Replies to post #252245 on Biotech Values

[jbog]

They rarely receive a large sum. Their royalties normally are in low single digits.

Sometimes they luck out. In 2019 they sold off their Novartis Promacta royalties for $850 million.

When Viking couldn't afford their products years ago Viking elected to give Ligand stock while Ligand also funded them. They've sold those off over the years probably gaining $500 to $700 million. They have just sold a > million shares and still hold 3.5%of the viking

Ligand could be one of the best management teams in the biospace.

[Mufaso]

LGND - For reference, another milestone payment that Ligand may be entitled to is:

Under a license agreement with Viking for VK2809, Ligand is entitled to receive a $10 million milestone upon initiation of a Phase 3 clinical trial, other potential milestone payments and royalties of 3.5% to 7.5% on future worldwide sales of VK2809 by Viking.

I doubt Viking will take VK2809 (the NASH drug) as a standalone compound to phase 3 on their own so LGND may have to wait on this if it happens at all.

Other Viking compounds that LGND licensed to Viking when they formed Viking in 2014 include VK5211 the SARM compound Viking declined to take to Phase 3 when they couldn't partner it and VK0214 which is the X-ALD compound in phase 1B.

In case anyone is curious, AFAIK, Ligand still holds approx. 3.6 million shares of VKTX or 3.3% of Viking. LGND however has no ownership of Vikings lead compound VK2735 for obesity and won't get any royalties/milestones on that compound.

[jbog]

Dew

This is a typical Ligand deal.

Ligand earns $5.8M milestone payment following FDA approval of Ohtuvayre

Ligand (LGND) announced that its partner Verona Pharma (VRNA) has received approval from the FDA for Ohtuvayre. Ohtuvayre is the first inhaled product with a novel mechanism of action available for the maintenance treatment of chronic obstructive pulmonary disease in adult patients in more than 20 years.

Ligand has earned a $5.8M milestone payment upon FDA approval of Ohtuvayre and will earn an additional $13.8 million upon its commercial launch which is expected to occur during the third quarter of 2024. Ligand is entitled to a low single-digit royalty on worldwide net sales of Ohtuvayre.

Read more at:
https://thefly.com/n.php?id=3938748