Key Developments For Ligand Pharmaceuticals Incorporated
Ligand Pharmaceuticals Incorporated (LGND.O) (Consolidated Issue listed on NASDAQ Global Market)
Ligand Pharmaceuticals Incorporated Presents New Preclinical Data On SARM Molecule LGD-4033
Ligand Pharmaceuticals Incorporated announced data from a preclinical study on its selective androgen receptor modulator (SARM) LGD-4033. LGD-4033 exhibited desirable in vivo efficacy on skeletal muscle and bone measurements in animal models of male hypogonadism and postmenopausal osteoporosis. The key findings include: LGD-4033 increased bone mineral density and bending strength (an indicator of resistance to fracture) in osteopenic female rats, a model of post-menopausal osteoporosis, by increasing the rate of new bone formation and reducing bone turnover. Statistically significant improvements in bone mineral density were observed after 12 weeks of administering LGD-4033 at doses as low as 0.03 mg/kg/day in cortical bone and 0.3 mg/kg/day in cancellous bone; LGD-4033 potently increased the skeletal muscle mass and the average diameter of the individual muscle fibers in both hypogonadal and hormonally-normal rats. Muscle fiber diameter is known to correlate with the maximum contractile force that can be generated by a muscle fiber, suggesting greater muscle strength following LGD-4033 administration; Unlike the potent full agonist activity observed with the increase in skeletal muscle and bone, LGD-4033 treatment resulted in a significant reduction in prostate mass at all doses tested (up to 100 mg/kg/day). The reduction in prostate mass, together with an increase in muscle and bone formation, represents a unique and desirable tissue-selective profile of LGD-4033.
Ligand Pharmaceuticals Incorporated Issues FY 2009, FY 2010 Revenue Outlook In Line With Analysts' Estimates
Ligand Pharmaceuticals Incorporated announced that for fiscal 2009, it expects total revenues of approximately $33-$34 million, consisting of approximately $12.0 million of non-cash deferred revenue, royalty payments from sales of AVINZA and PROMACTA, revenue from collaboration agreements and potential milestone payments from existing corporate partners. For fiscal 2010, it expects revenues to be approximately $30-$35 million. According to Reuters Estimates, analysts were expecting the Company to report revenues of $34 million for fiscal 2009 and revenues of $35 million for fiscal 2010.
Ligand Pharmaceuticals Incorporated To Acquire Metabasis Therapeutics, Inc. For Cash And Contingent Value Rights
Ligand Pharmaceuticals Incorporated and Metabasis Therapeutics, Inc. announced that they have entered into a definitive merger agreement under which Ligand will acquire all of the outstanding shares of Metabasis. Under the transaction, Metabasis stockholders will receive a cash payment at the closing of the transaction of approximately $3.2 million, less Metabasis' estimated net liabilities at closing and an amount to be deposited in the stockholders' representative's fund (Metabasis currently estimates the closing payment to be approximately $1.8 million in cash). In addition, Metabasis stockholders will receive for each Metabasis share four tradable Contingent Value Rights (CVRs) that will be registered on a Form S-4 registration statement to be filed by Ligand with the Securities and Exchange Commission. The CVRs will entitle Metabasis stockholders to cash payments as frequently as every six months as cash is received by Ligand from proceeds from the sale or partnering of any of the Metabasis drug development programs, among other triggering events. Ligand has committed to spend at least $8 million in new research and development funding on the Metabasis programs within 42 months following the closing of the transaction. The Ligand and Metabasis Boards of Directors have unanimously voted in favor of the transaction. The transaction is expected to close in early 2010.
Ligand Pharmaceuticals Incorporated Reaffirms FY 2009 Guidance
Ligand Pharmaceuticals Incorporated announced that with the acquisition of Metabasis, Ligand does not anticipate any change to its fiscal 2009 financial outlook. According to Reuters Estimates, analysts were expecting the Company to report revenue of $34.3 million for fiscal 2009.
Ligand Pharmaceuticals Incorporated to Acquire Neurogen Corporation for Stock and Contingent Value Rights
Ligand Pharmaceuticals Incorporated and Neurogen Corporation announced they have entered into a definitive merger agreement under which Ligand will acquire Neurogen. Under the transaction, Neurogen stockholders will receive an estimated $11 million in Ligand common stock and will be granted Contingent Value Rights ("CVRs") under four CVR agreements. The CVRs would entitle Neurogen shareholders to cash payments for the sale or licensing of certain assets and the achievement of a specified clinical milestone. The Ligand and Neurogen Boards of Directors have unanimously voted in favor of this transaction.
