SAN DIEGO (AP) -- Ligand Pharmaceuticals Inc. said Thursday it licensed two liver disease drugs to drugmaker Chiva Pharmaceuticals Inc. as part of a deal that could be worth more than $100 million.
The deal gives Chiva the rights to develop and market the drugs in China. The partnership includes Pradefovir, a potential treatment for hepatitis B, and MB01733, which is being tested as a treatment for hepatocellular carcinoma, the most common type of liver cancer. Ligand said Chiva is also getting a non-exclusive license for newer drugs that could be used to treat hepatitis B and C and hepatocellular carcinoma.
Chiva is headquartered in Los Altos Hills, Calif., but Ligand said it is an affiliate of Hainan Kaihua Pharmaceutical Co., a drugmaker that focuses on the Chinese market.
The San Diego drugmaker said it could get more than $100 million in milestone payments and royalties on sales if the products are approved. It could receive up to $1 million in license payments in 2011. Ligand said it could also get a 10 percent equity stake in Chiva. If Chiva licenses the drugs to another company, Ligand will get a portion of that revenue.
Ligand acquired the drugs in January 2010 when it bought Metabasis Therapeutics Inc.
Shares of Ligand Pharmaceuticals slid 9 cents to $9.19 in morning trading.
The deal gives Chiva the rights to develop and market the drugs in China. The partnership includes Pradefovir, a potential treatment for hepatitis B, and MB01733, which is being tested as a treatment for hepatocellular carcinoma, the most common type of liver cancer. Ligand said Chiva is also getting a non-exclusive license for newer drugs that could be used to treat hepatitis B and C and hepatocellular carcinoma.
Chiva is headquartered in Los Altos Hills, Calif., but Ligand said it is an affiliate of Hainan Kaihua Pharmaceutical Co., a drugmaker that focuses on the Chinese market.
The San Diego drugmaker said it could get more than $100 million in milestone payments and royalties on sales if the products are approved. It could receive up to $1 million in license payments in 2011. Ligand said it could also get a 10 percent equity stake in Chiva. If Chiva licenses the drugs to another company, Ligand will get a portion of that revenue.
Ligand acquired the drugs in January 2010 when it bought Metabasis Therapeutics Inc.
Shares of Ligand Pharmaceuticals slid 9 cents to $9.19 in morning trading.
