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news.Ligand Pharmaceuticals and The Rockefeller University have entered into a settlement agreement and mutual release, pursuant to which the parties have resolved all disputes that have arisen between them in litigation, including Rockefeller's primary claim relating to the development of Promacta.
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In addition, the parties have agreed to jointly seek dismissal with prejudice of all claims and counterclaims asserted in the ongoing litigation between the parties.
Ligand and Rockefeller agreed to terminate their 1992 licensing agreement. The termination of the licensing agreement will not negatively affect previously granted sublicenses or conveyances of rights to any third party and under the license agreement. Ligand does not believe that it requires a license from Rockefeller for its ongoing business activities, but Rockefeller has granted Ligand and its sublicensees a covenant not to sue under any patents or know-how that were the subject of the license agreement for any past, present or future use of such patents or know-how.
As part of the settlement, Ligand agreed to pay Rockefeller $5 million upon entering into the settlement agreement, $2 million in payments over the next two years, plus royalties derived from product sales including for TPO mimetic compounds licensed to GlaxoSmithKline (GSK). Ligand will pay Rockefeller a 5.88% share of royalties it receives from GSK on worldwide annual sales of Promacta (eltrombopag) of up to $1.5 billion, and a 7% share of royalties it receives from GSK on sales of eltrombopag greater than $1.5 billion in any given year.
Ligand will pay Rockefeller 1.5% of worldwide annual net sales of LGD-4665. In addition, Ligand will pay Rockefeller 50% of any future milestones it receives from GSK under the license agreement GSK entered into with Ligand in 1994. There will be no sharing of milestone payments related to LGD-4665.
John Higgins, president and CEO of Ligand Pharmaceuticals, said: We are pleased with the amicable resolution of this matter. We believe the settlement with Rockefeller is in the best interest of our company and our shareholders.