Biotech Values

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Ligand to acquire APEIRON Biologics AG for $100M cash

Ligand Pharmaceuticals announced that it has entered into a definitive agreement to acquire APEIRON Biologics AG, which holds royalty rights to QARZIBA or dinutuximab beta for the treatment of high-risk neuroblastoma, for $100M in cash. In addition, Ligand will pay APEIRON shareholders additional consideration based on future commercial and regulatory events, including up to $28M if QARZIBA royalties exceed certain predetermined thresholds by either 2030 or 2034, respectively. APEIRON is a private biopharmaceutical company based in Vienna, Austria. ..."The addition of QARZIBA to our commercial royalty portfolio further supports our growth strategy to invest in high-value medicines that deliver significant clinical value and generate Under the terms of the agreement, which has been unanimously approved by both the Board of Directors at Ligand and APEIRON's Supervisory Board, Ligand will acquire all the outstanding shares of APEIRON for $100 million in cash at closing.

Ligand will also pay APEIRON shareholders additional consideration based on future commercial and regulatory events, including up to $28 million if QARZIBA royalties exceed certain predetermined thresholds by either 2030 or 2034, respectively. The transaction is subject to a 30-day shareholder objection period and other customary closing conditions and is expected to close in July 2024. Concurrently, Ligand is also entering into a stock purchase agreement whereby it has committed to investing up to $4 million in invIOs Holding AG, a privately held spin-off of APEIRON. The proceeds will help finance the research and development of three innovative early-stage immuno-oncology assets. APEIRON is entitled to royalties and milestone payments on these assets which will further expand Ligand's development stage portfolio. This transaction is expected to close in July 2024. Financial Guidance Update [b]The APEIRON acquisition will be immediately accretive to Ligand's earnings per share by approximately $1.00 on an annualized basis. Ligand is increasing its 2024 revenue guidance to be in the range of $140 million to $157 million previously $130 million to $142 million and is raising core adjusted EPS guidance to $5.00 to $5.50 previously $4.25 to $4.75 . Royalties are now expected to range from $100 million to $105 million previously $90 million to $95 million . Guidance for sales of Captisol is unchanged at $25 million to $27 million and contract revenue is now expected to range from $15 million to $25 million, previously $15M to $20M .

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https://thefly.com/n.php?id=3942040