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

To: Spekulatius who wrote (24655)	8/17/1998 11:48:00 PM
From: Henry Niman	Read Replies (2) \| Respond to of 32384

Ralf, Thanks for the update and clarifications. A couple of comments are useful. The $50 million in debt is not new. It was GLYC's and came with the acquisition in 1995 and that note is due in 2003. On the issue of cash, LGND's burn rate fluctuates because ALRT is no longer a steady income source. Instead they get milestone payments which have been back loaded this year. Thus, LGND is somewhat healthier than an "average" burn rate would predict. The rate should be much lower for 3Q and 4Q (I think that Bear Stearns shows an almost break even 4Q) and LGND is projected to be profitable in 1999. I also expect LGND to sign 1 or more deals in the near term. These deal(s) will probably cause some dilution, but not to the extent that a secondary would cause (much of the new deals will be no strings up front money, reseach funds, and milestone payments).

To: Spekulatius who wrote (24655)	8/18/1998 8:18:00 AM
From: tonyt	Respond to of 32384

>henri: A couple of comments are useful. The $50 million in debt is not new. >It was GLYC's and came with the acquisition in 1995 and that note is due in 2003. What is new is that they don't have $$$$$ to service the debt (that means pay INTEREST henry. But since this is 'not new', I find it interesting that you chose to ignore the matter of Interest Payments) "Any inability of the Company to obtain additional financing *or of Glycomed to service* its obligations under the Debentures could have a material adverse effect on the Company."**