Ligand Pharmaceuticals, Inc. (NASDAQ:LGND)

Time frame for this should be 3 weeks... Pure CAPS play.

Ligand makes Targretin (bexarotene), which quickly reversed Alzheimer's disease in mice. Yes, I know that it is only mice, and human efficacy is a completely different question. That is not the point. The point is that people will invest in this company purely on the speculation that it will work. The odds are against it being successful. But if it were proven to reverse Alzheimer's disease in humans, what would you pay to get it? I'd pay almost anything. In addition, it is already an FDA approved drug to treat a type of skin cancer called cutaneous T-cell lymphoma.

biggest insider purchase for a small market cap co.

nice long base with lots of insider buying

Target $20

insider buying

see this post.
http://caps.fool.com/Blogs/lgnd/536679.

zzlangerhans (99.58) wrote:

Outperform on LGND with a limit of 1.6. Here's my pitch:

Ligand Pharmaceuticals has a pipeline and business model that resembles a mid-to-large cap biotech but a market cap of less than 200M. Their financial position and prospects are difficult to evaluate as they are opaque regarding their milestone and royalty deals from collaborators. Multiple acquisitions of failing baby biotechs also set them apart from other companies with similar market caps. Their lack of revenues despite their accomplishments are no doubt what has weighed heavily on their share price. Looking long-term, the stock has been in steep decline for the last three years. However, it is difficult to imagine a scenario where this decline could continue indefinitely. They will be receiving revenue from three approved partnered drugs (Promacta, Fablyn, Conbriza) in 2010 and have multiple partnered candidates in late stage trials. Here are excerpts from the description of their pipeline in the most recent PR:

Promacta – GlaxoSmithKline

Recommended for European approval for ITP in December 2009, projected European launch in 2010. NDA filed in Japan for ITP in September 2009. Two Phase III hepatitis C trials recently completed full enrollment. Ligand currently earning royalties from U.S. product sales.

CXCR2 (SCH 527123) – Merck
Phase IIa trials for COPD and asthma completed. Two 500-patient phase IIb trials recently initiated for COPD and asthma.

p38 (BMS-582949) – Bristol Myers Squibb
Phase II Proof of Concept trial for rheumatoid arthritis completed. Phase II trial for atherosclerosis is ongoing.

Acadesine Program – PeriCor/Merck
Ongoing 7,500 patient Phase III trial for Coronary Artery Bypass Graft (CABG) Trial projected to be completed second half 2010.

Beta-Secretase – Merck
Phase I rising dose trial ongoing for Alzheimer’s disease. Phase II trial projected to begin in 2010.

JAK-3 Program for Inflammatory Disease – Pfizer
Pfizer extended research collaboration with Ligand by one year. To date, Ligand has earned over $15 million in research payments.

GlaxoSmithKline Collaboration
Eight compounds nominated to date with two compounds nominated in 2009. Potential for achieving milestones in 2010 for advancing a lead drug candidate.

Organon/Schering-Plough Research Collaboration
$4 million in milestones recently paid for certain undisclosed research programs.

SARM Program
Successful completion of Phase Ia trial in 2009. Initiation of Phase I multi-dose trial for SARM in February 2010. Completion and data for Phase Ib trial targeted for third quarter of 2010. Objective to seek partnership following Phase I trial completion.

Metabasis and Neurogen acquisitions closed giving Ligand:
Collaborations with Roche (hepatitis C) and Merck (pain). Research programs for diabetes, hyperlipidemia and Alzheimer’s disease.

I'm as sensitive as the next speculator to the possibility that this extremely wide pipeline is simply a sparkling pile of well-polished turrds. However, it is incontrovertible that the company has developed several approved drugs and has amassed an impressive array of partnerships. With 55M cash and minimal debt, bankruptcy and even dilutive financing appear unlikely in the near-term. I am a green-thumber in my own profile at a much higher price and am mystified at the ongoing decline in share price. I will also be a real-life buyer if this pick is activated below 1.6.

Executive decisions have solidly planned for sporadic growth in this sector.

outperform

Company has 2 marketed drugs that It receives royalties from, 2 more that have an NDA pending ( New Drug Application) 1 drug In stage 3 clinical trials,7 In stage 2 clinical trials,5 In phase 1 clinical trials,and 7 In pre-clinical trials... They have some heavyweight partners as you can see below.
At Ligand, we believe collaboration is an important part of successful drug discovery and development. We have forged numerous valuable research and development alliances with global pharmaceutical companies that have ongoing clinical programs.
Pharmaceutical partnerships include the following companies and span programs in large market indications, such as muscle wasting, frailty, hormone-related diseases, osteoporosis, inflammatory diseases, anemia, asthma, rheumatoid arthritis and psoriasis.

•GlaxoSmithKline
•Wyeth
•Pfizer Inc.
•Bristol-Myers Squibb
•Schering-Plough
•Celgene
•Cephalon
•King Pharmaceuticals

Ligand Is Science
Our research and development programs—both within Ligand and with external partners—are built around our proprietary intracellular (IR) technology. Intracellar technology is the result of our ground-breaking work in the field of gene transcription. It is a powerful technology that has already generated numerous compounds which have advanced to late-stage clinical development.
Ligand Is Success
Ligand has the potential to realize profit streams from milestone and royalty revenues resulting from collaborations with pharmaceutical partners. Recently, we divested commercial assets, allowing us to focus on a business strategy that targets internal research and drug discovery that may provide future licensing opportunities. It seems to me that there are numerous drivers to push this stock In 2010. At a recent $1.93 per share I feel that the possibble upside outweighs the downside risks. Lots to like with such a diverse pipeline,and numerous high profile backers... TS

Doubled my original investment into LDND today. Believe this is one biotech that will outperform in the coming years.

just bought in real P F

you can hold it life long

Ligand has a number of good partnerships with strong pharma companies and they seem to have several good products in the pipeline. Buzz is about that Ligand is a potential target for acquisition but that's just hearsay; nevertheless, I think they could do quite well. Lots of inside ownership. I'll wait until the May 6 conference call and then make a purchasing decision.

zz

As patents for drugs begin to expire this year, many Japanese drug companies are looking to smaller U.S. based corporations to get a foothold on new products to offset their anticipated losses from the expiration of the patents. I foresee LGND being considered for acquisition, and the speculation will likely drive it's price up. They also have several upcoming releases which will spark their sales % upwards pending FDA approvals, and their current price is far below it's future potential.

Nice

http://valueplays.blogspot.com/2007/06/this-weeks-insider-buys.html