Ligand Pharmaceuticals Incorporated, the renowned biotech company announced here today of the return of cash on the common stock of the Corporation in the form of a $2.50 per share cash dividend, payable on April 19, 2007 to shareholders of record as of April 5, 2007. It has also been referred that in addition to this approximately $253 million cash dividend, Ligand's board of directors has authorized up to $100 million in share repurchases within the next 12 months.

Ligand is an early-stage biotech company with its central focus on the discovery and development of new drugs addressing critical unmet medical needs in the areas of thrombocytopenia, cancer, hepatitis C, hormone-related diseases, osteoporosis and inflammatory diseases. The company also endeavors for the development of drugs tend to be more effective and safer than existing therapies, being more opportune to administer and that are cost effective. The company also intends to become profitable through the generation of income from research, milestone, royalty and co-promotion revenues resulting from collaborations with pharmaceutical partners. Meanwhile even in the research and development field it has collaborated with GlaxoSmithKline, Wyeth, Pfizer Inc. and TAP Pharmaceutical Products, Inc. (“TAP”). The partnered products are under careful study for the treatment of large market indications such as thrombocytopenia, osteoporosis, menopausal symptoms and frailty.

Speaking to the newsroom, the President and Chief Executive Officer, Mr. John L. Higgins said, “Our strategy of building a highly focused R&D- and royalty-driven biotech company allows us the ability to deliver value to shareholders through this one-time cash dividend and open market share repurchases, while maintaining a strong balance sheet and funding ongoing operations”. He continued, “The cash we are returning to our stockholders is a result of the sale of our commercial operations in 2006 and early 2007, and today's announcement follows a formal, third-party valuation analysis and discussion among Company directors and consultants, among other considerations”.

Meanwhile in February 28, 2007, the company had just about an amount of $415 million of unrestricted cash and investments. Additionally, there is $35.0 million of cash held in escrow accounts following the sales of AVINZA and our oncology product line to support potential indemnification claims by the purchasers of those assets.

It has also been stated, that the Ligand option holders will not receive any proceeds from the payment of the dividend. Therefore, the compensation committee of the board of directors are in the process of possible evaluating and making some form of adjustment to outstanding stock options. In February 2007, shareholders approved a measure (as described in the January 2007 proxy statement) while authorizing the Company for making an adjustment to outstanding stock options in an equitable manner.