Ligand Pharma Acquires Economic Rights To PTX-022 From Palvella For $10 Mln

(RTTNews) - Ligand Pharmaceuticals Inc. (LGND) Monday said it acquired economic rights to PTX-022 from Palvella Therapeutics.

PTX-022 is a novel, topical formulation of rapamycin currently in Phase 2/3 development for the treatment of pachyonychia congenita, a rare skin disorder for which no FDA-approved treatment exists.

Ligand will pay $10 million to Palvella Therapeutics and in return will receive a tiered royalty on net sales in the mid-to-upper single digits, as well as regulatory and financing milestones. Ligand will not incur any expenses to develop or commercialize PTX-022.

Pachyonychia congenita is a serious, chronically debilitating genetic disorder that results in malformation of the skin and severely limits the mobility and quality-of-life of those affected. PTX-022 has received Fast Track and Orphan Drug designations from the FDA.

"This transaction provides Palvella Therapeutics with capital to complete its planned clinical trials that could be the basis for registration and approval of a novel and important new medicine," said John Higgins, Chief Executive Officer of Ligand.