Ligand Partner Viking Therapeutics Announces Closing of Initial Public Offering, 3M Shares @ $8/Shr

Ligand Pharmaceuticals Incorporated

partner Viking Therapeutics, Inc.

announced that it had closed its initial public offering (the "Viking IPO") of 3,000,000 shares of its common stock at an initial offering price to the public of $8.00 per share. Viking granted the underwriters a 30-day option to purchase up to an additional 450,000 shares of common stock at the same price to cover over-allotments, if any. The shares are trading on the Nasdaq Capital Market under the ticker symbol "VKTX." In connection with the pricing of the Viking IPO, the Company purchased 1,125,000 shares of Viking common stock for an aggregate price of $9.0 million at the price offered to the public. In addition, pursuant to the Master License Agreement, dated May 21, 2014 (as amended, the "Master License Agreement") by and between the Company, Metabasis Therapeutics, Inc., a wholly-owned subsidiary of the Company, and Viking, the Company received 3,427,859 million shares of Viking common stock on closing of the Viking IPO, subject to adjustment in the event the underwriters exercise their option to purchase additional shares to cover over-allotments, if any. As of the closing date, the Company owned an aggregate of 49.9% of Viking, based on the shares of outstanding Viking common stock at the closing of the Viking IPO. As a result of the Viking IPO, the Company will make a cash payment to the holders of contingent value rights under the TR Beta Contingent Value Rights Agreement, dated January 27, 2010 (as amended, the "TR Beta CVR") and the General Contingent Value Rights Agreement, dated January 27, 2010 (as amended, and together with the TR Beta CVR, the "CVR Agreements"). Pursuant to the CVR Agreements, the Company estimates that the aggregate cash payment will be approximately $3.3 million, subject to adjustment in the event the underwriters exercise their option to purchase additional shares to cover over-allotments, if any. The payment is expected to be made on or about January 1, 2016. Ligand will provide a summary of the accounting impact of this offering by June 30, 2015.