Drug giant Roche terminates it's treatment collaboration and license agreement with Ligand Pharma. Ligand gets a good deal, with non-exclusive, worldwide, royalty-bearing license under specified Roche patents to develop, make and sell related compounds and products, subject to royalty payments on net sales. Roche, on the other hand, is prohibited for ten years following the termination from developing or commercializing related compounds. Maybe the InterMune deal was enough? Nah. Has to be some other reason.
Tue, Nov 23 2010
* Says received a notice from Roche unit on Nov 19
* Roche prohibited to develop related compounds for 10 yrs
* Shares down 1 pct after-the-bell
Nov 23 (Reuters) - Ligand Pharmaceuticals Inc (LGNDD.O: Quote, Profile, Research) said Swiss drugmaker Roche Holding AG (ROG.VX: Quote, Profile, Research) was exercising its right to terminate the collaboration and license agreement between the two companies on developing hepatitis C treatment.
The collaboration and license agreement with Roche began in 2008 to develop new treatments for hepatitis C viral infection using liver-targeting technology.
In April, Ligand received $6.5 million milestone payment from Roche.
As per the agreement, Ligand will receive a non-exclusive, worldwide, royalty-bearing license under specified Roche patents to develop, make and sell related compounds and products, subject to royalty payments on net sales.
Roche will be prohibited for ten years following the termination from developing or commercializing related compounds, Ligand said in a regulatory filing.
Ligand said it received a notice from Roche units last Friday regarding the termination.
Ligand's shares, which have lost about 18 percent since the company got Japanese marketing nod for its blood clotting treatment earlier this month, were trading down about 1 percent at $8.16 Tuesday after-the-bell.
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