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

To: Flagrante Delictu who wrote (23324)	7/17/1998 9:38:00 PM
From: Henry Niman	Respond to of 32384

Bernie, I don't think that the moaners and groaners about dilution have really looked at LGND's deals. LGND does get research money in addition to money for stock. The money is much cheaper from the deals than the public, but of course the deals give away some rights in exchange for cash, expertise, and resources. The most recent deal was with LLY. Although a minor portion of the $200 million was for stock, most of the money was for LGND's research. The research money of course has strings attached, while the equity portion is free and clear. The equity money is used to develop unrelated in house programs which will yield the largest profits, but of course will cost the most to bring to market. If LGND sold stock for $15, they would have to sell over 13 million shares to get the $200 million in the LLY deal. Most Biotech add ons are 2-3 million shares so LGND would have to go to the public 4-6 times. LGND has been public since 1992 and they have only done one add on (in 1996).