Company: LGNZZ
Filing Date: 2025-02-25
Form Type: 8-K
Source: 0000886163-25-000003
Chunk: 0

Company: LIGAND PHARMACEUTICALS INC
Filing Date: 2025-02-25
Form: 8-K
Item: Item 1.01
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Item 1.01 Entry into a Material Definitive Agreement.

On February 24, 2025, Ligand Pharmaceuticals Incorporated (“ Ligand”) entered into a Purchase and Sale Agreement (the “ Agreement”) with Castle Creek Biosciences, Inc., Castle Creek Biosciences, LLC (collectively, “ Castle Creek”) and a syndicate of co-investors for which Ligand acted as representative (collectively, including Ligand, the “ Purchasers”), to support Castle Creek’s autologous human fibroblast cell-based gene therapy genetically modified to express COL7, also known as FCX-007 (dabocemagene autoficel) (“ D-Fi”) Phase 3 clinical study, its lead candidate for patients with dystrophic epidermolysis bullosa (“ DEB”).

Pursuant to the Agreement, Ligand and the other Purchasers obtained, for an aggregate purchase price of $75 million, $50 million of which was paid by Ligand and $25 million of which was paid by the other Purchasers collectively, (i) a high single digit royalty on worldwide sales of D-Fi and (ii) warrants (“ Warrants”) to purchase shares of Castle Creek Biosciences, Inc. Series D-1 Preferred Stock (“ Shares”). The Warrants are exercisable until February 24, 2035.

As part of the Agreement, Castle Creek granted the Purchasers a security interest in certain assets related to the programs included in the Agreement, subject to certain customary exceptions.

In connection with the transaction Ligand also acquired an unsecured subordinated promissory note issued by Castle Creek Biosciences, LLC with an aggregate principal amount of $8.3 million, which note is due and payable upon Castle Creek’s receipt of U. S. Food and Drug Administration approval of D-Fi for treatment of DEB and certain other conditions to payment. Ligand paid $1.8 million for the unsecured subordinated promissory note.

The above summary of the Agreement does not purport to be complete and is qualified in its entirety by reference to the full text of the Agreement, which will be filed, with confidential terms redacted, as an exhibit to Ligand’s Quarterly Report on Form 10-Q to be filed with respect to the quarter ended March 31, 2025.

Item 7.01 Regulation FD Disclosure.