San Diego-based Ligand Pharmaceuticals Inc. announced that it intends to offer $225 million of convertible senior notes due 2019 and has authorized a $200 million share repurchase program over the next 12 months.
Ligand intends to use a portion of the net proceeds to pay the cost of convertible note hedge transactions and to repurchase up to $45 million of shares of Ligand’s common stock in privately negotiated transactions. Ligand (NASDAQ: LGND) expects to use the remainder of the net proceeds for additional share repurchases up to a total of $200 million. The company may also use a portion of the net proceeds to acquire new businesses through one or more strategic transactions. However, it said it has no current commitments or obligations regarding acquisitions.
Ligand is a biopharmaceutical company that develops and acquires assets it believes will generate royalty revenue and produce sustainable profitability.
Ligand has a vast portfolio of drugs in development, primarily in the cancer and inflammation space, and has partnerships with a number of big pharma companies including GlaxoSmithKline PLC, Merck & Co. and Pfizer Inc.