UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 _____________________________________________________________________________________________ FORM 10-K _____________________________________________________________________________________________ ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Fiscal Year Ended December 31, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transitio ...

Ligand Pharmaceuticals Inc. (NASDAQ:LGND) Q4 2023 Earnings Conference Call February 27, 2024 8:30 AM ET Company Participants Tavo Espinoza - CFO Todd Davis - CEO Mattew Korenberg - COO Conference Call Participants Matt Hewitt - Craig-Hallum Capital Group Lawrence Solow - CJS Securities Operator Ladies and gentlemen, thank you for standing by. Welcome everyone to the Ligand Fourth Quarter 2023 Earnings Webcast. At this time, all lines have been placed on mute to prevent any background noise. After the speake ...

"2023 was a transformative year for Ligand, both operationally and financially. We refocused the company to be a lean- infrastructure, high-margin business," said Todd Davis, CEO of Ligand. "We enhanced our deal making capabilities with the strengthening of our senior team and opening of a Boston office. These initiatives will help us execute on a larger scale and continue to expand our portfolio through a focus on life science royalty opportunities. We are now well positioned and resourced to close on mult ...

PART I. FINANCIAL INFORMATION [Item 1. Condensed Consolidated Financial Statements](index=5&type=section&id=ITEM%201.%20Condensed%20Consolidated%20Financial%20Statements%20(unaudited)) Ligand's unaudited condensed consolidated financial statements detail financial position, operations, and cash flows post-OmniAb spin-off, with notes on key accounting and transactions [Condensed Consolidated Balance Sheets](index=5&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Total assets slightly increased to **$769.2 million** by September 30, 2023, driven by equity investments and inventory, while total liabilities significantly decreased to **$101.3 million** due to convertible note repayment Condensed Consolidated Balance Sheet Highlights (in thousands) | Account | September 30, 2023 | December 31, 2022 | | :--- | :--- | :--- | | **Assets** | | | | Cash and cash equivalents | $19,275 | $45,006 | | Short-term investments | $171,227 | $166,864 | | Total current assets | $253,994 | $263,601 | | Total assets | $769,226 | $762,668 | | **Liabilities & Equity** | | | | Total current liabilities | $15,727 | $98,810 | | 2023 convertible senior notes, net | $0 | $76,695 | | Total liabilities | $101,330 | $165,183 | | Total stockholders' equity | $667,896 | $597,485 | [Condensed Consolidated Statements of Operations](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) Q3 2023 total revenues decreased to **$32.9 million** due to absent COVID-related Captisol sales, resulting in a **$10.3 million** net loss from continuing operations, impacted by investment losses Condensed Consolidated Statements of Operations (in thousands, except per share amounts) | Metric | Q3 2023 | Q3 2022 | YTD 2023 | YTD 2022 | | :--- | :--- | :--- | :--- | :--- | | **Total revenues** | **$32,868** | **$59,221** | **$103,213** | **$145,863** | | Royalties | $23,863 | $19,255 | $61,447 | $50,507 | | Captisol | $8,608 | $35,949 | $24,450 | $77,616 | | Operating income from continuing operations | $3,078 | $12,341 | $15,300 | $23,136 | | **Net income (loss) from continuing operations** | **($10,273)** | **$9,645** | **$35,631** | **$9,315** | | Net loss from discontinued operations | $0 | ($9,241) | ($1,665) | ($25,191) | | **Net income (loss)** | **($10,273)** | **$404** | **$33,966** | **($15,876)** | | Diluted net income (loss) per share | ($0.59) | $0.02 | $1.91 | ($0.93) | [Condensed Consolidated Statements of Cash Flows](index=10&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Net cash from operations decreased to **$41.5 million** for the nine months ended September 30, 2023, with significant cash usage in financing for convertible note repayment, leading to a **$25.1 million** net decrease in cash Cash Flow Summary (in thousands) | Activity | Nine months ended Sep 30, 2023 | Nine months ended Sep 30, 2022 | | :--- | :--- | :--- | | Net cash provided by operating activities | $41,512 | $84,378 | | Net cash (used in) provided by investing activities | ($1,398) | $170,908 | | Net cash used in financing activities | ($65,262) | ($270,692) | | **Net decrease in cash, cash equivalents and restricted cash** | **($25,148)** | **($15,406)** | - The repayment of the **2023 Convertible Notes** for **$76.9 million** was