Ligand licenses diabetes program to Roivant Sciences

Active deal-maker Ligand Pharmaceuticals (Nasdaq: LGND) has granted Roivant Sciences exclusive global rights to develop and commercialize LGD-6972, Ligand’s glucagon receptor antagonist (GRA), under development for the treatment of type 1 and 2 diabetes.

Under the terms of the accord, Ligand is entitled to receive total potential license and milestone payments of up to $548.8 million, which is comprised of $20 million payable upon signing and an additional aggregate amount of up to $528.8 million of one-time, non-refundable milestone payments in connection with licensed products containing any licensed technology upon the achievement of certain development, regulatory and sales-based milestones.

Roivant is also obligated to pay to Ligand royalties on aggregate annual worldwide net sales of licensed products at tiered percentage rates ranging from low double digits to the mid-teens, with the top tier applying to annual net sales above $3billion.