Ligand’s partner Pfizer wins European approval for osteoporosis drug

Ligand Pharmaceuticals, a biotechnology company, has reported that its partner, Pfizer has received approval from the European Commission for Fablyn tablets, a selective estrogen receptor modulator for the treatment of osteoporosis in post-menopausal women at increased risk of fracture.

Fablyn was submitted for approval in Europe in January 2008. This is reported to be the first regulatory approval for Fablyn, a product that stems from a 1991 research collaboration with Ligand.

As a result of the first approval of Fablyn in a major market, Ligand has earned a $3 million milestone payment. Pursuant to the 1991 research agreement and 1996 settlement agreement with Pfizer, Pfizer has elected to pay the milestone payment by returning 323,338 shares of stock it owns in Ligand.

Pfizer is responsible for the registration and worldwide marketing of Fablyn. Ligand is entitled to receive royalty payments on net sales of the product.

John Higgins, president and CEO of Ligand, said: Today’s announcement is an exciting development for Ligand as the European approval of Fablyn marks the fourth drug associated with Ligand’s research platform that has been approved and the second to be approved in just the past six months. This milestone payment reduces Ligand’s outstanding shares and paves the way for potential future royalty payments and cash flow following the launch of the product.