Ligand Pharmaceuticals Inc. announced Friday that it is collaborating with E. Merck ofGermany to discover and develop new drugs.

At its own expense, Ligand will scan Merck’s extensive collection of steroid,flavonoid, and isoflavanoid compounds for drug candidates. Ligand’s patented assaydetects compounds that interact with intracellular receptors, which play a key role inregulating the genetic processes affecting certain cancers, gynecological disorders, andcardiovascular, inflammatory and skin diseases.

"Access to the diverse compound structures in E. Merck’s library maysignificantly enhance [Ligand’s] internal drug discovery programs by accelerating theefficiency of our chemistry efforts," said David Robinson, the San Diegocompany’s president and chief executive officer.