Aware of the overhang By Eric Pierce
Staff Writer

The separation of Allergan Ligand Retinoid Therapeutics' (ALRIZ) 3.25 million units shouldn't have a major impact on shares of Ligand Pharmaceuticals (LGND), even though exercise of the warrants could add 6.5 million shares (20 percent) to LGND's 32.5 million shares outstanding. Under the separation, ALRIZ shareholders receive a common share of Allergan Ligand and two warrants, each to purchase one common share of LGND. The warrants, which are exercisable over three years at $7.12, are well into the money. LGND closed at $13.25 on Friday, up 12 percent on the week, placing each warrant $6.13 in the black.