Ligand Pharmaceuticals announced on 2025‑09‑26 a royalty financing agreement with Arecor Therapeutics that will provide up to $11 million in non‑dilutive capital. The deal includes a $7 million upfront cash payment and an additional $4 million contingent on commercial milestones, with $1 million expected in 2026. Ligand will also receive warrants for 1,002,739 ordinary shares at an exercise price of 67.39 pence, exercisable over 10 years.
The financing supports Arecor’s development of its AT220 and AT292 assets, allowing the company to advance clinical programs without equity dilution. For Ligand, the transaction expands its royalty portfolio and generates immediate cash flow, reinforcing its asset‑light model. The agreement aligns with Ligand’s strategy of investing in high‑value, de‑risked assets.
This event is material as it provides Ligand with a significant cash inflow and potential future equity upside, while securing a royalty stream from Arecor’s products. The deal exemplifies Ligand’s ongoing pursuit of strategic financing opportunities that enhance shareholder value. The transaction was announced on 2025‑09‑26, making it a new event for the company.
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