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

To: jayhawk969 who wrote (25883)	9/29/1998 11:02:00 PM
From: jayhawk969	Respond to of 32384

I guess not all biotechsters are enamored with the Elan deal! Message 5871885 Message 5871966 Message 5872125 J.D.

To: jayhawk969 who wrote (25883)	9/30/1998 1:10:00 AM
From: Henry Niman	Read Replies (2) \| Respond to of 32384

This morning BBRS also came out with a reiterated BUY: September 1998 LIGAND PHARMACEUTICALS Ligand Enters Strategic Alliance with Elan Michael G. King, Jr. (212) 407-0248 michael_king@rsco.com Gregory J. Miliotes (415) 676-2875 greg_miliotes@rsco.com BancBoston Robertson Stephens BancBoston Robertson Stephens LIGAND PHARMACEUTICALS LGND $11.63 9/30/98 Industry: Biotechnology CHANGE IN... YES/NO WAS IS Michael G. King, Jr. 212 407 0248 ...Rating No BUY Gregory J. Miliotes 415 676 2875 ...EPS 1997: Actual ($1.06) FY Dec. 1997A 1998E 1999E ...EPS 1998E: No ($0.80) EPS: 1Q ($0.32) ($0.35) A NE ...EPS 1999E: No $0.00 2Q ($0.32) ($0.45) A NE 52-Week Range: $18-6 3Q ($0.35) NE NE Shares Outstanding (MM): 38.8 4Q ($0.09) NE NE Market Cap (MM): $451.6 FY ($1.06) ($0.80) $0.00 10-Day Avg Trading Volume (000): 378.5 FY P/E NM NM NM 6/98 Book Value/Share: $0.35 Revs($M): 1997A 1998E 1999E 6/98 Total Debt/Total Cap: 44% 1Q $9.8 $5.07 A NE Price/Book Value: 32.9 2Q $9.9 $4.39 A NE Net Cash/Share: $0.98 3Q $10.2 NE NE Cash ($MM) $49 4Q $21.8 NE NE Burn Rate ($MM): $25 Year $51.7 $50.0 $75.0 Years of Cash: 2.0 MktVl/Rev 8.7x NM NM *Q4 & FY:97 exclude 1x charge of $65MM related to ALRT buyout Key Points: · Ligand and Elan have entered a strategic alliance with three main components: (1) Elan will purchase $20 million in Ligand shares; (2) Ligand will issue to Elan $110 million of Zero Coupon Convertible Senior Notes; (3) Ligand receives an exclusive license from Elan for U.S. and Canadian rights to Morphelan, an oral form of morphine. · With the consummation of this relationship, Ligand has gained a late-stage product that could be filed with the FDA in 1999, as well as significant financial resources to in-license additional novel products, acquire companies or further develop its R&D pipeline. · We are encouraged by Ligand's efforts to gain the financial resources and products that should allow them to push forward towards commercialization and profitability; however, we are somewhat concerned about the dilution costs that it will incur.

To: jayhawk969 who wrote (25883)	9/30/1998 1:16:00 AM
From: Henry Niman	Respond to of 32384

BS Disclosure on latest reiterated BUY: * Bear, Stearns & Co. Inc. is a market maker in the security of this company and may have a long or short position in the security. * Within the past three years, Bear, Stearns & Co. Inc. or one of its affiliates was the manager (co-manager) of a public offering of securities of this company and/or has performed other banking services for which it has received a fee. Bear Stearns provided Ligand with a fairness opinion regarding the foregoing transaction(s) for which it received a fixed flat fee.