Ligand Pharmaceuticals (LGND) said Thursday it agreed to provide up to $47 million to AvenCell Therapeutics to support development of its cell therapy programs.

Ligand said it will provide up to $41 million in exchange for a mid-single-digit to low-double-digit royalty on worldwide annual net sales of AvenCell's current and future pipeline.

The funding will be provided in four tranches, with later payments tied to clinical milestones and other conditions, it added.

Ligand said it also committed up to $6 million to AvenCell's Series C financing.

AvenCell is developing therapies in a phase 1 trial to treat cancers, Ligand added.