Ligand stands to earn $150 million from licensing deal with Seelos

US drugmaker Ligand Pharmaceuticals (Nasdaq: LGND) has out-licensed rights to four programs to Seelos Therapeutics, a newly-formed biopharmaceutical company focused on central nervous system (CNS), respiratory and other disorders.

The licensed therapeutic programs include Ligand's aplindore program for the treatment of various CNS disorders, a CRTH2 antagonist program for the treatment of respiratory disorders, a Captisol-enabled acetaminophen program for pain and fever management and an H3 receptor antagonist program for the treatment of narcolepsy.

Under the license agreement, Ligand is entitled to receive initial payments in equity or cash of $1.3 million upon Seelos’ completing a minimum of $7.5 million financing and up to an additional $3.5 million if Seelos becomes a public company and up to $145 million of additional cash milestones. In addition, Ligand is entitled to net sales royalties ranging from 4% to 10% for the various programs licensed.