News

Posted On: 02/01/2007

Ligand to Restructure and Trim 279 Jobs

PharmaManufacturing.com

Ligand Pharmaceuticals Inc. announced on Feb. 1 that it is restructuring its business by reducing its workforce by about 267 positions or approximately 76 percent.

Ligand's headcount following the reduction in force will be approximately 85 people down from a recent level of 352. Approximately 62 Ligand employees who, under the previously disclosed terms of the agreement with King Pharmaceuticals, Inc., will be offered employment by King upon closing of the sale of AVINZA. Most of the restructuring will take place in the first quarter of 2007, with a small transitional team staying until mid-year.

The Company's subsidiary in the United Kingdom will be shut down as soon as practicable, subject to local employment laws.

On an annualized basis, the operating cash savings to the company as a result of the eliminated positions is estimated to be $20 to $22 million. Ligand's collaborations with corporate partners including GlaxoSmithKline, Wyeth, Pfizer, TAP, Eli Lilly, and Ligand's pending sale of AVINZA to King Pharmaceuticals, are not expected to be affected by the restructuring.

"Ligand is rapidly transforming into a highly focused R&D and royalty-driven pharmaceutical company," said John L. Higgins, President and Chief Executive Officer.