if you're wondering what former SQNA exec Kevin Kinsella is doing. He might also have been sellig his remaining AXPH shares for this.
Ligand and Private Investors Complete Second Investment in X-Ceptor
SAN DIEGO--(BW HealthWire)--Oct. 7, 1999--Ligand Pharmaceuticals Incorporated (Nasdaq:LGND) announced today that it has completed its second and final investment in X-Ceptor Therapeutics, Inc., the private corporation recently formed to conduct research in the field of orphan nuclear receptors.
Ligand invested $3.2 million in cash and other investors, including Farallon Capital Management, L.L.C., GIMV - Venture Capital and Sofinov (Societe Financiere D'Innovation), contributed $7.9 million in exchange for shares of Series B Preferred Stock. The completion of this second round of investment brings total X-Ceptor funding to the originally targeted level of $25 million.
At the second closing, Ligand also issued to X-Ceptor investors, founders and certain employees warrants to purchase 950,000 shares of Ligand common stock at a revised exercise price of $10.00 per share, a 32% premium over the closing price of Ligand common stock on October 5, 1999. The warrants expire on October 6, 2006.
At the first closing of the Series B Stock financing on June 30, 1999, Ligand invested $2.8 million in cash in exchange for shares of Series B Stock. Including Ligand's second investment, it is anticipated that Ligand will own approximately 17% of X-Ceptor's capital stock; Ligand's investment will be accounted for under the equity method. Ligand has retained certain rights to repurchase the capital stock of X-Ceptor at varying prices on the third or the fourth anniversary of closing.
"The funding of this creative new strategic venture enables X-Ceptor to accelerate development of the extensive orphan nuclear receptor technology licensed from Ligand and anticipated to be licensed from other leading academic centers," said Kevin J. Kinsella, X-Ceptor Chairman and Chief Executive Officer. "We have already assembled well-recognized experts in this field, occupied laboratory space and have begun to pursue attractive therapeutic targets among the orphan nuclear receptors."
"Completion of full funding for X-Ceptor places this company in a unique position to more fully exploit the exciting field of orphan nuclear receptor technology and its important therapeutic applications," said Andres Negro-Vilar, M.D., Ph.D., Ligand Senior Vice President of Research and Chief Scientific Officer and a member of the Board of Directors of X-Ceptor. "This expanded family of nuclear receptors may provide novel targets for cardiovascular disease, and metabolic and neurological disorders, among many others."
X-Ceptor Therapeutics, Inc.
X-Ceptor Therapeutics, Inc. is a private corporation whose mission is to conduct research in and identify products from the field of orphan nuclear receptors. X-Ceptor has been granted an exclusive license to use Ligand Pharmaceuticals Incorporated's orphan nuclear receptor technology that is not currently committed to other partnership programs and a nonexclusive license to use Ligand's enabling proprietary process technology as it relates to drug discovery using orphan nuclear receptors. Ligand Pharmaceuticals Incorporated holds Series B Convertible Preferred Stock in X-Ceptor and Ligand has the right to acquire all of the shares of X-Ceptor capital stock under certain conditions.
Ligand Pharmaceuticals Incorporated
Ligand Pharmaceuticals Incorporated discovers, develops and markets new drugs that address critical unmet medical needs of patients in the areas of cancer, skin diseases, and men's and women's hormone-related diseases, as well as osteoporosis, metabolic disorders and cardiovascular and inflammatory diseases. Ligand's first two drugs
-- Panretin(R) gel and ONTAK(R) -- were approved for marketing in the U.S. in early 1999 and are being marketed through its specialty cancer and HIV-center sales force in the U.S. Four additional oncology-related products are in late-stage development, including Targretin(R) capsules, Targretin(R) gel, Panretin(R) capsules, and Morphelan(TM) (licensed from Elan). Ligand's proprietary drug discovery and development programs are based on its leadership position in gene transcription technology, primarily related to Intracellular Receptors (IR) and Signal Transducers and Activators of Transcription (STATs).
Except for the historical information contained herein, this news release may contain certain forward looking statements by Ligand and actual results could differ materially from those described as a result of factors including, but not limited to, the following. There can be no assurance that X-Ceptor will be able to identify viable therapeutic targets; that Ligand will find the therapeutic targets developed by X-Ceptor to be economically attractive such that Ligand exercises the Ligand option; or that Ligand and/or X-Ceptor will be able to hire and retain qualified personnel. Additional information concerning these and other factors affecting Ligand's business can be found in press releases as well as in Ligand's public periodic filings with the Securities and Exchange Commission. Ligand disclaims any intent or obligation to update these forward-looking statements beyond the date of this release.
Note: Public information on Ligand Pharmaceuticals Incorporated, including our financial statements and other filings with the Securities and Exchange Commission, our recent press releases and the package inserts for products approved for sales and distribution in the United States, is available on our website at ligand.com.
Panretin(R) and Targretin(R) are registered trademarks of Ligand Pharmaceuticals Incorporated, and ONTAK(R) is a registered trademark of Seragen, Inc., a wholly owned subsidiary of Ligand.
Ligand Pharmaceuticals' releases are available on the World Wide Web at www.businesswire.com/cnn/lgnd.htm.
CONTACT:
Ligand Pharmaceuticals Incorporated
Paul V. Maier, 619/550-7573 |
