Ligand, Lilly Agree Second Extension To R&D Collaboration

and and Company will extend until November 2004 their research collaboration focused on discovering novel drugs for type II diabetes and cardiovascular disorders.

This represents the second extension of the collaboration with Lilly, and further strengthens both partners’ confidence in continued success going forward.

The Lilly-Ligand collaboration, which began in 1997, already has advanced three peroxisome proliferation activated receptor (PPAR) modulators into clinical studies.

PPARs are a subfamily of intracellular receptors that regulate glucose and lipid homeostasis.

They play a key role in enhancing cellular responses to insulin, and in fat tissue stores and metabolism.

“We are very pleased to extend what has become our most prolific research collaboration,” said Andres Negro-Vilar, M.D., Ph.D., Ligand’s senior vice president for research and development and chief scientific officer.

“With LY818 in Phase II studies, LY929 and LY674 in Phase I, and other PPARs moving rapidly toward the clinic, we have an extraordinary opportunity to bring to market products with enhanced activity and broader therapeutic profiles for type II diabetes and cardiovascular disorders. In addition, recent scientific publications have elucidated the key role that members of this family of receptors play in obesity and its associated disorders, further expanding the therapeutic potential of our products.”

The collaboration’s most advanced product, LY818, is a novel, potent, oral, once-daily PPAR modulator for the treatment of type II diabetes and metabolic diseases.

LY929, for the treatment of type II diabetes, metabolic diseases and dyslipidemias, entered clinical development in mid-2002.

LY674, for the treatment of dyslipidemias, entered clinical development in late 2002.

Lilly and Ligand also maintain an active preclinical development program, and plan to advance additional product(s) into clinical studies in 2003.

Under the terms of the collaboration, Ligand receives research funding from Lilly.

Lilly is responsible for the development and registration of any products resulting from the collaboration, and pays Ligand milestone payments — which may total more than $10 million per product — as products move through the development process.

Lilly has exclusive worldwide marketing rights to products resulting from the research, and will pay Ligand up to double-digit royalties on sales of products that make it to market.

Ligand discovers, develops and markets new drugs that address critical unmet medical needs of patients in the areas of cancer, pain, skin diseases, men’s and women’s hormone-related diseases, osteoporosis, metabolic disorders, and cardiovascular and inflammatory diseases.

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