Ligand, Pfizer deal

LGND received its second milestone payment from partner Pfizer as a result of the pharma company's continued development of droloxifene for osteoporosis, in addition to breast cancer. Pfizer will make the $900,000 payment with 72,728 shares of LGND, which will be retired. The payment is the second of two milestones this year that LGND has elected to receive in LGND shares held by Pfizer. LGND received 28,283 shares in May, and intends to retire all 101,011 shares.

Following this transaction, Pfizer holds 1,252,114 LGND shares. Under an agreement settling a contract dispute, either LGND or Pfizer may elect to have milestone payments (up to $6.2 million) and royalty payments on droloxifene or a second compound, Pfizer's CP-336,156, with LGND shares valued at $12.375 per share, the market price on the April 19, 1996, date of the agreement. ...