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

To: Arthur Radley who wrote (25872)	9/29/1998 8:23:00 PM
From: Mudcat	Read Replies (1) \| Respond to of 32384

Does anyone know who will pay to get this Morphine pill from Phase III to FDA approval? Did Lgnd take on this responsibility when they licensed this drug?

To: Arthur Radley who wrote (25872)	9/29/1998 9:26:00 PM
From: Henry Niman	Read Replies (1) \| Respond to of 32384

TD, I would say that its a bit premature to say that the street didn't like the deal. Look at LGND's price at the beginning of last week. I suspect that some of the move was related to this deal.

To: Arthur Radley who wrote (25872)	9/29/1998 10:01:00 PM
From: Cacaito	Read Replies (2) \| Respond to of 32384

Elan's CEO is an astute guy who had built an Irish? company into a force in the pharma world, they are building from generic drugs cash flow and becoming a kind of biotech consolidator (like the big ones AMGN,BGEN,CHIR). If Elan takes Ligand's scientific prowess, and adds their business savvy , marketing power ,plus cash flow is a plus for everyone. Give and take. No biotech science is a sure deal, Elan's money is. Why make a deal with a big pharma company for the usual 10% to 20%, or worse the pathetic 3% Lgnd got for droloxifene from Pfizer (due to muscle exercise from the big Pfizer)if they can deal partially or totally with a more fair partner with almost the same marketing capabilities? Morphelan is not a great shot, neither science, neither money. Actual morphine is cheap by the cents, very tough to beat, but it will be a cash generator. My rough guess $20 to $30 million a year for this type of product, some 10% of the total morphine market(I do not have the exact figures now, but this is what I remember from my time researching NTII Dynorphin-A, I will have to research it again). If Lgnd try to get money in the open market the shares will drop probably 25 to 50% or more, if they are able at all. Next choice is , the kind of funds that will short it to hell (like recent Xoma or Pars)to pick them at much lower prices without no limit. Can Elan try to short Lgnd? I am not sure if that strategy is feasible for them, anybody knows? Still holding my $14.50 shares, I am looking for my next entry point.

To: Arthur Radley who wrote (25872)	9/29/1998 11:50:00 PM
From: aknahow	Respond to of 32384

The market loved it! Why do think the stock is up from its' lows to $11? The problem is we did not know about it. Almost, classic case of buy the rumor sell the news. Except there was no rumor. I am interested in why Rick Harmon does not think much of the deal. I don't think it is that easy to put together a deal where you get a sizable cash infusion at a premium over market. The fact that shareholders think the stock will be worth more in the future and hate to see shares issued at less than that expected future value does not constitute dilution. This deal was put together with the stock below $8, or at least when the stock was down the deal did not fall apart. Doubt that the Biotechnology Value Fund or any of us individual shareholders would have been so eager to agree to the terms ELAN did. In fact your post seems to want it both ways, (bad/dilutive), (good/ELAN = fool).