Palvella Therapeutics And Ligand Pharmaceuticals Expand Strategic Partnership To Accelerate Phase 3 Development Of QTORIN Rapamycin For Microcystic Lymphatic Malformations And Additional High Unmet Need Clinical Indications; Palvella Received $5M Payment
Portfolio Pulse from Benzinga Newsdesk
Palvella Therapeutics and Ligand Pharmaceuticals (NASDAQ:LGND) have expanded their strategic partnership to accelerate Phase 3 development of QTORIN rapamycin for Microcystic Lymphatic Malformations (Microcystic LMs). Palvella received a $5 million upfront payment from Ligand, which also increased its tiered royalty on worldwide sales of QTORIN rapamycin to 8.0–9.8%. Ligand has an option to acquire a single-digit royalty on future topical products from Palvella's QTORIN platform. QTORIN rapamycin has potential to be the first FDA-approved therapy for Microcystic LMs, with over 30,000 diagnosed patients in the U.S. The FDA granted Breakthrough Therapy Designation to the drug in November 2023.
December 01, 2023 | 1:23 pm
News sentiment analysis
Sort by:
Ascending
POSITIVE IMPACT
Ligand Pharmaceuticals has expanded its partnership with Palvella Therapeutics, increasing its investment and potential revenue through higher tiered royalties on QTORIN rapamycin sales and an option for future royalties on Palvella's platform products.
The expansion of the strategic partnership and the upfront payment of $5 million to Palvella indicate a strong commitment by Ligand Pharmaceuticals to the success of QTORIN rapamycin. The increased royalty rates and the option for future royalties suggest potential for increased revenue streams for Ligand, which could positively impact its stock price in the short term. The FDA's Breakthrough Therapy Designation for QTORIN rapamycin further enhances the drug's profile and the likelihood of a successful Phase 3 trial, which could lead to FDA approval and commercialization, benefiting Ligand's financial position.
CONFIDENCE 85
IMPORTANCE 80
RELEVANCE 90