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]

PART I. FINANCIAL INFORMATION [ITEM 1. Condensed Consolidated Financial Statements (unaudited)](index=5&type=section&id=ITEM%201.%20Condensed%20Consolidated%20Financial%20Statements%20(unaudited)) This section provides the unaudited condensed consolidated financial statements and related notes, covering financial position, performance, cash flows, and key accounting policies [Condensed Consolidated Balance Sheets](index=5&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) This statement presents the company's financial position, detailing assets, liabilities, and equity at specific points in time | Metric | March 31, 2023 (in thousands) | December 31, 2022 (in thousands) | | :----- | :---------------------------- | :------------------------------- | | Total Assets | $811,076 | $762,668 | | Cash and Cash Equivalents | $88,728 | $45,006 | | Short-term Investments | $193,937 | $166,864 | | Total Liabilities | $164,759 | $165,183 | | Total Stockholders' Equity | $646,317 | $597,485 | - Total assets increased by **$48.4 million**, driven by a significant increase in cash and cash equivalents and short-term investments[12](index=12&type=chunk) [Condensed Consolidated Statements of Operations](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) This statement outlines the company's financial performance over a period, showing revenues, expenses, and net income or loss | Metric | Three months ended March 31, 2023 (in thousands) | Three months ended March 31, 2022 (in thousands) | Change (in thousands) | % Change | | :----- | :----------------------------------------------- | :----------------------------------------------- | :-------------------- | :------- | | Total Revenues | $43,979 | $36,516 | $7,463 | 20% | | Total Operating Costs and Expenses | $29,774 | $34,383 | $(4,609) | (13)% | | Operating Income from Continuing Operations | $14,205 | $2,133 | $12,072 | 566% | | Total Other Income (Expense), net | $41,331 | $(11,277) | $52,608 | N/A | | Net Income (Loss) | $41,949 | $(15,385) | $57,334 | N/A | | Basic Net Income (Loss) Per Share | $2.46 | $(0.91) | $3.37 | N/A | | Diluted Net Income (Loss) Per Share | $2.33 | $(0.91) | $3.24 | N/A | - The company reported a net income of **$41.95 million** in Q1 2023, a significant improvement from a net loss of **$15.39 million** in Q1 2022, driven by increased revenues and a substantial gain from short-term investments[14](index=14&type=chunk) [Condensed Consolidated Statements of Comprehensive Income (Loss)](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Comprehensive%20Income%20(Loss)) This statement presents net income and other comprehensive income items, reflecting the total change in equity from non-owner sources | Metric | Three months ended March 31, 2023 (in thousands) | Three months ended March 31, 2022 (in thousands) | | :----- | :----------------------------------------------- | :----------------------------------------------- | | Net income (loss) | $41,949 | $(15,385) | | Unrealized net gain (loss) on available-for-sale securities, net of tax | $49 | $(114) | | Comprehensive income (loss) | $41,998 | $(15,499) | - Comprehensive income for Q1 2023 was **$41.998 million**, a substantial increase from a comprehensive loss of **$15.499 million** in Q1 2022[16](index=16&type=chunk) [Condensed Consolidated Statements of Stockholders' Equity](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Stockholders'%20Equity) This statement details changes in the equity section of the balance sheet, including retained earnings and additional paid-in capital | Metric | December 31, 2022 (in thousands) | March 31, 2023 (in thousands) | | :----- | :------------------------------- | :---------------------------- | | Total Stockholders' Equity | $597,485 | $646,317 | | Retained Earnings | $450,862 | $492,811 | | Additional Paid-in Capital | $147,590 | $154,424 | - Total stockholders' equity increased by **$48.83 million** to **$646.32 million** as of March 31, 2023, primarily due to net income and share-based compensation[19](index=19&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=9&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) This statement summarizes the cash inflows and outflows from operating, investing, and financing activities over a period | Metric | Three months ended March 31, 2023 (in thousands) | Three months ended March 31, 2022 (in