LGNDZ · Ligand Pharmaceuticals, Inc.

Ligand Pharmaceuticals has terminated the TR-Beta Program license agreement with Viking Therapeutics, effective May 4, 2026, after providing a 10-day notice on April 24, 2026. The termination is based on Ligand's assertion that Viking materially breached its obligation to use Commercially Reasonable Efforts to develop and commercialize the TR-Beta Program, which includes VK2809 and VK0214. Under the License Agreement, originally dated May 21, 2014, and amended multiple times, all licenses granted to Viking for the TR-Beta Program will terminate. Viking is required to grant Ligand a non-exclusive, worldwide, royalty-bearing, sublicensable license to any Patent Rights and Know-How controlled by Viking necessary for the Licensed Products, at a low single-digit royalty rate. However, Viking disputes Ligand's right to terminate, and Ligand intends to vigorously enforce its termination rights. This dispute could lead to legal proceedings, creating uncertainty for both companies. For Ligand, the termination may allow it to regain control of the TR-Beta assets and potentially seek new partners. For Viking, the loss of the TR-Beta program could impact its pipeline and strategic plans. Investors should monitor developments regarding the dispute and any potential impact on Ligand's future revenue from licensing.