Publications
Publications
- November 2007 (Revised October 2009)
- HBS Case Collection
Ligand Pharmaceuticals Incorporated
Abstract
In an activist role, the hedge fund Third Point LLC has three board seats and an ownership stake of 9.5% in Ligand Pharmaceuticals, Inc., a specialty pharmaceutical company. Third Point believed that Ligand had a strong drug portfolio and pipeline but that it was highly undervalued due to poor management. After gaining board representation, Third Point convinced the other directors to try to sell the company. Six months have passed since Ligand began soliciting bidders, but no buyer has emerged. With the sale of the company appearing to have stalled, Third Point has to decide whether to restart the bidding process, hold onto a longer-term position, or walk away.
Keywords
Mergers and Acquisitions; Private Equity; Investment Activism; Investment Funds; Governing and Advisory Boards; Bids and Bidding; Ownership Stake; Pharmaceutical Industry; United States
Citation
El-Hage, Nabil N., and Michael Gorzynski. "Ligand Pharmaceuticals Incorporated." Harvard Business School Case 208-019, November 2007. (Revised October 2009.)