the primary use of cash in financing activities during the first nine months of 2023[23](index=23&type=chunk) [Notes to Condensed Consolidated Financial Statements](index=12&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) Notes detail significant corporate actions, including the OmniAb spin-off, Pelican sale, Novan acquisition, revenue recognition, convertible note repayment, and subsequent events like a new credit facility and further acquisitions - The spin-off of the **OmniAb Business** was completed in November 2022 and is now classified as a discontinued operation, with its financial results reported separately[31](index=31&type=chunk)[82](index=82&type=chunk) Disaggregation of Revenue (in thousands) | Revenue Stream | Q3 2023 | Q3 2022 | YTD 2023 | YTD 2022 | | :--- | :--- | :--- | :--- | :--- | | **Royalties** | **$23,863** | **$19,255** | **$61,447** | **$50,507** | | Kyprolis | $10,537 | $9,123 | $24,862 | $20,872 | | Rylaze | $3,678 | $2,099 | $9,315 | $6,065 | | **Captisol** | **$8,608** | **$35,949** | **$24,450** | **$77,616** | | Captisol - Core | $8,608 | $3,582 | $24,450 | $13,133 | | Captisol - COVID | $0 | $32,367 | $0 | $64,483 | | **Contract revenue** | **$397** | **$4,017** | **$17,316** | **$17,740** | | **Total** | **$32,868** | **$59,221** | **$103,213** | **$145,863** | - On September 18, 2023, the company sold its **Pelican subsidiary** to Primrose Bio, receiving common, preferred, and restricted shares in Primrose Bio and retaining commercial royalty rights to key products like **RYLAZE** and **VAXNEUVANCE**, recognizing a gain of **$2.1 million** on the sale[66](index=66&type=chunk)[67](index=67&type=chunk) - On September 27, 2023, Ligand acquired certain assets of **Novan, Inc.** for **$12.2 million**, including the lead product candidate **berdazimer gel, 10.3%**, and the **NITRICIL technology platform**[75](index=75&type=chunk) - The **2023 Convertible Senior Notes** matured on May 15, 2023, and the company paid the remaining **$76.9 million** principal amount in cash[92](index=92&type=chunk) - Subsequent to the quarter end, Ligand entered into a **$75.0 million revolving credit facility**, acquired royalty interests in **soticlestat** from Ovid Therapeutics for **$30.0 million**, and acquired **Tolerance Therapeutics** for **$20.0 million** to gain royalty rights to **TZIELD**[109](index=109&type=chunk)[112](index=112&type=chunk)[113](index=113&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=28&type=section&id=ITEM%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses Ligand's strategy to diversify revenue through licensing and acquisitions, highlighting a **44%** Q3 2023 revenue decrease due to absent COVID-related Captisol sales, offset by royalty growth, while maintaining strong liquidity [Overview and Business Updates](index=28&type=section&id=Overview%20and%20Business%20Updates) Ligand's business model focuses on funding drug development and licensing Captisol® technology, with recent strategic moves including the Pelican spin-out, Novan acquisition, and royalty interest purchases to diversify future revenue streams - The company's business model focuses on creating a diversified portfolio of biotech and pharmaceutical product revenue streams supported by an efficient, low-cost corporate structure[118](index=118&type=chunk) - Acquired **Novan Inc.** assets for **$12.2 million**, including the **NDA-stage berdazimer gel 10.3% program** with a PDUFA goal date of January 5, 2024[124](index=124&type=chunk) - Invested **$30 million** to acquire **13%** of Ovid Therapeutics' interest in royalties and milestones for **soticlestat**, a program in Phase 3 trials for rare epilepsy syndromes[125](index=125&type=chunk) - Acquired **Tolerance Therapeutics** for **$20 million**, securing a royalty of less than **1%** on worldwide net sales of **TZIELD**, a therapy for type 1 diabetes[126](index=126&type=chunk) [Results of Operations](index=30&type=section&id=Results%20of%20Operations) Q3 2023 total revenue decreased **44%** to **$32.9 million** due to absent COVID-related Captisol sales, despite a **24%** increase in royalty revenue, resulting in a **$10.3 million** net loss from continuing operations Revenue Comparison (in thousands) | Revenue Stream | Q3 2023 | Q3 2022 | % Change | | :--- | :--- | :--- | :--- | | Royalties | $23,863 | $19,255 | 24% | | Captisol - Core | $8,608 | $3,582 | 140% | | Captisol - COVID | $0 | $32,367 | (100)% | | Contract revenue | $397 | $4,017 | (90)% | | **Total revenue** | **$32,868** | **$59,221** | **(44)%** | - Total operating costs and expenses decreased by **32%** in Q3 2023 compared to Q3 2022, primarily driven