LGND - Ligand Pharmaceuticals Inc. NASDAQ Stock
writing by AndrewGreenBull
At the first glance of LGND, I was so shocked. It was not only because
of the stunning collaborations and the pipeline, but also the
unbelievable low stock price which was far undervalued.
You gotta Check these names out who have collaborations with LGND:
GlaxoSmithKline Wyeth
Pfizer Bristol-Myers
Squibb
Schering-Plough Celgene
Cephalon King
Pharmaceuticals
Pipeline and partner programs:
*DARA(PS433540) is leading independent program of LGND.
In February 2009, Ligand announced positive preliminary results from
the Phase IIb study for PS433540. It was found to be safe and well
tolerated and demonstrated statistically significant greater
reductions in blood pressure than placebo. The high dose of PS433540
produced a statistically significantly greater reduction in blood
pressure than the active comparator, irbesartan which was tested at
its highest approved dose.
*Tissue-selective SARMs(LGD-4033) is a novel class of non-steroidal,
orally active molecules that selectively modulate the activity of the
androgen receptor in different tissues, providing a wide range of
opportunities for the treatment of many diseases and disorders in both
men and women. Tissue-selective androgen receptor agonists may provide
utility in the treatment of patients with frailty, cachexia,
osteoporosis, ****** dysfunction and hypogonadism. Ligand initiated a
Phase I trial for LGD-4033 in June 2009.
*PROMACTA for the treatment of thrombocytopenia in patients with
chronic immune (idiopathic) thrombocytopenic purpura (ITP) was
approved by FDA in 12/2008; it is the achievement of dozen years’
cooperative research with GSK, and it also is the first oral TPO
receptor agonist therapy for the treatment of adult patients with
chronic ITP.
Further more, GSK initiated two Phase III trials in patients with
hepatitis C in the fourth quarter of 2007 and a Phase III trial in
patients with chronic liver disease (CLD) in early 2008. As I see from
the clinical trial calendar, they are expected to be finished in the
middle of next year.
* LGD－4665 for Immune Thrombocytopenic Purpura had finished phase 2
clinical trial in May this year, it is also in collaboration with GSK.
I am expecting that GSK will initiate the phase 3 clinical trial soon.
* VIVIANTTM (Bazedoxifene) and APRELATM (bazedoxifene in combination
with PREMARIN) collaborated with Wyeth are under FDA review.
*FABLYN® (lasofoxifene) collaborated with Pfizer is also under FDA
review. The FDA Panel had a positive vote (9-3) on September 8, 2008
that benefits could outweigh its risks, including blood clots and
vaginal bleeding for the osteoporosis treatment indication for
FABLYN®. It should be time for FDA to make the decision.
* AVINZA was sold to King Pharmaceuticals. in 2007. If the sale of
AVINZA exceed 200 Million dollars, King will pay more than 5% royalty
to LGND. The company said: “as a result of the sale, we received the
right to future royalties on the net sales of AVINZA through 2017.
Through October 2008, we received a 15% royalty on AVINZA net sales.”
That means the total sale of AVINZA was greater than $250.0 million
and there was a more than 40 million dollars royalty payment from King
Pharmaceuticals.
*LGND also has collaborations with Schering-Plough、Bristol-Myers
Squibb、Celgene and Cephalon, whenever milestone is achieved, LGND with
receive royalty payment.
LGND is so fabulous, but how come the stock price is so cheap? The
financial is of cause the first culprit, but it also attributed to the
short-sighted when LGND sold AVINZA and 4 other cancer drugs in 2006.
We have seen that it more or less hurt the confidence of investors，
lucky is that LGND keeps coming up with gorgeous drugs and programs, I
have my faith on it:
1, Two phase 3 clinical trials of PROMACTA in collaboration with GSK +
two long-run NDA submissions collaborated with Wyeth + One very
promising NDA submission collaborated with Pfizer. No matter which one
come out first, I am expecting that LGND will double its current stock
price.
2，Once LGND starts its DARA phase 3 clinical trial(I can feel that it
is on the way),investors will have new expectation on LGN. When the
clinical trial is successfully completed, it will be a historical time
for LGND. I have 100% confidence that the stock price of LGND will at
least go back to the 2007 level.
3，On August 4, Merriman Curhan Ford downgraded LGND from buy to
neutral, but the reason was so ridiculous, so I would rather put it
here as a good news: “the company has great cash management and longer-
term opportunities, but unfortunately catalysts are lacking.” “We
currently expect royalty growth from two approved products, Avinza and
Promacta, and see near term potential from the potential approvals of
Fablyn and Viviant. However, we are currently on the sidelines as we
do not see a significant stock moving catalyst in the relative near
term.”
4，Tomorrow(09/09/09)，LGND will present at Thomas Weisel Partners
Healthcare Conference, this is a good opportunity to show its gorgeous
drugs and programs. There will be tons top institutional investors
from all over the world, if LGND could release some good news of its
ongoing trials and regain the attention of institutional investors, we
will see a huge gain of its stock price.
Anyway, the current stock price of LGND is oversold. Any price below
$3 is very attractive even without any short-term catalysts (As I
mentioned above, there are tons of them)’
Current Price $2.37 My 3 Month Target：$5 My One Year Target：$10
References：
(Google dont allow me to add links)
* Statement: The author of this article is not a licensed analyst and
the purpose of this article is for information sharing and discussion
only, not recommendation for any stock buying, selling and shorting
activities. Please do your own research before making any trading
decision.
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