Quantcast
Channel: BioHealth Investor » NRGN
Viewing all articles
Browse latest Browse all 2

Ligand's Largest Holder BVF Lightens Up Stake (LGND, NRGN, MRK)

0
0

LIGAND PHARMACEUTICALS INC. (NASDAQ: LGND) has been one of the small cap low-priced biotech stocks for some time, and it is a fraction of what it once was.  This week the company said that it would acquire Neurogen Corporation (NASDAQ: NRGN) for $11 million plus some contingent value rights.  But what is interesting is that Ligand’s largest holder, a BVF Partners (BVF Investments and BVF Inc.), trimmed its stake by roughly one-third. The sale of 4,552,550 at $2.57 per share took place on August 24, 2009.

Ligand’s news this week was that it entered into a definitive merger agreement where Ligand will acquire Neurogen, where Neurogen holders would receive an estimated $11 million in Ligand common stock and will be granted Contingent Value Rights under four agreements. The CVR’s entitle Neurogen shareholders to cash payments for the sale or licensing of certain assets and the achievement of a specified clinical milestone.  The deal has also been approved by both boards of directors.

Ligand stockholders will gain access to a partnership with Merck (NYSE: MRK) for Vanilloid Receptor Subtype 1 (VR1) Antagonists, additional pipeline assets and drug discovery resources, and approximately $7 million in net cash.  Neurogen also has more than $180 million in net operating loss carryforwards.  Today’s filing shows that on August 24, 2009, which is roughly when the news came out about the merger, BVF Inc. sold some 4,552,550 at a price of $2.57 for a value of about $11.7 million.  If you review the entire day’s trading volume, there were only about 5.8 million shares that traded all day and you have to go to the end of June before you can find a single day where 1 million shares or more traded hands.

Current filings with data as of June 30, 2009 show that WELLINGTON MANAGEMENT COMPANY, LLP is now the largest holder of Ligand with some 15,814,671 coming to a take of 13.99%.  The FORM 4 filed with the SEC shows that BVF now holds some 10,617,400 shares of direct/indirect ownership.  We have placed a call into BVF to see if further sales are coming or if this was over any specific reasons.  BVF sold shares worth back in June worth some $2.4 million as well.

JON C. OGG
August 27, 2009


Viewing all articles
Browse latest Browse all 2

Latest Images

Trending Articles





Latest Images