Ligand in commercial supply deal with Merck & Co for Captisol

USA-based Ligand Pharmaceuticals (Nasdaq: LGND) has entered into a Captisol supply agreement with drugs giant Merck & Co (NYSE: MRK) for an undisclosed program. Ligand will supply clinical and commercial supplies of Captisol and, if the program is approved for commercialization, expects to deliver multiple metric tons of Captisol annually. Financial terms of the deal were not disclosed.

Captisol is a patent-protected, chemically modified cyclodextrin with a structure designed to optimize the solubility and stability of drugs. This unique technology was originally developed by Ligand’s subsidiary company CyDex Pharmaceuticals and has enabled five Food and Drug Administration-approved products, including Pfizer’s antifungal Vfend (voriconazole), and Prism Pharmaceuticals’ Nexterone (amiodarone). There are currently over 20 Captisol-enabled products in development, including Onyx Pharmaceuticals’ carfilzomib, a compound under development with Japan’s Ono Pharmaceuticals for relapsed and refractory myeloma.

Matt Foehr, executive vice president and chief operating officer of Ligand, said: “This announcement marks the natural transition of the program to a full commercial supply relationship as commercialization approaches. This deal has the potential to add meaningful revenue to the Ligand business in the coming years and extends the already significant partnering relationship that we have developed with Merck over the past few years.”