Ligand Pharmaceuticals (NASDAQ:LGND) purchases the economic rights to multiple programs from privately-held CorMatrix for $17.5M. The deal includes synthetic royalties from sales of CorMatrix's currently marketed portfolio of vascular, cardiac and pericardial tissue repair products as well as its CanGaroo ECM Envelope for cardiac implantable electronic devices. Ligand also has the potential to earn mid-single digit royalties from CorMatrix's development-stage Micronized ECM product and replacement valve products.
CorMatrix's offerings, designed to permit the development and regrowth of human tissue, enables Ligand to enter into the medical device space.
The transaction will be immediately accretive, adding $1M in revenue this year and ~$0.04 to non-GAAP EPS. Ligand will not incur any expenses to develop or commercialize the products. The amounts Ligand will record as revenue will reflect deductions for deal amortization as an offset.