Core Insights - Orchestra BioMed Holdings, Inc. reported strong financial results for Q3 2025, securing nearly $150 million in capital to advance its pivotal-stage programs [3][4][5] - The company is actively enrolling patients in the Virtue Trial, which compares its Virtue® Sirolimus AngioInfusion™ Balloon to commercially available options [3][4] - The company has expanded its strategic collaborations with Medtronic and Terumo, enhancing its business model and financial position [3][4][5] Financial Highlights - Cash and cash equivalents and marketable securities totaled $95.8 million as of September 30, 2025, with a cash runway extended into Q4 2027 [10] - Revenue for Q3 2025 was $0.9 million, a slight decrease from $1.0 million in Q3 2024 [10] - The net loss for Q3 2025 was $20.8 million, or $0.40 per share, compared to a net loss of $15.4 million, or $0.41 per share, in Q3 2024 [10][19] Strategic Partnerships - The company secured $71.6 million in committed capital from Medtronic and Ligand, along with $30 million from Terumo, which includes a right of first refusal agreement [3][4] - The collaboration with Medtronic aims to develop AVIM Therapy-enabled leadless pacemakers, while the agreement with Terumo provides strategic options for the Virtue SAB [4][5] Clinical Development - The BACKBEAT study is expected to complete enrollment by mid-2026, while the Virtue Trial aims for completion by mid-2027 [4][5] - AVIM Therapy has received FDA Breakthrough Device Designation for treating uncontrolled hypertension, targeting a significant patient population in the U.S. [7][11] - Virtue SAB is designed to deliver a proprietary sirolimus formulation and has also received FDA Breakthrough Device Designation for multiple indications [12]

Core Points - The article emphasizes the importance of enabling Javascript and cookies in browsers to prevent access issues [1] - It highlights that users with ad-blockers may face restrictions when trying to access content [1] Summary by Categories Technical Requirements - Users are advised to enable Javascript and cookies in their browsers to ensure proper functionality [1] - The presence of ad-blockers can lead to blocked access, necessitating their temporary disablement [1]

Revenue Growth - Total revenue and other income for Q3 2025 reached $115.461 million, a 123% increase from $51.812 million in Q3 2024[240] - Revenue from intangible royalty assets increased by 51% to $40.161 million in Q3 2025, compared to $26.552 million in Q3 2024[240] - Captisol revenue grew by 71% to $10.672 million in Q3 2025, up from $6.255 million in Q3 2024[240] - Contract revenue and other income surged by 320% to $58.203 million in Q3 2025, compared to $13.848 million in Q3 2024[240] - Ligand's royalty revenue for YTD 2025 was $110.472 million, a 49% increase from $73.966 million in YTD 2024[240] - Total revenue and other income increased by $63.6 million, or 123%, to $115.5 million in Q3 2025 compared to $51.8 million in Q3 2024[241] - Royalties increased by $14.9 million, or 47%, to $46.6 million in Q3 2025 compared to $31.7 million in Q3 2024, driven by sales of Filspari, Ohtuvayre, and Capvaxive[241] - Total revenue and other income for YTD 2025 increased by $84.1 million, or 68%, to $208.4 million compared to $124.3 million in YTD 2024[243] - Captisol sales increased by $9.5 million, or 41%, to $32.4 million in YTD 2025 compared to $23.0 million in YTD 2024[244] Expenses and Costs - Total operating costs and expenses rose by $11.9 million, or 24%, to $60.5 million in Q3 2025 compared to $48.7 million in Q3 2024[250] - Research and development expenses increased significantly to $21.0 million in Q3 2025 from $5.7 million in Q3 2024, mainly due to a $17.8 million funding arrangement related to AVIM Therapy[252] Non-Operating Income and Investments - The gain from short-term investments was $7.8 million in Q3 2025, compared to $2.4 million in Q3 2024, reflecting a significant increase[261] - Total non-operating income increased by $95.7 million, or 1009%, to $86.2 million in Q3 2025 compared to a loss of $9.5 million in Q3 2024[260] - The gain from change in fair value of equity-method investments increased by $78.9 million to $75.9 million in Q3 2025, primarily due to the Pelthos Transaction[262] - Interest income increased in Q3 2025 compared to Q3 2024, driven by higher average investment balances[263] - Interest expense in Q3 2025 included a 0.75% coupon cash interest expense related to Convertible Senior Notes issued in August 2025[264] - Other non-operating expense, net, decreased by $9.0 million in Q3 2025 compared to Q3 2024, mainly due to fair value changes to derivative assets[265] - The loss from short-term investments was $3.6 million in YTD 2025, compared to a gain of $98.9 million in YTD 2024[266] Financing and Investments - Ligand earned a $5 million milestone payment from Pelthos following the commercial launch of Zelsuvmi, which is the first FDA-approved at-home treatment for molluscum contagiosum[223] - Ligand invested $25 million in Orchestra BioMed's late-stage partnered cardiology programs, with an additional $15 million contingent on certain conditions[227] - The company completed a $460 million offering of 0.75% convertible senior notes due 2030, with net proceeds of approximately $445 million[218][219] - Ligand acquired global royalty rights to AT220 and potential milestone fees for AT292, paying $7 million upfront and committing an additional $4 million[226] - The company is entitled to a low-single-digit royalty on U.S. net sales of Pelthos' Xepi and additional milestone payments on Zelsuvmi sales in Japan[225] - As of September 30, 2025, cash, cash equivalents, and short-term investments totaled $664.5 million, an increase of $408.4 million from the end of the previous year[274] - The company issued $460.0 million of 0.75% convertible senior notes due 2030 in August 2025, with net proceeds of approximately $445.1 million[276] - As of September 30, 2025, the company had $124.4 million in available borrowing under the Revolving Credit Facility[282] - Cash provided by operating activities was $3.4 million in YTD 2025, a decrease from $68.6 million in YTD 2024[285] - The company believes existing funds and cash generated from operations are adequate to fund working capital and strategic initiatives[283] Market Risks - No material changes to market risks were reported for the nine months ended September 30, 2025, compared to the previous disclosures[288]

