Ligand Pharmaceuticals said Oct. 27 it has agreed to buy struggling San Diego biotech Metabasis for $3.2 million cash. After factoring in liabilities, Metabasis will receive approximately $1.8 million.

The La Jolla biotech, which warned earlier this year it may have to cease its operations entirely, was running out of cash and down to just a handful of employees.

The deal gives Ligand, developer of the painkiller Avinza and Promacta for low platelet levels, access to Metabasis’ HepDirect platform technology for drug delivery to the liver along with clinical stage drug candidates for diabetes, hyperlipidemia and liver diseases. An early-stage hepatitis C program is fully funded by Merck.

“Metabasis has built a pipeline of product candidates and drug development programs that have the potential to one day yield new therapies for metabolic and chronic liver diseases, but due to our limited financial and operational resources, we are unable to independently realize their full potential value,” said Metabasis CEO Mark Erion, who announced in September he was leaving the company for a job with Merck’s diabetes division.

The transaction, subject to regulatory and Metabasis shareholder approvals, is expected to close early next year.

In August, Ligand bought Branford, Conn.-based Neurogen for $11 million in stock and royalties that added psychiatric and neurological drugs to its portfolio.

— Heather Chambers