Ligand cutting work force, management

Ligand cutting work force, management

	Published : Wed, 31 Jan 2007 23:56 By : Agencies Print this Story

SAN DIEGO (AFX) - Ligand Pharmaceuticals Inc. said late Wednesday it is laying off 76 percent of its work force as it transitions to a smaller company focused on developing drugs currently in clinical trials.

As part of the restructuring a number of executives, including Ligand's chief financial officer, are stepping down.

In all, 267 positions are being cut, including 40 home-office positions, 23 field-based employees whose employment ended at the start of this year and 62 Ligand employees who will be offered jobs with King Pharmaceuticals Inc. upon that company's purchase of Ligand's Avinza pain drug.

The majority of the layoffs and restructuring will take place during the first quarter.

CFO Paul V. Maier is resigning effective Jan. 31 and Tod. G. Mertes will take over as interim CFO. Also, the company's chief scientific officer, general counsel and the heads of human resources, operations, regulatory affairs and project management will also resign.

Operations will be consolidated into one building, and Ligand said it will shut down its U.K. subsidiary.

'Ligand is rapidly transforming into a highly focused research and development and royalty driven pharmaceutical company,' said John L. Higgins, president and chief executive. 'While it is difficult to let go of employees who have made significant contributions to Ligand over the years, this is a required move to help align our company's resources with our main projects.'

Higgins took the CEO position Jan. 16, taking the spot from Henry F. Blissenbach, who had been serving in an interim role since August. Blissenbach is still chairman of the board.

Employees will be given severance packages, the company said. Those packages will cost the company between $10 million and $12 million, with about $2.7 million being recorded during the fourth quarter. The remainder will be incurred in the first and second quarters. The cuts are expected to save the company between $20 million and $22 million on an annualized basis.

Shares of Ligand rose 9 cents to close at $12.99 on the Nasdaq.