Ligand to acquire Pharmacopeia for $70M

Ligand Pharmaceuticals has entered into a definitive merger agreement to acquire fellow-US firm Pharmacopeia in a deal valued at up to $70.0 million. In a stock-for-stock transaction, Ligand will issue around 17.5 million shares, subject to adjustment. This represents 0.58 Ligand shares for each outstanding Pharmacopeia share. The combined company will be 84% owned by Ligand's stockholders, with Pharmacopeia's owning the remainder of the new firm. In addition, Pharmacopeia shareholders will be, under certain circumstances, entitled to a cash payment of around $15.0 million as a contingent value right. The transaction is expected to close in the first quarter of 2009, subject to stockholder and antitrust regulatory clearance among other approvals.