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

To: Phil Cressman who wrote (21403)	5/26/1998 1:22:00 PM
From: Henry Niman	Read Replies (1) \| Respond to of 32384

The San Diego Union was a bit slow on putting up recent news. here's what they said about the SRGN deal: Ligand to buy biotech Seragen \| Local firm hopes $35 million deal will speed 'march to profitability' Thomas Kupper STAFF WRITER \| Dow Jones News Service contributed to this report. 12-May-1998 Tuesday Ligand Pharmaceuticals said yesterday that it would acquire the Massachusetts biotech Seragen, whose lymphoma drug Ontak appears close to government approval. The deal, in which Ligand would pay at least $35 million for Seragen and an affiliated company, could bring Ligand its first Food and Drug Administration approval. Ligand would pay an additional $40 million if that happens within two years. Though the market is not huge for drugs for cutaneous T-cell lymphoma -- the condition Ontak targets -- San Diego-based Ligand said the deal could enable it to expand a line of cancer drugs that includes four other drugs that could come up for approval by the end of 1999. "This is a strategic product acquisition that accelerates our march to profitability," Ligand Chairman David Robinson said. Ontak has received a "priority review" designation from the FDA and is scheduled to go before an FDA advisory panel on June 2. Favorable rulings from such panels generally lead to approval. Investors have been less than optimistic about Seragen's prospects, however. Seragen shares are down 63 percent over the past year, and the company was delisted from the Nasdaq National Market in September 1997. One factor that made the deal attractive to Ligand was that the company is working on its own drug for cutaneous T-cell lymphoma. Ligand already had planned to build a sales force to sell its Targretin gel and capsules for the condition, so Ontak would give the sales force a wider range of products. Ontak has been tested in late-stage patients, while Ligand is studying Targretin in earlier-stage cases. Under the complex transaction, Ligand also would acquire the marketing rights to Ontak from Eli Lilly and Co., which previously had a partnership with Seragen to develop and sell the drug. Additionally, Ligand would acquire Marathon Biopharmaceuticals, a manufacturing and clinical development company Seragen sold to Boston University last year. Marathon, which includes 90 former Seragen employees, provides services to Seragen under a contract that runs through the end of 1999. As of Dec. 31, Seragen had 13 employees. Ligand shares closed down 12 1/2 cents at $13.87 1/2 before the announcement, while Seragen climbed 5 cents to close at 49 cents a share. One of San Diego's largest biotechs, Ligand has no products on the market but has completed trials on a drug for AIDS lesions and also has the Targretin drug in late-stage trials. The company has said its goal is to become profitable by the end of 1999, and a spokeswoman said the Seragen acquisition could boost those profits. In Seragen's trials of Ontak, about 30 percent of the patients saw a 50 percent reduction or better in their tumors while about 10 percent had tumors disappear for at least six weeks. The disease is manifested by dark lesions that can cover 50 percent of a person's skin before spreading to the lymph nodes and other organs. Once lesions begin to spread, the disease can kill within three years. There are roughly 16,000 patients in the United States, though patients sometimes have the disease for as long as a decade before diagnosis.

To: Phil Cressman who wrote (21403)	5/26/1998 7:09:00 PM
From: jayhawk969	Read Replies (1) \| Respond to of 32384

Phil, I agree it is a nice little sideplay, However there are no guarantees. If Ontak is not approved and the NDA is delayed again we have a $12 stock or less. If Ontak fails then there is significant dilution with minimal if any upside. Chances are 80-90% for approval. NDA should happen, however we have all experienced delays with LGND before. In my IRA I put in an order to sell August 15 calls against part of my position (LQPHC) and ordered an amount equal to LGND shares of SRGN. I like the risk reward of this deal. Not a sure thing, however my assessment shows that the odds (Prefer Gods) are with me.

To: Phil Cressman who wrote (21403)	5/27/1998 6:39:00 PM
From: bluejeans	Respond to of 32384

LIGAND PHARM CL B as of 5/27/98 2,192,923 as of 4/24/98 2,151,343 short interest sa

To: Phil Cressman who wrote (21403)	5/28/1998 1:04:00 PM
From: bluejeans	Read Replies (1) \| Respond to of 32384

