Ligand acquires milestone and royalty rights to PTX-022 from Palvella

Active deal-maker Ligand Pharmaceuticals (Nasdaq: LGND) yesterday announced the acquisition of economic rights to PTX-022 from fellow USA-based Palvella Therapeutics. Ligand’s shares closed down 3.21% at $132.47 following the news.

PTX-022 is a novel, topical formulation of rapamycin currently in Phase II/III development for the treatment of pachyonychia congenita (PC), a rare skin disorder for which no Food and Drug Administration-approved treatment exists. Ligand will pay $10 million to Palvella Therapeutics and in return will receive a tiered royalty on net sales in the mid-to-upper single digits, as well as regulatory and financing milestones. Ligand will not incur any expenses to develop or commercialize PTX-022.

PC is a rare, serious, chronically debilitating genetic disorder that results in malformation of the skin and severely limits the mobility and quality-of-life of those affected. PTX-022 has received Fast Track and Orphan Drug designations from the US FDA.