Ligand Partner Viking Therapeutics Announces Closing of Initial Public Offering
SAN DIEGO--
Ligand Pharmaceuticals Incorporated (NASDAQ: LGND) partner Viking
Therapeutics, Inc. (NASDAQ: VKTX) announced that it had closed
its initial public offering (the “Viking IPO”) of 3,000,000 shares of
its common stock at an initial offering price to the public of $8.00 per
share. Viking granted the underwriters a 30-day option to purchase up to
an additional 450,000 shares of common stock at the same price to cover
over-allotments, if any. The shares are trading on the Nasdaq Capital
Market under the ticker symbol “VKTX.”
In connection with the pricing of the Viking IPO, the Company purchased
1,125,000 shares of Viking common stock for an aggregate price of $9.0
million at the price offered to the public. In addition, pursuant to the
Master License Agreement, dated May 21, 2014 (as amended, the “Master
License Agreement”) by and between the Company, Metabasis Therapeutics,
Inc., a wholly-owned subsidiary of the Company, and Viking, the Company
received 3,427,859 million shares of Viking common stock on closing of
the Viking IPO, subject to adjustment in the event the underwriters
exercise their option to purchase additional shares to cover
over-allotments, if any. As of the closing date, the Company owned an
aggregate of 49.9% of Viking, based on the shares of outstanding Viking
common stock at the closing of the Viking IPO.
As a result of the Viking IPO, the Company will make a cash payment to
the holders of contingent value rights under the TR Beta Contingent
Value Rights Agreement, dated January 27, 2010 (as amended, the “TR Beta
CVR”) and the General Contingent Value Rights Agreement, dated January
27, 2010 (as amended, and together with the TR Beta CVR, the “CVR
Agreements”). Pursuant to the CVR Agreements, the Company estimates that
the aggregate cash payment will be approximately $3.3 million, subject
to adjustment in the event the underwriters exercise their option to
purchase additional shares to cover over-allotments, if any. The payment
is expected to be made on or about January 1, 2016.
Ligand will provide a summary of the accounting impact of this offering
by June 30, 2015.
About Ligand Pharmaceuticals
Ligand is a biopharmaceutical company with a business model focused on
developing or acquiring royalty generating assets and coupling them with
a lean corporate cost structure. Ligand’s goal is to produce a bottom
line that supports a sustainably profitable business. By diversifying
the portfolio of assets across numerous technology types, therapeutic
areas, drug targets and industry partners, we offer investors an
opportunity to invest in the increasingly complicated and unpredictable
pharmaceutical industry. In comparison to its peers, we believe Ligand
has assembled one of the largest and most diversified asset portfolios
in the industry with the potential to generate revenue in the future.
These therapies seek to address the unmet medical needs of patients for
a broad spectrum of diseases including diabetes, hepatitis, muscle
wasting, Alzheimer’s disease, dyslipidemia, anemia, asthma and
osteoporosis. Ligand’s Captisol® platform technology is a
patent-protected, chemically modified cyclodextrin with a structure
designed to optimize the solubility and stability of drugs. Ligand has
established multiple alliances with the world's leading pharmaceutical
companies including Novartis, Amgen Inc., Merck, Pfizer, Baxter
International and Eli Lilly & Co. Please visit www.captisol.com
for more information on Captisol and www.ligand.com
for more information on Ligand.
Follow Ligand on Twitter @Ligand_LGND.
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. These statements include those related to
Company’s ownership percentage in Viking; shares of Viking common stock
to be received in the event the underwriters exercise their option to
purchase additional shares to cover over-allotments, if any; the timing
and amount of the payment to be made to holders of contingent value
rights. Actual events or results may differ from our expectations. For
example, the cash payment to CVR holders is subject to adjustment based
on Ligand’s reasonable expenses in connection with the Master License
Agreement and Viking IPO and there can be no assurance that the final
payment amount will be the same as the estimated amount. The failure to
meet expectations with respect to any of the foregoing matters may have
a negative effect on Ligand's stock price. Additional information
concerning these and other 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 current and 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.
Ligand Pharmaceuticals
Todd Pettingill, Sr. Manager, Corp Dev and IR
858-550-7500
investors@ligand.com
@Ligand_LGND
or
Incorporated
LHA
Bruce Voss, 310-691-7100
bvoss@lhai.com
@LHA_IR_PR
Source: Ligand Pharmaceuticals Incorporated
Released May 5, 2015