Ligand licenses drug to GSK for $163M

San Diego, USA-based Ligand Pharmaceuticals has entered into an exclusive, worldwide agreement with UK drug giant GlaxoSmithKline,  licensing worldwide exclusive rights to its LGD-4665 product candidate  and its other thrombopoietin (TPO)-related molecules to the latter.  LGD-4665 is in Phase II for treatment of thrombocytopenia, a condition  of low-platelet levels commonly associated with a diverse range of  clinical disorders.

Under the terms of the deal, GSK will pay Ligand $5.0 million as an  upfront license fee, up to $158.0 million in development and commercial  milestones and a 16% royalty on net turnover. In the first year of  sales, royalties will be one-half of the proposed rate. GSK has the  exclusive right to develop, manufacture and commercialize LGD-4665, as  well as other TPO-related molecules discovered by Ligand.

"This agreement is another step in our strategy of partnering  early-development assets to increase shareholder value while acutely  focusing on resource-efficient, novel pipeline assets. The timing and  structure of the deal is excellent for Ligand, as it potentially  provides a robust royalty rate and milestone stream for a product that  has, thus far, demonstrated excellent and differentiated safety and  efficacy," said John Higgins, chief executive of Ligand.