Financial Data and Key Metrics Changes - Total revenue and other income for Q3 2025 on a GAAP basis was $115.5 million, up from $51.8 million in the same quarter last year, with core revenue growing 68% year over year to $86.9 million [26][34] - Royalty revenue rose 47% year over year to $46.6 million, and adjusted EPS increased 68% to $3.09 [26][34] - The company raised its full-year 2025 guidance, now expecting core revenue of $225-$235 million and adjusted EPS of $7.40-$7.65 [35][36] Business Line Data and Key Metrics Changes - Royalty revenue growth was driven by strong performances from products like Travere's Filspari, Merck's Ohtuvayre, and Capvaxive, with Filspari becoming the largest royalty-generating asset [30][31] - Filspari reported Q3 sales of $90.9 million, a 155% year-over-year increase, while O2VARE sales reached $136 million, a 32% sequential increase [30][31] - Capvaxive generated $244 million in sales, an 89% sequential increase, reinforcing its market position [31] Market Data and Key Metrics Changes - The company noted strong uptake of Zelsuvmi in its early launch phase, with expectations for continued momentum [7] - Ohtuvayre is tracking ahead of initial forecasts, with Q3 sales growing 32% sequentially, and projected sales of $2 billion by 2029 [10][11] - The FDA has assigned a PDUFA date of January 13, 2026, for Filspari's second indication, FSGS, which could significantly expand its market opportunity [18] Company Strategy and Development Direction - The company has focused on building a diversified portfolio of high-margin royalties and has successfully executed a convertible debt financing to support growth initiatives [5][6] - The strategic direction set in 2022 has led to significant growth across core revenue and adjusted EPS, with a long-term royalty growth outlook of 22% CAGR [9][10] - The company is actively pursuing high-quality investment opportunities and expanding its business development team to capitalize on its robust pipeline [27][29] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strength of the commercial royalty portfolio and the potential for indication and geographic expansion of key products [36][37] - The company highlighted the positive developments in the FDA's approach to accelerating timelines for innovative treatments, which aligns with its investment strategy [16][49] - Management remains optimistic about the ongoing progress of the Pelthos team and the launch momentum of Zelsuvmi [37] Other Important Information - The company ended the quarter with approximately $1 billion in deployable capital, including cash and investments [7][27] - The Pelthos transaction resulted in a $53 million gain recognized in Q3, reflecting the strategic value of the spin-out [24][25] - The company has seen record-setting origination activity, reviewing over 130 investment opportunities in the first three quarters of the year [13] Q&A Session Summary Question: Opportunities and special situations related to Pelthos and Palvella - Management indicated a robust opportunity set in special situations, focusing on companies needing more than just capital [38][39] Question: Changes in investment opportunities and capital demands - Management noted that while the deal flow may shift with market conditions, the demand for royalty capital remains high, particularly for development-stage assets [44][45] Question: Insights on the ZELSUVMI launch and future expectations - Management provided limited additional information but indicated that more specifics would be available during the upcoming earnings call [50][51] Question: Competitive landscape for royalty assets - Management acknowledged potential future competition but noted that they have not yet seen significant changes in the competitive landscape [53][54] Question: Thoughts on the recent approval of Furoscix - Management expressed optimism about Furoscix's potential to provide a differentiated treatment option in the market [56]

Safe Harbor Statement and Disclaimers • This presentation contains forward-looking statements, as defined in Section 21E of the Securities Exchange Act of 1934, by Ligand and its partners thatinvolve risks and uncertainties and reflect Ligand's and its partners' judgmentasofthedateofthispresentation.All statements,otherthan statementsof historicalfact, couldbedeemedtobeforward-lookingstatements, includingstatements thatexpress Ligand'sorits partners'opinions, expectations,objectives, assumptions,plans orpro ...

