Ligand(US:LGND)2022-05-09 20:08Revenue Performance - Total revenue decreased by $9.5 million, or 17%, to $45.7 million in Q1 2022 compared to $55.2 million in Q1 2021, primarily due to a $24.1 million decrease in sales of COVID-related Captisol[120] - Royalties from commercialized products increased to $13.7 million in Q1 2022, up from $7.1 million in Q1 2021, representing a 93% increase[120] - Captisol sales for core applications increased by 397% to $6.2 million in Q1 2022, compared to $1.3 million in Q1 2021[120] - Revenues attributable to the Ligand core business segment were $36.5 million in Q1 2022, compared to $46.6 million in Q1 2021[121] - The royalty revenue from Kyprolis was $4.6 million in Q1 2022, with partner product sales of $297.5 million and an effective royalty rate of 1.6%[124] - Contract revenue increased by $3.1 million, or 19%, to $19.9 million in Q1 2022 compared to $16.8 million in Q1 2021[120] Operating Costs and Expenses - Total operating costs and expenses increased by $4.6 million, or 9%, in Q1 2022 compared to Q1 2021, primarily due to OmniAb spin-off related transaction costs[125] - Research and development expenses rose to $20.3 million in Q1 2022 from $17.9 million in Q1 2021, driven by increased activities at Icagen, Crystal, and Pfenex[128] - General and administrative expenses increased to $18.2 million in Q1 2022 from $12.6 million in Q1 2021, largely due to $4.8 million of OmniAb spin-off related transaction costs[129] Financial Position - The company reported a net loss of $20.1 million in Q1 2022, compared to a profit of $5.8 million in Q1 2021[135] - Cash, cash equivalents, and short-term investments totaled $204.0 million as of March 31, 2022, a decrease of $137.1 million from the end of the previous year[136] - Net cash provided by operating activities was $52.0 million in Q1 2022, significantly up from $10.8 million in Q1 2021[142] - The company repurchased $165.8 million in principal of the 2023 Notes for $163.7 million in cash during Q1 2022[139] - Total other income (expense), net, was $(10.8) million in Q1 2022, a decrease from $1.0 million in Q1 2021, primarily due to fluctuations in short-term investments[131] - The effective tax rate for Q1 2022 was 23.6%, compared to (214.1)% in Q1 2021, influenced by foreign derived intangible income tax credits and R&D tax credits[135] - As of March 31, 2022, the company had $9.0 million in fair value of contingent consideration liabilities associated with prior acquisitions[141] Business Strategy and Development - The OmniAb platform has over 250 programs actively developed or commercialized, with 25 active clinical- or commercial-stage OmniAb-derived antibodies as of March 31, 2022[113] - Ligand plans to distribute 100% of its equity in OmniAb to Ligand shareholders immediately prior to the business combination with APAC, with an initial pre-money equity valuation of $850 million[110] - The company has over 1,600 issued patents worldwide, supporting its diverse portfolio of biotech and pharmaceutical product revenue streams[105] - Ligand's business model focuses on drug discovery and early-stage drug development, partnering with pharmaceutical companies for late-stage development and commercialization[107]