thousands) | | :----- | :----------------------------------------------- | :----------------------------------------------- | | Net cash provided by operating activities | $33,948 | $52,011 | | Net cash provided by investing activities | $10,549 | $113,881 | | Net cash used in financing activities | $(775) | $(170,421) | | Cash, cash equivalents and restricted cash at end of period | $88,728 | $14,993 | - Net cash provided by operating activities decreased, while net cash used in financing activities significantly decreased due to no repurchase of 2023 Notes in Q1 2023, leading to a substantial increase in cash and cash equivalents at period end[22](index=22&type=chunk)[135](index=135&type=chunk) [Notes to Condensed Consolidated Financial Statements](index=10&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) These notes provide detailed explanations and additional information essential for understanding the condensed consolidated financial statements [1. Basis of Presentation and Summary of Significant Accounting Policies](index=10&type=section&id=1.%20Basis%20of%20Presentation%20and%20Summary%20of%20Significant%20Accounting%20Policies) This section outlines the foundational principles and key accounting methods used in preparing the financial statements - Post-OmniAb spin-off, Ligand operates as a biopharmaceutical company focused on developing and licensing biopharmaceutical assets[27](index=27&type=chunk) - The OmniAb Business spin-off in November 2022 is classified as a discontinued operation, with financial statements adjusted to reflect continuing operations[29](index=29&type=chunk) - Revenue is primarily generated from royalties, Captisol material sales, and contract revenue (license fees, milestones, and R&D services)[32](index=32&type=chunk)[35](index=35&type=chunk)[36](index=36&type=chunk)[37](index=37&type=chunk)[38](index=38&type=chunk) Disaggregation of Revenue (Q1 2023 vs Q1 2022, in thousands) | Revenue Type | Q1 2023 | Q1 2022 | Change | % Change | | :----------- | :------ | :------ | :----- | :------- | | Royalties | $17,154 | $13,432 | $3,722 | 28% | | Captisol - Core | $10,622 | $6,226 | $4,396 | 71% | | Captisol - COVID | $0 | $5,896 | $(5,896) | (100)% | | Contract Revenue | $16,203 | $10,962 | $5,241 | 48% | | **Total** | **$43,979** | **$36,516** | **$7,463** | **20%** | - Total short-term investments increased to **$193.94 million** as of March 31, 2023, and the company recognized a **$20.5 million** realized gain from selling 3.2 million shares of Viking common stock[45](index=45&type=chunk) - Share-based compensation expense decreased to **$5.93 million** in Q1 2023 from **$7.11 million** in Q1 2022[58](index=58&type=chunk) [2. Spin-off of OmniAb](index=18&type=section&id=2.%20Spin-off%20of%20OmniAb) This note details the completion of the OmniAb business spin-off and its financial reporting as a discontinued operation - The spin-off of the OmniAb Business was completed on November 1, 2022, through a Reverse Morris Trust transaction, resulting in OmniAb becoming an independent, publicly traded company[64](index=64&type=chunk)[65](index=65&type=chunk) - OmniAb's historical financial results are now reflected as discontinued operations in Ligand's consolidated financial statements for all periods presented through the distribution date[65](index=65&type=chunk) Net Loss from Discontinued Operations (Q1 2022, in thousands) | Metric | Three months ended March 31, 2022 | | :----- | :--------------------------------| | Total Revenues | $9,177 | | Total Operating Costs and Expenses | $20,616 | | Net loss | $(2,456) | [3. Fair Value Measurements](index=19&type=section&id=3.%20Fair%20Value%20Measurements) This note provides information on assets and liabilities measured at fair value, categorized by valuation inputs Assets and Liabilities Measured at Fair Value (in thousands) | Category | March 31, 2023 | December 31, 2022 | | :------- | :------------- | :---------------- | | Total Assets | $193,937 | $166,864 | | Investment in Viking common stock | $59,359 | $63,122 | | Total Liabilities | $2,887 | $3,557 | - Total assets measured at fair value increased, while total liabilities measured at fair value decreased, primarily due to a reduction in Metabasis contingent liabilities[69](index=69&type=chunk) - No impairment of goodwill, indefinite-lived assets, or long-lived assets was recorded during Q1 2023 or Q1 2022[72](index=72&type=chunk) [4. Convertible Senior Notes](index=20&type=section&id=4.