Ligand to benefit from Onyx/ Amgen deal: Roth Capital Partners

|About: Amgen Inc. (AMGN)|By:, SA News Editor

Roth Capital Partners doesn't want investors to forget that Kyprolis — the multiple myeloma drug at the center of Amgen's (AMGN) deal for Onyx (ONXX) — is a moneymaker for Ligand Pharmaceuticals (LGND +1.1%) which receives tiered royalties tied to the use of Captisol technology in the drug.

LGND gets 3% above $750M in Kyprolis sales, Roth notes, adding that "based on current Wall Street estimates ... the 3.0% level will be reached in the next 24 months at the minimum."

Kyprolis' potential will now be backed by AMGN's "juggernaut sales and marketing efforts," Roth says.