Ligand Enters into Exclusive License Agreement with GlaxoSmithKline to License Rights to LGD-4665 and other Ligand Thrombopoietin (TPO) Molecules
SAN DIEGO--
Ligand Pharmaceuticals Incorporated (NASDAQ:LGND) announced today
that it has entered into an exclusive, worldwide license agreement with
GlaxoSmithKline ("GSK") (NYSE:GSK) under which Ligand has licensed
worldwide exclusive rights to Ligand's LGD-4665 product candidate and
its other thrombopoietin (TPO)-related molecules to GSK. LGD-4665
currently is in Phase II for treatment of thrombocytopenia, a condition
of low-platelet levels commonly associated with a diverse range of
clinical disorders.
Under the terms of the agreement, GlaxoSmithKline will pay Ligand $5
million as an upfront license fee, up to $158 million in development and
commercial milestones and a 16% royalty on net sales. In the first year
of sales, royalties will be one-half of the regular royalty rate.
GlaxoSmithKline has the exclusive right to develop, manufacture and
commercialize LGD-4665, as well as other TPO related molecules
discovered by Ligand.
"This agreement is another step in our strategy of partnering
early-development assets to increase shareholder value while acutely
focusing on resource-efficient, novel pipeline assets. The timing and
structure of the deal is excellent for Ligand as it potentially provides
a robust royalty rate and milestone stream for a product that has, thus
far, demonstrated excellent and differentiated safety and efficacy,"
said John L. Higgins, President and Chief Executive Officer of Ligand
Pharmaceuticals. "In addition, this license agreement is a validation of
our program by a world leading pharmaceutical company with clear
development success in this field, and permits Ligand to prioritize its
development expenses on other promising programs going forward."
"We believe LGD-4665 will complement GSK's TPO receptor agonist program
that has resulted in the development of Promacta(TM)/Revolade(TM)
(eltrombopag), which was recently approved by the FDA," said Ad
Rawcliffe, Senior Vice President, Worldwide Business Development and R&D
Finance, GlaxoSmithKline. "We are pleased to extend our commitment to
develop novel therapeutics to address patients' needs."
Under the terms of the agreement, GlaxoSmithKline will direct all
product development and commercialization and will be responsible for
all costs going forward for development, patent maintenance and
prosecution, and commercialization. Ligand reported at the December 2008
American Society of Hematology annual meeting that LGD-4665 has the
potential for weekly dosing, has differentiated clinical pharmacology
from other products on the market and has promising potential efficacy
in ITP, based on interim clinical study results.
About Ligand Pharmaceuticals
Ligand discovers and develops new drugs that address critical unmet
medical needs of patients with muscle wasting, frailty, hormone-related
diseases, osteoporosis, inflammatory diseases and anemia. Ligand's
proprietary drug discovery and development programs are based on its
leadership position in gene transcription technology.
Forward-Looking Statements
This news release contains certain forward-looking statements by Ligand
that involve risks and uncertainties and reflect Ligand's judgment as of
the date of this release. Actual events or results may differ from
Ligand's expectations. In addition, there can be no assurance that the
parties will obtain any governmental clearance or approvals that may be
required; that GlaxoSmithKline will continue or actively pursue the
clinical development of LGD-4665 or any other TPO molecule; that
clinical development will be successful; that future clinical trial data
will be favorable or that such trials will confirm any improvements over
other products or lack of negative impacts; that product candidates will
receive required regulatory approvals or that they will be commercially
successful therapies, provide new options or be successfully marketed;
that our business will continue to grow or that shareholder value will
increase; that the FDA will accept any filing; that any future milestone
or royalty payments will be received, or that if any future milestones
or royalties are received that they won't be subject to third party
claims. The failure to meet expectations may reduce Ligand's stock
price. Additional information concerning risk factors affecting Ligand's
business can be found in prior press releases available via www.ligand.com
as well as in Ligand's public periodic filings with the Securities and
Exchange Commission at www.sec.gov.
Ligand disclaims any intent or obligation to update these
forward-looking statements beyond the date of this release. This caution
is made under the safe harbor provisions of the Private Securities
Litigation Reform Act of 1995.
Source: Ligand Pharmaceuticals Incorporated
Released December 18, 2008