%20Convertible%20Senior%20Notes) This note details the outstanding convertible senior notes, their conversion terms, and the company's settlement intentions - As of March 31, 2023, **$76.85 million** in principal amount of the 0.75% convertible senior notes due 2023 remain outstanding[85](index=85&type=chunk) - Holders are entitled to convert the notes without conditions from November 15, 2022, until May 11, 2023, with a conversion rate adjusted to **4.8390 shares per $1,000 principal amount**[75](index=75&type=chunk)[76](index=76&type=chunk) - The company intends to settle conversions through a combination of cash for the principal portion and shares for the excess conversion value[78](index=78&type=chunk) - No 2023 Notes were repurchased during Q1 2023, in contrast to **$165.8 million** repurchased in Q1 2022[79](index=79&type=chunk) [5. Income Tax](index=21&type=section&id=5.%20Income%20Tax) This note explains the company's effective tax rate and the primary factors contributing to its variance from the statutory rate - The effective tax rate for Q1 2023 was **21.5%**, a significant change from **(41.4)%** in Q1 2022[87](index=87&type=chunk) - The Q1 2023 variance from the U.S. federal statutory tax rate was primarily due to Section 162(m) limitation on officer compensation and non-deductible ISO-related stock compensation, partially offset by foreign derived intangible income tax benefit[87](index=87&type=chunk) [6. Stockholders' Equity](index=22&type=section&id=6.%20Stockholders'%20Equity) This note details changes in stock options and restricted stock activity, along with information on the At-The-Market Equity Offering Sales Agreement Stock Options and Restricted Stock Activity (as of March 31, 2023) | Metric | Stock Options (Shares) | Restricted Stock Awards (Shares) | | :----- | :--------------------- | :------------------------------- | | Balance as of December 31, 2022 | 2,991,473 | 348,453 | | Granted | 409,591 | 194,615 | | Exercised/Vested | (93,598) | (153,431) | | Forfeited | (69,853) | (12,635) | | Balance as of March 31, 2023 | 3,237,613 | 377,002 | - The company has an At-The-Market (ATM) Equity Offering Sales Agreement to sell up to **$100.0 million** of common stock, but no shares have been issued under this program to date[91](index=91&type=chunk) [7. Commitment and Contingencies](index=22&type=section&id=7.%20Commitment%20and%20Contingencies) This note outlines the company's involvement in legal proceedings and significant lease agreement amendments - The company is involved in civil complaints related to the National Prescription Opiate Litigation but believes these claims are unlikely to have a material adverse effect on its business[93](index=93&type=chunk)[95](index=95&type=chunk) - An amendment to the headquarters lease agreement in Q1 2023 resulted in a **$1.1 million** increase in both operating lease assets and liabilities[96](index=96&type=chunk) [ITEM 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=24&type=section&id=ITEM%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) This section provides management's perspective on the company's financial performance, condition, and future outlook, highlighting key revenue drivers, expense changes, and liquidity - Ligand's business model focuses on acquiring or funding programs and out-licensing technology platforms (Captisol, Pelican) to generate diversified revenue streams from royalties, Captisol sales, and contract revenue[100](index=100&type=chunk)[101](index=101&type=chunk)[102](index=102&type=chunk) - The OmniAb spin-off was completed on November 1, 2022, with OmniAb's historical results now reported as discontinued operations[103](index=103&type=chunk) - As of March 31, 2023, cash, cash equivalents, and short-term investments totaled **$282.7 million**, an increase of **$70.8 million** from year-end 2022[128](index=128&type=chunk) - The company plans to use existing cash to pay off the remaining **$76.9 million** principal amount of 2023 Notes on their May 15, 2023 maturity date[130](index=130&type=chunk) [Overview](index=24&type=section&id=Overview) This section describes Ligand's business model, focusing on its strategy of acquiring and licensing biopharmaceutical assets and technologies - Ligand's business model is focused on acquiring or funding programs and technologies for life science companies to discover and develop medicines, aiming for a diversified portfolio of biotech and