Ligand Pharmaceuticals to Acquire Ab Initio Biotherapeutics for $12 Million to Enhance OmniAb Antibody Discovery Platform

On July 22, 2019, VCBeat (WeChat ID: vcbeat) learned that Ligand Pharmaceuticals Incorporated (NASDAQ: LGND) announced it would acquire Ab Initio for $12 million in cash. Ab Initio is a privately held antigen development company based in South San Francisco, California. It is understood that antigen design and preparation constitute the first step in the discovery of therapeutic antibodies. Some antibody targets are difficult to identify, requiring specialized methods for antigen design, preparation, and delivery to enable the discovery of antibody candidates. This transaction is expected to have minimal impact on Ligand’s future cost structure.

Ab Initio will contribute its proprietary antigen technology, which is synergistic with Ligand’s OmniAb® therapeutic antibody discovery platform. This new technology will support Ligand in developing therapeutic antibodies against difficult-to-access cellular targets. Additionally, Ab Initio has entered into a collaboration agreement with Pfizer to develop novel therapeutic antibodies against undisclosed targets within the G protein-coupled receptor (GPCR) superfamily. GPCRs represent the largest class of therapeutic drug targets and play critical regulatory roles ranging from cardiovascular biology to metabolic health. Under the agreement, Ligand is eligible to receive potential milestone payments and tiered royalties on future sales. Ab Initio also currently has two non-collaborative preclinical programs, primarily focused on hematologic malignancies and solid tumors.

“Ab Initio’s technology is highly complementary to the OmniAb platform. Antigen generation is an essential step in the antibody discovery process; for some targets that are highly complex, the upfront work of antigen design and preparation can be particularly challenging. Leveraging its proprietary antigen technologies, Ligand will be better positioned to meet the needs of our partners,” said John Higgins, Chief Executive Officer of Ligand. Since Ligand’s acquisition of OmniAb in 2016, the company has expanded the platform through a series of initiatives, including strengthening internal R&D, forging collaborations, and pursuing acquisitions. Ligand provides a cutting-edge antibody development platform that delivers substantial value to its partners.

Kenneth Lin, CEO and Co-Founder of Ab Initio Biotherapeutics, commented, “Our vision is to build upon groundbreaking, award-winning science in GPCRs by generating antigens to discover antibodies against this highly challenging family of therapeutic targets. I am delighted that Ab Initio will be joining Ligand, and I am proud of the achievements our entire team has accomplished. The OmniAb platform is the ideal choice to further propagate Ab Initio’s technology across broader industries.”

Ligand’s OmniAb® therapeutic antibody platform includes OmniRat®, OmniFlic®, OmniMouse®, and OmniChicken™. OmniAb® is a patented transgenic animal platform for the development of fully human monoclonal and bispecific therapeutic antibodies.

Ab Initio Biotherapeutics, Inc. is a privately held biotechnology company located in South San Francisco. Its proprietary antigen discovery platform enables the targeting of multi-pass transmembrane proteins, such as GPCRs, and facilitates the generation of antibodies for a wide range of therapeutic indications, including neurological, cardiovascular, endocrine, and gastrointestinal diseases.

Ligand is a biopharmaceutical company focused on developing drug technologies and acquiring pharmaceutical companies. Ligand’s business model creates value for shareholders by providing a diversified portfolio of revenue streams from biotechnology and pharmaceutical products, supported by an efficient and low-cost corporate cost structure. Ligand aims to offer investors the opportunity to participate in the growth of the biotechnology industry through a business that is more profitable, diversified, and less risky than typical biotechnology companies. Ligand’s business model is based on its core competencies: drug discovery, early-stage drug development, product repurposing, and collaborations. Ligand partners with other pharmaceutical companies, leveraging their strengths in late-stage development, regulatory management, and commercialization, which ultimately generate revenue for Ligand. Ligand’s Captisol® platform technology is a patented chemically modified cyclodextrin designed to optimize the solubility and stability of drugs.

(Compiled by Tian Shuhang)