Replies to post #214156 on Biotech Values

[biomaven0]

I've owned LGND since single digits (in a taxable account so I'm kind of locked in anyhow now).

Their Captisol franchise is a wonderful money-maker, so now they kind of act like a low-risk play on the sector - having a 2-3% royalty on many dozens of pipeline products means that future risk on new products is very low.

Promacta and Kyprolis are their big money-earners - royalties on those are higher:

http://www.ligand.com/portfolio-summary/royalty-table

They are extraordinarily disciplined on spend and share count - best in business on running a tight ship. So increased revenues fall straight to the bottom line.

Peter