound announcement or the FDA vote. I'm not sure why LGND made the announcement at this time unless they had a clue about the FDA vote, were trying to capitalize on the cancer treatment news, or had legal obligations due to the progress of the negotiations.