CALIFORNIA : SOUTHLAND FOCUS : Ligand, Warner in Research Collaboration

Ligand Pharmaceuticals Inc. of San Diego said that pharmaceuticals giant Warner-Lambert Co. purchased $2.5 million of Ligand stock and that the two companies will collaborate on estrogen receptor research. The research and development agreement with Warner’s Parke-Davis Pharmaceutical Research Division will focus on the discovery, design and development of small-molecule compounds with the potential to treat and prevent diseases affected by the estrogen receptor, Ligand said. Some of the diseases affected by drugs that act on the estrogen receptor are osteoporosis, cardiovascular disease and breast cancer. Under the agreement, Ligand may receive up to $13 million in research funding through September 2002, as well as undisclosed future product milestone payments and royalties. Parke-Davis will fund the costs of developing and marketing compounds selected from the collaboration, and it has the worldwide rights to manufacture and sell any resulting products. Ligand shares fell 19 cents to close at $6.56 on Nasdaq; stock in Morris Plains, N.J.-based Warner-Lambert rose $2.25 to close at $68.63 on the New York Stock Exchange.