Rigel Pharmaceuticals announces milestone payment from Daiichi Sankyo

April 04, 2016

Fully Funded Partnership with Merck for Vanilloid Receptor Subtype 1 (VR1) Antagonists: Merck will fund 100% of program costs and make milestone and royalty payments upon the achievement of certain development events and commercialization of any applicable VR1 compounds. H3 Antagonist Program: Neurogen has developed a significant intellectual property estate and identified multiple clinical candidates for blockade of the histamine H3 receptor. The H3 receptor is a target for the potential treatment of sleep disorders, attention deficit hyperactivity disorder (ADHD), and cognitive deficits (e.g., schizophrenia and Alzheimer's disease). Oral Erythropoietin (EPO) Research Program: Neurogen has conducted its own drug discovery efforts in the area and provides novel chemical scaffolds and additional know-how that could further enhance Ligand's oral EPO program. Cash and net operating loss carryforwards (NOLs): Ligand will gain approximately $7.4 million net in cash from this transaction, after taking into account the $600,000 paid to Neurogen shareholders at closing. Neurogen also has more than $180 million of NOLs. While there will be significant limitation to the utilization of the NOLs over time given the tax laws governing use of acquired NOLs, the NOLs may be usable to some extent by Ligand, should the combined company become profitable.

Financial Outlook

Reflecting the acquisition of Neurogen, Ligand projects having more than $50 million in cash at the close of 2009.

Source: Ligand Pharmaceuticals Incorporated