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

To: tonyt who wrote (20587)	5/12/1998 10:06:00 AM
From: bluejeans	Read Replies (3) \| Respond to of 32384

Deal looks good for SRGN shareholders (up 8%) probably because they are getting LGND stock<G> appears some of what is being given will be used to pay off creditors of SRGN. the SRGN deal reads more like a liquidation of SRGN. What is your understanding of the terms?

To: tonyt who wrote (20587)	5/12/1998 5:24:00 PM
From: HerbertOtto	Read Replies (1) \| Respond to of 32384

tonyt, Any day is a good day when an acquiring stock ends UP on the day of the announcement of a buyout. If Wall St considered it a waste of money, LGND would have dropped 1/2 to 1 point at the open. There is room on the chart to about 13 without any support, if a down-move was in order for today - especially since yesterday's down close at the low of 13 7/8 was just following breakdown and retest of the 200 dma. I was bracing myself for a gap down opening today, and was pleasantly surprised that the bid was up prior to opening. Today's close on an uptick on a 15K block, is just below or on the 200 dma. If LGND can close above 14 1/4 tomorrow, I will judge the verdict as positive. Assuming management did its homework, ONTAK will pass the FDA. From the numbers I've seen, it will make a significant contribution to 1999 earnings. That is what Wall St. wants to see... visible earnings prospects. With the drugs LGND brings to market along with ONTAK in the market producing revenues and earnings, LGND stock will move strongly. Wall St. doesn't care where the drugs come from, just who owns the revenues and earnings. ONTAK will increase the odds that LGND has some earnings in 1999. Think of it as a bridge drug... like a bridge loan. Two years ago SRGN was an $8 stock. Like all biotechs, it burned up its cash. Ran out too soon. We get the 'fruits' of their years of labor for 50 cents/sh. There may be better drugs somewhere else, but if it is a useful, profit-making drug, that is good enough for me. The other thing I like about this is that the cash commitment from LGND is only about $4M up front. Give Robinson some credit here. Right now, LGND has some cash to get us through the NDAs, but here we get a nearly completed drug for only $4M cash up front. If the bet pays off, and ONTAK goes to market, it will be a terrific leveraging of a small amount of cash. Plus LGND gets the fusion technology, and more. I'm happy with the deal. It accomplishes several things for LGND. Lets hope Robinson wins his bet. Good luck, Herbert There are apparently other things that come with the company.