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

To: Mudcat who wrote (20620)	5/12/1998 7:15:00 PM
From: Hippieslayer	Respond to of 32384

here's another take on the deal from the boston globe boston.com:80/dailyglobe/globehtml/132/Troubled_Seragen_sold_to_Calif__bio.htm

To: Mudcat who wrote (20620)	5/12/1998 7:46:00 PM
From: Torben Noerup Nielsen	Read Replies (2) \| Respond to of 32384

>What kind of logic does this analyst use? Because $220M was spent by >SRGN and Lilly means Lgnd got a good deal at $75M! Who is to say if >SRGN spent this money wisely or if the technology actually works? Is >this the same analst who predicts the .84 earnings in 1999. This is all really hard to work out. So much depends on their intellectual property portfolio and most of us are not really familiar with it. I suspect there is a fairly well-defined cost per patent in this business and there is probably also some kind of long term return per patent as well. The Law of Large Numbers ought to be applicable in some form or another! Cheers, Torben P.S. The predominant feeling here seems to be that this is a bad deal, but the market seems to think it is a good one. Why is that?