Ligand invests $100M to acquire neuroblastoma drug royalties

On Monday, Ligand Pharmaceuticals acquired Apeiron Biologics for $100 million, securing the royalty rights to the cancer drug Qarziba (dinutuximab beta). This acquisition is expected to enhance Ligand’s annual profits, with the company now projecting revenues of $140 million to $157 million for 2024, an increase from its prior estimate of $130 million to $142 million. The transaction, anticipated to be finalized within the month, includes a potential additional payment of up to $28 million to Apeiron if Qarziba royalties surpass an undisclosed threshold over the next ten years.

In 2016, Apeiron had out-licensed exclusive global rights for Qarziba to EUSA Pharma. Shortly thereafter, the European Medicines Agency approved the anti-GD2 antibody for treating high-risk neuroblastoma. In 2022, Recordati purchased EUSA for €750 million ($812 million), thereby obtaining commercial control of Qarziba.

As part of the acquisition deal, Ligand will also make a stock purchase investment of up to $4 million in invIOs, a company which Apeiron spun out in 2022 to manage its preclinical and clinical programs. This investment will further diversify Ligand’s portfolio, as invIOs has three early-stage immuno-oncology assets. Apeiron retains the rights to royalties and milestones from these assets.

With the addition of Qarziba, Ligand has now acquired its sixth commercial asset since the start of 2023. This includes the acquisition of Novan and its berdazimer gel, which received FDA approval in January under the trade name Zelsuvmi.