Ligand Pharmaceuticals Acquires Apeiron Biologics AG for $100M

By Bobby Samwell • Monday, July 08 07:52 • Permanent Link

Ligand Pharmaceuticals Incorporated has announced its acquisition of Apeiron Biologics AG for $100 million in cash. This acquisition provides Ligand with royalty rights to Qarziba®, a commercial oncology drug marketed in 35 countries by global pharmaceutical company Recordati S.p.A. Ligand expects the transaction to be immediately accretive to its earnings per share (EPS) by an estimated $1.00 per share on an annualized basis, with a $0.50 impact to 2024.

The acquisition will increase Ligand's 2024 adjusted EPS guidance range by 17% to $5.00-$5.50, up from the previous range of $4.25-$4.75. Additionally, Ligand is increasing its 2024 revenue guidance to a range of $140 million to $157 million, up from the previous range of $130 million to $142 million. Royalties are now expected to range from $100 million to $105 million, previously $90 million to $95 million.

Ligand is also entering into a stock purchase agreement to invest up to $4 million in Invios Holding AG, a privately held spin-off of Apeiron. This investment will help finance the research and development of three early-stage immuno-oncology assets, further expanding Ligand’s development stage portfolio.

Qarziba® is a monoclonal antibody approved for the treatment of high-risk neuroblastoma in patients aged 12 months and above. It is the only immunotherapy for high-risk neuroblastoma marketed across Europe and in other parts of the world.

This acquisition further adds to Ligand’s commercial stage portfolio, which now consists of 12 key commercial-stage products, supporting the company's strategy to invest in high-value medicines that deliver significant clinical value and generate predictable and long-term revenue streams.

The transaction is subject to a 30-day shareholder objection period and other customary closing conditions and is expected to close in July 2024. Ligand was advised by McDermott Will & Emery and E+H Rechtsanwälte GmbH, while Apeiron was advised by Baker McKenzie and Dorda.

Following these announcements, the company's shares moved 2.0%, and are now trading at a price of $84.37. Check out the company's full 8-K submission here.

The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.