Here's the press release on the second milestone payment from PFE:
Ligand Receives Second Milestone in Stock from Pfizer for Continuance of Osteoporosis
Development; Ligand Retires Over 100,000 Shares
SAN DIEGO, Sept. 4 /PRNewswire/ -- Ligand Pharmaceuticals Inc.
(Nasdaq: LGND) today announced that it has received from Pfizer Inc
(NYSE: PFE) a milestone payment of $900,000 payable in 72,728 shares of Ligand
Common Stock on Sept. 1. The milestone is a result of Pfizer's continued
development of droloxifene for osteoporosis, in addition to breast cancer.
The milestone is the second of two milestones this year which Ligand has
elected to receive in Ligand Common Stock currently held by Pfizer. Ligand
received 28,283 shares in May, and confirms its intention to retire all
101,011 shares.
"It is good news for osteoporosis patients that a strong company like
Pfizer continues to develop this important product (droloxifene) in this
indication in addition to breast cancer," said David E. Robinson, Ligand
Chairman, President and Chief Executive Officer.
Droloxifene is a Pfizer compound worked on by Ligand at Pfizer's request
during the research phase of the Ligand-Pfizer collaboration. Droloxifene is
currently in Phase III clinical trials for breast cancer and Phase II clinical
trials for osteoporosis. Over 25 million Americans have osteoporosis, a
debilitating disease characterized by the depletion of bone mass which can
lead to increased risk of fractures.
Pfizer originally purchased 1,353,125 shares of Ligand Common Stock and
following this transaction now holds 1,252,114 shares. Under the terms of an
agreement settling a contract dispute, either Ligand or Pfizer may elect to
have milestone payments (up to $6,150,000) and royalty payments on droloxifene
or CP-336,156 made by Pfizer delivery of Ligand Common Stock valued at $12.375
per share, the market price on April 19, 1996, the date of the agreement. To
permit this election, Pfizer agreed to hold the Ligand Common Stock it
currently owns for a period of seven years from settlement or until it
discontinues development of all products that are eligible for milestone or
royalty payments, whichever occurs first.
CP-336,156 is an estrogen partial agonist resulting from the Pfizer-Ligand
research collaboration completed in November 1993. Preclinical studies in
vitro and in vivo conducted by Pfizer indicate that the compound retains the
bone-sparing and cardioprotective benefits of estrogen without the associated
increase in uterine cancer risk and has good oral bioavailability with a
suitable pharmacokinetic profile and excellent pharmacodynamic properties
(efficacy at inhibiting bone loss after estrogen withdrawal without causing
uterine proliferation) at very low daily doses.
Milestone and royalty payments for droloxifene are contingent upon
droloxifene's advancement toward regulatory approval and sales as a drug in
breast cancer, osteoporosis or other indications. The royalty rate will be 1%
on droloxifene worldwide sales for breast cancer. If Pfizer makes sales of
droloxifene for any indication other than breast cancer, including
osteoporosis, the royalty will then be 3% for all indications.
Ligand is also entitled to any remaining milestone payments, to the extent
not earned as a result of the development of droloxifene, and full royalties
of 6% on all indications for the Pfizer compound CP-336,156, if that compound
should also advance toward regulatory approval. Pfizer has confirmed that it
expects to initiate Phase I clinical trials with CP-336,156 in Europe in the
fourth quarter of 1996.
Ligand and Pfizer initiated their 1991 collaboration to apply Ligand's
intracellular receptor (IR) technology to the pursuit of drugs for the
treatment of osteoporosis. The research phase of the collaboration ended in
1993, with the announcement that the research objectives had been achieved and
a candidate had been identified for development by Pfizer. Ligand accepted
its first milestone in cash from Pfizer in 1993 for the identification of a
third generation osteoporosis compound.
Pfizer Inc is a diversified, research-based health care company with
global operations. The company reported sales of nearly $10.2 billion for
1995.
Ligand Pharmaceuticals Inc., founded in 1987, is a leader in gene
transcription technology, particularly intracellular receptor (IR) technology
and Signal Transducers and Activators of Transcription (STATs). Ligand
applies IR and STATs technology to the discovery and development of small
molecule drugs to enhance therapeutic and safety profiles and to address major
unmet patient needs in cancer, women's health and skin diseases, as well as
osteoporosis, cardiovascular and inflammatory disease.
This statement contains 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 droloxifene or CP-336,156, or any development candidate
identified as a result of the Ligand-Pfizer collaboration, will be
successfully developed, that regulatory approvals will be granted, or patient
and physician acceptance of these products will be achieved.
NOTE: If you would prefer to receive Ligand press releases via email
please inform us at investors@ligand.com and request to be placed on our
priority email list.
SOURCE Ligand Pharmaceuticals, Inc.
CONTACT: Susan E. Atkins of Ligand Pharmaceuticals, 619-550-7687 |
