Ligand To Spin-Off OmniAb Via Avista Capital-Backed SPAC Merger


Ligand Pharmaceuticals Inc LGND signed a merger agreement with Avista Public Acquisition Corp II AHPA, providing for the spin-off of OmniAb Inc.

  • APHA is Avista Capital Partners-backed special purpose acquisition company (SPAC), and OmniAb is Ligand's antibody discovery business. 
  • Ligand's President, Matt Foehr, will lead the combined company that will trade on NASDAQ under the ticker 'OABI.'
  • Avista Capital will invest up to $115 million in the combined company, and Ligand will contribute $15 million. 
  • Related: Ligand To Spin-Off OmniAb Platform Into Its Own Independent Company.
  • The combined company will have an initial pre-money equity valuation of $850 million. 
  • Immediately before the transaction close, Ligand intends to distribute 100% of its ownership of OmniAb to Ligand shareholders in a tax-free distribution. The transaction is expected to close 2H of 2022.
  • OmniAb's Biological Intelligence (BI) proprietary transgenic animals have been genetically modified to generate antibodies with human sequences to facilitate the development of human therapeutic candidates. 
  • Over 55 partners currently have access to OmniAb-derived antibodies, and more than 250 programs are being actively developed or commercialized.
  • The combination of OmniAb and AHPA is structured to guarantee a minimum of $130 million in gross cash to the combined company and up to $266 million in case of no redemptions by APAC shareholders. 
  • Upon closing the transaction, Ligand shareholders are expected to own approximately 75% to 84% of the combined company.
  • Price Action: LGND shares closed 3.19% lower at $109.83 on Wednesday.
Market News and Data brought to you by Benzinga APIs
Posted In: BiotechM&ANewsHealth CareSmall CapGeneralBiotechnologyBriefsHealth Care
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!