pharmaceutical product revenue streams[100](index=100&type=chunk) - Key technology platforms include Captisol (optimizes drug solubility/stability) and Pelican Expression Technology (cost-effective, scalable recombinant protein production)[101](index=101&type=chunk) - Revenue consists of royalties from commercialized products, sales of Captisol material, and contract revenue from license, milestone, and other service payments[102](index=102&type=chunk) [OmniAb Separation and Spin-Off](index=24&type=section&id=OmniAb%20Separation%20and%20Spin-Off) This section details the completion of the OmniAb spin-off and its subsequent classification as discontinued operations - The spin-off of the OmniAb antibody discovery business was completed on November 1, 2022, through a Reverse Morris Trust transaction, making OmniAb an independent public company[103](index=103&type=chunk) - Following the distribution, OmniAb's historical financial results are reflected as discontinued operations in Ligand's consolidated financial statements[103](index=103&type=chunk) [Business Updates](index=25&type=section&id=Business%20Updates) This section highlights recent developments, including FDA approvals, clinical trial progress, and strategic asset sales - Travere Therapeutics received FDA accelerated approval for FILSPARI™ (sparsentan) for IgA nephropathy (IgAN) in February 2023, with EMA review expected in H2 2023[104](index=104&type=chunk) - Viking Therapeutics completed enrollment in its Phase 2b clinical trial of VK2809 for NASH, with topline data expected in H1 2023. Ligand sold 3.2 million Viking shares, generating **$43 million** in net proceeds[105](index=105&type=chunk) - Novan submitted an NDA for berdazimer gel, 10.3% (SB206) for molluscum contagiosum, with a PDUFA target date of January 5, 2024[106](index=106&type=chunk) - Novartis AG received FDA approval for a liquid form of TAFINLAR® (dabrafenib) + MEKINIST® (trametinib), the first approval of an oral Captisol-enabled product, for pediatric low-grade glioma[108](index=108&type=chunk) [Results of Operations](index=25&type=section&id=Results%20of%20Operations) This section analyzes the company's financial performance, detailing revenue, operating costs, other income, and tax impacts - Total revenue increased by **$7.5 million (20%)** to **$44.0 million** in Q1 2023, driven by contract revenue and royalties, despite a **100% decrease** in Captisol-COVID sales[111](index=111&type=chunk)[112](index=112&type=chunk) - Total operating costs and expenses decreased by **$4.6 million (13%)** to **$29.8 million** in Q1 2023, primarily due to lower R&D and G&A expenses[117](index=117&type=chunk)[118](index=118&type=chunk)[119](index=119&type=chunk)[120](index=120&type=chunk) - Total other income (expense), net, swung to a gain of **$41.3 million** in Q1 2023 from a loss of **$11.3 million** in Q1 2022, mainly due to a **$39.5 million** gain from short-term investments (including **$20.5 million** realized gain from Viking stock sales and **$19.0 million** unrealized gain)[121](index=121&type=chunk)[122](index=122&type=chunk) - Net income from continuing operations was **$43.6 million** in Q1 2023, a significant improvement from a net loss of **$12.9 million** in Q1 2022[14](index=14&type=chunk) [Revenue](index=25&type=section&id=Revenue) This section analyzes the components of total revenue, including royalties, Captisol sales, and contract revenue, and their respective changes Revenue Breakdown (Q1 2023 vs Q1 2022, in thousands) | Revenue Type | Q1 2023 | Q1 2022 | Change | % Change | | :----------- | :------ | :------ | :----- | :------- | | Royalties | $17,154 | $13,432 | $3,722 | 28% | | Captisol - Core | $10,622 | $6,226 | $4,396 | 71% | | Captisol - COVID | $0 | $5,896 | $(5,896) | (100)% | | Contract revenue | $16,203 | $10,962 | $5,241 | 48% | | **Total revenue** | **$43,979** | **$36,516** | **$7,463** | **20%** | - Contract revenue increased significantly due to a milestone payment tied to FDA approval of Travere's FILSPARI[112](index=112&type=chunk) - Core Captisol sales increased by **71%** due to the timing of customer orders, while Captisol sales related to COVID-19 ceased[113](index=113&type=chunk) Royalty Revenue by Program (Q1 2023 vs Q1 2022, in millions) | Program | Q1 2023 Royalty Revenue | Q1 2022 Royalty Revenue | Change | | :------ | :---------------------- | :---------------------- | :----- | | Kyprolis | $6.2 | $4.6 | $1.6 | | Evomela | $2.6 | $2.7 | $(0.1) | | Teriparatide injection | $3.5 | $2.9 | $0.6 | | Rylaze | $2.6 | $1.6 | $1.0 | | Other | $2.3 | $1.6 | $0.7 | | **Total** | **$17.2** | **$13.4** | **$3.8** | [Operating Costs and Expenses](index=26&type=section&id=Operating%20Costs%20and%20Expenses) This section details the changes in cost of Captisol, amortization, research and development, and general and administrative expenses Operating Costs and Expenses (Q1 2023 vs Q1 2022, in thousands) | Expense Type | Q1 2023 | Q1 2022 | Change | % Change | | :----------- | :------ | :------ | :----- | :------- | | Cost of Captisol | $3,717 | $4,699 | $(982) | (21)% | | Amortization of intangibles | $8,539 | $8,580 | $(41) | (0.5)% | | Research and development | $6,663 | $9,179 | $(2,516) | (27)% | | General and administrative | $10,855 | $11,925 | $(1,070) | (9)% | | **Total** | **$29,774** | **$34,383** | **$(4,609)** | **(13)%** | - Research and development expense decreased primarily due to lower share-based compensation, employee-related expenses, and lab supply expenses[119](index=119&type=chunk) - General and administrative expense decreased mainly due to reduced legal expenses in connection with the OmniAb spin-off[120](index=120&type=chunk) [Other Income (Expense)](index=26&type=section&id=Other%20Income%20(Expense)) This section examines the components of other income and expense, including gains from short-term investments and interest income/expense Other Income (Expense), net (Q1 2023 vs Q1 2022, in thousands) | Metric | Q1 2023 | Q1 2022 | Change | | :----- | :------ | :------ | :----- | | Gain (loss) from short-term investments | $39,533 | $(12,877) | $52,410 | | Interest income | $1,435 | $134 | $1,301 | | Interest expense | $(240) | $(789) | $549 | | Other income (expense), net | $603 | $2,255 | $(1,652) | | **Total** | **$41,331** | **$(11,277)** | **$52,608** | - The significant gain from short-term investments in Q1 2023 was driven by **$19.0 million** in unrealized gains and **$20.5 million** in realized gains from Viking common stock sales[122](index=122&type=chunk) - Interest income increased due to higher interest rates, while interest expense decreased due to a lower average debt outstanding balance[123](index=123&type=chunk)[124](index=124&type=chunk) [Income Tax Benefit (Expense)](index=27&type=section&id=Income%20Tax%20Benefit%20(Expense)) This section analyzes the income tax benefit or expense and the effective tax rate for the period Income Tax (Q1 2023 vs Q1 2022, in thousands) | Metric | Q1 2023 | Q1 2022 | | :----- | :------ | :------ | | Income (loss) before income taxes | $55,536 | $(9,144) | | Income tax benefit (expense) | $(11,922) | $(3,785) | | Effective tax rate | 21.5% | (41.4)% | - The effective tax rate for Q1 2023 was **21.5%**, a significant change from **(41.4)%** in Q1 2022, primarily due to Section 162(m) limitation and non-deductible ISO-related stock compensation, partially offset by foreign derived intangible income tax benefit[127](index=127&type=chunk) [Net Loss from Discontinued Operations](index=27&type=section&id=Net%20Loss%20from%20Discontinued%20Operations) This section reports the net loss attributable to discontinued operations for the period - Net loss from discontinued operations was **$1.7 million** in Q1 2023, a decrease from **$2.5 million** in Q1 2022[128](index=128&type=chunk) [Liquidity and Capital Resources](index=27&type=section&id=Liquidity%20and%20Capital%20Resources) This section discusses the company's cash position, investment strategy, and ability to fund future operations and obligations - As of March 31, 2023, cash, cash equivalents, and short-term investments totaled **$282.7 million**, an increase of **$70.8 million** from the end of last year[128](index=128&type=chunk) - The company plans to use existing cash to pay off the remaining **$76.9 million** principal amount of 2023 Notes on their maturity date of May 15, 2023[130](index=130&type=chunk) - Management believes existing funds, cash generated from operations, and access to financing are adequate to fund business needs, including working capital, capital expenditures, debt service, R&D, and strategic initiatives[133](index=133&type=chunk) Cash Flow Summary (Q1 2023 vs Q1 2022, in thousands) | Activity Type | Q1 2023 | Q1 2022 | | :------------ | :------ | :------ | | Operating activities | $33,948 | $52,011 | | Investing activities | $10,549 | $113,881 | | Financing activities | $(775) | $(170,421) | [Critical Accounting Policies and Estimates](index=28&type=section&id=Critical%20Accounting%20Policies%20and%20Estimates) This section confirms that there have been no material changes to the company's critical accounting policies and estimates - There have been no material changes to the critical accounting policies and estimates compared to those described in the 2022 Annual Report[137](index=137&type=chunk) [ITEM 3. Quantitative and Qualitative Disclosures about Market Risk](index=28&type=section&id=ITEM%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) This section states that there were no material changes to the company's market risks during the three months ended March 31, 2023, compared to the disclosures in its 2022 Annual Report - No material changes to market risks were identified in Q1 2023 compared to the disclosures in the 2022 Annual Report[139](index=139&type=chunk) [ITEM 4. Controls and Procedures](index=29&type=section&id=ITEM%204.%20Controls%20and%20Procedures) Management, including the CEO and CFO, concluded that the company's disclosure controls and procedures were effective as of March 31, 2023, and there were no material changes in internal control over financial reporting during the quarter - The Chief Executive Officer and Chief Financial Officer concluded that disclosure controls and procedures were effective as of March 31, 2023[140](index=140&type=chunk) - There were no material changes in internal control over financial reporting during the quarter ended March 31, 2023[141](index=141&type=chunk) PART II. OTHER INFORMATION [ITEM 1. Legal Proceedings](index=29&type=section&id=ITEM%201.%20Legal%20Proceedings) This section refers to Note 7 of the financial statements for updated disclosures on legal proceedings, which primarily involve civil complaints related to the National Prescription Opiate Litigation - Updates on legal proceedings are provided in Note 7, Commitment and Contingencies, to the Condensed Consolidated Financial Statements[142](index=142&type=chunk) [ITEM 1A. Risk Factors](index=29&type=section&id=ITEM%201A.%20Risk%20Factors) The company states that there have been no material changes to the risk factors disclosed in its 2022 Annual Report, but reminds readers that other unknown or immaterial factors could still adversely affect the business - No material changes to the risk factors disclosed in the 2022 Annual Report were identified[143](index=143&type=chunk) [ITEM 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=29&type=section&id=ITEM%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) No unregistered sales of equity securities or use of proceeds occurred during the period - No unregistered sales of equity securities or use of proceeds occurred[144](index=144&type=chunk) [ITEM 3. Defaults Upon Senior Securities](index=29&type=section&id=ITEM%203.%20Defaults%20Upon%20Senior%20Securities) No defaults upon senior securities occurred during the period - No defaults upon senior securities occurred[145](index=145&type=chunk) [ITEM 4. Mine Safety Disclosures](index=29&type=section&id=ITEM%204.%20Mine%20Safety%20Disclosures) This item is not applicable to the company - Mine Safety Disclosures are not applicable to the company[146](index=146&type=chunk) [ITEM 5. Other Information](index=29&type=section&id=ITEM%205.%20Other%20Information) No other information is reported in this section - No other information is reported in this section[147](index=147&type=chunk) [ITEM 6. Exhibits](index=30&type=section&id=ITEM%206.%20Exhibits) This section lists the exhibits filed with the Form 10-Q, including the At-the-Market Equity Offering Sales Agreement, Director Compensation Policy, Change in Control Severance Agreement, and various certifications and XBRL financial information - Key exhibits include the At-the-Market Equity Offering Sales Agreement, Director Compensation and Stock Ownership Policy, Form of Change in Control Severance Agreement, and various certifications by principal officers[148](index=148&type=chunk) - The report includes financial information formatted in iXBRL (Exhibit 101)[148](index=148&type=chunk) [SIGNATURE](index=31&type=section&id=SIGNATURE) The report is duly signed on May 8, 2023, by Octavio Espinoza, Chief Financial Officer - The report was signed by Octavio Espinoza, Chief Financial Officer, on May 8, 2023[153](index=153&type=chunk)

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 ...

