Ligand Pharmaceuticals Disposes Of Promacta, Plunges 13 Percent

Ligand Pharmaceuticals Inc. (LGND) disposes of Promacta, shares plunge 13 percent, hit 2-year low

Ligand Pharmaceuticals

“…the company faces it biggest existential threat in what is likely to be a momentous impairment of its largest royalty generating asset, Promacta,”

Fr. Emmanuel Lemelson, June 16, 2014 Research Report

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Shares of Ligand Pharmaceuticals continued its downward spiral, plunging 13 percent in early trading today, March 6, 2019, falling as much as 63 percent since September 30, 2018 and hitting a 2-year low.

Yesterday after market close the company reported it was disposing its single-largest asset, the 25 year-old Promacta, stating in part:

"We do not control the IP and some of the initial patents come off as early as 2021," (referring to the event as a 'patent cliff')."

The company further stated:

"When it [Promacta] does royalties are expected to quickly diminish significantly... when off patent, the following year the company estimated it could lose over $125 million of revenue,"

In June 2014, Lemelson Capital Management issued its first report pointing out competitive threats to Promacta, its limited future potential as well as the risks associated with Ligand's revenue streams. Since that time, Fr. Emmanuel has publish 4 additional research reports, issued 16 articles/press releases, posted 66 tweets, given 13 interviews, and written two letters to Congress, making nearly 1,000 distinct allegations, including accounting and securities fraud perpetrated by Ligand.

In January 2019 multiple law firms announced investigations into Ligand for possible violations of federal securities laws.

Ligand Pharmaceuticals Inc. (LGND) accounting and securities fraud

On July 17, 2018 Rev. Fr. Emmanuel published an open letter to Congress alleging a multi-year accounting and securities fraud at Ligand Pharmaceuticals the company has since been sued for $3.8 billion by investors.

On August 14, 2014 Lemelson Capital Management, LLC published a report outlining the risk of the bond offering, questioned the representations made by the company, and pointing out that the offering may eventually lead to solvency risks.


Letters to Congress Regarding Ligand:

The Ligand Research Reports:

The Ligand Interviews:




About the Author

Jacob Wolinsky
Jacob Wolinsky is the founder of ValueWalk.com, a popular value investing and hedge fund focused investment website. Prior to ValueWalk, Jacob was VP of Business Development at SumZero. Prior to SumZero, Jacob worked as an equity analyst first at a micro-cap focused private equity firm, followed by a stint at a smid cap focused research shop. Jacob lives with his wife and four kids in Passaic NJ. - Email: jacob(at)valuewalk.com - Twitter username: JacobWolinsky - Full Disclosure: I do not purchase any equities anymore to avoid even the appearance of a conflict of interest and because at times I may receive grey areas of insider information. I have a few existing holdings from years ago, but I have sold off most of the equities and now only purchase mutual funds and some ETFs. I also own a few grams of Gold and Silver