Revenue Growth - Third quarter 2025 total revenues and other income were $115.5 million, a 123% increase from $51.8 million in Q3 2024, driven by higher royalty revenue and gains from business transactions [3]. - Royalty revenue for Q3 2025 was $46.6 million, up 47% from $31.7 million in Q3 2024, primarily due to royalties from Travere Therapeutics' Filspari, Merck/Verona Pharma's Ohtuvayre, and Recordati's Qarziba [3]. - Year-to-date total revenues for the nine months ended September 30, 2025, were $208.4 million, a 68% increase from $124.3 million in the same period in 2024 [6]. - Ligand reported total revenues and other income of $115,461,000 for the three months ended September 30, 2025, compared to $51,812,000 for the same period in 2024, representing a 123% increase [38]. - Core revenues and other income reached $86,892,000 for the three months ended September 30, 2025, compared to $51,812,000 in the prior year, reflecting a 67.6% increase [42]. Earnings and Guidance - Ligand raised its 2025 full year revenue guidance to $225 million - $235 million, up from the previous guidance of $200 million - $225 million [1]. - Adjusted earnings per diluted share guidance for 2025 increased to $7.40 - $7.65, compared to the previous range of $6.70 - $7.00 [1]. - GAAP net income for Q3 2025 was $117.3 million, or $5.68 per diluted share, compared to a net loss of $7.2 million, or $0.39 per share, in Q3 2024 [5]. - Net income for the three months ended September 30, 2025, was $117,273,000, compared to a net loss of $7,172,000 in the same quarter of 2024, indicating a significant turnaround [42]. - Diluted net income per share for the three months ended September 30, 2025, was $5.68, a significant improvement from a loss of $0.39 per share in the same quarter of 2024 [42]. Research and Development - Research and development expenses for Q3 2025 were $21.0 million, significantly up from $5.7 million in Q3 2024, due to one-time charges related to royalty financing agreements [3]. - Ligand's research and development expenses for the nine months ended September 30, 2025, were $77,671,000, significantly higher than $17,000,000 for the same period in 2024 [38]. - The company incurred $18,659,000 in R&D funding expenses for the three months ended September 30, 2025, compared to $725,000 in the same period of 2024 [42]. Acquisitions and Investments - Ligand completed a $460 million convertible senior notes offering due 2030, with net proceeds of approximately $445 million after fees and expenses [11][12]. - Ligand invested $25 million in Orchestra BioMed's late-stage cardiology programs, with an additional $15 million contingent on certain conditions [14]. - Ligand purchased global royalty rights to AT220 and related fees for $7 million, with an additional $4 million contingent on commercial milestones [13]. - The company completed the acquisition of Verona Pharma, adding Ohtuvayre, a treatment for chronic obstructive pulmonary disease, to its portfolio [24]. Financial Position - Total assets increased to $1,476,772,000 as of September 30, 2025, up from $941,774,000 on December 31, 2024, representing a growth of 57% [40]. - Total current assets rose to $753,920,000 as of September 30, 2025, compared to $331,559,000 at the end of 2024, marking a 126.5% increase [40]. - Total liabilities increased to $526,601,000 as of September 30, 2025, compared to $111,335,000 at the end of 2024, representing a 373.5% rise [40]. - The long-term portion of financial royalty assets increased to $206,332,000 as of September 30, 2025, up from $185,024,000 at the end of 2024, showing a growth of 11.5% [40]. Other Income - Ligand's income from the Pelthos transaction, specifically the Zelsuvmi out-license, was $24,503,000 for the three months ended September 30, 2025 [38]. - The company reported a total of $53.1 million in income related to the divestiture of its Pelthos subsidiary, which included $24.5 million from the out-license of Zelsuvmi and a $28.6 million gain on the sale of the business [46].

