Ligand invests $75 million in Castle Creek’s gene therapy

Ligand Pharmaceuticals (Nasdaq: LGND) has entered into a royalty financing agreement with Castle Creek Biosciences, providing $75 million to support the Phase III clinical trial of D-Fi (FCX-007), an investigational gene therapy for dystrophic epidermolysis bullosa (DEB). 

The agreement consists of a $50 million investment from Ligand and an additional $25 million from a syndicate of co-investors. In return, Ligand and its partners will receive a high-single digit royalty on global sales of the gene-modified cell therapy.

DEB is a rare and severe genetic skin disorder caused by a mutation in the COL7A1 gene. To combat this, D-Fi uses a patient’s own cells, which are altered outside the body with a lentiviral vector to produce COL and are then injected into chronic wounds to support skin healing.