08:09 AM EDT, 07/08/2024 (MT Newswires) -- Ligand Pharmaceuticals ( LGND ) said Monday it has agreed to acquire Apeiron Biologics for $100 million in cash and up to $28 million based on future royalty payments.

Austria-based Aperion holds the royalty rights to Qarziba, a treatment for high-risk neuroblastoma commercialized in more than 35 countries. Additional royalty payments to Apeiron shareholders will be triggered if Qarziba royalties exceed predetermined thresholds by either 2030 or 2034.

The deal, expected to close by the end of July, is subject to a 30-day shareholder objection period.

Ligand said the acquisition will be immediately accretive to its earnings per share by about $1.00 on an annualized basis. The company raised its 2024 revenue guidance to $140 million to $157 million, from a previous range of $130 million to $142 million, and increased its core adjusted earnings guidance to $5.00 to $5.50 per share, up from a previous $4.25 to $4.75.

Ligand also agreed to a concurrent stock purchase investment of up to $4 million in invIOs, a privately held spin-off of Apeiron to finance research and development of three early-stage potential cancer treatments.

Price: 84.84, Change: +0.47, Percent Change: +0.56