Ligand, Pharmacopeia combine in all-stock deal

By Lisa Kerner

Charlotte, N.C., Dec. 23 - Ligand Pharmaceuticals Inc. completed its acquisition of Pharmacopeia, Inc. after Pharmacopeia shareholders approved the transaction on Tuesday.

In September, Ligand, a San Diego drug development company, agreed to acquire Pharmacopeia in a stock-for-stock deal valued at up to $70 million, or approximately $1.81 per share.

Ligand issued 18 million shares of Ligand common stock to Pharmacopeia stockholders, or 0.6 shares for each outstanding Pharmacopeia share, as well as $9.3 million in cash.

Pharmacopeia security holders were given a contingent value right entitling them to a total cash payment of $15 million under certain circumstances, Ligand said.

With the acquisition of the Princeton, N.J., biopharmaceutical company, Ligand said its stockholders are expected to gain access to numerous royalty partnerships, additional pipeline assets, drug discovery resources, cash and net operating loss tax assets.

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