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

To: Mudcat who wrote (26490)	11/14/1998 11:23:00 PM
From: Cheryl Galt	Read Replies (2) \| Respond to of 32384

Mudcat, the revenues for 3Q98 were much the same as for 2Q98. And the loss from operations was identical, 16,275,000. (How's that for an arithmetic coincidence?) It sounds to me like progress was delayed a quarter, pretty normal for pre-profit biotechs. The big difference in this 3Q quarter report is that we're sure the company has money for the next year of operations, and we really are on the brink of commercialization. Because of that 30mm one-time charge, we may get on the lists of negative earnings surprises Monday morning, and maybe get a chance to pick up a quick bargain position. And I do NOT mean that sarcastically. News about the FDA meeting likely won't come until Monday after close, or Tuesday. Monday could be bargain day. Cheryl BTW, the 3Q eps of -.40 would have been about -.50 if computed with the 32.8mm shares outstanding in 3Q 1997. Thank dilution for the better sounding eps.

To: Mudcat who wrote (26490)	11/14/1998 11:32:00 PM
From: Cheryl Galt	Respond to of 32384

Try looking at Meier's comments in the 3Q report. Maybe I'm reading too much into it, but I sense a change of emphasis, a backing away from adventurism. In the Nov 9 press release for the final closing of the Elan deal, Robinson said: Elan's investment provides Ligand with the operational financing to reach profitability in 1999, to pursue strategic product acquisition opportunities and to concentrate on the execution of our commercialization strategy in the coming months. Pursue acquisitions first, then concentrate on commercialization. I'm one of those worried about Ligand's "focus," worried about financial brinksmanship. That 120 million loan from Elan is not a whole lot of money. -------------------- Listen to the "focus" remarks in the 3Q press release. CFO Meier never mentions acquisitions. Is this a pointed omission??? We believe our strategic alliance with Elan will provide Ligand with the operational financing to reach our goal of profitability in 1999, and to concentrate on the execution of our commercialization strategy in the coming months. Then he repeats himself: With the resources gained through our alliance with Elan, we will focus our efforts on our product launches, pending FDA approvals, and additional NDA submissions as we move closer toward our goal of profitability in 1999. Here's hoping Meier and Robinson decided to invest first in Ligand's own pipeline. Cheryl