Ligand Pharmaceuticals recently announced its decision to spin off its subsidiary, Pelican Technology Holdings, and merge it with Primordial Genetics. The newly formed private company, called Primrose Bio, will primarily focus on the field of synthetic biology.
As part of the deal, Ligand will maintain ownership of the existing commercial royalties associated with the Pelican Expression Technology and hold a 49.9% stake in the merged entity.
In addition to this, Ligand will be contributing $15 million to Primrose Bio in exchange for a portion of the economic rights to certain products. While this divestiture will result in lower contract revenue for Ligand in the current year, it is expected to have a positive impact on the company’s adjusted earnings.
Ligand’s full-year revenue forecast now stands at $124 million to $126 million, as compared to the previous guidance of $124 million to $128 million. The company also anticipates adjusted earnings per share for the full year to be in the range of $5.10 to $5.25, surpassing the previous forecast of $4.85 to $5.