Ligand Pharmaceuticals, Inc. (NASDAQ:LGND)

CAPS Rating: 2 out of 5

Develops and markets new drugs that address critical unmet medical needs in the areas of cancer, mens and womens health, skin diseases, osteoporosis, and metabolic, cardiovascular and inflammatory diseases.


Player Avatar zzlangerhans (99.85) Submitted: 3/13/2013 11:18:24 PM : Underperform Start Price: $22.50 LGND Score: -98.98

For years I couldn't understand why Ligand wasn't getting any love for their deep and extensive pipeline that had led to many approved drugs. Then after seeing revenues fail to materialize quarter after quarter, I understood that the company was incapable of extracting shareholder value from their partnerships. Now it seems that a new generation of traders has their eye on the Captisol platform as an apparent pathway to profitability, but I remain skeptical. Revenues upticked to 13.6M last quarter but the breakdown was typically opaque. The 2013 revenue guidance was a disappointing 41-44M, indicating that their deal with Onyx for Kyprolis isn't any more remunerative than the Promacta deal with GSK or the bazedoxifene deal with Pfizer. The share price has risen nicely so far in 2013 but I think Ligand doesn't qualify for the buy and hold category.

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