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

To: Mudcat who wrote (24804)	8/20/1998 9:53:00 AM
From: Machaon	Respond to of 32384

<< "What they should have explained is we were telling you this was a buy at 18 its now 9 but we have no reason why so buy so more so we can make more commissions." >> Boy, am I glad that you made this point clear to us! Thanks.

To: Mudcat who wrote (24804)	8/20/1998 1:05:00 PM
From: Andrew H	Read Replies (1) \| Respond to of 32384

Even a complete numbskull like you ought to understand that biotechs are generally valued on future rather than present earnings. A change of a few cents in loss estimates for a couple of quarters would only be meaningful to someone as ignorant as yourself. Luckily biotech analysts know better. You would be better off investing in government bonds. They are much easier to understand.

To: Mudcat who wrote (24804)	8/20/1998 8:12:00 PM
From: Henry Niman	Respond to of 32384

Mudcat, This should make your day. Legg Mason lowered earnings projections for 1998 based on 1Q and 2Q results. They maintained their estimates for 3Q and 4Q but the loss for 4Q ($0.14) was DRASTICALLY greater than Bear Stearns (600% using your novel method of caluculating differences). The 600% higher loss is over 300% higher than the 167% greater loss of Bear Stearns' current estimate compared with their previous estimate. However Legg Mason maintained their BUY rating, which is their HIGHEST. I guess you should forget about a job with Legg Mason since they seem to use a different reporting method, but maybe tony can work something out with Legg Manson (and if he can't you can always check with go_lgnd or DrowningAtLakeLigand, since they travel in the same circles with tony :-). Speaking of which, it seems that virtually ALL of you SI posts are now on LGND! You guys are really looking more and more alike every day.

To: Mudcat who wrote (24804)	8/20/1998 8:18:00 PM
From: Henry Niman	Respond to of 32384

Here are the key points for the Legg Mason rec: Ligand Pharmaceuticals, Inc. (OTC -LGND) PRICE* 52-WEEK EPS - (FY Dec) P/E RATIO DIV SHRS MKT CAP LT DEBT INV./RISK TARGET 8/17/98 PRICE RANGE 1997A 1998E 1999E 1998E 1999E YIELD OUT(M) $M TO CAP RATINGS PRICE $8 9/16 $18-$8 ($1.06) ($1.14) $0.08 NM NM Nil 38.8 $332.2 89% B/4 $20 was........ ...($1.04) Legg Mason Wood Walker, Inc. makes a market in this security. Ligand Reports 2Q98 Results. Key Points ú Ligand reported a loss of $0.45 per share for 2Q98 compared with our estimate, and consensus estimate, of a loss of $0.35 per share. ú We are maintaining our 3Q98 and 4Q98 estimates of losses of $0.20 and $0.14 per share, respectively, but are lowering our FY98 estimate to a loss of $1.14 per share to reflect the lower value in 2Q98. ú Collaborative R&D revenues of $4.4 million were lower than expected and we now believe that milestone payments to the company will be more back-end loaded than originally expected. ú R&D expenditures of $17.3 million were higher than expected as a result of expenses related to the completion of Phase III trials, and the preparation and submission of the New Drug Application (NDA) for Panretin gel. ú Ligand accomplished a number of strategic goals in 2Q98 including the filing of an NDA for Panretin gel, the expansion of the SmithKline Beecham collaboration, and the announcement of favorable research and clinical trial results. ú We are maintaining our Buy rating on Ligand, with a 12-18 month target price of $20 per share.

To: Mudcat who wrote (24804)	8/20/1998 8:36:00 PM
From: Henry Niman	Respond to of 32384

Here's the Legg Mason details and summary: Details ú Ligand reported a loss of $0.45 per share for 2Q98. The result is $0.10 lower than our estimate, and consensus estimate, of a loss of $0.35 per share and compares with a loss of $0.32 per share for the comparable period last year. Collaborative R&D revenues of $4.4 million were lower than expected and we now believe that milestone payments to the company will be more back-end loaded than originally expected. Going forward, we are maintaining our revenue estimates for 3Q98 and 4Q98. R&D expenditures of $17.3 million were higher than expected as a result of expenses related to the completion of Phase III trials, and the preparation and submission of the New Drug Application (NDA) for Panretin gel. These expenses are one-time and will not carry forward. ú We are maintaining our 3Q98 and 4Q98 estimates of losses of $0.20 and $0.14 per share, respectively, but are lowering our FY98 estimate to a loss of $1.14 per share to reflect the lower value in 2Q98. ú Ligand accomplished a number of strategic goals in 2Q98. In late May, Ligand filed an NDA for Panretin gel for the the treatment of AIDS-related Kaposi's Sarcoma. Subsequently (early July), the FDA granted Panretin gel priority review status indicating that an initial decision on the drug should most likely be made during 4Q98 or 1Q99. In April, the company began an additional collaboration with SKB to discover small-molecule drugs, focusing on the signaling pathways controlled by leptin, to treat obesity. The company also made a number of announcements regarding clinical and preclinical results for pipeline drugs. LGD1550: Initial data from Phase I/II studies were presented at the American Society of Clinical Oncology meeting. The two studies presented were open label dose escalation studies. In the first study (23 patients covering various cancers), LGD1550 was found to be well tolerated with only a few minor adverse effects, including dry skin and fatigue, reported at the doses studied. In the second trial (33 patients covering various cancers), investigators observed dose limiting toxicities at higher doses. Panretin Capsules: Final data from a Phase II study for AIDS-related Kaposi's Sarcoma were presented at the American Society of Clinical Oncology meeting. Use of the drug resulted in an overall response rate of 37% (23 of 62 patients). Analysis of the data suggested that the clinical benefit was the result of Panretin, and not the multi-drug anti-HIV regimens that the patients were also on. Similar data from a different Phase II study were presented at the International AIDS conference in Geneva.