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Citron Publishes the Smoking Gun on Ligand Pharmaceuticals
Price Target of $35
Last week, Grant’s Interest Rate Observer published a thoughtful piece of journalism that suggested a $20 price target on Ligand Pharmaceuticals. For copyright purposes we cannot republish, but even Ligand management cannot question the credibility and neutrality of Grant’s.
The article came out as Citron has spent months working on Ligand to get a better understanding of their “shots on goal” business model to determine whether the company’s pipeline is legitimate or nothing but a pipe dream.
Citron will expose some of the dirtier secrets of Ligand and will explain why Ligand is a company designed for the “lazy investor” whose stock price has 80% downside from its current levels once people READ.
Ligand began as a biopharmaceutical company that initially tried, but failed, to successfully develop its own drugs. After over a decade as a public company (and an SEC investigation, a delisting from Nasdaq, and several management changes), Ligand changed its strategy to one of acquiring candidate drugs/technologies and forming partnerships to develop them further.
The value proposition for Ligand is that it is a “smarter” drug company – run by former investment bankers – that farms out the risk and costs of later stage drug development and R&D and commercialization to strategic partners with the expectation of receiving licensing fees when the drugs successfully reach the market.
We have heard “The Better Mousetrap Pharma” before and you know how that ends.