SB And Ligand Sign R&D Collaboration

Ligand Pharmaceuticals and SmithKline Beecham have entered into a research collaboration focusing on using Ligand's proprietary Signal Transducers and Activators of Transcription (STATs) to discover and characterize small-molecule, orally-active drugs to control hematopoiesis.

SB notes that the action of hematopoietic growth factors is governed through the receptor-mediated activation of STATs. The companies hope to use the technology as a platform to develop small molecule HGF mimetics or inhibitors, which may be of use in the treatment or prevention of many diseases including infections, myelotoxic therapies, cytopenias, HIV and certain leukemias.

Under the terms of the agreement, SB has been granted exclusive worldwide rights for products resulting from the collaboration in certain specified target areas. In exchange, SB has agreed to provide Ligand with up to $21.5 million in research funding and equity payments. This amount includes an upfront equity investment of $5 million at the average market price over a trading period specified in the agreement. SB will make additional milestone payments to Ligand as compounds progress in clinical development, and will also make royalty payments on product sales.