Ligand set to get $827 million from asset and royalty sale

6 March 2019

US biopharma firm Ligand Pharmaceuticals (Nasdaq: LGND) says it has sold its Promacta (eltrombopag)-related intellectual property rights licensed to Novartis (NOVN: VX), including the royalty stream on worldwide net sales of Promacta to Royalty Pharma for $827 million in cash.

Promacta, a treatment for thrombocytopenia, is known as Revolade outside the USA and is marketed worldwide by Novartis. This transaction is expected to close today. Ligand’s shares edged up 1.77% to $118.48 in pre-market trading.

“After extensive consideration, we determined it is in the best interest of Ligand stockholders to monetize our Promacta assets. We are very proud of our discovery contribution to this billion-dollar molecule and best-in-class medicine for a vital medical market. The product has been a big part of our success, driving the company to profitability and generating significant cash flows through the years,” said John Higgins, chief executive of Ligand.

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