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

To: schadenfreude who wrote (20557)	5/12/1998 12:44:00 AM
From: celeryroot.com	Respond to of 32384

"Lambert of the Biotech Value Fund (supposedly one of the shrewdest biotech investors) ..." I think many would disagree with this statement

To: schadenfreude who wrote (20557)	5/12/1998 12:47:00 AM
From: Webhead	Read Replies (2) \| Respond to of 32384

Though I'm not wildly enthusiastic about the purchase of Seragen, there are a few points from the press release that may make it an easier pill to take. It doesn't appear that ONTAK is in direct competition with (at least) the gel formulation of Targretin because it is directed against a much later stage of the disease. The gel would likely be used earlier in the course of the disease (which apparently can last for years) with ONTAK reserved for later stages. Ligand seems to be making a play to control this market by offering treatment all the way from diagnosis to very advanced disease. Thus, it really does seem to make sense to have the same sales force plugging all the products. Here is what the release said: "The addition of ONTAK to our Targretin(TM) capsules (bexarotene) and Targretin(TM) gel (bexarotene) 1.0% products provides us with three potential products to offer CTCL patients and treating physicians in 1998 and 1999, with the goal of providing a full spectrum of therapeutic options at each stage of this progressively devastating disease," said James R. Mirto, Ligand Vice President, Marketing and Business Development. " The other fusion proteins may also offer some interesting products and/or the rights to certain indications could be sold off by Ligand after proof of concept with ONTAK. Additionally, it looks like royalties may start trickling in during the 1999 time frame: "The proposed transactions will provide Ligand with worldwide rights to Seragen's six fusion proteins, including ONTAK, DAB389EGF, DAB389IL-4, DAB389IL-6, DAB389CD-4 and DAB389MSH, as well as Seragen's intellectual property, which includes a potential royalty stream on U.S. sales of Simulect(R), a product used for the treatment of acute organ transplant rejection for which Novartis Pharmaceuticals filed an NDA in November 1997. Novartis sub-licensed rights to certain patents from Seragen in March 1996 in the development of the product. In February 1998, Seragen licensed rights to certain patents to DiagnoCure Inc. to develop highly selective drugs which exploit nanoerythrosomes as drug vectors. Seragen will earn a royalty on products commercialized by DiagnoCure. " Marathon also has some revenue stream from other customers, though it is likely to be small... "Marathon is a full-service contract development and manufacturing company. Marathon's current clients include Seragen, BioChem Vaccines, Inc. of Quebec, and Alexion Pharmaceuticals, Inc. of New Haven, CT. " In addition to this deal, Ligand will be realizing revenues from sales of PHOTOFRIN(R) the photodynamic drug recently receiving approval for lung cancer and developed by QLT PhotoTherapeutics Inc. due to their purchase of rights for (I believe) Canadian sales. Ed

To: schadenfreude who wrote (20557)	5/12/1998 3:40:00 AM
From: Torben Noerup Nielsen	Read Replies (2) \| Respond to of 32384

>Perhaps SRGN is worth the dilution, but I suspect that this is one >more piece of LGND's plan to build a large, diversified company >whether it is in the interests of shareholders or not. In other >industries they call it empire building. But don't you think that Robinson's pay is related to how well LGND does? I would assume that he has quite a few options and their value will rise in direct proportion to the value of LGND.... Wouldn't this be the case for all of the key decision makers in the company? What is interesting to me is that most everyone here seems to dislike the deal. But Robinson and crew must obviously like it. They did have an alternative; the LLY agreement did not obligate them to take the drug at all..... So what am I missing? Quite possibly I am just being stupid and not seing the obvious.... Cheers, Torben