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

To: John O'Neill who wrote (21338)	5/22/1998 10:06:00 PM
From: bob zagorin	Read Replies (2) \| Respond to of 32384

apologies if this was posted before. comments from Lehman after Q report. lehman.com

To: John O'Neill who wrote (21338)	5/23/1998 3:37:00 AM
From: Flagrante Delictu	Read Replies (1) \| Respond to of 32384

John O. , In the filing LLY said they were offering to accept the additional shares with the original lockup provisions as an inducement to facilitate the SRGN deal. What's in it for them is an off loading of a compound that has little or no appeal to them because of the small market projections for it, even if it's approved by the FDA. They stand to receive up to $20 million in LGND stock for it. They may think, like we do, that the eventual appreciation in the LGND stock is more likely to enable recovery of their investment in SRGN than their involvement in the compound itself, which compound will be quite valuable to us, if it attains the $50 million in annual sales projected for it. This compound plus ours, if approved, will be the only FDA approved compounds on the market for the CTCL indication, which is currently treated by off label usage of other compounds. We would set the price on all of them, without much competition. Our marketing costs would be lower than any competitors' because our salesforce would be presenting all 3 compounds to the same oncologists involved with the disease. This could prove to be a brilliant deal, if approval comes quickly & the sales projections are met. Now, Please tell us what you observed at the annual meeting.