Viking Therapeutics Inc (VKTX)

[DMOST]

Ligands..........They have been the ones trading us down, as many thought, all along.

https://investorshub.advfn.com/boards/read_msg.aspx?message_id=144669208

Ligand Crashes To Nearly 2-Year Low After Short-Seller Bashes It

Ligand Pharmaceuticals (LGND) crashed to near a two-year low Wednesday after short-seller Citron Research slammed Ligand stock for having "80% downside from its current levels."

On the stock market today, shares plummeted 16.5% to close at 110.05. Ligand stock briefly touched its lowest point since February 2017.

The Citron report questioned the credibility of Ligand's "Big 6" — a pipeline of drugs on which Ligand is partnered. The biotech stock doesn't develop its own drugs. Rather, Ligand acquires technology necessary for drug development and then farms it out to biopharma companies.

Among the "Big 6," Ligand counts drugs from Sage Therapeutics (SAGE), Retrophin (RTRX), Sermonix Pharmaceuticals, Bristol-Myers Squibb (BMY), Eli Lilly (LLY) and Roivant Sciences.

The Citron report suggests the "Big 6 is one big lie."

"While the company likes to use Lilly and Bristol-Myers Squibb in their presentation, the reality is that over 60% of their 'milestones' come from Viking Therapeutics (VKTX) and Vernalis," according to the Citron report. Together, Lilly and Bristol account for about 7% of potential milestones.

Viking Accounts For 51% Of Milestones

Based on company reports, Viking accounts for about 51% of Ligand's projected milestones. Viking is working on a drug to prevent the loss of lean body mass in patients who have undergone hip fracture surgery, and a drug for nonalcoholic fatty liver disease and high cholesterol.

A filing with the Securities and Exchange Commission on Sept. 25 shows Ligand sold more than 262,000 shares of Viking stock. The filing also shows Ligand entered into a trading plan to make periodic sales of Viking shares.

"If Ligand thought the Viking pipeline was even remotely realistic, they would not be buying back their own stock, rather they would buy Viking stock or the whole company," Citron said, adding it doesn't believe Ligand's projections for Viking milestones to be "in the ballpark of reality."

Ligand declined to comment on the Citron report in an email to Investor's Business Daily.

Vernalis Acquisition Wrapped In October

Further, Vernalis isn't included in Ligand's Big 6, though it represents 12% of projected milestones. Ligand finished acquiring Vernalis for $42.3 million in October. That was offset by about $32 million of net cash on hand at Vernalis after the deal costs.

Vernalis is working on a treatment for chronic obstructive pulmonary disorder, or COPD, and a cancer treatment.

The former is under a partnership with Verona Pharma (VRNA). On Monday, Verona said the drug failed to meet its key goal with statistical significance on Day 3 of a clinical study. But it did improve patients' ability to forcefully exhale for one second compared with the placebo.

Citron also cast doubt on Roivant, which would account for 18% of milestones according to Ligand's projections. The drugs in this development plan are for diabetes, "which requires large, expensive patient trials," Citron said.
https://www.investors.com/news/technology/ligand-stock-biotech-stock-citron/?src=A00220&yptr=yahoo

GO VKTX

"PEACE"