The Wreck At Ligand Pharma (LGND)
A sell-off in Ligand Pharmaceuticals (LGND), an early stage biotech, is managing to blow-up the dreams of many of its investors. The stock has fallen as low as $2.16 today, off about 30% to a new 52-week low. The high for the period is $7.37. Volume is running 5x to 10x normal.
The firm has a moderately good first quarter. Revenue rose from $235,000 last year to $4.84 million. Operating loss dropped from $16.9 million to $9.7 million.
LGND gave fairly strong guidance as well. Affirming its previous 2008 revenue forecast, the company expected to receive approximately $20 million in royalty revenue for the full year from King Pharmaceuticals for sales of AVINZA plus potential milestone payments from existing corporate partners. For the remaining three quarters of 2008, LGND anticipated total operating costs will be between $27 and $30 million.
Douglas A. McIntyre