Ligand Pharmaceuticals Incorporated (NASDAQ:LGND) announced the signing of an exclusive global license agreement with TG Therapeutics, Inc. (NASDAQ: TGTX) for the development and commercialization of Ligand's Interleukin-1 Receptor Associated Kinase-4 (IRAK-4) inhibitors. The IRAK-4 program is in preclinical development for potential use in certain cancers and autoimmune diseases.
Under the terms of the agreement, Ligand is entitled to receive 125,000 shares of TG Therapeutics common stock, valued at approximately $1 million at date of signing, and is eligible to receive $207 million in potential milestone payments. Ligand is also eligible to receive tiered royalties of 6% to 9.5% on future net sales of licensed products containing patented IRAK-4 inhibitors.
"Through this partnership we are combining our IRAK-4 inhibitors program with the promising clinical portfolio of an oncology-focused company capable of efficiently advancing this asset," commented John Higgins, President and Chief Executive Officer of Ligand Pharmaceuticals. "TG Therapeutics has a proven ability in transitioning preclinical compounds into best-in-class clinical programs and IRAK-4 is an ideal complement to their two clinical-stage hematology products, namely TG-1101, or ublituximab, and TGR-1202, a PI3K delta inhibitor. Given the evolution of these areas of research, there may be opportunities for treatment synergies between IRAK-4 inhibitors and these other programs."
Higgins continued, "This transaction is a clear illustration of our business model, which is focused on selecting promising drug targets, generating answers to key questions in the early research phase and then licensing the asset to a strong partner for further development. Our agreement with TG Therapeutics is structured such that both companies will be highly rewarded should this program be successful in generating a commercial product, and builds upon our portfolio of more than 90 fully-funded partnerships."
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