Financial Data and Key Metrics Changes - Total revenue for Q2 2025 grew 15% year over year to $47.6 million, with adjusted EPS rising 14% to $1.6 per share, reflecting solid execution and continued operating leverage [32] - Royalty revenue increased 57% from the prior year to $36.4 million, underscoring the strength and momentum of partnered programs [32] - GAAP net income for the quarter was $4.8 million or $0.24 per diluted share, compared to a GAAP net loss of $51.9 million or $2.88 per share in the prior year period [38] Business Line Data and Key Metrics Changes - Key drivers of royalty revenue growth included strong performance from Varonis O2VARE, Trevyr's FILSPARI, Recordati's Carziva, and Merck's CapXiv and Vaxnuvanse [33] - Varonis reported a 45% sequential increase in Q2 2025 sales to $103 million, with expectations for continued strong launch trajectory [34] - FILSPARI showed strong commercial momentum, with Trevyr reporting Q2 sales in line with internal estimates, indicating robust year-over-year growth [34] Market Data and Key Metrics Changes - Merck's CapXiv generated $129 million in sales, a 21% sequential increase, while Vaxnuvanse generated $229 million in net sales, representing a 20% year-over-year increase [35] - Record ID reported sales of Carziva grew 12% in 2025, reaching €78.5 million, with Ligand earning a high teens royalty on Carziva sales [12] Company Strategy and Development Direction - The company aims to deliver profitable compounding growth by remaining disciplined in its investment approach and identifying high-quality assets that address significant unmet needs [21] - The strategic merger of Pylthos with Channel Therapeutics and a $40 million investment in Orchestra Biomed reflect the company's commitment to innovative therapies and expanding its portfolio [8][26] - The company is optimistic about the potential of its royalty assets, particularly with the expected blockbuster status of O2VARE by 2027 [20] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism regarding the strong launch trajectories of therapies and the potential for significant revenue growth from O2VARE and FILSPARI [44] - The company anticipates that Merck's acquisition of Verona will accelerate the launch of O2VARE, enhancing its market potential [76] - Management acknowledged the ongoing pricing pressure in the pharmaceutical industry but emphasized the importance of investing in high clinical value drugs to navigate this environment [63] Other Important Information - The company ended the quarter with $245 million in cash and investments, with approximately $450 million in deployable capital factoring in its undrawn credit facility [32] - The deconsolidation of Peltos effective July 1 will impact future financial reporting, with the estimated fair value of Ligand's stake in Peltos at approximately $100 million [41] Q&A Session Summary Question: Expectations for the Peltos launch - Management is optimistic about the launch of ZELSUMI, citing strong demand and a capable commercial team [47][48] Question: Impact of Vilsparri REMS removal on uptake - The removal of REMS restrictions is expected to enhance uptake, particularly among earlier stage patients [50][51] Question: Guidance on revenue and EPS growth - Management explained that operating expenses are being cautiously managed, and tax rates are impacting net income due to increased foreign revenue [56][57] Question: Merck's ownership of Verona and its impact on O2VARE - Management believes Merck's global capabilities will accelerate O2VARE's rollout compared to its previous management by Verona [76] Question: Orchestra Biomed's commercialization pathway - Medtronic and Tarumo are the commercial partners for Orchestra Biomed's AVIM technology and Virtu SAB balloon, respectively [77]

Financial Performance & Guidance - Q2 2025 royalty revenue increased by 57% compared to Q2 2024, driven by Ohtuvayre, Filspari, Qarziba, Capvaxive and Vaxneuvance[3, 26] - Q2 2025 adjusted EPS grew 14% to $1.60[3, 24, 25] - The company increased revenue guidance for 2025 from $180 million-$200 million to $200 million-$225 million, a 13% increase[3, 24, 33] - Adjusted EPS guidance for 2025 was raised from $6.00-$6.25 to $6.70-$7.00 per diluted share, a 12% increase[3, 24, 33] Portfolio & Investments - Ligand has approximately 50% equity interest in Pelthos and is entitled to a 13% royalty on Zelsuvmi sales[3, 6] - The company committed $35 million in long-term capital for royalty interest in Orchestra BioMed's AVIM therapy and Virtue SAB and invested $5 million in equity private placement[3, 20, 21] - Merck is set to acquire Verona for $10 billion, which will impact Ligand's 3% royalty on Ohtuvayre[3, 4, 8] Strategic Outlook - The company anticipates a long-term royalty revenue CAGR of greater than 22%[3, 27] - Ohtuvayre peak-sales consensus updated from $1.2 billion in December 2024 to $3.4 billion in August 2025[30] - Ligand has ~$450 million in deployable capital as of June 30, 2025[3, 24]

