Market Overview

I think you’ll love what you hear,
what you’ll see and the opportunities
that will be set before you.
- Jon Najarian
GET TICKETS

Deutsche Bank Cuts Ligand Pharma To Hold

Share:

In a report published Monday, Deutsche Bank analyst Gregg Gilbert downgraded the rating on Ligand Pharmaceuticals, Inc. (NASDAQ: LGND) from Buy to Hold, with a price target of $94. The analyst believes that the risk/reward profile of the stock is more balanced at present.

Both the business and the stock have been performing well since December 2014, with strong growth in its core assets, Promacta and Kyprolis, favorable pipeline developments and robust interest in the company enabling its Captisol technology.

The analyst believes that there could be potential for the estimates to prove conservatives, especially if the company launches some large products. "We also note the potential for upside from business development activity, which is not reflected in our model. Extensive pipeline of royalty and milestone-bearing assets LGND has over 120 fully-funded partnerships and programs and believes that its royalty-bearing assets could grow to over 20 by 2020 (from seven now) assuming industry average statistics," the Deutsche Bank report said.

The management expects its "Big Six" assets to have the potential to generate over $330 million in peak royalties. In addition, there are earlier-stage candidates that are being internally developed and are likely to be monetized via partnerships.

"We model continued strong royalty growth from NVS's Promacta and AMGN's Kyprolis, and contribution from LGND's two nearer-term product candidates, CE-Melphalan and Delafloxacin IV, starting in 2016. We also model royalties from other new products starting in 2018 to give the company some credit for its extensive pipeline," the report added.

Latest Ratings for LGND

DateFirmActionFromTo
Sep 2018MaintainsBuyBuy
Aug 2018Initiates Coverage OnNeutral
Aug 2018DowngradesBuyNeutral

View More Analyst Ratings for LGND
View the Latest Analyst Ratings

Posted-In: Deutsche Bank Gregg GilbertAnalyst Color Downgrades Analyst Ratings

 

Related Articles (LGND)

View Comments and Join the Discussion!

Latest Ratings

StockFirmActionPT
LEADowngrades
JHXDowngrades
CIRDowngrades
YUMMaintains105.0
MARMaintains135.0
View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Trading Daily
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Daily Analyst Rating
A summary of each day’s top rating changes from sell-side analysts on the street.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at vipaccounts@benzinga.com

Wunderlich Downgrades Two Harbors Investment To Hold

A New Cryptocurrency Draws Its Power From Unicorns