This was in Reuter's Health News today:
Allergan, Ligand To Split Retinoid Project
LOS ANGELES, CA, Sep 26 (Reuters) - Allergan Inc. and Ligand Pharmaceuticals
Inc. said Wednesday that they decided to divide the assets of their Allergan Ligand
Retinoid Therapeutics Inc. joint venture, effectively dissolving the company.
They said that the deal provides for a "clean, simple separation" of the company's
assets, which are based on retinoid compounds. Both companies will take related
fourth-quarter charges. The two companies will acquire the assets of the joint venture
for $21.97 per share, or $71.4 million.
In a joint statement, the companies said that the decision to dissolve their joint venture
reflects the significant appreciation in the value of Allergan Ligand Retinoid
Therapeutics following recent positive trial results. A Phase III trial concluded last
month showed that the venture's Panretin topical drug was effective in treating Kaposi's
Sarcoma patients.
"We believe (the division of assets) will maximize the value...for Allergan, Ligand and
their shareholders as well as future patients who may benefit from medicines created in
this venture," Ligand Chairman David Robinson said in a statement.
According to terms of the deal, Ligand receives 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 that Ligand expects that about 30,000 AIDS patients would
qualify 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% 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% of the
North American revenues of Panretin and 10% of its overseas revenues.
A Ligand spokeswoman said that this higher royalty payment would help even the
terms of the deal, which is scheduled to close on November 3. |
