Ligand to buy APEIRON for $100 million

Ligand Pharmaceuticals has entered into a definitive agreement to acquire all outstanding shares of the Austrian biopharmaceutical company APEIRON Biologics in a deal valued at $100 million in cash. The agreement also includes provisions for future payments contingent on achieving certain commercial and regulatory milestones.

This strategic acquisition will provide Ligand with royalty rights to QARZIBA (dinutuximab beta), a therapeutic agent indicated for the treatment of high-risk neuroblastoma in patients aged 12 months and older. The treatment is specifically for patients who have responded to induction chemotherapy, undergone myeloablative therapy, and stem cell transplantation, including those with a history of relapsed or refractory neuroblastoma, with or without residual disease.

APEIRON co-developed QARZIBA, which gained approval from the European Medicines Agency (EMA) in 2017. Presently, the therapy is available in over 35 countries worldwide. The company records royalty revenues on QARZIBA’s net sales outside mainland China from Recordati, and within mainland China from BeiGene.

As part of the agreement, Ligand will make additional payments based on the achievement of commercial and regulatory milestones. These could total up to $28 million by either 2030 or 2034, depending on whether QARZIBA royalties exceed certain predefined thresholds. The transaction has received unanimous approval from both Ligand’s board of directors and APEIRON’s supervisory board, and is expected to be finalized by July 2024.

In addition to the acquisition, Ligand is investing $4 million in invIOs Holding, a spin-off from APEIRON, through a stock purchase agreement. This investment will be used to support the research and development of three early-stage immuno-oncology assets.

Commenting on the acquisition, Ligand CEO Todd Davis remarked, “The addition of QARZIBA to our commercial royalty portfolio aligns with our growth strategy to invest in high-value medicines that offer significant clinical benefits and generate stable, long-term revenue streams for our investors. QARZIBA is the sole immunotherapy for high-risk neuroblastoma available across Europe and other regions globally. We anticipate that this drug will become a significant contributor to our royalty revenue, which is now supported by a diversified portfolio of 12 key commercial-stage products.”