Ligand Pharmaceuticals Inc. To Pay Akzo Nobel N.V.'s Organon Pharmaceuticals USA Inc. To End Deal
SAN DIEGO--(BUSINESS WIRE)--Jan. 17, 2006--Ligand Pharmaceuticals Incorporated (Pink Sheets:LGND) announced today that it has signed an agreement with Organon USA, Inc. that terminates the AVINZA(R) co-promotion agreement between the two companies and returns AVINZA rights to Ligand. The effective date of the termination agreement is January 1, 2006, however the parties have agreed to continue to cooperate during a transition period ending September 30, 2006 to promote the product. That transition period co-operation includes a minimum number of product sales calls per quarter (100,000 for Organon and 30,000 for Ligand with an aggregate of 375,000 and 90,000 respectively for the transition period) as well as the transition of ongoing promotions, managed care contracts, clinical trials and Key Opinion Leader relationships to Ligand. During the transition period Ligand will pay Organon an amount equal to 23 percent of AVINZA net sales as reported by Ligand. Ligand will also pay and be responsible for the design and execution of all clinical, advertising and promotion expenses and activities.