United States-based Ligand Pharmaceuticals Incorporated (NASDAQ: LGND) announced yesterday that the company has signed a license agreement granting Cumulus Oncology exclusive worldwide rights to develop and commercialise VER250840, a novel, oral, selective, preclinical Chk1 Kinase Inhibitor discovered using Ligand's Vernalis Design Platform.

According to the terms of the contract, Ligand will receive an upfront license fee, and is eligible to receive more than USD76m of milestone payments and tiered royalties in the mid-to-high single digit range, depending on revenue. In addition, Ligand is eligible to receive an additional fee, payable in cash or Cumulus equity, upon Cumulus achieving specified financing-related events.

Chk1 is an important target within the DNA Damage Response (DDR) network and has been shown to play a key role in maintaining genomic integrity of cancer cells.