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Biotech / Medical : Ligand (LGND) Breakout! -- Ignore unavailable to you. Want to Upgrade?

To: celeryroot.com who wrote (15794)	2/24/1998 5:40:00 PM
From: tonyt	Read Replies (1) \| Respond to of 32384

Ligand Pharmaceuticals Inc. Licenses Glycomed Patents To Cytel Corporation ============================================ SAN DIEGO, Feb. 24 /PRNewswire/ -- Cytel Corporation (NASDAQ:CYTL) and Glycomed, a wholly owned subsidiary of Ligand Pharmaceuticals Inc. (NASDAQ:LGND) today announced a non-exclusive licensing agreement under which Cytel will receive rights to a family of Glycomed patents relating to certain carbohydrate compounds for the treatment of acute inflammation, including Cytel's most advanced product, Cylexin. As a result of the agreement, Glycomed will receive an up-front license fee of $900,000 paid in restricted Cytel stock. Glycomed will also receive milestone payments of $1.5 million upon the first new drug application (NDA) filing and $3.5 million upon the first FDA approval of each licensed product. These payments may also be made, at Cytel's option, in its common stock. Glycomed will also receive royalties on worldwide net sales of a licensed or sub-licensed Cytel product. These royalties can vary depending upon the number of patents involved. "This license enhances the segment of our patent portfolio covering our carbohydrate-based cell adhesion inhibitor program for the treatment of acute inflammation," said Virgil Thompson, President and CEO of Cytel. "We are pleased to complete this agreement with Ligand which solidifies our patent position in this area. In January 1998 we received a Notice of Allowance on patent claims for the use of Cylexin, our lead drug candidate, and related compounds for the treatment of inflammatory disease. Over the past year we've made good strides in moving Cylexin forward in clinical trials. We are currently in registration trials with Cylexin for the prevention of reperfusion injury in infants undergoing hypothermic cardiopulmonary bypass during surgical repair of congenital heart defects." "We are pleased to enter this agreement with Cytel through which Ligand shareholders may participate in the successful development and commercialization of Cytel's lead product and other potential carbohydrate products, as well," said James R. Mirto, Ligand Vice President, Marketing and Business Development. Glycomed Incorporated, a biotechnology company specializing in the development of pharmaceuticals based on biological activities of complex carbohydrates, was merged into a wholly-owned subsidiary of Ligand in May 1995. Since 1989, Ligand Pharmaceuticals Inc. has established a leadership position 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 and men's health and skin diseases, as well as osteoporosis, cardiovascular, inflammatory and metabolic diseases. Cytel is a leader in the discovery and development of cell adhesion inhibitors for treatment of acute and chronic inflammation, and its Glytec unit is a leader in the manufacture of bioactive carbohydrates for use in pharmaceutical and consumer products. Epimmune, Inc., a wholly owned subsidiary of Cytel, is focused on the discovery and development of a new generation of safer, more potent vaccines for the prevention of cancer and infectious diseases. This press release may contain certain forward looking statements by Glycomed and 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 any product in the Glycomed, Ligand or Cytel pipeline will be successfully developed, that regulatory approvals will be granted, that patient and physician acceptance of these products will be achieved, that final results of human clinical trials will be consistent with any interim results, or that final results will be supportive of regulatory approvals required to market products. Glycomed and Ligand undertake no obligation to update the statements contained in this press release after the date hereof. This press release includes forward-looking statements that reflect Cytel management's current views of future events. Actual results may differ materially from the above forward-looking statements due to a number of important factors, including but not limited to the risks associated with the timing and cost of conducting human clinical trials, the pursuit of regulatory approvals, the possibility that testing may reveal undesirable and unintended effects or other characteristics that may prevent or limit the commercial use of proposed products, the establishment and maintenance of collaborative agreements and the achievement of research and development objectives by Cytel and its collaborators. Cytel Contacts: Ligand Contacts: Company Contact: Investors: Ned Hall Susan Atkins Chief Financial Officer 619-550-7687 Cytel Corporation 619-552-3000 Media: Mary Kenny Media Contact: 619-550-7536 Linda Seaton or Kelly Steeves Mentus, Inc. 619-455-5500 ext. 133 or ext. 129 SOURCE Ligand Pharmaceuticals Inc. -0- 02/24/98 /CONTACT: Ligand Investor Contact: Susan Atkins, 619-550-7687; Cytel Investor Contact: Timothy Scott, Mentus, Inc., 619-455-5500 ext. 113/ /Company News On-Call: prnewswire.com or fax, 800-758-5804, ext. 509313/