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

To: J Stone who wrote (28232)	2/18/1999 11:04:00 AM
From: Henry Niman	Respond to of 32384

Jeff, I have heard that Targretin "works" in type II diabetes patients, but have not seen any data. It's my understanding that LGND tried to titer down the dose to retain the insulin sensitization properties, without the tryclyceride elevating side effects. Today's press release suggests that they were not able to get the ratio favorable enough for LLY to initiate clinical trials, which would be very long and expensive (which is why LGND cannot do this internally). The press release indicates that the milestones expected from the 1st generation rexinoids could be replaced by milestone payments for the second generation compounds. At H&Q Robinson indicate that more progress has been made under the LLY alliances than all earlier alliances. When LGND and AGN divided up the rexinoid/retinoid pool of products, LGND obtained rights to 100s? of promising compounds. I suspect that LLY's support allowed more promising candidates to be developed, and they are at the pre-clinical stage. The major milestones from the LLY deal were focused on the initiation of clinical trials in the US for type II diabetes. Today's press release suggests that pre-clinical development of the second generation compounds are proceeding VERY rapidly, since the press releases mentions potential milestone payments this year, which I assume means the start of clinical trials for diabetes.

To: J Stone who wrote (28232)	2/18/1999 11:27:00 AM
From: Machaon	Read Replies (1) \| Respond to of 32384

While this has been a disappointing setback in the LGND stock price, and in Ligands milestone payments, the news could've been a lot worse. Lilly could've dropped the program with Ligand completely. Instead, they want to continue forward, switching to Ligand's 2nd generation products. It makes sense to me for them to move to the second generation products, with better therapeutic indexes, even though it sets back the schedule. There was an interesting comment from Robinson: " ... the return of Targretin rights will now permit us to rapidly generate revenues from distribution agreements pending in territories in which we will not directly market Targretin in oncology and dermatology,' said Ligand Chairman, President and CEO David E. Robinson." Can anyone give a translation for what this means?