by a **$10.7 million (75%)** decrease in the Cost of Captisol, corresponding to lower sales[139](index=139&type=chunk)[140](index=140&type=chunk) - Other expense in Q3 2023 was **$15.2 million**, compared to other income of **$13 thousand** in Q3 2022, mainly due to a **$13.2 million** unrealized loss from short-term investments in Q3 2023[149](index=149&type=chunk)[150](index=150&type=chunk) [Liquidity and Capital Resources](index=33&type=section&id=Liquidity%20and%20Capital%20Resources) Ligand maintained **$190.5 million** in cash and investments as of September 30, 2023, with operating cash flow of **$41.5 million**, and secured a new **$75.0 million** revolving credit facility to support future operations and strategic initiatives - The company held **$190.5 million** in cash, cash equivalents, and short-term investments as of September 30, 2023[159](index=159&type=chunk) - In October 2023, Ligand entered into a new **$75.0 million revolving credit facility**, which matures in October 2026, with no amounts borrowed to date[164](index=164&type=chunk)[166](index=166&type=chunk) - A stock repurchase program authorizing up to **$50.0 million** remains in place through April 2026, with the full amount available for repurchase as of September 30, 2023[162](index=162&type=chunk)[163](index=163&type=chunk) [Item 3. Quantitative and Qualitative Disclosures about Market Risk](index=35&type=section&id=ITEM%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) No material changes to market risks were reported for the nine months ended September 30, 2023, compared to the 2022 Annual Report disclosures - No material changes to market risks were reported for the nine months ended September 30, 2023[172](index=172&type=chunk) [Item 4. Controls and Procedures](index=35&type=section&id=ITEM%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective as of September 30, 2023, with no material changes to internal control over financial reporting during the quarter - The CEO and CFO concluded that the company's disclosure controls and procedures were effective as of the end of the quarter[173](index=173&type=chunk) - No material changes to internal control over financial reporting were identified during the third quarter of 2023[174](index=174&type=chunk) PART II. OTHER INFORMATION [Item 1. Legal Proceedings](index=35&type=section&id=ITEM%201.%20Legal%20Proceedings) Ligand is involved in the National Prescription Opiate Litigation but rejects all claims, intending to vigorously defend itself, believing no material adverse effect is likely - The company is a defendant in the **Multi-District Litigation (MDL)** captioned In Re: National Prescription Opiate Litigation, but rejects all claims and intends to defend the matters vigorously[106](index=106&type=chunk) [Item 1A. Risk Factors](index=35&type=section&id=ITEM%201A.%20Risk%20Factors) A new risk factor highlights the **$75.0 million Revolving Credit Facility**, whose financial covenants and security over assets could limit operational flexibility and lead to material harm upon default - A new risk factor was disclosed concerning the terms of the **October 2023 Credit Agreement**, which could limit business flexibility and affect financial health[177](index=177&type=chunk) - The **Credit Agreement** contains financial covenants, including maintaining a leverage ratio no greater than **2.50 to 1.00** and minimum consolidated **EBITDA of $45 million** for any trailing four-quarter period[179](index=179&type=chunk) - Obligations under the **Credit Agreement** are secured by company collateral, and a default could result in lenders foreclosing on these assets, which would harm the business[177](index=177&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=36&type=section&id=ITEM%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) No unregistered sales of equity securities were reported during the period - None reported[181](index=181&type=chunk) [Item 5. Other Information](index=36&type=section&id=ITEM%205.%20Other%20Information) No officers or directors adopted, modified, or terminated any Rule 10b5-1 or non-Rule 10b5-1 trading arrangements during Q3 2023 - No officers or directors adopted, modified, or terminated any **Rule 10b5-1** trading arrangements during the three months ended September 30, 2023[184](index=184&type=chunk) [Item 6. Exhibits](index=37&type=section&id=ITEM%206.%20Exhibits) Exhibits filed with the Form 10-Q include the Credit Agreement, CEO/CFO certifications, and iXBRL financial data - Exhibits filed with the report include the new **Credit Agreement**, CEO/CFO certifications, and **iXBRL** financial data[186](index=186&type=chunk)

