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

To: smh who wrote (21993)	6/8/1998 8:24:00 PM
From: Mudcat	Read Replies (1) \| Respond to of 32384

< Robinson funds the company and expands the breadth of research at the expense of his shareholders. > I tend to agree with you smh. IR doesn't give a crap about the shareholders either. I emailed them with questions on Thursday at Noon EST and still haven't received a reply.

To: smh who wrote (21993)	6/8/1998 9:50:00 PM
From: Pseudo Biologist	Read Replies (4) \| Respond to of 32384

Re: dilution smh, you tell me. According to WSJ briefing books, these are the numbers of shares outstanding each quarter since june 96: 6/96 28.1 mill 9/96 28.5 12/96 31.8 3/97 31.8 6/97 32.6 9/97 33.0 12/97 38.5 3/98 38.6 This does not include the potential dilution arising from the Seragen deal. Maybe someone can give a quick estimate of that. PB

To: smh who wrote (21993)	6/9/1998 6:39:00 AM
From: Henry Niman	Read Replies (1) \| Respond to of 32384

smh, Rick Harmon has been complaining about LGND dilution for a year or two (maybe three) now. LGND's dilution is due in part to its alliances, and that is how they generate funds for research (which is where their impressive pipeline originates). LGND is rather unique (especially in its pipeline), and at this stage funds from partners is required to support R&D. LGND has an impressive list of partners (PFE, GLX, AGN, ABT, AHP, SBH, Sankyo, LLY), all of which have equity positions. These shares were sold at or above the market and are locked up. They do contribute to dilution, but not to the float. LGND has bought back a small amount (from PFE), by electing to take stock instead of cash as royalty payments. Larger dilutions have come from acquisitions. In 1995 LGND acquired GLYC. In my view, this was largely for the $60 million that they had in the bank. LGND also received an impressive list of compounds, but th GLYC pipeline has not contributed significantly to the bottom line, and its not clear when or if it will. In contrast, the SRGN acquisition was probably more for product (and profit) that technology (although the fusion technology has broad applications). This acquisition is expected to be acreative next year (product should be on the market this year). LGND is rather unique and has created the best pipeline in the business. Some tend to focus more on the dilution than how efficiently the funds were used. LGND has 9 compounds in the clinic (oral and topical Panretin and Targretin, LGD1550, ONTAK, Droloxifene, CP-366,156, TSE424) and 7 INDs slated for filing in the next 12-15 months. They have about 40 ongoing clinical trials and about 40 products in active development. This was done with about 40 million outstanding shares. I think that the progress has been quite remarkable.

To: smh who wrote (21993)	6/9/1998 8:15:00 AM
From: Andreas Helke	Respond to of 32384

We have discussed some time ago about this potential or in the view of many investors real problem. I don't think that there are many biotech company that would have any problems to avoid profits by simple increasing their research and development spending a bit. Increasing research and development for sensible projects increases the value of the company. But since investors are much more impressed by rising positive earnings than by an impressive pipeline it is a very good idea to let enough revenue go to the bottom line of the balance sheet. I think Ligand does a reasonable job in this regard. After all they are expected to become profitable one year earlier than previously expected. Andreas