LGND

Ligand Pharmaceuticals Inc

Healthcare


Presented:12/11/2018
Price:$146.57
Cap:$3.12B
Current Price:$104.39
Cap:$1.91B

Presented

Date12/11/2018
Price$146.57
Market Cap$3.12B
Ent Value$6.26B
P/E Ratio20.11x
Book Value$33.16
Div Yield0%
Shares O/S21.25M
Ave Daily Vol676,567
Short Int34.57%

Current

Price$104.39
Market Cap$1.91B
Ligand Pharmaceuticals, Inc. is a biopharmaceutical company, which engages in developing or acquiring technologies that help pharmaceutical companies discover and develop medicines. Its products include evomela, IV voriconazole, duavee, viviant/conbriza, nexterone, and noxafil-IV. The company was founded by Ronald M. Evans in 1987 and is headquartered in San Diego, CA.

Publicly traded companies mentioned herein: Amgen Inc (AMGN), Ligand Pharmaceuticals Inc (LGND), Novartis AG (NVS)

Highlights

The presenter is short shares of Ligand Pharmaceuticals (LGND) on the premise that its underlying revenue and pipeline opportunities fail to support its lofty valuation. At 46x forward Street EPS estimates and a ~$3B EV, the market seems to be giving the company a substantial amount of credit for its pipeline of partnerships and “shots on goal” model; however, with two products driving 95% of its royalty revenue (Promacta and Kyprolis), and a patent expiry in 2021 for one of them (Promacta), even giving the company substantial credit for its pipeline doesn’t justify the current stock price on a sum-of-the-parts basis. Rather, the presenter sees meaningful downside risk for shareholders over the next 12 months.

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Idea Discussion

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