Ligand(US:LGND)2024-08-07 20:30Revenue Growth - Total revenue and other income increased by $15.2 million, or 58%, to $41.5 million in Q2 2024 compared to $26.4 million in Q2 2023[100] - Revenue from intangible royalty assets increased by $2.2 million, or 11%, to $22.6 million in Q2 2024, primarily due to increases in FILSPARI sales[100] - Captisol sales increased by $2.3 million, or 44%, to $7.5 million in Q2 2024, primarily due to the timing of customer orders[100] - Contract revenue and other income increased by $10.7 million, or 5,125%, to $10.9 million in Q2 2024, primarily due to milestones tied to FDA and EMA approvals[100] - Total revenue and other income increased by $2.2 million, or 3%, to $72.5 million in YTD 2024 compared to $70.3 million in YTD 2023[101] - Revenue from intangible royalty assets increased by $3.4 million, or 9%, to $41.0 million in YTD 2024 compared to $37.6 million in YTD 2023, primarily due to increases in FILSPARI sales[101] Expenses and Impairments - Total operating costs and expenses increased by $30.5 million, or 52%, to $88.6 million in YTD 2024 compared to $58.1 million in YTD 2023, primarily due to a $26.5 million financial royalty asset impairment[108] - Research and development expense was $11.3 million for YTD 2024, compared with $13.5 million for YTD 2023, reflecting a decrease primarily due to the sale of the Pelican business[108] - Financial royalty asset impairment was $26.5 million for YTD 2024, compared to zero for YTD 2023, due to Takeda's Soticlestat missing its phase 3 clinical trial endpoint[108] - General and administrative expense was $28.6 million for YTD 2024, compared to $22.1 million for YTD 2023, primarily due to increased stock compensation for new hires[108] Non-Operating Income and Losses - Total non-operating income and expenses, net, was $(46.3) million in Q2 2024 compared to $5.2 million in Q2 2023, reflecting a significant loss from short-term investments[109] - The loss from short-term investments was $14.3 million in Q2 2024, compared to a gain of $4.0 million in Q2 2023, driven by changes in the fair value of ownership in Viking common stock[110] - Other non-operating expenses increased by $35.4 million in YTD 2024 compared to YTD 2023, primarily due to revaluation of Primrose investments[113] Cash and Investments - Cash, cash equivalents, and short-term investments totaled $226.9 million as of June 30, 2024, an increase of $56.6 million from the end of the previous year[116] - Cash used in investing activities was $(58.5) million in YTD 2024, compared to $18.1 million generated in YTD 2023[117] - Gain from short-term investments increased to $96.5 million in YTD 2024 from $43.5 million in YTD 2023, with an unrealized gain on Viking shares of $21.8 million compared to $5.1 million in the prior year[113] Acquisitions and Mergers - The company announced a $100 million acquisition of APEIRON Biologics, which holds royalty rights to QARZIBA for treating high-risk neuroblastoma[94] - The company anticipates owning approximately 2% of the combined company following the close of the Palvella and Pieris merger[96] Royalties and Milestones - Ligand earned a $5.8 million milestone payment upon FDA approval of Ohtuvayre and will earn an additional $13.8 million upon its commercial launch[97] - Ligand is entitled to a royalty of approximately 3% on future worldwide net sales of Ohtuvayre[97] - Ligand will receive a royalty of 8-9.8% on worldwide commercial sales of QTORIN rapamycin[96] - Effective royalty rates for key products such as Kyprolis and Evomela remained stable at 1.9% and 20.0%, respectively, while Filspari maintained a fixed royalty rate of 9%[102] Financing and Credit Facilities - The revolving credit facility with Citibank was amended to increase the aggregate amount from $75 million to $125 million[94] - The company entered into a $75 million Revolving Credit Facility, which was increased to $125 million on July 8, 2024[116] Taxation - The effective tax rate for Q2 2024 was 20.6%, down from 27.8% in Q2 2023, while the effective tax rate for YTD 2024 was 28.8% compared to 21.8% in YTD 2023[114] Net Cash from Operations - Net cash provided by operating activities was $32.0 million in YTD 2024, down from $33.9 million in YTD 2023[117] Discontinued Operations - Net loss from discontinued operations was zero for both Q2 2024 and Q2 2023, while YTD 2023 recorded a loss of $1.7 million[115]