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

To: Roy Henninger who wrote (17033)	3/10/1998 4:11:00 AM
From: JT	Respond to of 32384

Ligand Pharmaceuticals Incorporated Extends Product Option with Eli Lilly and Company SAN DIEGO, March 9 /PRNewswire/ -- Ligand Pharmaceuticals Incorporated (Nasdaq: LGND) announced today that Lilly has extended Ligand's option included in its collaborative arrangement in metabolic disease with Eli Lilly and Company (NYSE: LLY) to acquire selected rights to one Lilly specialty pharmaceutical product in certain markets of interest to Ligand. Under the terms of the original agreement, Ligand had a limited period of time to exercise the product option. The amended agreement allows Ligand additional time to complete its evaluation and assess certain product development, manufacturing and sourcing issues for the U.S. and select European markets that affect the product's commercial potential. If the option is exercised, the product would fit into a current area of strategic focus for Ligand. The product is on a timeline that is compatible with acceleration of Ligand's corporate goals. Should Ligand elect to obtain selected rights to the product, Lilly could receive milestones of up to $20 million in Ligand stock. In the event Ligand does not exercise this product option, Ligand may elect to sell an additional $20 million in equity to Lilly at a 20 percent premium to the then market price, and qualify for certain additional royalties on net sales on Ligand's choice of Targretin(TM) (LGD1069), LGD1268 or LGD1324. "We are pleased with our review to date of the Lilly specialty product. Because it may afford Ligand a significant near-term commercial opportunity, we want to spend the time necessary to ensure that all issues relative to acquiring the product and laying the groundwork for a contribution to earnings per share are carefully weighed and evaluated toward a smooth integration with Ligand's business objectives. Our evaluations continue in parallel with the ongoing development and registration activities for the specialty product," said David E. Robinson, Ligand Chairman, President and Chief Executive Officer. Since 1989, Ligand Pharmaceuticals Incorporated has established a leadership position in gene transcription technology, particularly intracellular receptor (IR) technology and Signal Transducers and Activators of Transcription (STATs). Ligand has applied IR and STATs technology to the discovery and development of small molecule drugs to enhance therapeutic and safety profiles and to address unmet patient needs in cancer, women's and men's health and skin diseases, as well as osteoporosis, metabolic, cardiovascular and inflammatory disease. Except for the historical information contained herein, this press release may contain certain forward-looking statements by Ligand, and actual results could differ materially from these described as a result of factors including but not limited to the following. There can be no assurance that the specialty pharmaceutical product will be successfully developed, that regulatory approvals will be granted, or that there will be a market if, in fact the product is approved for marketing. There can also be no assurance that Ligand's due diligence on the product will be successful, that Ligand will exercise its option, or if exercised, that Ligand will be successful in commercializing the product. Ligand undertakes no obligation to revise or update the press release to reflect events or circumstances after the date hereof. SOURCE Ligand Pharmaceuticals Incorporated -0- 03/09/98 /CONTACT: Susan Atkins, Vice President, Corporate Communications & Investor Relations for Ligand Pharmaceuticals Incorporated, 619-550-7687/ /Company News On-Call: prnewswire.com or fax, 800-758-5804, ext. 509313/ (LGND LLY)