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Ligand (LGND) Proposes to Buy U.K.'s Drug Discovery Biotech
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Ligand Pharmaceuticals, Inc. (LGND - Free Report) has announced that it will acquire U.K.’s structure-based drug discovery biotechnology company, Vernalis, for a purchase consideration of approximately $43 million. The transaction requires the company to buy all the issued and to be issued shares of Vernalis through a UK scheme of arrangement, subject to approvals of Vernalis’ shareholders.
Per the terms of the agreement, shareholders of Vernalis will receive £0.062 per share in cash, valuing the company at approximately £32.8 million or $43 million. However, the deal needs approval from the stockholders with an aggregate value of minimum ownership at 75%. Two major shareholders owning a 67% stake in Vernalis as well as the board of directors have granted support to this buyout. The consolidation is expected to be closed this October on the shareholders’ approval.
The integration is likely to boost Ligand’s drug-discovery platform via Vernalis’ broad portfolio of partnered and unpartnered programs. It will add eight fully-funded partnered programs including under-development treatment for respiratory, oncology and central nervous system (CNS) indications. Additionally, Vernalis has struck collaboration agreements and partnerships with several pharma companies, further enabling Ligand’s platform to pursue investment and acquisition opportunities in Europe as well as the United Kingdom.
The acquisition will also add a 70-employee R&D team to Ligand’s company profile and help it gain Vernalis’ cash of $32 million net of cost.
Shares of Ligand have soared 77% year to date against the industry’s decline of 5.1%.
Last week, Ligand released second-quarter 2018 results. The company delivered adjusted earnings of $2.59 per share, significantly up from the year-ago figure of 67 cents. The bottom line also beat the Zacks Consensus Estimate of 93 cents.
Total revenues in the quarter increased to $90 million from $28 million in the year-ago period. Moreover, the top line surpassed the Zacks Consensus Estimate of $60.46 million.
Ligand Pharmaceuticals Incorporated Price and Consensus
Ligand currently sports a Zacks Rank #1 (Strong Buy). Other top-ranked stocks in the healthcare sector include Gilead Sciences, Inc. (GILD - Free Report) , Celgene Corporation and Illumina, Inc. (ILMN - Free Report) , all boasting the same bullish Zacks Rank of 1 as Ligand’s. You can see the complete list of today’s Zacks #1 Rank stocks here.
Gilead Sciences’ earnings estimates have been moved 7.7% north for 2018 and 2.2% for 2019 over the past 60 days. The stock has gained 7.1% year to date.
Celgene’s earnings estimates have been revised 2.9% upward for 2018 and 3.6% for 2019 over the past 60 days.
Illumina’s earnings estimates have been revised 11.1% upward for 2018 and 8.7% for 2019 over the past 60 days. The stock has surged 51.1% so far this year.
Wall Street’s Next Amazon
Zacks EVP Kevin Matras believes this familiar stock has only just begun its climb to become one of the greatest investments of all time. It’s a once-in-a-generation opportunity to invest in pure genius.
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Ligand (LGND) Proposes to Buy U.K.'s Drug Discovery Biotech
Ligand Pharmaceuticals, Inc. (LGND - Free Report) has announced that it will acquire U.K.’s structure-based drug discovery biotechnology company, Vernalis, for a purchase consideration of approximately $43 million. The transaction requires the company to buy all the issued and to be issued shares of Vernalis through a UK scheme of arrangement, subject to approvals of Vernalis’ shareholders.
Per the terms of the agreement, shareholders of Vernalis will receive £0.062 per share in cash, valuing the company at approximately £32.8 million or $43 million. However, the deal needs approval from the stockholders with an aggregate value of minimum ownership at 75%. Two major shareholders owning a 67% stake in Vernalis as well as the board of directors have granted support to this buyout. The consolidation is expected to be closed this October on the shareholders’ approval.
The integration is likely to boost Ligand’s drug-discovery platform via Vernalis’ broad portfolio of partnered and unpartnered programs. It will add eight fully-funded partnered programs including under-development treatment for respiratory, oncology and central nervous system (CNS) indications. Additionally, Vernalis has struck collaboration agreements and partnerships with several pharma companies, further enabling Ligand’s platform to pursue investment and acquisition opportunities in Europe as well as the United Kingdom.
The acquisition will also add a 70-employee R&D team to Ligand’s company profile and help it gain Vernalis’ cash of $32 million net of cost.
Shares of Ligand have soared 77% year to date against the industry’s decline of 5.1%.
Last week, Ligand released second-quarter 2018 results. The company delivered adjusted earnings of $2.59 per share, significantly up from the year-ago figure of 67 cents. The bottom line also beat the Zacks Consensus Estimate of 93 cents.
Total revenues in the quarter increased to $90 million from $28 million in the year-ago period. Moreover, the top line surpassed the Zacks Consensus Estimate of $60.46 million.
Ligand Pharmaceuticals Incorporated Price and Consensus
Ligand Pharmaceuticals Incorporated Price and Consensus | Ligand Pharmaceuticals Incorporated Quote
Zacks Rank & Stocks to Consider
Ligand currently sports a Zacks Rank #1 (Strong Buy). Other top-ranked stocks in the healthcare sector include Gilead Sciences, Inc. (GILD - Free Report) , Celgene Corporation and Illumina, Inc. (ILMN - Free Report) , all boasting the same bullish Zacks Rank of 1 as Ligand’s. You can see the complete list of today’s Zacks #1 Rank stocks here.
Gilead Sciences’ earnings estimates have been moved 7.7% north for 2018 and 2.2% for 2019 over the past 60 days. The stock has gained 7.1% year to date.
Celgene’s earnings estimates have been revised 2.9% upward for 2018 and 3.6% for 2019 over the past 60 days.
Illumina’s earnings estimates have been revised 11.1% upward for 2018 and 8.7% for 2019 over the past 60 days. The stock has surged 51.1% so far this year.
Wall Street’s Next Amazon
Zacks EVP Kevin Matras believes this familiar stock has only just begun its climb to become one of the greatest investments of all time. It’s a once-in-a-generation opportunity to invest in pure genius.
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