Ligand, Akzo Will Co-Market an Oral Form of Morphine

Ligand Pharmaceuticals Inc. and Akzo Nobel, the Netherlands’ largest drug maker, said Monday that they would co-market a once-daily oral form of morphine called Avinza in the United States.

Ligand will pay Akzo 30% of the revenue for annual Avinza sales of up to $150 million; 40% for sales of $150 million to $300 million; 50% for sales of $300 million to $425 million; and 45% for sales of more than $425 million. The drug makers will split marketing costs, Ligand said.

San Diego-based Ligand, which has seen its shares drop 66% in the last 12 months, said the companies will use more than 800 salespeople to promote the drug in a market estimated at $2.7 billion.

Ligand licensed the U.S. and Canadian rights to the drug from Dublin, Ireland-based Elan Corp. in 1998.

Ligand in November restructured an earlier co-promotion agreement with Elan, Avinza’s developer. The company agreed to pay Elan $100 million in cash in return for a reduction in royalty payment rates on sales of Avinza and rights to find a new partner on the drug.

Ligand shares rose 35 cents to $4.80 on Nasdaq.