Ligand gets $1m milestone from S-P

US firm Ligand Pharmaceuticals says that it has earned a $1.0 million milestone payment from drug major Schering-Plough related to the  progress of the latter's inhibitor of b-site of amyloid precursor  protein (APP)-cleaving enzyme for the treatment of Alzheimer's disease,  which resulted from a research collaboration with Pharmacopeia (acquired  by Ligand). Alzheimer's  is characterized by plaques of the toxic  amyloid-beta protein within the brain, which is formed when the larger  APP is cleaved by two enzymes, BACE and gamma-secretase, which releases  the amyloid-beta fragment. A BACE inhibitor is expected to reduce  amyloid-beta generation in Alzheimer's patients.

The milestone payment arises from a drug discovery agreement between S-P  and Pharmacopeia, wherein the latter contributed to the drug major's  medicinal chemistry optimization of compounds discovered it. Ligand  completed its acquisition of Pharmacopeia in December 2008  (Marketletters passim). Under the terms of the collaboration, Ligand is  eligible to receive additional payments from S-P on the achievement of  certain development and regulatory milestones. It is also entitled to  royalties on potential sales of the drug. In addition to the BACE  program, the collaboration with S-P has resulted in several Phase I and  II programs in multiple therapeutic areas.