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

To: Wallace Rivers who wrote (17599)	3/18/1998 10:25:00 AM
From: Henry Niman	Read Replies (1) \| Respond to of 32384

Here's what Dow Jones had to say: SmithKline, Ligand Pharma To Expand Collaboration SAN DIEGO (Dow Jones)--Ligand Pharmaceuticals Inc. (LGND) and SmithKline Beecham PLC (SBH) agreed to expand their collaboration effort to develop small molecule drugs used to treat or prevent obesity. In a press release Wednesday, Ligand said the expansion now includes the use of small molecule drugs that modulate the signaling pathway controlled by leptin as a means of discovering orally available drugs for obesity treatment. Last year's collaboration included the xisng hematopet growth factor alliance. As part of the leptin-obesity collaboration, SmithKline will purchase 274,423 Ligand common shares for $5 million, or $18.22 a share. This represents a 20% premium over a 15-day trading average of Ligand's stock. Also, SmithKline will purchase for $1 million a warrant to buy 150,000 Ligand common shares at $20 a share. The warrant expires in five years, and Ligand may require SmithKline to exercise the warrant under certain circumstances after three years. In addition, SmithKline will purchase additional Ligand common stock at a 20% premium if a research milestone is achieved. The agreement also calls for cash payments if subsequent milestones are met. As part of the new agreement, SmithKline will obtain exclusive worldwide rights to products resulting from the obesity collaboration. Also, SmithKline agreed to make milestone payments to Ligand as compounds progress through preclinical and clinical development. In addition, SmithKline will make royalty payments on sales if products result from the research. Under this new agreement, Ligand will provide its STATs technology and expertise in cytokines, while SmithKline will provide its expertise in obesity and diabetes. SmithKline Beecham is a pharmaceutical company. Ligand Pharmaceuticals is a drug company.