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ________________________________________________________________________________________ FORM 10-Q ________________________________________________________________________________________ ☒ Quarterly Report Pursuant to Section 13 or 15 (d) of the Securities Exchange Act of 1934 For the quarterly period ended June 30, 2023 or ☐ Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the Transition Per ...

Royalty Revenue & Cash Operating Expenses $219M in cash at June 30 and no debt Leverage from royalty revenue growth and lean operating expenses Operating structure expected to support growing profitability and cash flow 7 FINANCIAL REVIEW AND 2023 GUIDANCE 8 Q2 2023 FINANCIAL PERFORMANCE Lıgand® 1Nasdaq: LGND The following presentation contains forward-looking statements by Ligand and its partners that involve risks and uncertainties and reflect Ligand's and it's partners' judgment as of the date of this pr ...

Financial Data and Key Metrics Changes - Revenues for Q2 2023 were $26 million, with over $20 million in royalty revenue, compared to $50.1 million in Q2 2022, which included COVID-19-related sales [22][45] - GAAP net income from continuing operations in Q2 2023 was $2.3 million or $0.13 per diluted share, down from $12.6 million or $0.74 per diluted share in the prior year [28] - Adjusted diluted EPS for Q2 2023 was $1.42, up from $0.43 in Q2 2022, driven by gains in sales of Viking Therapeutics stock [47] - The company ended the quarter with cash and short-term investments of $219 million and is now debt-free after paying off the remaining convertible notes [22][29] Business Line Data and Key Metrics Changes - G&A expenses in Q2 2023 were $11.3 million, down from $12.1 million in Q2 2022, primarily due to reduced headcount-related expenses [3] - R&D expenses in Q2 2023 were $6.9 million, down from $8.5 million in Q2 2022, also attributed to decreased headcount-related expenses [3] - Captisol sales were $5.2 million for Q2 2023, compared to core Captisol sales of $3.3 million in the same quarter last year [27] Market Data and Key Metrics Changes - Rylaze reached a record level with $86 million in sales in Q1 2023, indicating strong market performance [4] - Vaxneuvance, marketed by Merck, reported $168 million in sales in Q2 2023, tracking to exceed original 2023 consensus sales estimates of about $300 million [51] - Travere reported sales of $3.5 million for Q2 2023, marking their first full quarter of commercialization for FILSPARI [50] Company Strategy and Development Direction - The company aims to grow its royalty portfolio through project finance, royalty monetization, M&A, and platform technology acquisitions [2] - The acquisition of Novan's assets for $15 million is part of the strategy to enhance the portfolio, with a focus on high-value clinical products [23][35] - The company is focused on maintaining a lean operating structure while maximizing operating margins [46] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism for a productive second half of the year, highlighting the potential of FILSPARI as a significant royalty asset [5][22] - The company raised its adjusted EPS guidance to $4.85 to $5.00, reflecting strong operating income and gains from Viking stock sales [21][48] - Management noted that the industry is shifting towards later-stage opportunities, but this has not negatively impacted the company's portfolio [62] Other Important Information - The company has a robust existing portfolio and pipeline that offers significant financial growth potential [44] - The company is actively expanding its business development capabilities and has established a presence in Boston to enhance deal-making activities [42][43] Q&A Session Summary Question: What is the current mix between commercial and clinical Captisol? - The company indicated that commercial products have taken more than half the share of the Captisol business, with both commercial and clinical uses increasing [57] Question: What are the plans for the share repurchase program? - The company plans to monitor the markets and consult with management and the Board to determine the timing for utilizing the repurchase plan [60] Question: How does the shift in pharma and biotech priorities affect the portfolio? - Management noted that the shift towards later-stage opportunities has not impacted their portfolio, which consists of over 100 programs across various stages [62] Question: What is the royalty structure for Sparsentan's European revenue? - The company clarified that they receive a 9% royalty on Sparsentan sales worldwide, including Europe [100] Question: Any updates on Teriparatide and its competition? - The company mentioned that Teriparatide is facing competition from generics, but they are awaiting further developments regarding its approval and market dynamics [104]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ________________________________________________________________________________________ FORM 10-Q ________________________________________________________________________________________ ☒ Quarterly Report Pursuant to Section 13 or 15 (d) of the Securities Exchange Act of 1934 For the quarterly period ended March 31, 2023 or ☐ Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the Transition Pe ...

Ligand Pharmaceuticals Incorporated (NASDAQ:LGND) Q1 2023 Results Conference Call May 4, 2023 4:30 PM ET Company Participants Simon Latimer - Head of Investor Relations Todd Davis - Chief Executive Officer Tavo Espinoza - Chief Financial Office Matthew Korenberg - President and Chief Operating Officer Conference Call Participants Scott Henry - ROTH Capital Matt Hewitt - Craig-Hallum Capital Joseph Pantginis - HC Wayne Wright Operator Thank you for standing by. My name is Kyla Baker and I will be your confer ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 _____________________________________________________________________________________________ FORM 10-K _____________________________________________________________________________________________ ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Fiscal Year Ended December 31, 2022 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transitio ...