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

To: Henry Niman who wrote (24457)	8/13/1998 3:02:00 PM
From: Robert L. Ray	Read Replies (1) \| Respond to of 32384

From the NJ Biotech tax incentive program link. "Of course, like any good idea, it's likely to be copied. Legislators in California, Massachusetts, Pennsylvania and New York say they're watching New Jersey's efforts and may propose similar legislation." Let's hope that California does indeed wind up passing legislation similiar to NJ. The combined accumulated losses of LGND and SRGN would then immediatly become something with a tangible value because not only does the legislation extend the time period in which such losses could be used to offset profits but it makes the losses tradeable to other companies as tax credits. For a company such as LGND which at the moment has no profits and a promising pipeline to fund, I would think that they would love to sell the tax credits that favorable legislation would create. It would be an excellent non-dilutional way to bring in cash at a time when the stock price is low and market conditions are unfavorable to any stock offerings. There's quite a few San Diego biotechs that could benefit from this. Let's hope they have some good political support on it. One thing that I would wonder about is that this is state tax legislation. I would assume that if LGND for example sold tax credits to a third party it would only affect state taxes and LGND would retain any federal tax benefits from the accumulated deficits. It would be nice to see some Federal legislation similiar to the state legislation. That would make the deficits much more valueable.