Revenue and Income - Total revenues for Q2 2025 were $47.6 million, a 15% increase from $41.5 million in Q2 2024, driven by a 57% rise in royalty revenue to $36.4 million[3]. - Full year 2025 revenue guidance increased to $200 million - $225 million, up from $180 million - $200 million, with adjusted earnings per diluted share raised to $6.70 - $7.00 from $6.00 - $6.25[1][9]. - Royalties for the first half of 2025 reached $63.9 million, a 51% increase from $42.3 million in the same period of 2024[6]. - Core adjusted net income for Q2 2025 was $32.0 million, or $1.60 per diluted share, compared to $25.8 million, or $1.40 per diluted share, in Q2 2024[4]. - The company experienced a net income of $4.847 million for the three months ended June 30, 2025, compared to a net loss of $51.911 million in the same period of 2024[33]. - Basic net income per share for Q2 2025 was $0.25, a significant improvement from a loss of $2.88 per share in Q2 2024[33]. - Adjusted net income for the six months ended June 30, 2025, was $58,563,000, compared to $95,498,000 for the same period in 2024, indicating a decrease of 38.7%[37]. - Diluted net income per share for Q2 2025 was $0.24, recovering from a loss of $2.88 per share in Q2 2024[37]. Expenses and Liabilities - Research and development expenses for the first half of 2025 were $56.7 million, significantly higher due to a one-time charge related to a royalty financing agreement[7]. - Ligand's operating costs and expenses totaled $39.183 million for the three months ended June 30, 2025, down from $60.631 million in the same period of 2024, reflecting a 35.4% decrease[33]. - Total current liabilities rose to $64,734,000 as of June 30, 2025, up from $37,112,000 at the end of 2024, marking an increase of 74.5%[35]. - Share-based compensation expense for the three months ended June 30, 2025, was $9,997,000, slightly down from $11,060,000 in the same period of 2024[37]. Assets and Equity - Ligand's cash, cash equivalents, and short-term investments totaled $245.0 million as of June 30, 2025[5]. - Total assets increased to $948,604,000 as of June 30, 2025, compared to $941,774,000 at December 31, 2024, reflecting a growth of 0.88%[35]. - The total stockholders' equity decreased to $828,529,000 as of June 30, 2025, from $830,439,000 at the end of 2024, a decline of 0.23%[35]. Business Developments - The merger with Channel Therapeutics was completed on July 2, 2025, forming Pelthos Therapeutics, which raised $50.1 million in equity capital[10][11]. - Pelthos launched Zelsuvmi, the first FDA-approved at-home treatment for molluscum contagiosum, earning Ligand a $5 million milestone payment and a 13% royalty on worldwide sales[13]. - Ligand invested $25 million in Orchestra BioMed to fund late-stage cardiology programs, with potential additional funding of $15 million[14]. - Merck's acquisition of Verona for approximately $10 billion is expected to enhance the launch trajectory of Ohtuvayre, for which Ligand receives a 3% royalty[15]. Financial Performance Insights - The company reported total revenues and other income of $47.627 million for the three months ended June 30, 2025, compared to $41.531 million for the same period in 2024, representing a 14.5% increase[33]. - Revenue from intangible royalty assets increased to $30.084 million in Q2 2025, up from $22.603 million in Q2 2024, marking a 33% growth[33]. - The company reported income from financial royalty assets of $6.313 million in Q2 2025, a substantial increase from $559,000 in Q2 2024[33]. - Ligand's Captisol revenue reached $8.287 million in Q2 2025, compared to $7.500 million in Q2 2024, indicating a 10.5% increase[33]. - The total operating income for the first six months of 2025 was $92.960 million, compared to $72.509 million for the same period in 2024, representing a 28.2% increase[33]. - Ligand's research and development expenses for the first six months of 2025 were $56.652 million, significantly higher than $11.325 million in the same period of 2024, indicating a focus on innovation[33]. Future Outlook - The company anticipates continued growth in its portfolio with life sciences royalty opportunities and aims to achieve its financial guidance for 2025[27]. - Management noted that certain non-cash adjustments related to contingent liabilities and market value changes of investments could affect future earnings predictions, indicating potential volatility in financial performance[43]. - The company recorded an impairment of financial royalty assets primarily related to the discontinuation of Takeda's soticlestat program, impacting financial results significantly[39].

