Ligand Pharmaceuticals acquires APEIRON Biologics in US$100M cash deal

USA—San Diego-based genetic medicines company Ligand Pharmaceuticals has entered into a definitive agreement to acquire all outstanding shares of Austria-based biopharmaceutical company APEIRON Biologics in a US$100 million cash deal.

This acquisition is strategically significant, as it not only includes an initial payment but also entails future payments based on achieving specific commercial and regulatory milestones.

A key aspect of this acquisition is including royalty rights to QARZIBA (dinutuximab beta), a treatment for high-risk neuroblastoma in patients aged 12 months and above.

QARZIBA is indicated for patients who have responded to induction chemotherapy and undergone myeloablative therapy and stem cell transplantation.

It is also suitable for those with a history of relapsed or refractory neuroblastoma, with or without residual disease.

APEIRON co-developed QARZIBA, which received approval from the European Medicines Agency (EMA) in 2017.

This therapy is currently available in more than 35 countries, reflecting its global impact.

APEIRON receives royalties on the product’s net sales outside mainland China from Recordati and within mainland China from BeiGene.

Additionally, Ligand will make further payments based on commercial and regulatory milestones, with potential payments of up to US$28 million by either 2030 or 2034, depending on QARZIBA royalties exceeding preset thresholds.

This strategic acquisition has received unanimous approval from Ligand’s board of directors and the supervisory board of APEIRON, indicating strong support for the move.

The acquisition is set to conclude in July 2024, marking a significant milestone for both companies.

Meanwhile, Ligand is also investing US$4 million in invIOs Holding, an APEIRON spin-off, under a stock purchase agreement.

This funding will support the research and development of three early-stage immuno-oncology assets, showcasing Ligand’s commitment to expanding its portfolio and investing in innovative therapies.

Commenting on the acquisition, Ligand CEO Todd Davis stated that the addition of QARZIBA to their commercial royalty portfolio further supports their growth strategy to invest in high-value medicines that deliver significant clinical value and generate predictable, long-term revenue streams for their investors.

Davis highlighted that QARZIBA is the only immunotherapy for high-risk neuroblastoma marketed across Europe and other parts of the world.

He believes this drug will be a meaningful contributor to Ligand’s royalty revenue, which is now driven by a diversified portfolio of 12 key commercial-stage products.

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