Revenue Performance - Total revenue from continuing operations decreased by $45.3 million, or 19%, to $196.2 million in 2022 compared to $241.5 million in 2021, primarily due to a $52.8 million decrease in sales of COVID-related Captisol[240]. - Royalty revenue increased by $23.6 million, or 48%, to $72.5 million in 2022 compared to $48.9 million in 2021, driven by increased sales of drugs using the Pelican platform[241]. - Contract revenue decreased by $9.1 million, or 32%, in 2022 compared to 2021, primarily due to the timing of partner milestone events[241]. - Core Captisol sales were $16.4 million in 2022, down from $23.4 million in 2021, attributed to the timing of customer orders[241]. - The effective royalty rate for Kyprolis was 2.4% in both 2022 and 2021, with total sales of $1.3 billion in 2022 generating $30.1 million in royalty revenue[245]. - Total revenue from continuing operations in 2021 was $241.5 million, an increase of $78.0 million, or 48%, compared to $163.6 million in 2020, primarily due to increased demand for COVID-related Captisol[243]. Operating Costs and Expenses - Total operating costs and expenses from continuing operations increased by $55.5 million, or 40%, to $193.2 million in 2022 compared to $137.7 million in 2021[248]. - General and administrative expenses increased by $23.3 million in 2022 compared to 2021, primarily due to increases in stock compensation and headcount-related expenses[250]. Investment Performance - Gain from short-term investments was $28.5 million in 2022, a significant increase compared to a loss of $5.3 million in 2021, driven by changes in the fair value of ownership in Viking common stock[258]. - Interest income increased by 131% to $2.0 million in 2022, primarily due to significant interest rate increases by the Federal Reserve[258]. - As of December 31, 2022, the company's investment portfolio included $166.9 million in available-for-sale securities, with $63.1 million invested in Viking common stock[302]. Net Income and Tax Rate - The net income from continuing operations for FY 2022 was $(5,219) thousand, a decline of $81,572 thousand or 107% compared to $76,353 thousand in FY 2021[265]. - The effective tax rate for FY 2022 was 114%, a significant increase from (6)% in FY 2021, influenced by discrete tax expenses and limitations on stock-based compensation deductions[265]. Cash and Financing Activities - As of December 31, 2022, the company had approximately $211.9 million in cash, cash equivalents, and short-term investments, a decrease of $129.2 million from the previous year[268]. - The company repurchased $266.4 million in principal of the 2023 Notes for $261.4 million in cash during 2022, leaving $76.9 million in principal amount outstanding as of December 31, 2022[271]. - The company entered into an At-The-Market Equity Offering Sales Agreement to sell shares of common stock with an aggregate offering price of up to $100.0 million, but had not issued any shares as of December 31, 2022[270]. Research and Development - The company recognized revenue from R&D services over time, measuring progress based on input methods, which requires significant estimates and judgments[284]. Goodwill and Intangible Assets - The company performed goodwill impairment testing using quantitative analyses for the OmniAb business and Ligand core business due to a reorganization, reallocating goodwill based on relative fair value[289]. - The company evaluates the recoverability of intangible assets by comparing carrying amounts to undiscounted cash flows, recording impairment losses if necessary[291]. Foreign Currency Risk - The company is exposed to foreign currency risk, particularly from transactions in currencies other than the U.S. dollar, affecting royalty revenues[303]. - The company does not currently hedge against foreign currency fluctuations, and a 10% change in exchange rates would not materially impact financial results[304]. Investment Policy and Share-Based Compensation - The company’s investment policy focuses on capital preservation and liquidity, typically investing in highly rated securities[305]. - The company recognizes share-based compensation expense based on the fair value of awards, which is reassessed at each reporting period[297]. Deferred Tax Assets - The company assesses deferred tax assets regularly, establishing a valuation allowance when future realization is deemed unlikely[295].

Ligand Pharmaceuticals, Inc. (NASDAQ:LGND) Q4 2022 Earnings Conference Call February 22, 2023 4:00 PM ET Company Participants Simon Latimer - Head, IR Todd Davis - CEO Tavo Espinoza - CFO Matthew Korenberg - President and Chief Operating Officer Conference Call Participants Joseph Pantginis - HC Wainwright Larry Solow - CJS Securities Matthew Hewitt - Craig-Hallum Capital Group Operator Good evening. My name is Rob and I will be your conference operator today. At this time, I would like to welcome everyone ...

November 2022 Nasdaq: LGND Ligand Corporate Presentation SAFE HARBOR STATEMENT 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 presentation. Words such as "plans," "believes," "expects," "projects," "could," "anticipates," and "will," and similar expressions, are intended to identify forward-looking statements. These forward-looking statements include, withou ...

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 September 30, 2022 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) Q3 2022 Earnings Conference Call November 7, 2022 4:30 PM ET Company Participants Simon Latimer - Head, IR John Higgins - CEO Matthew Korenberg - President & CFO Octavio Espinoza - CFO Conference Call Participants Joseph Pantginis - HC Wainwright Larry Solow - CJS Securities Matthew Hewitt - Craig-Hallum Capital Group Scott Henry - ROTH Capital Operator Good afternoon. My name is Vinesin, and I will be your conference actor today. At this time, I would like to welc ...

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, 2022 or ☐ Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the Transition Per ...