The milestone payment arises from a drug discovery agreement between Schering-Plough and Pharmacopeia wherein Pharmacopeia contributed to Schering-Plough’s medicinal chemistry optimization of compounds discovered by Schering-Plough. Ligand completed its acquisition of Pharmacopeia in December 2008.
Under the terms of the collaboration agreement, Ligand is eligible to receive additional payments from Schering-Plough upon the achievement of certain development and regulatory milestones. Ligand is also eligible to receive royalties on potential sales of the drug. In addition to the beta-site of APP cleaving enzyme (BACE) program, the collaboration with Schering-Plough has resulted in several Phase I and II programs in multiple therapeutic areas.
John Higgins, president and CEO of Ligand, said: The achievement of this milestone further validates the valuable alliances we have with numerous large pharmaceutical companies. Alzheimer’s is a terribly debilitating disease affecting millions with essentially no treatment options. We are pleased to see the progress Schering-Plough has made with their BACE program.