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

To: Machaon who wrote (24453)	8/13/1998 2:11:00 PM
From: growthvalue	Read Replies (1) \| Respond to of 32384

"I haven't either. Robinson said that it would significantly help Ligands earnings." I have no doubt that it will help Ligand's earnings, since they don't have any, and since this product will certainly generate sales. However, the important question is whether the present value of the profits generated from ONTAK exceed what Ligand paid for it. Keep in mind that earnings are only a proxy for economic returns. Judging from the market's reaction, it looks like Ligand either paid a fair price or too much for the company. The saving grace, however, is the following: I suspect the market values the products in SRGN's pipeline with a very high degree of risk priced in. These products could be less risky and more valuable than the market has judged. There could be other benefits as well - perhaps salespeople get more and better meetings with doctors if they have multiple products - this could have dividends for Targretin and Panretin. The bottom line is that Seragen doesn't really add a whole lot to Ligand. I consider it basically a neutral event.