Contact:
                                                                   Paul V. Maier
                                                          Senior Vice President,
                                                         Chief Financial Officer
                                                                  (858) 550-7573


         LIGAND RAISES $24 MILLION IN PRIVATE PLACEMENT OF COMMON STOCK

     SAN DIEGO, CA - January 8, 2001 -- Ligand Pharmaceuticals Incorporated
(Nasdaq: LGND) announced today the completion of a $24 million private placement
of two million shares of its common stock to selected institutional and
accredited investors, including several current Ligand investors.

     Elan Corporation plc purchased 0.4 million shares in this offering. After
this financing, Elan owns approximately 12.8% of Ligand common stock
outstanding, or 18.6% on a fully diluted basis.

     Ligand intends to use the net proceeds of the private placement for
development and commercialization of existing and proposed products, expenses
relating to clinical trials and registration activities, expansion of a sales
and marketing infrastructure and new product launches, and for working capital
and general corporate purposes.

     The shares of common stock sold in the placement have not been registered
under the Securities Act of 1933, as amended, and cannot be offered or sold
absent registration or an applicable exemption from registration. LIGAND
PHARMACEUTICALS INCORPORATED

     Ligand Pharmaceuticals Incorporated discovers, develops and markets new
drugs that address critical unmet medical needs of patients in the areas of
cancer, skin diseases, and men's and women's hormone-related diseases, as well
as osteoporosis, metabolic disorders and cardiovascular and inflammatory
diseases. Ligand's proprietary drug discovery and development programs are based
on its leadership position in gene transcription technology, primarily related
to Intracellular Receptors (IRs) and Signal Transducers and Activators of
Transcription (STATs).

     This news release may contain certain forward-looking statements by Ligand
which involve risks and uncertainties and reflect Ligand's judgement as of the
date of this release. Actual events or results may differ from Ligand's
expectations. Additional information concerning these and other risk factors
affecting Ligand's business can be found in prior press releases as well as in
Ligand's public periodic filings with the Securities and Exchange Commission,
available via Ligand's website at HTTP://WWW.LIGAND.COM. Ligand disclaims any
intent or obligation to update these forward-looking statements beyond the date
of this release.

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