by Travis Johnson, Stock Gumshoe | August 13, 2013 11:03 am
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By October 3, 2013, the U.S. Food and Drug Administration (FDA) will decide whether to approve Ligand Pharmaceutical’s (LGND) drug Aprela for the treatment of menopausal symptoms and the prevention of postmenopausal osteoporosis in non-hysterectomized women. This drug is being developed by Ligand in partnership with Pfizer (PFE). After reviewing Aprela’s clinical trial results and relevant scientific literature, we believe Aprela will fail to receive FDA approval and, consequently, Ligand’s stock will underperform in the near term.
Your thoughts Travis? Buy on the dip?
Sorry……. above comments from Seeking Alpha.
Hi Dennis, my optimism about Ligand is due to their wide portfolio of potential deals in the works, many of which are fully funded opportunities to generate future royalties without more investment by LGND (or as LGND management likes to put it, they have a lot of “shots on goal”). GIven that, the failure of any one drug could present a buying opportunity — particularly if the failure isn’t tied specifically to Captisol, which underlies many of their drugs. The stock has jumped so much (largely because of optimism about future Kyprolis royalties following the Onyx/Amgen deal) that it would take a big fall of 20% or more to make this growth darling look inexpensive even if you squint through rose colored glasses, but I’d consider buying more if we get a significant haircut on any bad single-drug news.
Thanks Travis. Appreciate your quick comeback.