Here's what Bloomberg had to say:
Ligand to Buy Seragen for $30 Million in Cash and Stock
Bloomberg News
May 11, 1998, 5:15 p.m. PT
Ligand to Buy Seragen for $30 Million in Cash and Stock
San Diego, May 11 (Bloomberg) -- Ligand Pharmaceuticals
Inc. has agreed to buy Seragen Inc. for $30 million in cash and
stock, a move that will give the company rights to the cancer
drug Ontak.
Ligand, a San Diego-based drug maker, will pay $4 million
in cash and $26 million in stock, or about 1.89 million shares at
$13.99 a share, the company said. Ligand also signed an agreement
with Eli Lilly & Co. that would give it the complete rights to
Ontak, which were previously held by Seragen and Eli Lilly, after
the purchase is complete.
Ligand may also pay an additional $37 million in cash or
stock to Seragen after Ontak, which is used to treat cutaneous T-
cell lymphoma, receives approval from the Food and Drug
Administration. That payment won't be made if the drug isn't
approved within two years of closing.
If the $37 million payment is made, Ligand will have paid a
49 percent premium over Seragen's closing price Monday. Seragen
closed at 49 cents today.
Ligand may pay Lilly $10 million if the drug meets certain
goals, which weren't specified, the company said.
--Wes Conard in the Princeton newsroom (609) 279-41 |
