Ligand(US:LGND)2024-11-08 21:01Revenue and Income - Total revenue and other income increased by $18.9 million, or 58%, to $51.8 million in Q3 2024 compared to $32.9 million in Q3 2023[110] - Royalties increased by $7.8 million, or 33%, to $31.7 million in Q3 2024 compared to $23.9 million in Q3 2023, primarily due to income from QARZIBA and an increase in FILSPARI sales[110] - Contract revenue and other income surged by $13.5 million, or 3,623%, to $13.8 million in Q3 2024 compared to $0.4 million in Q3 2023, mainly due to a commercial milestone tied to Verona's Ohtuvayre[110] - Year-to-date total revenue and other income increased by $21.1 million, or 20%, to $124.3 million in YTD 2024 compared to $103.2 million in YTD 2023[111] - Year-to-date royalties increased by $11.5 million, or 18%, to $74.0 million in YTD 2024 compared to $62.5 million in YTD 2023, driven by QARZIBA and FILSPARI sales[111] - Revenue from intangible royalty assets for Q3 2024 was $26.6 million, up from $23.9 million in Q3 2023, reflecting increased partner product sales[112] - Kyprolis generated $11.6 million in royalty revenue in Q3 2024, with an effective royalty rate of 2.9% on estimated partner product sales of $405.4 million[112] - FILSPARI had a fixed royalty rate of 9%, contributing $3.2 million in royalty revenue in Q3 2024[112] - YTD 2024 estimated partner product sales for Kyprolis reached $1,213.7 million, up from $1,123.3 million in YTD 2023, representing an increase of 8.0%[114] Operating Costs and Expenses - Total operating costs and expenses increased by $47.3 million, or 52%, to $137.3 million in YTD 2024 compared to $90.0 million in YTD 2023[117] - Total operating costs and expenses for Q3 2024 were $48.7 million, a 53% increase from $31.9 million in Q3 2023[116] - General and administrative expenses rose to $53.0 million in YTD 2024, compared to $36.8 million in YTD 2023, an increase of 44.4%[118] - Research and development expenses were $17.0 million for YTD 2024, down from $19.0 million in YTD 2023, a decrease of 10.0%[118] - Financial royalty asset impairment was $26.5 million for YTD 2024, primarily due to Takeda's soticlestat missing its phase 3 clinical trial primary endpoint[118] - Cost of Captisol decreased by $1.0 million, or 30%, to $2.4 million in Q3 2024 compared to $3.5 million in Q3 2023[116] Financial Performance - Q3 2024 net loss before income taxes was $(6,339) thousand, an improvement of $5,805 thousand compared to Q3 2023's $(12,144) thousand[124] - Year-to-date (YTD) 2024 net cash provided by operating activities was $68,576 thousand, up from $41,512 thousand in YTD 2023[128] - YTD 2024 cash used in investing activities totaled $(105,041) thousand, significantly higher than $(1,398) thousand in YTD 2023[128] - The company generated $76,753 thousand from financing activities in YTD 2024, compared to $(65,262) thousand in YTD 2023[128] Cash and Investments - As of September 30, 2024, cash, cash equivalents, and short-term investments totaled $219.6 million, an increase of $49.3 million from the end of the previous year[125] - The company has a stock repurchase program authorizing up to $50 million of common stock, remaining available as of September 30, 2024[126] - The Revolving Credit Facility was increased from $75 million to $125 million on July 8, 2024, with $124.4 million available for borrowing as of September 30, 2024[126] - Gain from short-term investments was $98.9 million in YTD 2024, compared to $30.3 million in YTD 2023, an increase of 226.8%[123] Tax and Discontinued Operations - The effective tax rate for Q3 2024 was (13.1)%, compared to 15.4% in Q3 2023, reflecting changes in non-deductible items and foreign operations[124] - Net loss from discontinued operations was zero for both Q3 2024 and Q3 2023, with YTD 2024 also showing no loss compared to $(1.7) million in YTD 2023[125] Future Plans - The company plans to host an investor and analyst day on December 10, 2024, to review business progress and introduce 2025 guidance[105] Derivatives and Liabilities - The fair value adjustment to partner program derivatives was $7.8 million for Q3 2024, primarily due to certain Agenus partners discontinuing development of their partnered programs[116] - The company had $4.0 million in fair value of contingent consideration liabilities associated with prior acquisitions as of September 30, 2024[126]