Here's another version from Reuter's:
LOS ANGELES (Reuter) - Allergan Inc. and Ligand Pharmaceuticals Inc. said
Wednesday they decided to dissolve their Allergan Ligand Retinoid
Therapeutics Inc. joint venture, splitting the assets.
The deal provides for a ``clean, simple separation'' of the company's assets,
which are based on retinoid compounds, they said. Retinoids are agents that
selectively regulate cell growth and are believed to have broad applications
in treating cancer, skin disorders and other illnesses.
Both companies will take related fourth-quarter charges.
The companies said in a joint statement the deal follows the significant
growth in value of Allergan Ligand Retinoid Therapeutics following recent
positive trial results.
A Phase III trial concluded last month showed the venture's Panretin topical
drug was effective in treating Kaposi's Sarcoma, a skin cancer common in AIDS
patients.
Under the terms of the deal, Ligand will receive exclusive rights to oral and
topical Panretin, the compound that is closest to commercialization. Ligand
plans to apply for Food and Drug Administration approval of topical Panretin
for Kaposi's sarcoma by early next year.
A spokeswoman said Ligand expects about 30,000 AIDS patients would be
appropriate for the Panretin topical treatment, if it is approved. Ligand
also has Panretin oral capsules in Phase III trials for leukemia.
Ligand also gets rights to two more of the venture's most advanced compounds,
ALRT 268 and ALRT 324, being developed for non-insulin dependent diabetics.
Most of the joint venture's other 2,000 retinoid-based compounds will be
divided by lottery. Usually, the company that receives rights to a given
compound will pay the other company 6 percent of sales.
However, the deal provides for Allergan to receive higher royalties for
Panretin and certain other compounds that were allocated to Ligand, and show
particularly strong promise in the near term.
Allergan will receive 15 percent of the North American revenues of Panretin
and 10 percent of its overseas revenues. A Ligand spokeswoman said this
higher royalty payment would help even out terms of the deal.
The deal is scheduled to close Nov. 3.
Allergan stock edged up 62.5 cents to $34.875 on the New York Stock Exchange.
Ligand closed unchanged at $16.375, and Allergan Ligand was also unchanged at
$19.44, both on Nasdaq.
19:21 09-24-97 |
