Ligand Pharma to buy Vernalis for just under £33m in cash

9th Aug 2018 15:12

(Sharecast News) - AIM-listed Vernalis has agreed to be bought by Ligand UK, a subsidiary of California-based Ligand Pharmaceuticals, for 6.2p per share in cash, valuing the company at around £32.67m.The price represents a 45.7% premium to the closing price of Vernalis on 14 March, which was the last business day before the company's board of directors announced the start of the formal sale process.The deal, which is expected to close in the fourth quarter and which Vernalis directors intend to unanimously recommend, will be funded entirely from Ligand's existing cash resources.Chairman Peter Fellner said: "On behalf of the board, following the formal sale process that the business initiated in March this year, I am pleased to recommend the acquisition of Vernalis by the Ligand Group to all Vernalis shareholders. The board was pleased with the interest the company received as part of the formal sale process and believes the cash offer from the Ligand Group represents the best value for all Vernalis shareholders."Ligand said the acquisition would provide the company with a portfolio of more than eight fully-funded partnered programmes, including programmes in the respiratory and oncology sectors.Vernalis said back in March that it was continuing to explore strategic options to realise value for shareholders, including the potential sale of the company as a whole.Vernalis is a structure-based drug discovery biotechnology company with a broad pipeline of partnered programmes and ongoing collaborations, while Ligand is a biopharmaceutical group focused on developing or acquiring technologies that help pharmaceutical companies discover and develop medicines.At 1540 BST, Vernalis shares were up 12.4% to 6p.