Biotech Values

[mcbio]

LGND -

So far no news has been good news concerning safety. In terms of differentiation, the angle you may be looking for could be in the study design using prodromal patients. Still a long shot. I look at MK-8931 as an underlying call option on the best long-term, risk adjusted play in biotech.

Thanks for the comments. So, the drug is being tested early enough where there is at least hope there can be some effect it sounds like. I think gantenerumab was tested in prodromal patients as well before P3 stopped for futility but also am assuming that drug doesn't reduce soluble amyloid beta, as MK-8931 does.

The CVR's under Cydex agreement (Captisol) expire near the end of next year so sales and licensing proceeds will go directly to LGND's bottom line. Sure a strong argument could be made the stock is currently overvalued. People have been saying that for years.

Perhaps currently but certainly wouldn't be expensive if around this valuation and MK-8931 shows any form of positive results. I also like that LGND has such a strong and diverse growing revenue base where any negative news on MK-8931 may not cause a sharp sell-off.