Ligand believes the drug in question, dinaciclib -- originally developed by Ligand acquisition Pharmacopoeia -- offers "significant potential in oncology" and has licensed the drug to Merck for use in treating chronic lymphocytic leukemia.
The news comes too late to save Ligand's third quarter, with the company warning investors this week that absent the $2 million payment, its Q3 revenues are going to fall about 25% short of previous expectations. As the money shifts into Q4, however, Ligand was able to up guidance for Q4 by about 18%, to $13 million.
Two million dollars is about 6.7% of the $30 million in revenues Ligand expects to collect this year. Ligand reports Q3 earnings on Nov. 5.
The article Ligand Lands $2 Million Payment From Merck originally appeared on Fool.com.
Fool contributor Rich Smith and The Motley Fool have no positions in the stocks mentioned above. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.