Biotech Values

[mcbio]

Re: LGND

Anyone done any significant DD on the company? mcbio I noticed you have a few posts but no readme . I saw Dew's post and saw they are near their 52 week low and they are applying a royalty model... two things I like that got me interested to start doing some DD on them. Anyone have any thoughts are there some red flags that I'll discovered that someone knows which would save me the time .

No, no RMF for LGND. I only got into the name due to being a former PCOP long, which LGND acquired for peanuts. LGND likes to do deals, that's for sure. I would like to see a nice chart of all the deals they've entered into and the potential milestones/royalties they could receive over the longer-term. In the somewhat recent past, LGND has done deals with PCOP, MBRX, and NRGN. Just today, there was the deal with AZN to gain an interest in future milestones/royalties arising out of AZN's IL-9 program.

I think it's reasonably safe to assume that the wide range of deals in which they have some interest in helps provide a nice floor to the roughly $170M market cap. The question is whether or not any of these drugs will be blockbusters and generate material revenue for LGND down the road. Note that Promacta was supposed to be a blockbuster, but so far has not lived up to the hype. I imagine that the recent halt of certain Promacta studies (#msg-50108321 ) is not going to do any good on that front. All told, I think it's to some degree a relatively safe pick, but I'm not 100% sold on the upside at this point. I'd need to get a better grasp on all the drugs in which they have some stake and get some more visibility on them.