Ligand Pharma Inc Roche Contingent Value Rights (LGNDZ)

[maddawg2020]

SA: 100 Percent Downside

http://seekingalpha.com/article/2270903-ligand-pharmaceuticals-severe-competitive-threat-to-key-royalty-program-and-going-concern-risk-drive-100-percent-downside?app=1&uprof=25

"Revenue and profits highly concentrated in one (single-sourced) product, and essentially two royalty agreements, one of which is set to decline precipitously.

Based on recent FDA comments, Gilead’s revolutionary Sovaldi® drug will virtually eliminate demand for Promacta®, which is Ligand’s largest royalty generating asset, accounting for as much as 72 percent of.

When backing out intangibles from the balance sheet, net share-holder equity is approximately minus $4 million."