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

To: growthvalue who wrote (24455)	8/13/1998 2:22:00 PM
From: Machaon	Read Replies (4) \| Respond to of 32384

<< Judging from the market's reaction, it looks like Ligand either paid a fair price or too much for the company. >> I don't really buy the judging of the fair price for a company on market reaction. Most of the time I read investors saying that the market is NUTS! We still have analysts saying that the fair value for Ligand, right now is around $16-$20, if I remember rightly. Henry could help in this aspect. << The bottom line is that Seragen doesn't really add a whole lot to Ligand. >> Then why did Ligand pursue SRGN instead of taking the cash? I have to put my confidence in Ligand's management on this one. They have a deep pipeline. Henry says that Ligand is way underfunded. If so, why would they spend $75 million on Seragen, instead of funding their pipeline? My guess is that they wanted to effect revenues and earnings ASAP, and ONTAK would do this for them. Good luck, Bob