LIGAND PHARMACEUTICALS INC Date Time Price Volume Exch Type Bid BSize BEx Ask ASize AEx Cond Vl: 5/28/98 8:17 Best Bid 7 3/4 1000 NAS 5/28/98 8:17 Best Ask 7 3/4 1000 NAS 8 1/8 1000 NAS up 5/28/98 8:20 Best Bid 7 7/8 400 NAS 8 1/8 1000 NAS 5/28/98 8:20 Best Ask 7 7/8 400 NAS 8 1/8 1000 NAS up 5/28/98 8:30 Best Bid 8 1000 NAS 8 1/8 1000 NAS 5/28/98 8:30 Best Ask 8 1000 NAS 8 1/8 1000 NAS up 5/28/98 9:31 8 1/8 200 NAS Trade 5/28/98 9:32 8 1/8 200 NAS Trade 5/28/98 9:32 8 1/8 200 NAS Trade 5/28/98 9:37 8 1000 NAS Trade 5/28/98 9:37 Best Bid 7 7/8 1000 NAS 8 1/8 1000 NAS 5/28/98 9:37 Best Ask 7 7/8 1000 NAS 8 1/8 1000 NAS down 5/28/98 9:37 8 1000 NAS Trade 5/28/98 9:37 Best Bid 7 3/4 1000 NAS 8 1/8 1000 NAS 5/28/98 9:37 Best Ask 7 3/4 1000 NAS 8 1/8 1000 NAS down 5/28/98 9:38 Best Bid 7 3/4 1000 NAS 8 1/8 1000 NAS 5/28/98 9:38 Best Ask 7 3/4 1000 NAS 8 1000 NAS down 5/28/98 9:38 8 100 NAS Trade 5/28/98 9:38 Best Bid 7 3/4 1000 NAS 8 1000 NAS 5/28/98 9:38 Best Ask 7 3/4 1000 NAS 8 1/8 1000 NAS down 5/28/98 9:39 8 1000 NAS Trade 5/28/98 9:39 8 1000 NAS Trade 5/28/98 9:39 8 1000 NAS Trade 5/28/98 9:39 8 1/8 1000 NAS Trade 5/28/98 9:39 8 1/8 1000 NAS Trade 5/28/98 9:40 Best Bid 7 3/4 1000 NAS 8 1/8 1000 NAS 5/28/98 9:40 Best Ask 7 3/4 1000 NAS 8 1/4 1000 NAS down 5/28/98 9:40 8 1/8 1000 NAS Trade 5/28/98 9:40 Best Bid 7 3/4 1000 NAS 8 1/4 1000 NAS 5/28/98 9:40 Best Ask 7 3/4 1000 NAS 8 1/8 1000 NAS down 5/28/98 9:40 Best Bid 7 7/8 1000 NAS 8 1/8 1000 NAS 5/28/98 9:40 Best Ask 7 7/8 1000 NAS 8 1/8 1000 NAS up 5/28/98 9:40 Best Bid 8 1000 NAS 8 1/8 1000 NAS 5/28/98 9:40 Best Ask 8 1000 NAS 8 1/8 1000 NAS up 5/28/98 9:40 8 1/4 1000 NAS Trade 5/28/98 9:40 Best Bid 8 1000 NAS 8 1/8 1000 NAS 5/28/98 9:40 Best Ask 8 1000 NAS 8 1/4 1000 NAS up 5/28/98 9:40 Best Bid 8 1000 NAS 8 1/4 1000 NAS 5/28/98 9:40 Best Ask 8 1000 NAS 8 3/8 1000 NAS up 5/28/98 9:40 Best Bid 8 1000 NAS 8 3/8 1000 NAS 5/28/98 9:40 Best Ask 8 1000 NAS 8 1/2 1000 NAS up 5/28/98 9:41 8 1/4 1000 NAS Trade 5/28/98 9:42 8 1/4 1000 NAS Trade 5/28/98 9:42 Best Bid 8 1000 NAS 8 1/2 1000 NAS 5/28/98 9:42 Best Ask 8 1000 NAS 8 1/4 2000 NAS up 5/28/98 9:42 Best Bid 7 7/8 1000 NAS 8 1/4 2000 NAS 5/28/98 9:42 Best Ask 7 7/8 1000 NAS 8 1/4 2000 NAS down 5/28/98 9:42 Best Bid 7 3/4 1000 NAS 8 1/4 2000 NAS 5/28/98 9:42 Best Ask 7 3/4 1000 NAS 8 1/4 2000 NAS down 5/28/98 9:53 8 1/4 200 NAS Trade 5/28/98 10:25 8 1/16 1000 NAS Trade 5/28/98 10:35 Best Bid 7 13/16 500 NAS 8 1/4 2000 NAS 5/28/98 10:35 Best Ask 7 13/16 500 NAS 8 1/4 2000 NAS up 5/28/98 11:51 Best Bid 7 7/8 500 NAS 8 1/4 2000 NAS 5/28/98 11:51 Best Ask 7 7/8 500 NAS 8 1/4 2000 NAS up 5/28/98 12:02 8 1200 NAS Trade 5/28/98 12:47 7 15/16 100000 NAS Trade 5/28/98 12:48 7 7/8 100000 NAS Trade 5/28/98 12:50 7 15/16 50000 NAS Trade 5/28/98 12:51 8 3000 NAS Trade