This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Ligand Pharmaceuticals on Long Road Back

When asked by one analyst during a Nov. 18 conference call if the whole company might be sold, David Robinson, the chairman and CEO, said Ligand is "open to all strategic opportunities to enhance our shareholders value."

The best way to improve shareholder value is to replace the board, says Daniel S. Loeb, chief executive of Third Point in a letter to shareholders.

Third Point issued its challenge just before Ligand announced its own plan to seek alternatives. Loeb says he acted because the company ignored his previous request to add three Third Point nominees to the board to help devise a new strategy.

Meanwhile, Ligand's stock has held up well since it hit a 52-week low of $4.75 in April. It closed Wednesday at $10.40, but prices have bounced between about $4 and $24 during the past three years.

Ligand's revenue comes from a mixture of marketed products and experimental compounds for which it receives royalties and milestone payments through deals with companies including Pfizer (PFE - Get Report), Eli Lilly (LLY - Get Report), Wyeth (WYE) and GlaxoSmithKline (GSK - Get Report).

Some of those deals have hit a wall either in the lab or at the Food and Drug Administration. In September, the FDA rejected an application from Pfizer for the osteoporosis treatment Oporia. Ligand would get milestone payments if the drug is approved, as well as additional royalties on worldwide sales. Pfizer said it will discuss its application with the agency and consider various possibilities.

Ligand's Robinson told investors on Nov. 18 that while he was disappointed with the FDA's decision, he expects Oporia to be "an important asset going forward."

Pfizer also submitted Oporia for FDA review as a treatment for vaginal atrophy. Pfizer declined to comment on the status of this application. Pfizer continues to work on a version of Oporia for breast cancer.
2 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
AKZOY $21.62 0.00%
GSK $39.50 0.00%
LLY $87.52 0.00%
LGND $89.45 0.00%
PFE $33.08 0.00%


Chart of I:DJI
DOW 16,472.37 +200.36 1.23%
S&P 500 1,951.36 +27.54 1.43%
NASDAQ 4,707.7750 +80.6910 1.74%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs