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Ligand licenses diabetes program to Roivant Sciences

Ligand Pharmaceuticals Inc. granted Roivant Sciences GmbH global rights to develop and commercialize its diabetes program.

The glucagon receptor antagonist program includes the company's lead compound LGD-6972 and related knowledge. Glucagon receptor antagonists help to lower glucose levels in the body by reducing the production of glucose by the liver. Glucagon is a hormone produced by the pancreas that stimulates the liver to produce glucose.

Under the deal, Ligand will receive total potential license and milestone payments of up to $533.8 million, comprising $20 million payable on signing and up to $513.8 million of one-time, non-refundable milestone payments.

In addition, Roivant also has to pay royalties on worldwide net sales of licensed products and will be responsible for all costs related to the program, effective immediately.

Following this deal, Ligand expects its 2018 total revenue to be about $184 million and adjusted earnings per diluted share about $4.85, Ligand noted in its SEC filing. Previously, the California-based biotech company had expected 2018 total revenue to be about $164 million and adjusted EPS at $4.22.

Roivant Sciences in-licenses late-stage drug candidates and develops them through subsidiaries. It is focused on various areas of drug development including women's health, rare diseases, neurology, cardiometabolic diseases, urology and dermatology.