Viking and Ligand dispute VK2809 license termination in San Diego court

Viking Therapeutics, Inc. (Nasdaq: VKTX) said in its 10-Q filed October 29, 2026 that Ligand Pharmaceuticals Incorporated (Nasdaq: LGND) sued it on May 19, 2026 in the Superior Court of California, County of San Diego. The suit followed an April 24, 2026 notice in which Ligand said it was purporting to terminate Viking's license of the TR-Beta Program under their Master License Agreement. The program includes Viking's VK2809 and VK0214 product candidates. Ligand asserts breach of contract and declaratory relief. The 10-Q gives no case number.

Viking is the defendant in Ligand's complaint. In a July 2, 2026 cross-complaint in the same action, Viking sued Ligand and its affiliate, Metabasis Therapeutics, Inc. The 10-Q names no individual defendants.

The case

Ligand seeks damages and a decree of specific performance. It wants the court to compel Viking to perform certain post-termination obligations for the TR-Beta Program, including the return of certain intellectual property.

Viking's cross-complaint asks for a declaration that it did not breach the Master License Agreement and that Ligand's purported termination was invalid. It also asks the court to find that Viking keeps its exclusive rights to develop and commercialize products under the TR-Beta Program. Viking separately claims Ligand and Metabasis breached the contract and the implied covenant of good faith and fair dealing by improperly purporting to terminate the license.

Viking entered the Master License Agreement on May 21, 2014, and it has since been amended. The company's risk factors say it holds exclusive worldwide rights under that agreement to VK2809, VK0214, VK5211, VK0612 and preclinical programs for metabolic disorders and anemia.

Defendants

Viking Therapeutics, Inc. is the defendant on Ligand's complaint. Ligand Pharmaceuticals Incorporated and Metabasis Therapeutics, Inc. are the cross-defendants on Viking's claims. No officers or directors of any party are named.

Where it stands

Viking's 10-Q filed July 29, 2026 described the termination notice, Ligand's complaint and Viking's cross-complaint. Ligand's own 10-Q filed August 7, 2026 says Viking's July 2 answer generally denied all claims and asserted various affirmative defenses. Ligand describes the TR-Beta Program as a Metabasis drug development program outlicensed to Viking. It says that given the early stage of the matter, it cannot estimate the potential outcome or potential losses. On August 19, 2026, Ligand and Metabasis filed a demurrer asking the court to dismiss Viking's cross-claims for breach of contract and breach of the implied covenant. Viking says it intends to oppose. Its opposition is due February 11, 2027, and a hearing on the demurrer is scheduled for February 26, 2027. The parties have started written discovery.

Viking says it believes it has "good and substantial defenses to the claims asserted by Ligand," though it adds that there is no guarantee it will succeed.

Why it matters to shareholders

If Viking cannot resolve the dispute and Ligand ultimately has the right to terminate the Master License Agreement for the TR-Beta Program, Viking says it "will lose certain intellectual property rights, including the right to develop or commercialize VK2809 and VK0214."

The agreement also carries payment terms. Viking says it may owe Ligand up to approximately $1.54 billion in development, regulatory and sales milestones, plus single-digit royalties on future worldwide net product sales. The 10-Q says Ligand may terminate the agreement under certain circumstances, including Viking's insolvency or bankruptcy, nonpayment of an undisputed amount that is not cured, or an uncured default on other obligations. It does not say which ground Ligand cited. The 10-Q reports no accrual or damages estimate for the Ligand case.

The filing also ties the company's pipeline to Ligand. Most of the intellectual property related to Viking's drug candidates is owned by Ligand, and Viking holds rights to use it under the agreement. Viking says its ability to develop and commercialize certain candidates "depends entirely on the effectiveness and continuation of the Master License Agreement." Ligand also has the first right to file, prosecute and maintain the patents subject to the agreement in its own name.

Related matters

Viking is also the plaintiff in a trade secret case against Ascletis entities, now on appeal at the Federal Circuit.

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VKTXViking Therapeutics, Inc.NASDAQ · United StatesOpen the deskLGNDLigand Pharmaceuticals IncorporatedNASDAQ · United StatesOpen the starter desk