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

To: Henry Niman who wrote (23308)	7/17/1998 3:35:00 PM
From: Lel H	Read Replies (2) \| Respond to of 32384

Henry, I posted the following on another board, so I'm not sure if you saw it: Just a few quick questions regarding Ligand's pipeline with reference to the recent Science report. Based on the pipeline chart on your website, it appears that by 1996, Ligand/Smithkline Beecham had identified a lead compound in its investigation of potential hematopoetic growth factors. Is this a correct reading of the chart? I guess my question is this: how do we know that the lead compound selected in 1996 is not the one (SB247464) reported in Science last week? Based on the submission date for the manuscript, it seems possible that the murine specificity may not have been discovered until late 1997 or early 1998, and this may have been the lead compound in question up until that discovery. Thus, there might not be another human-specific compound yet. Am I making myself clear? I'm not a Ligand naysayer. I just want to try to fully understand the implications of the Science articles. I am also unable to look back at past annual reports since my copies were lost in a recent flood. Thanks for your help, and best wishes. Lel

To: Henry Niman who wrote (23308)	7/17/1998 3:57:00 PM
From: JOEBT1	Read Replies (1) \| Respond to of 32384

Henry- I spoke to the CFO yesterday and he stated the that AGN had 3.4 million shares before any selling. He didn't know how shares AGN has sold. I got into a long discussion with him on their financing approach where most of their pharma deals involved purchase of stock by the pharma at a premium. This approach has led to a great increase in outstanding shares thereby diluting the stock holders equity. Thus while the market capitalization has gone up the market price has not. I also pointed that while the ALRT deal was very beneficial in providing money to develop the pipeline it had a very negative impact on the market price. While ALRT was an operating entity Farallon was shorting about 3 million shares, thereby having a negative effect on the stock price for a couple of years. After ALRT we now a 3+ million shares being sold again. I tried to make it clear to him that further stock dilution was not in the best interests of the company or the stockholders. He said he was very sensitive to that. (By the way with all warrants converted and the first half of the SRGN deal there would be 51 million shares outstanding.)