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

To: Mudcat who wrote (24442)	8/13/1998 11:40:00 AM
From: Henry Niman	Respond to of 32384

Mudcat, I think that your reasoning is a bit flawed. I believe that there were outstanding preferred shares in SRGN, so you market cap formula is wrong for SRGN. In addition there are the other two entities (Marathon and something else?) which may not have been included in the SRGN stock price. Moreover, LGND paid $30 million so far. It's an additional $37 million if ONTAK is approved, and since SRGN did not have the capital or partners to bring anything to market, they had given away rights to LLY, so I don't think that the ONTAK approval was factored into the SRGN market cap.

To: Mudcat who wrote (24442)	8/13/1998 11:46:00 AM
From: Machaon	Read Replies (2) \| Respond to of 32384

Hmmm!? Mudrat, I'm surprised at you! You are trying to prove that ONTAK, and the rest of Seragen's fusion protein science and subsidiary, are not worth a $75 million investment because of the Seragen stock market value?! Do you invest in stocks based on stock price only? Aren't you the least bit interested in any other details? Is the value of Seragen's stock a real measure of the value, to LGND, of buying Seragen? How about the average cost of getting a drug approved by the FDA? Industry wide, the average cost of a drug getting approved is $1 billion dollars, when taking the average of all drugs, successes and failures! Ref: emax.com Also, Ligand has pursued Seragen for well over a year. Unless you have absolutely no confidence in Ligand's management, you'd have to believe that they have seen significant value in purchasing Seragen. If you don't have confidence in Ligand's management, why are you investing in the company? Instead of shelling out $75 million for Seragen, Ligand could've taken a substantial amount of money from Lilly. They chose Seragen instead. << Funny how we see things so different Barry. >> Yes, isn't it!