Core Insights - Ligand Pharmaceuticals reported a strong second quarter performance with total revenues of $47.6 million, a 15% increase from $41.5 million in the same period of 2024, driven by a 57% growth in royalty revenue [4][6] - The company has raised its full-year 2025 revenue guidance to $200 million - $225 million from a previous range of $180 million - $200 million, and adjusted earnings per diluted share guidance to $6.70 - $7.00 from $6.00 - $6.25 [12][13] Financial Performance - Royalty revenues for Q2 2025 were $36.4 million, up from $23.2 million in Q2 2024, primarily due to royalties from Recordati's Qarziba and Travere Therapeutics' Filspari [4][8] - Captisol sales increased to $8.3 million in Q2 2025 from $7.5 million in Q2 2024, while contract revenue and other income decreased to $2.9 million from $10.9 million due to timing of partner milestone events [4][5] - GAAP net income for Q2 2025 was $4.8 million, or $0.24 per diluted share, compared to a net loss of $51.9 million, or $2.88 per share, in Q2 2024 [6][11] Year-to-Date Results - For the six months ended June 30, 2025, total revenues were $93.0 million, a 28% increase from $72.5 million in the same period of 2024, with royalties reaching $63.9 million, up 51% from $42.3 million [8][11] - Adjusted net income for the six months ended June 30, 2025, was $58.6 million, or $2.94 per diluted share, compared to $47.6 million, or $2.61 per diluted share, for the same period in 2024 [11] Strategic Developments - Ligand announced the completion of its merger with Channel Therapeutics, forming Pelthos Therapeutics, which launched Zelsuvmi, the first FDA-approved at-home treatment for molluscum contagiosum [14][16] - The company earned a $5 million milestone payment from Pelthos following the launch of Zelsuvmi and is entitled to a 13% royalty on worldwide sales [17] - Ligand invested $25 million in Orchestra BioMed to fund late-stage cardiology programs, with potential additional funding of $15 million [18] Portfolio Updates - Merck's acquisition of Verona for approximately $10 billion is expected to accelerate the launch of Ohtuvayre, for which Ligand receives a 3% royalty on sales [19] - Agenus reported positive results for its BOT/BAL combination therapy, which may enhance Ligand's portfolio value through its partnerships [20] - Palvella Therapeutics announced full enrollment in a Phase 3 trial for Qtorin, with top-line results expected in early 2026 [21]

Core Viewpoint - Orchestra BioMed Holdings, Inc. has successfully completed strategic transactions and equity offerings totaling an expected $111.2 million to advance its late-stage AVIM therapy and Virtue SAB clinical programs [1][2]. Financial Summary - The $111.2 million in expected gross proceeds includes $56.2 million from a public offering and private placements, with net proceeds of approximately $51.8 million after expenses [2][4]. - Medtronic and Ligand have committed a total of $55 million in royalty-based, non-dilutive investments, with Ligand contributing $35 million and Medtronic $20 million [3][4]. Use of Proceeds - The net proceeds will fund significant value-creating catalysts, including the completion of enrollment and follow-up for the BACKBEAT study and substantial enrollment of the Virtue Trial [3][5]. Clinical Programs - AVIM therapy aims to treat uncontrolled hypertension and has shown promising results in pilot studies, with reductions of 8.1 mmHg in 24-hour ambulatory systolic blood pressure [9]. - Virtue SAB is designed to deliver sirolimus for treating coronary in-stent restenosis and has demonstrated positive three-year clinical data in prior studies [10]. Strategic Partnerships - The company has established collaborations with Medtronic for AVIM therapy and Terumo for Virtue SAB, enhancing its potential for successful commercialization [7]. - The partnerships reflect confidence in the transformative potential of the company's therapeutic programs [2]. Market Position - Orchestra BioMed focuses on high-impact technologies in the biomedical sector, addressing significant unmet needs in cardiovascular care [7]. - The company has received four Breakthrough Device Designations from the FDA for its core programs, indicating the high potential of its technologies [7].

Core Insights - Orchestra BioMed has secured $70 million in new capital from Ligand Pharmaceuticals and Medtronic to advance its late-stage cardiology programs [1][3][4] Investment Details - Ligand Pharmaceuticals will invest a total of $35 million, which includes $20 million at closing, $15 million subject to conditions, and an additional $5 million in an equity private placement [3][5] - Medtronic will invest $30 million, comprising $10 million in an equity private placement and $20 million in a secured subordinated promissory note convertible to prepaid revenue share [4][5][6] Strategic Collaboration - The agreement between Orchestra BioMed and Medtronic has been amended to include the development of AVIM therapy-enabled leadless pacemakers, enhancing their existing collaboration [2][5][6] - The partnership aims to address significant health challenges such as uncontrolled hypertension and arterial disease, targeting high-risk patient populations [3][9] Product Development - AVIM therapy is designed to lower blood pressure in patients with hypertension who are indicated for a pacemaker, showing promising results in pilot studies [12] - Virtue SAB is being developed for the treatment of atherosclerotic artery disease, with positive clinical data supporting its efficacy [13] Market Potential - Both AVIM therapy and Virtue SAB have received Breakthrough Device Designation from the FDA, indicating their potential to meet high unmet medical needs in cardiovascular care [9][12][13]

