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Biotech / Medical : Biotech Valuation -- Ignore unavailable to you. Want to Upgrade?

To: Biomaven who wrote (5807)	3/6/2002 9:53:03 PM
From: Michael Young	Respond to of 52153

Interesting deal from LGND. They are raising money without issuing more stock. A knock on the company has been that management has diluted stockholders too much. < Ligand sells small share of future SERM profits SAN DIEGO, March 6 (Reuters) - Ligand Pharmaceuticals Inc. <LGND.O> said on Wednesday that Royalty Pharma AG, a buyer of royalty interests in drugs, has purchased rights to a share of Ligand's future profits from three estrogen products now in late-stage development. San Diego-based Ligand said Royalty Pharma paid $6 million in exchange for 0.250 percent of net sales of the selective estrogen receptor modulator (SERM) products for 10 years. Royalty Pharma also has the option to purchase at escalating prices the rights for up to 1 percent of the products' net sales for 10 years, for a total of $56 million. The payment schedule is for up to $11 million during 2002, an additional $12.5 million in 2003 and up to $26.5 million through the second quarter of 2004, Ligand said. Under the agreement, unexercised options expire on their due date and cannot be deferred or accelerated and all payments are nonrefundable The products included in the transaction are lasofoxifene, which is in phase III studies for osteoporosis at Pfizer Inc. <PFE.N>, and TSE-424 and TSE-424/PREMARIN(R), which are in phase III trials at American Home Products Corp.'s <AHP.N> Wyeth divison for osteoporosis and hormone replacement therapy. Ligand said that milestone payments owed by its partners as the products complete development are not included in the Royalty Pharma agreement. "We expect this transaction to be neutral or modestly accretive to Ligand's earnings, net of accelerated investments, through 2004," Paul Maier, Ligand's chief financial officer, said in a statement. 19:17 03-06-02>>