| --- | --- | --- | --- | |-------|--------------------------|--------------------------------------------------------------|-------| | | | | | | | LIGAND Financial Results | Biopharma's Technology andCapitalPartner First Quarter 2024 | | | | | | | This presentation contains forward-looking statements by Ligand and its partners that involve risks and uncertainties and reflect Ligand's and its partners' judgment as of the date of this presentation. Words such as "plans," "believes," "expects," "anticipates," ...

Revenue Performance - Total revenues for Q1 2024 were $31.0 million, down from $44.0 million in Q1 2023, representing a decrease of 29.5%[4] - Total revenues and other income for Q1 2024 were $30,978,000, a decrease of 29.5% compared to $43,979,000 in Q1 2023[26] Income and Earnings - Net income from continuing operations for Q1 2024 was $86.1 million, or $4.75 per diluted share, compared to $43.6 million, or $2.43 per diluted share in Q1 2023, marking a significant increase of 97.5%[6] - Net income from continuing operations for Q1 2024 was $86,139,000, representing a 97.1% increase from $43,614,000 in Q1 2023[26] - Basic net income per share from continuing operations increased to $4.86 in Q1 2024, up from $2.56 in Q1 2023[26] - Adjusted net income for Q1 2024 was $69.7 million, or $3.84 per diluted share, compared to $39.9 million, or $2.28 per diluted share in Q1 2023[6] - Adjusted net income from continuing operations for Q1 2024 was $69,665,000, compared to $39,904,000 in Q1 2023, reflecting a 74.8% increase[30] Cash and Assets - As of March 31, 2024, Ligand had cash, cash equivalents, and short-term investments totaling $310.6 million[7] - Cash, cash equivalents, and short-term investments rose to $310,593,000 as of March 31, 2024, compared to $170,309,000 at the end of 2023, reflecting an increase of 82.4%[28] - Total assets increased to $913,869,000 as of March 31, 2024, up from $787,216,000 at the end of 2023, marking an increase of 16.0%[28] - Total stockholders' equity reached $806,521,000 as of March 31, 2024, compared to $700,913,000 at the end of 2023, an increase of 15.1%[28] Royalties and Future Expectations - Royalties increased to $19.1 million in Q1 2024 from $17.6 million in Q1 2023, a growth of 8.5%, driven by products like Amgen's Kyprolis and Jazz Pharmaceuticals' RYLAZE[4] - Ligand expects 2024 royalties to range from $90 million to $95 million, with total revenue forecasted between $130 million and $142 million[8] - The company anticipates continued growth in its portfolio with life sciences royalty opportunities and expects to provide guidance for full-year 2024 financial results[20] Operational Developments - A $100 million royalty financing agreement was established with Agenus, providing Ligand with 18.75% of royalties on six oncology programs[9] - The commercial launch of ZELSUVMI®, a treatment for molluscum contagiosum, is anticipated in late 2024, following its FDA approval[10] Other Financial Information - Operating costs and expenses decreased to $27,990,000 in Q1 2024 from $29,774,000 in Q1 2023, a reduction of 6.0%[26] - The company reported a gain from short-term investments of $110,772,000 in Q1 2024, significantly higher than $39,533,000 in Q1 2023[26] Regulatory Updates - The FDA granted Priority Review for Travere Therapeutics' sNDA to convert FILSPARI from accelerated approval to full approval, with a PDUFA target action date of September 5, 2024[12] Accounting Adjustments - Amounts represent non-cash debt related costs calculated in accordance with authoritative accounting guidance for revolving credit facility and convertible debt instruments[1] - Adjustments bridge income from financial royalty assets to total contractual payments recorded in the period[2] - Changes in fair value of contingent consideration related to CyDex and Metabasis transactions are noted[3] - Excess tax benefits from share-based compensation recorded as a discrete item within the provision for income taxes due to ASU 2016-09 adoption[4] - Q1 2023 numbers adjusted to exclude after-tax impact from realized gain of Viking common stock[5] - Excluding impact from ASU 2020-06 adoption as the Company intended to settle the principal balance in cash[6]

Thanks to the Magnificent Seven, tech stocks have led the Q1 earnings season. In fact, as Sheraz Mian the Director of Zacks Investment Research points out, had it not been for the substantial earnings contribution of the Mag 7, Q1 earnings growth for the rest of the S&P 500 index would be in negative territory.That said, several top-rated Zacks Medical sector stocks are standing out ahead of their Q1 reports on Tuesday, May 7. With now looking like an ideal to invest in their growth, here are three of these ...

AndreyPopovThis is my sixth article on royalty aggregator Ligand Pharmaceuticals (NASDAQ:LGND). My most recent previous Ligand article was 06/2023's "Ligand Pharmaceuticals: The New Ligand ("New Ligand"). In it I rated Ligand as a "Buy". At the time it was selling for $76.42. As I write on 04/21/2024 Ligand currently trades at ~$70.00, down ~8%. I continue to rate Ligand at a "Buy" because of its recent streamlining moves as discussed in this article. I view it as a better investment now because of thes ...

Ligand Pharmaceuticals (LGND) closed the last trading session at $79.92, gaining 10.7% over the past four weeks, but there could be plenty of upside left in the stock if short-term price targets set by Wall Street analysts are any guide. The mean price target of $116.33 indicates a 45.6% upside potential.The mean estimate comprises three short-term price targets with a standard deviation of $25.11. While the lowest estimate of $95 indicates an 18.9% increase from the current price level, the most optimistic ...

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 ...