Group 1 - Ligand Pharmaceuticals will report its second quarter 2025 financial results on August 7, 2025, and will hold a conference call at 8:30 AM ET to discuss the results and provide a business update [1][2] - The company operates a business model focused on generating value for stockholders through a diversified portfolio of biotech and pharmaceutical product revenue streams, supported by a low corporate cost structure [3] - Ligand partners with leading pharmaceutical companies to leverage their expertise in late-stage development, regulatory management, and commercialization to generate revenue [3] Group 2 - Ligand's Captisol® platform technology optimizes the solubility and stability of drugs, while the NITRICIL™ platform technology allows for tunable dosing and adjustable drug release profiles [3] - The company has established multiple alliances and licenses with major pharmaceutical companies, including Amgen, Merck, Pfizer, Jazz, Gilead Sciences, and Baxter International [3]

Core Insights - Ligand Pharmaceuticals' partner Pelthos Therapeutics has launched ZELSUVMI™, the first FDA-approved at-home treatment for molluscum contagiosum, leading to a $5 million milestone payment for Ligand [1][2] Company Overview - Ligand Pharmaceuticals is a biopharmaceutical company focused on supporting the clinical development of high-value medicines through financing and licensing technologies [4] - The company aims to create a diversified portfolio of biotech and pharmaceutical 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] Product Details - ZELSUVMI™ (berdazimer) is a nitric oxide-releasing topical gel indicated for treating molluscum contagiosum in patients aged one year and older [3] - It is the first and only approved topical prescription medication that can be applied at home, outside of a medical setting [3] - The product was developed using Ligand's proprietary NITRICIL™ technology platform [3] Financial Aspects - Following the merger between Pelthos Therapeutics and Channel Therapeutics, Ligand now owns 56% of Pelthos [2] - Ligand is entitled to a 13% royalty on worldwide sales of ZELSUVMI and can earn up to an additional $5 million in commercial sales milestones [2]

Financial Performance and Outlook - Ligand reported $311 million in cash and investments as of March 31, 2024 [5] - The company projects long-term royalty revenue CAGR of >20% and EPS CAGR of >25% [5, 8] - 2024 financial guidance includes royalty revenue of $90 million - $95 million, representing 16% growth over 2023 [9] - Core adjusted diluted EPS for 2024 is projected at $4.25 - $4.75, a 17% increase over 2023 [9] - Total revenue for 2024 is guided at $130 million - $142 million, including Captisol revenue of $25 million – $27 million and contract revenue of $15 million - $20 million [9] Royalty Portfolio and Pipeline - Ligand has 8 major commercial-stage royalty streams and over 80 additional active programs with economic rights [5] - Kyprolis reported $376 million in Q1 2024 sales and is projected to exceed $1.5 billion in total 2024 global sales [28] - Filspari reported $19.8 million in Q1 2024 sales and has the potential to be Ligand's largest royalty stream [28] - Vaxneuvance reported $219 million in Q1 2024 sales [28] - Rylaze reported $103 million in Q1 2024 sales [28]

Financial Performance and Guidance - Ligand's total revenue guidance for 2024 is $160-$165 million[21], with royalty revenue expected to be $105-108 million[22], representing a 27% increase from 2023[30] - The company anticipates adjusted EPS of $550-$570 in 2024[22], a 38% growth[30] - For 2025, Ligand forecasts total revenue of $180-$200 million[34], with royalty revenue growing by 30% over 2024[35] - Ligand projects royalty receipts to grow at a CAGR of 22% from 2024 to 2029[24, 40] Investment and Portfolio Activity - Ligand deployed $192 million across 8 different investments in 2024[21] - The company's Q4 pipeline includes over 30 actionable opportunities, representing over $1 billion of potential investments[61] - Ligand acquired Apeiron Biologics in July 2024 for approximately $100 million, gaining rights to Qarziba royalties[70] Key Products and Platforms - Ligand's Captisol platform is used in 16 approved products[99, 104] - Verona's Ohtuvayre, in which Ligand has royalty rights, achieved over $11 million in sales in the first 4 months following approval[75] - Travere's Filspari generated $356 million in Q3 2024, with 31% growth from Q2 2024[80] - Merck's Capvaxive, another royalty asset for Ligand, protects against strains that cause 84% of invasive pneumococcal disease[88]