Ligand May Pay as Much as $70M for Pharmacopeia

[Cranbury Company]

Posted date: 9/24/2008
Ligand May Pay as Much as $70M for Pharmacopeia

San Diego-based Ligand Pharmaceuticals Inc., developer of the painkiller Avinza, said Sept. 24 it would buy Pharmacopeia of Cranbury, N.J. in a stock deal valued as high as $70 million.

“The acquisition of Pharmacopeia will complement and accelerate our product development programs, strengthen our research capability and increase our potential royalty streams,” Ligand Chief Executive John Higgins said in a statement.

Under the terms of the deal, Ligand will issue 58 cents a share for each outstanding Pharmacopeia share, giving Ligand shareholders 84 percent control of the company.

Additionally, Ligand stockholders would be entitled to an additional $15 million on milestone agreements related to one of Pharmacopeia’s drug development programs.

The combined company is projected to have about $90 million in cash at the time of closing.

The merger is expected to close by the first quarter of 2009 and is subject to regulatory clearance and stockholder approval.

Ligand trades on the Nasdaq under the symbol LGND. Shares closed Sept. 24 at $3.12.

— Heather Chambers

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