Ligand Pharmaceutical upgraded to "neutral"

03/14/03 - First Albany

NEW YORK, March 14 (New Ratings) – Analysts at First Albany upgrade Ligand Pharmaceutical Inc (LGND) from "under perform" to "neutral." The 12-month fair value is set to $8.

Shares of Ligand Pharmaceutical, a company that develops drugs for cancer, skin disorders and endocrinologic diseases, are currently trading at $5.33.

According to First Albany’s research note, Ligand Pharmaceutical recently announced that there would be more than 800 sales representatives for the Avinza this year, a substantial hike from the 50 sales representatives in 2002. The analysts believe that this move, as well as Ligand Pharmaceutical’s alliance with Organon, would substantially boost the sales of Avinza, one of the company’s key products.

The analysts expect the recent plans for reinvigorating Ontak and Targetin, after the Avinza launch distraction in 2002, to work. The analysts believe that the stock is now trading at a reasonable price and has probably bottomed out.

The EPS estimates for 2002, 2003 and 2004 are -$0.46, -$0.39 and $0.22, respectively. The P/E estimate for 2004 is 24.2x.

First Albany upgrades Ligand Pharmaceutical Inc from "under perform" to "neutral."