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Ligand Pharmaceuticals executive exits with severance deal

Published 02/08/2024, 23:02
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SAN DIEGO, CA – Ligand Pharmaceuticals Incorporated (NASDAQ:LGND) announced today that Matthew Korenberg, the company's President and Chief Operating Officer, will be leaving. The departure is set to occur by October 31, 2024, or earlier if Korenberg chooses to terminate his employment in writing.

Under the terms of a Severance Agreement dated today, Korenberg will receive compensation including unpaid salary, a portion of his 2024 target bonus, and a payment to cover COBRA healthcare costs through the end of the year. Additionally, he will engage in a consulting role with Ligand until December 31, 2024, or until he finds full-time employment elsewhere, whichever comes first.

During his consulting period, Korenberg will be compensated monthly, with the amount decreasing once he secures other full-time employment. If he becomes fully employed before October 31, 2024, he will receive the consulting fees as a lump sum.

The agreement also stipulates that Korenberg's stock awards will continue to vest until the end of his consulting term. Furthermore, Ligand will accelerate the vesting of his stock awards that would have matured through December 31, 2025, and he will retain the option to exercise these awards until March 1, 2026, provided certain conditions are met.

The details of the Severance and Consulting Agreements will be included in Ligand's upcoming Quarterly Report on Form 10-Q for the quarter ending September 30, 2024. This transition follows standard corporate governance practices and is disclosed in accordance with SEC regulations. The information is based on a press release statement.

In other recent news, Ligand Pharmaceuticals has been highlighted by RBC Capital for its diversified growth and investment catalysts, awarding the company an Outperform rating. Ligand's earnings per share (EPS) are projected to rise significantly over the next few years, as indicated by RBC Capital. Additionally, Ligand has completed the acquisition of APEIRON Biologics for $100 million, a move that could supplement the company's growth by up to $28 million based on future milestones.

In parallel, Palvella Therapeutics and Pieris Pharmaceuticals (NASDAQ:PIRS) have announced plans to merge, creating a combined entity focused on rare genetic skin diseases. The all-stock transaction is expected to result in a company with approximately $80.5 million in cash and cash equivalents.

Ligand has also received FDA approval for Ohtuvayre, a novel treatment for chronic obstructive pulmonary disease, developed in partnership with Verona Pharma (NASDAQ:VRNA). This approval is set to trigger a $5.8 million milestone payment and an additional $13.8 million upon the drug's commercial launch.

Analysts from Craig-Hallum and H.C. Wainwright have maintained a Buy rating on Ligand's stock, reflecting confidence in the company's growth potential. Ligand is projected to generate earnings of over $6.00 per share next year, an increase from this year's $5.01 per share. These are among the recent developments that reflect strategic growth initiatives for both Palvella and Ligand.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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