EXHIBIT 99.1
Contact:
Christiane V. Sheid
Vice President -
Finance and Communications
(858) 550-7809
LIGAND COMPLETES $10 MILLION TAKEDOWN OF ELAN FUNDING
SAN DIEGO, CA - January 03, 2001 -- Ligand Pharmaceuticals Incorporated
(Nasdaq: LGND) confirmed today the issuance of $10 million (issue price) of zero
coupon convertible notes under the terms of the securities purchase agreement
entered into in September 1998 with Elan Corporation plc (NYSE: ELN), and
subsequently amended. The notes issued in this transaction are due in November
2008, accrue interest at 8% per annum, compounding semi-annually, are
convertible at $14.16 per share and are callable at accreted value beginning in
November 2001. The funds will be used for general corporate purposes.
"These convertible notes represent the final takedown of the zero coupon
convertible note facility with Elan," said Paul V. Maier, Ligand Senior Vice
President and CFO. "The notes provide an increase in our cash balances to fund
working capital needs while our operating losses continue to decline and our
product revenues accelerate on our march to profitability."
Assuming conversion of all of the notes issued to date, Elan would
beneficially own approximately 18.5% of Ligand's fully diluted shares
outstanding.
Elan Corporation plc
Elan Corporation plc is a leading worldwide specialty pharmaceutical
company, with its principal research and manufacturing facilities located in
Ireland, the United States and Israel. Elan's shares trade on the New York,
London and Dublin stock exchanges.
LIGAND PHARMACEUTICALS INCORPORATED
Ligand Pharmaceuticals Incorporated discovers, develops and markets new
drugs that address critical unmet medical needs of patients in the areas of
cancer, skin diseases, and men's and women's hormone-related diseases, as well
as osteoporosis, metabolic disorders and cardiovascular and inflammatory
diseases. Ligand's proprietary drug discovery and development programs are based
on its leadership position in gene transcription technology, primarily related
to Intracellular Receptors (IRs) and Signal Transducers and Activators of
Transcription (STATs).
This news release may contain certain forward-looking statements by Ligand
which involve risks and uncertainties and reflect Ligand's judgement as of the
date of this release. Actual events or results may differ from Ligand's
expectations. There can be no assurance that future financial results will meet
current expectations including achievement of profitability, or that any product
in the Ligand pipeline will be successfully developed, approved by regulatory
authorities or accepted by patients and physicians. Additional information
concerning these and other risk factors affecting Ligand's business can be found
in prior press releases as well as in Ligand's public periodic filings with the
Securities and Exchange Commission, available via Ligand's website at
HTTP://WWW.LIGAND.COM. Ligand disclaims any intent or obligation to update these
forward-looking statements beyond the date of this release.
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Full prescribing information for Ligand's products may be obtained in the
U.S. from Ligand Professional Services by calling toll free 800-964-5836 or on
Ligand's web site at HTTP://WWW.LIGAND.COM..
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