San Diego drugmaker Ligand Pharmaceuticals Inc. announced Thursday that it is acquiring Palo Alto-based Open Monoclonal Technology Inc. for $178 million in a cash and stock deal.

Open Monoclonal Technology (OMT) is "a leader in genetic engineering of animals" for generating therapeutic human antibodies, according to a Ligand news release.

OMT's business is projected to bring in an additional $6 million in revenue to Ligand in 2016, and $12 million in 2017, the company said.

Ligand focuses on developing programs that lead to licensing deals or acquiring royalty revenue-generating therapeutic assets. These therapies address a broad spectrum of diseases, including diabetes, anemia and osteoporosis.

Ligand has alliances with GlaxoSmithKline Plc (NYSE:GSK), Amgen Inc. (NASDAQ:AMGN), Merck & Co. Inc. (NYSE:MRK), Pfizer Inc. (NYSE:PFE), and numerous other leading pharmaceutical companies.

Ligand stock is trading on the Nasdaq under the ticker symbol LGND for $111.85 per share.