Ligand Pharmaceuticals Incorporated (NASDAQ: LGND) announced
today the mutual termination of its collaboration and license agreement
with N.V. Organon, which Ligand assumed in connection with its
acquisition of Pharmacopeia in December 2008. Pharmacopeia and Organon
entered into the collaboration and license agreement in February 2007
for the purpose of working collaboratively to discover, develop and
commercialize therapeutic products across a broad range of indications,
including neuroscience and immunology. Under the terms of the
collaboration and license agreement, Pharmacopeia received an up-front
payment of $15 million and additional payments in research funding over
the five-year term of the research portion of the agreement.
The collaboration with Organon has been highly productive towards the
goal of generating candidate compounds addressing targets of mutual
interest, and several novel drug candidates discovered through the
collaboration are in various stages of lead identification and
optimization process. In November 2007, Organon was acquired by, and is
now a part of, Schering-Plough Corporation (NYSE: SGP). Ligand has
entered into other collaboration agreements with Schering-Plough which
have generated multiple drug candidates in Phase I and Phase II studies
and these agreements remain not affected by the mutual termination of
this agreement.
As part of the termination, Organon will continue to fund research
through a wind-down period ending December 31, 2009 and Ligand may
receive up to several million dollars in milestones upon expiration of
such wind-down period. In addition, Ligand is entitled to receive future
royalties and milestones as a result of Organon’s successful advancement
through clinical development of therapeutic candidates discovered as a
result of the collaboration which result in commercial sales. Organon is
solely responsible for the further development and commercialization of
all collaboration products after programs are handed over by Ligand, and
for all development and commercialization costs.
“We are pleased with the progress made under the Organon collaboration.
Moreover, the potential to receive milestone payments and one-time fees
for transferred programs earlier than expected is consistent with our
strategy to increase shareholder value,” said John L. Higgins, President
and Chief Executive Officer of Ligand Pharmaceuticals.