Core Insights - Ligand Pharmaceuticals reported a significant increase in third quarter revenue, driven by a 47% growth in portfolio royalty revenue, leading to an increase in full-year revenue guidance to $225 million - $235 million from a previous range of $200 million - $225 million [1][11] Financial Performance - Total revenues for Q3 2025 were $115.5 million, a 123% increase from $51.8 million in Q3 2024, primarily due to higher royalty revenue and gains from the Pelthos business sale [3] - Royalty revenue for Q3 2025 reached $46.6 million, up 47% from $31.7 million in Q3 2024, attributed to royalties from Travere Therapeutics' Filspari, Merck/Verona Pharma's Ohtuvayre, and Recordati's Qarziba [3] - Adjusted net income for Q3 2025 was $63.8 million, or $3.09 per diluted share, compared to $35.3 million, or $1.84 per diluted share, in Q3 2024 [5] Year-to-Date Financial Results - For the nine months ended September 30, 2025, total revenues were $208.4 million, a 68% increase from $124.3 million in the same period of 2024, driven by higher royalty revenue and gains from the Pelthos business sale [7] - Year-to-date royalty revenue was $110.5 million, a 49% increase from $74.0 million in 2024 [8] - Core adjusted net income for the nine months ended September 30, 2025, was $122.4 million, or $6.07 per diluted share, compared to $83.0 million, or $4.46 per diluted share, in 2024 [10] Cost Structure - Research and development expenses for Q3 2025 were $21.0 million, significantly higher than $5.7 million in Q3 2024, primarily due to a one-time charge related to a royalty financing agreement [4] - General and administrative expenses increased to $28.4 million in Q3 2025 from $24.5 million in Q3 2024, mainly due to transaction costs associated with the Pelthos transaction [4] Strategic Developments - Ligand completed a $460 million convertible debt financing in August 2025, providing additional resources for strategic investments [2][13] - The company made significant investments in new royalty rights and partnered programs, including a $25 million investment in Orchestra BioMed's cardiology programs [15][16] Portfolio Updates - Ligand's royalty portfolio includes key products like Filspari, which has been highlighted in updated clinical practice guidelines for treating IgA nephropathy [19] - The company is also involved in the development of Qtorin rapamycin for various indications, with ongoing clinical trials expected to yield results in the near future [21][22]

Core Insights - Ligand Pharmaceuticals is actively engaging with investors through upcoming conferences, indicating a focus on investor relations and potential growth opportunities [1][4] Company Overview - Ligand Pharmaceuticals is a biopharmaceutical company that supports the clinical development of high-value medicines through financing and licensing technologies [2] - The company's business model aims to create a diversified portfolio of biotech and pharmaceutical product revenue streams while maintaining a low corporate cost structure [2] - Ligand partners with leading pharmaceutical companies to leverage their expertise in late-stage development, regulatory management, and commercialization [2] Technology Platforms - Ligand operates two royalty-generating technology platforms: Captisol® and NITRICIL™ - Captisol® is designed to optimize the solubility and stability of drugs [2] - NITRICIL™ allows for tunable dosing and adjustable drug release profiles for various indications [2] Upcoming Events - Management will participate in the UBS Global Healthcare Conference on November 10, 2025, for one-on-one meetings [4] - A fireside chat is scheduled for November 12, 2025, at the Stifel 2025 Healthcare Conference [4] - Ligand will present at the Southwest IDEAS 2025 Investor Conference on November 20, 2025 [4]

Core Viewpoint - Ligand Pharmaceuticals will report its third quarter 2025 financial results on November 6, 2025, and will hold a conference call to discuss these results and provide a business update [1]. Company Overview - Ligand Pharmaceuticals is a biopharmaceutical company focused on supporting the clinical development of high-value medicines through financing and licensing technologies [3]. - The company's business model aims to create a diversified portfolio of biotech and pharmaceutical product revenue streams while maintaining a low corporate cost structure [3]. - Ligand partners with leading pharmaceutical companies to leverage their expertise in late-stage development, regulatory management, and commercialization [3]. - The company operates two royalty-generating technology platforms: Captisol®, which enhances drug solubility and stability, and NITRICIL™, which allows for tunable dosing and adjustable drug release profiles [3]. - Ligand has established multiple alliances and licenses with major pharmaceutical companies, including Amgen, Merck, Pfizer, Jazz, Gilead Sciences, and Baxter International [3].

Core Points - Ligand Pharmaceuticals will hold its annual Investor Day on December 9, 2025, in New York City [1] - Presentations will cover the company's strategy, investment activities, royalty portfolio, and long-term financial outlook, featuring guest speaker Scott Plesha from Pelthos Therapeutics [2] - A live webcast of the event will be available on Ligand's Investor Relations website, with a replay accessible afterward [3] Company Overview - Ligand Pharmaceuticals is a biopharmaceutical company focused on supporting the clinical development of high-value medicines through financing and licensing [4] - The company aims to create a diversified portfolio of biotech and pharmaceutical product revenue streams while maintaining a low corporate cost structure [4] - Ligand partners with leading pharmaceutical companies to leverage their expertise in late-stage development, regulatory management, and commercialization [4] - The company operates two royalty-generating technology platforms: Captisol® for drug solubility and stability, and NITRICIL™ for tunable dosing [4] - Ligand has established alliances with major pharmaceutical companies including Amgen, Merck, Pfizer, Jazz, Gilead Sciences, and Baxter International [4]