Ligand Pharmaceuticals Incorporated (LGND) entered into a licensing deal with CURx Pharmaceuticals, under which the former’s Captisol-enabled lamotrigine program will be developed and commercialized.
Under this deal, Ligand Pharma is eligible to receive milestone payments of up to $22 million. Ligand Pharma is also entitled to receive revenues and tiered royalties of 4% to 7% on net sales of Captisol-enabled lamotrigine once approved. As per the agreement, CURx will be responsible for all program related costs.
Captisol-enabled lamotrigine, which is presently in pre-clinical development, is being evaluated to provide an intravenous or intramuscular option to hospitalized patients who cannot take the oral form of lamotrigine.
We note that the branded versions of lamotrigine, lamictal (for the treatment of generalized seizures associated with Lennox-Gastuat syndrome and maintenance treatment of bipolar I disorder) and lamictal XR are marketed by GlaxoSmithKline (GSK).
We remind investors that this is the second deal between Ligand Pharma and CURx Pharmaceuticals. In Aug 2013, the companies had entered into a licensing agreement, for the development and commercialization of Captisol-enabled topiramate injection for treating partial onset or primary generalized tonic-clonic seizures in hospitalized epileptics who cannot take the oral form of topiramate.
Ligand Pharma has been pretty active on the licensing front having announced quite a few deals this year including agreements with Omthera Pharmaceuticals (treatment of dyslipidemia, including hypertriglyceridemia). Ligand Pharma has also licensed the rights to five programs to Viking Therapeutics.
We are positive on the latest agreement between Ligand Pharma and CURx Pharmaceuticals. The Captisol-enabled lamotrigine program has expanded Ligand’s pipeline to more than 100 partnerships.
Ligand Pharma’s Captisol technology has enabled six FDA approved products, including Amgen’s (AMGN) Kyprolis and Merck’s (MRK) Noxafil IV. Meanwhile, more than 50 Captisol-enabled candidates are in clinical development.
Ligand Pharma holds a Zacks Rank #3 (Hold). A better-ranked stock in the biotech sector is Amgen Inc., which carries a Zacks Rank #1 (Strong Buy).
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