Yesterday, Ligand Pharmaceuticals Inc. (LGND) announced it has agreed to purchase Neurogen (NRGN) for $11 million in stock as well as certain future cash payments based on licensing deals, real estate sales and other milestones. The deal, which is expected to close by the fourth quarter of this year, has been approved by both company boards. Additionally, Neurogen shareholders, representing approximately 33% of outstanding shares, have already given their nod in favor of the deal. The terms of the deal require Ligand to issue about 4 million new shares to Neurogen shareholders, which is equivalent to a purchase price of 16 cents per common share of Neurogen. Neurogen stockholders would hold 3% of the combined company. The transaction will give Ligand shareholders access to Neurogen's partnership with Merck & Co., Inc. (MRK). Ligand will also have access to additional pipeline assets and ...