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

To: Cheryl Galt who wrote (25537)	9/20/1998 8:57:00 AM
From: Henry Niman	Read Replies (1) \| Respond to of 32384

SRGN is covered in today's NY Times: paradise-web.com

To: Cheryl Galt who wrote (25537)	9/20/1998 9:00:00 AM
From: Henry Niman	Respond to of 32384

In a recent article (BioWorld?), Robinson talked about a private placement, but didn't give details - just talked in general terms about means of financing.

To: Cheryl Galt who wrote (25537)	9/20/1998 11:39:00 AM
From: jayhawk969	Read Replies (1) \| Respond to of 32384

Cheryl, Add this to your discovery work. Under a Service Agreement which expires January 31, 1999, Seragen depends on Marathon's ability to provide certain services relating to product research, development, manufacturing, clinical trials, quality control and quality assurance. The Marathon employees providing such services are comprised primarily of former employees of Seragen. The terms of the Service Agreement provide that Boston University ("BU"), which indirectly owns Marathon and has assigned its rights under the Service Agreement to Marathon, may terminate the agreement if annual losses exceed $9.0 million and if, after notice, Seragen fails to reimburse BU for any losses in excess of such amount. In addition, Seragen, and its manufacturing service provider, Marathon, have never engaged in large-scale manufacturing. Seragen regularly contracts with a variety of third parties in addition to Marathon for testing and manufacturing services, some of which services will be essential to Seragen. Generally these contracts may be terminated at any time by these third parties. and Ligand has the option to obtain selected rights to one Lilly specialty pharmaceutical product. The product would fit into a current area of strategic focus for Ligand. Should Ligand elect to obtain selected rights to the product, Lilly could receive milestones of up to $20 million in Ligand stock. In the event that Ligand does not exercise this product option, Ligand could sell an additional $20 million in equity to Lilly at a 20% premium to the then market price, and Ligand would qualify for certain additional royalties of up to 1.5% on net sales of Ligand's choice of Targretin, LGD1268 or LGD1324. Ligand will receive double-digit royalties on net sales of the most advanced products and single-digit royalties on net sales of earlier compounds. Ligand will also receive milestones, royalties and options to obtain certain co-development and co-promotion rights for the Lilly-selected RXR compound in combination with a SERM. Henry I believe that Ontak was the compound selected. Now we must dig for timing of the payments. recall tells me it is 10MM and a 10MM maybe. I'll search some more this afternon.