Ligand Pharmaceuticals Incorporated announced that it has purchased from the Genaera Liquidating Trust certain intellectual property and interests in future milestones and royalties for MEDI-528, an IL-9 antibody programme under development by AstraZeneca's subsidiary, MedImmune. MEDI-528 is currently in a 320-patient phase II study for moderate-to-severe asthma.

Ligand paid $2.75 million to the Genaera Liquidating Trust in connection with the purchase. This opportunity arose from initial diligence and work conducted by Biotechnology Value Fund, L.P. (BVF). As part of this transaction and a result of BVF's contributions, Ligand entered into a separate agreement with BVF and certain of its affiliates, whereby BVF and Ligand will share the purchase price and any proceeds from the deal equally. Accordingly, BVF has paid Ligand $1.375 million.

"We believe the IL-9 antibody programme could provide a significant revenue stream, if MedImmune's development and commercialization efforts are successful, as it is potentially a blockbuster drug being developed by a premier pharmaceutical company," said John L. Higgins, president and chief executive officer of Ligand Pharmaceuticals. "This unique transaction is in alignment with Ligand's business model in that it adds another possible lucrative royalty stream from what we believe is a high-quality asset. Ligand is committed to constantly exploring and executing business arrangements that deliver long-term value to our shareholders. We are pleased BVF chose to partner with Ligand and recognized the value we added to the transaction."

MEDI-528 is a humanized antibody targeting IL-9, which is a member of a family of inflammatory signalling molecules known as interleukins. Several of these interleukin molecules, including IL-9, are thought to play an important role in the pathogenesis of asthma. MEDI-528 is an example of a new generation of asthma medicines designed to target underlying interleukin signalling pathways. IL-9 is thought to be an especially attractive target because it has been demonstrated to be one of the early initiators of multiple interleukin signalling events, making its inhibition with MEDI-528 potentially broad in its impact on asthma symptoms. The treatment needs of moderate-to-severe asthmatics create a multi-billion dollar market as of today with new therapeutic options in high demand. MEDI-528 was originally identified by the Genaera Corporation and then licensed to MedImmune in 2001. After AstraZeneca's acquisition of MedImmune in 2007, AstraZeneca continued to support this programme by initiating a 320-patient Phase II study in 2009 for MEDI-528.

Ligand discovers and develops new drugs that address critical unmet medical needs of patients for a broad spectrum of diseases including hepatitis, muscle wasting, Alzheimer's, inflammatory diseases, anaemia, COPD, asthma, rheumatoid arthritis and osteoporosis.