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Cantor Cuts Ligand Pharma (LGND) to Sell, Says 'Take Money Off Table'

August 2, 2013 8:15 AM EDT Send to a Friend
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Price: $51.09 --0%

Rating Summary:
    5 Buy, 2 Hold, 0 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 8 | Down: 14 | New: 4
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Cantor Fitzgerald downgraded Ligand Pharma (NASDAQ: LGND) from Hold to Sell with a modified price target of $37.00 (from $36.00). Analyst Irina Rivkind thinks valuation is rich and is advising investors to take money off the table.

"We raise our PT to $37 and downgrade LGND to SELL since we think that valuation is too rich and money can be taken off the table (rather than a "short thesis")," said Rivkind.

He is cautious on the company's pipeline and Promacta.

"Management published an update on the Merck BACE inhibitor for Alzheimer's. We won't know if a change in a biologic marker will result in clinical improvements in the disease until 2017 at the earliest. This is a risky space and we are not including estimates for BACE at this stage. We are also not expecting significant upside from Promacta in HCV since physicians we spoke with indicated that the drug is not necessary for HCV patients with thrombocytopenia to receive interferon treatment, and treatment paradigms are changing. Management indicated Promacta could be approved in cancer indications as early as 2014-2015, but GSK has thus far remained quiet (and less bullish than Ligand) and we await more data to add additional revenues to our model," he added.

For an analyst ratings summary and ratings history on Ligand Pharma click here. For more ratings news on Ligand Pharma click here.

Shares of Ligand Pharma closed at $49.02 yesterday.




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