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

To: RevMikeB who wrote (23316)	7/17/1998 6:16:00 PM
From: Andreas Helke	Read Replies (1) \| Respond to of 32384

If Ligand got cash outright instead of cash in exchange to shares that would be a far smaller amount of money than what they can get with a stock sale. To raise the missing money the same shares that are not sold to a pharma company at a premium to the market price would have to be sold to the general public at a discount to the market price in a secondary offering. The dilution would probably be even higher that way and we would get a even more bumpy stock chart with extra dips due to repeated secondary offerings. Andreas

To: RevMikeB who wrote (23316)	7/17/1998 6:58:00 PM
From: Machaon	Read Replies (1) \| Respond to of 32384

<< They have given me no indication from their past and present actions that dilution will not continue. >> Funding is a big problem in the biotech sector. Many biotech stocks have to use creative means to get funding. I don't like stock dilution, but I do like Ligand's deep pipeline, and their scientific breakthrus. Quality cost big bucks. It has been tough for biotechs, because of reduced government money. Couple that with emaciated stock prices and you have a funding crisis in the sector. Henry keeps saying that Ligand is underfunded. Ligand needs to get Panretin Gel and ONTAK approved and submit the other three NDA's. I would like to see Ligand able to do a stock offering at about $20 per share so they could enlarge the size of their pipeline, without having to cut any more deals with the large drug companies. Just my 2 cents after a lousy LGND day at the market. Good luck to all of the "decent" members of this thread. Bob