Ligand Pharmaceuticals Inc. will buy Metabasis Therapeutics Inc. for about $3.2 million and contingent future payments, the companies said Tuesday.
The deal gives Ligand, headquartered in San Diego, a fully funded partnership with Roche on hepatitis and other drug development programs. Metabasis, headquartered in La Jolla, Calif., gets $3.2 million upfront, or $1.8 million after factoring in liabilities. Also, Metabasis shareholders will receive a certain amount of "contingent value rights" entitling them to future payments.
Both companies boards of directors unanimously voted for the deal, which is expected to close in early 2010. Ligand said it doesn't expect any change to its 2009 financial outlook.
Shares of Ligand closed at $1.91 and shares of Metabasis share tumbled 41 cents, or 45 percent, to 50 cents in premarket trading after closing at 91 cents Monday.