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

To: John O'Neill who wrote (23358)	7/20/1998 7:08:00 AM
From: Mudcat	Read Replies (1) \| Respond to of 32384

< How can he benefit financially by constant expansion without the focus on the bottom line? > Well he gets stock options exercisable at a cheaper price than the stock is right now.

To: John O'Neill who wrote (23358)	7/20/1998 2:27:00 PM
From: Tim	Read Replies (3) \| Respond to of 32384

JO - I share your frustration and concern about dilution, however one must pick the lesser of two evils: issue shares or sell the technology (and risk) for royalties (unless there is someone here who wants to argue that Ligand has to much cash). Which is better for shareholders? Is there an alternative strat that you would like pursued? If Ligand taps the market for $xx million to fund a program with potential of $xxx million, isn't there a business case? At the end of the day, I like the debt option, however I believe there may not be a risk rating high enough for Ligand. PS - has anyone calculated whether or not Seregan(sp) is anti-dilutative (beyond the period of reasonable Ontak market development)? Many of the crazies on this board assume that the act of issuing shares is automatically dilutative.