Printer Friendly

Ligand Receives $13.9 Million From Exchange Offer for Certain Warrants; Strengthens Cash and Net Shareholders' Equity.

Business Editors/Health & Medical Writers

SAN DIEGO--(BW HealthWire)-- Dec. 21, 1999

Ligand Pharmaceuticals Incorporated (Nasdaq:LGND) announced today that the company received net proceeds of $13.9 million from the completion of its offer to exchange warrants (Nasdaq:LGNDW) to purchase shares of Ligand common stock tendered with cash payments of $7.12 per warrant (representing the exercise price for such warrants) for shares of Ligand common stock and $1.12 per warrant. The offer expired at 12:01 a.m. New York City time on December 18, 1999.

Approximately 2.3 million warrants were exercised pursuant to the offer, resulting in net proceeds to the Company of approximately $13.9 million. Ligand will use net proceeds from the exchange offer to fund working capital needs associated with the expanding commercialization of Ligand's products.

"We are pleased with the results of the exchange offer, which was accepted by holders of approximately two-thirds of the outstanding warrants. We believe that the exchange of the warrants in connection with the offer is consistent with our long-term financing strategy and the least dilutive and lowest cost of capital alternative available to us to achieve our objectives," said Paul Maier, Ligand Senior Vice President and Chief Financial Officer. "We have strengthened our year-end cash, balance sheet and net equity as well as positioned the Company for an increase in other income for our goal of profitability in 2000."

The warrants were originally issued through a Ligand / Allergan Ligand Retinoid Therapeutics, Inc. (ALRT) public offering in 1995 of 3.25 million units at $10.00 each. Each unit included one share of callable common stock of ALRT and two warrants (total warrants of 6.5 million), each warrant to purchase one share of Ligand common stock at an exercise price of $7.12. As of December 20, 1999, 1.3 million of these warrants remain outstanding. Unexercised warrants will expire on June 3, 2000.

Ligand Pharmaceuticals Incorporated

Ligand Pharmaceuticals Incorporated discovers, develops and markets new drugs that address critical unmet medical needs of patients in the areas of cancer, skin diseases, and men's and women's hormone-related diseases, as well as osteoporosis, metabolic disorders and cardiovascular and inflammatory diseases. Ligand's first two drugs

-- Panretin(R) gel and ONTAK(R) -- were approved for marketing in the U.S. in early 1999 and are being marketed through its specialty cancer and HIV-center sales force in the U.S. Two drugs -- Targretin(R) capsules and Targretin(R) gel -- are currently under review by the U.S. Food and Drug Administration for marketing approval in the U.S., and two additional oncology-related products -- Morphelan(TM) (licensed from Elan) and Panretin(R) capsules -- are in late-stage development. Ligand's proprietary drug discovery and development programs are based on its leadership position in gene transcription technology, primarily related to Intracellular Receptors (IR) and Signal Transducers and Activators of Transcription (STATs).

This news release may contain certain forward-looking statements by Ligand and actual results could differ materially from those described as a result of factors including but not limited to the following. There can be no assurance that Ligand will achieve its goal of profitability in 2000; that final clinical results will be supportive of regulatory approvals required to market products; that regulatory filings will be made in a timely manner; that regulatory approvals will be received in a timely manner or at all; or that there will be a market for any approved product. Additional information concerning these and other factors affecting Ligand's business can be found in press releases as well as in Ligand's public periodic filings with the Securities and Exchange Commission. Public information on Ligand Pharmaceuticals Incorporated is available on our web site at http://www.ligand.com. Ligand disclaims any intent or obligation to update these forward-looking statements beyond the date of this release.

Panretin(R) and Targretin(R) are registered trademarks of Ligand Pharmaceuticals Incorporated, and ONTAK(R) is a registered trademark of Seragen, Inc., a wholly owned subsidiary of Ligand.
COPYRIGHT 1999 Business Wire
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1999, Gale Group. All rights reserved. Gale Group is a Thomson Corporation Company.

Article Details
Printer friendly Cite/link Email Feedback
Publication:Business Wire
Date:Dec 21, 1999
Words:664
Previous Article:InfoTalk 3.0 Named Communications Solution Product of the Year.
Next Article:Data Broadcasting's eSignal Wins Stocks & Commodities Readers' Choice Award for Best Real-Time Data System.
Topics:


Related Articles
Allergan and Ligand form new research and development corporation to raise $100 million; File unit offering for $32.5 million.
Ligand and Glycomed Sign Definitive Merger Agreement in All Stock Transaction; Merger To Consolidate Focus on Small Molecule Cancer and Inflammation...
Allergan Ligand Retinoid Therapeutics, Inc. Subscription Offering Declared Effective By SEC.
Ligand Announces Early Conversion of $20 Million Elan Convertible Note; Transaction Increases Shareholders' Equity and Reduces Future Non-operating...
Elan Accelerates Conversion of $20 Million Note Into Ligand Stock; Increases Ligand Shareholders' Equity and Reduces Future Non-Operating Charges.
Ligand Reports First Quarter 2000 Results; Initiates Launch of Targretin Capsules While Burn Rate and Operating Losses Continue to Decline.
Ligand Receives $7.7 Million From Exercise of Warrants; Strengthens Cash and Net Shareholders' Equity.
Ligand Reports Results for Second Quarter and First Six Months 2000; Second Quarter Product Sales Up 154% and Net loss Per Share Down 25%.
Ligand Agrees On Early Conversion of $50 Million in Elan Notes; One-Time Charge of $5.0 Million Will Eliminate Related Future Non-Operating Expenses.
Ligand, Elan Agree On Early Conversion of $20 Million Note, Early Exercise of Ligand Warrants.

Terms of use | Privacy policy | Copyright © 2019 Farlex, Inc. | Feedback | For webmasters