Ligand Pharmaceuticals Acquires Avista Therapeutics for $100M Upfront

TL;DR

Ligand just bought Avista for $100M upfront + milestones to boost its gene therapy game.

AI Summary

On June 27, 2024, Ligand Pharmaceuticals Inc. announced the closing of its previously disclosed acquisition of all outstanding shares of Avista Therapeutics, Inc. The transaction included an upfront payment of $100 million and potential milestone payments of up to $175 million, plus royalties. This acquisition is expected to enhance Ligand's drug discovery and development capabilities.

Why It Matters

This acquisition allows Ligand Pharmaceuticals to expand its portfolio with Avista's novel gene therapy platform, potentially leading to new treatments for ocular diseases.

Risk Assessment

Risk Level: medium — The acquisition involves significant upfront and potential future payments, with success dependent on the development and commercialization of Avista's pipeline.

Key Numbers

• $100.0M — Upfront Payment (Cash paid by Ligand Pharmaceuticals to acquire Avista Therapeutics.)
• $175.0M — Potential Milestone Payments (Additional payments Ligand Pharmaceuticals may make based on Avista's development and commercial success.)

Key Players & Entities

• Ligand Pharmaceuticals Inc. (company) — Acquiring company
• Avista Therapeutics, Inc. (company) — Acquired company
• $100 million (dollar_amount) — Upfront payment for acquisition
• $175 million (dollar_amount) — Potential milestone payments
• June 27, 2024 (date) — Closing date of acquisition

FAQ

Key Financial Figures

• $0.001 — ich registered Common Stock, par value $0.001 per share LGND The Nasdaq Global Market
• $5.8 million — than 20 years. The Company has earned a $5.8 million milestone payment upon FDA approval of
• $13.8 million — f Ohtuvayre and will earn an additional $13.8 million upon its commercial launch which is exp

Filing Documents

• lgnd-20240627.htm (8-K) — 25KB
• 0000886163-24-000051.txt ( ) — 148KB
• lgnd-20240627.xsd (EX-101.SCH) — 2KB
• lgnd-20240627_lab.xml (EX-101.LAB) — 22KB
• lgnd-20240627_pre.xml (EX-101.PRE) — 13KB
• lgnd-20240627_htm.xml (XML) — 3KB

01 Other Events

Item 8.01 Other Events. On June 27, 2024, Ligand Pharmaceuticals Incorporated (Nasdaq: LGND) (the "Company") announced that its partner Verona Pharma plc has received approval from the U.S. Food and Drug Administration ("FDA") for OhtuvayreTM (ensifentrine), the first inhaled product with a novel mechanism of action available for the maintenance treatment of chronic obstructive pulmonary disease (COPD) in adult patients in more than 20 years. The Company has earned a $5.8 million milestone payment upon FDA approval of Ohtuvayre and will earn an additional $13.8 million upon its commercial launch which is expected to occur during the third quarter of 2024. COPD is a multi-billion-dollar market opportunity in the U.S. The Company is entitled to a low single-digit royalty on potential worldwide net sales of Ohtuvayre.

Forward-Looking Statements

Forward-Looking Statements This report contains forward-looking statements by Ligand that involve risks and uncertainties and reflect Ligand's judgment as of the date of this release. Words such as "plans," "believes," "expects," "anticipates," "potential," "will" and similar expressions are intended to identify forward-looking statements. These forward-looking statements include, without limitation, statements regarding: the timing of the anticipated commercial launch of Ohtuvayre by Verona; the timing and amount of milestone payments Ligand expects; and the potential royalties to be paid on sales of Ohtuvayre by Verona. Actual events or results may differ from Ligand's or its partner's expectations due to risks and uncertainties inherent in Ligand's and its partner's business, including, without limitation: Verona may not be able to successfully commercialize Ohtuvayre which will depend on a number of factors including coverage and reimbursement levels from governmental authorities and health insurers as well as market acceptance by healthcare providers; the market size for Ohtuvayre may be smaller than estimated; Ligand is dependent on Verona for the commercialization of Ohtuvayre; and other risks described in Ligand's prior filings with the Securities and Exchange Commission available at www.sec.gov. The failure to meet expectations with respect to any of the foregoing matters may reduce Ligand's stock price. Ligand disclaims any intent or obligation to update these forward-looking statements beyond the date of this release. This caution is made under the safe harbor provisions of the Private Securities Litigation Reform Act of 1995.

SIGNATURES

SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. LIGAND PHARMACEUTICALS INCORPORATED Date: June 27, 2024 By: /s/ Andrew Reardon Name: Andrew Reardon Title: Chief Legal Officer and Secretary

View Full Filing

View this 8-K filing on SEC EDGAR