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

To: schadenfreude who wrote (24489)	8/16/1998 10:19:00 PM
From: growthvalue	Respond to of 32384

"Second, the premium is really only paid if ONTAK is approved. Had SRGN got approval for ONTAK on their own, the stock would have popped." And this is WHY LGND has to make an extra payment. In the off-chance that ONTAK did NOT get approved, there is no way the company would be worth the final price. That was just a CYA provision in case out of nowhere ONTAk didn't get approved. It was insurance against the possibility that SRGN and ONTAK were lemons. LGND went DOWN when ONTAK got approved, which suggests the premium was too high. I don't think the market is considering the potential synergies, but either way I don't think it does a lot to influence the value of the company.