Ligand sells Vernalis, just two years after buying the UK firm

US biopharma firm Ligand Pharmaceuticals (Nasdaq: LGND) said today it is selling its Vernalis research operations and internal programs to China’s HitGen (SHA: 688222) for $25 million in cash.

UK-based Vernalis was acquired by Ligand in October 2018 for a consideration of $42.3 million. Ligand’s shares were barely moved by the news, while HitGen closed up 2.7% at 39.91 renminbi.

Under the terms of the agreement, Ligand will retain economic rights on completed collaboration licenses as well as a share of the economic rights on current research collaboration contracts. In addition, Vernalis will continue to support certain existing Ligand partnerships. The transaction is expected to close in the fourth quarter of 2020, subject to customary closing conditions.