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.

Background

  • 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.

READ THE FULL REPORT HERE