Ligand(LGND) - 2025 Q1 - Quarterly Results

Financial Performance - Total revenues for Q1 2025 were $45.3 million, a 46% increase from $31.0 million in Q1 2024, driven by a 44% rise in royalty revenue to $27.5 million[3] - Captisol sales reached $13.5 million in Q1 2025, up from $9.2 million in Q1 2024, attributed to the timing of customer orders[3] - GAAP net loss for Q1 2025 was $42.5 million, or $2.21 per share, compared to a net income of $86.1 million, or $4.75 per diluted share, in Q1 2024[5] - Core adjusted net income for Q1 2025 was $26.6 million, or $1.33 per diluted share, compared to $21.8 million, or $1.20 per diluted share, in Q1 2024[6] - Total revenues and other income for Q1 2025 reached $45.333 million, a 46.5% increase from $30.978 million in Q1 2024[31] - Revenue from intangible royalty assets was $21.587 million, up 17.5% from $18.357 million year-over-year[31] - Adjusted net income for Q1 2025 was $26.598 million, compared to $69.665 million in Q1 2024[35] - The diluted net loss per share for Q1 2025 was $2.21, compared to a diluted net income per share of $4.75 in Q1 2024[35] Financial Guidance - Ligand reaffirms 2025 financial guidance of total revenues between $180 million and $200 million, with adjusted earnings per diluted share expected to range from $6.00 to $6.25[8] - The company’s royalty revenue for 2025 is projected to be between $135 million and $140 million[8] Mergers and Investments - Ligand announced a merger agreement to combine Pelthos Therapeutics with Channel Therapeutics, supported by $50 million in capital from strategic investors[9] - The combined company will focus on the commercialization of ZELSUVMI, the first FDA-approved prescription therapy for molluscum infections[11] - Ligand led a $75 million investment in Castle Creek Biosciences for the Phase 3 clinical study of D-Fi, with a mid-single digit royalty expected[12] Cash and Assets - As of March 31, 2025, Ligand had cash, cash equivalents, and short-term investments totaling $208.9 million[7] - Total assets decreased to $905.435 million as of March 31, 2025, down from $941.774 million at the end of 2024[33] - Cash, cash equivalents, and short-term investments were reported at $208.901 million, a decline from $256.165 million at the end of 2024[33] Expenses and Risks - Research and development expenses surged to $50.085 million, a significant increase from $5.971 million in the same quarter last year[31] - The company is currently dependent on a single source supplier for Captisol, which poses risks to meeting demand[26] Other Considerations - Changes in fair value of contingent consideration related to CyDex and Metabasis transactions were noted[37] - Excess tax benefits from share-based compensation are recorded as a discrete item within the provision for income taxes since January 1, 2017[37] - A reconciliation of forward-looking non-GAAP adjusted earnings per diluted share to GAAP measure is not available due to high variability and complexity of certain items[38] - Ligand anticipates potential revenue from the commercial launch of ZELSUVMI and other products in the future[26]