Ligand(US:LGND)2025-05-09 20:04Revenue Growth - Total revenue and other income increased by $14.4 million, or 46%, to $45.3 million in Q1 2025 compared to $31.0 million in Q1 2024[175]. - Royalties increased by $8.4 million, or 44%, to $27.5 million in Q1 2025 compared to $19.1 million in Q1 2024, primarily due to income from Qarziba and an increase in Filspari sales[175]. - Captisol sales increased by $4.2 million, or 46%, to $13.5 million in Q1 2025 compared to $9.2 million in Q1 2024[175]. - Verona reported Ohtuvayre net sales of $71.3 million for Q1 2025, representing a 95% increase compared to the prior quarter[168]. - Merck announced Capvaxive sales of $107 million for Q1 2025, a 120% increase over the prior quarter[171]. Operating Costs and Expenses - Total operating costs and expenses increased by $53.6 million, or 191%, to $81.5 million in Q1 2025 compared to $28.0 million in Q1 2024[179]. - Cost of Captisol increased by $2.0 million, or 68%, to $4.8 million in Q1 2025 compared to $2.9 million in Q1 2024[180]. - Research and development expenses increased to $50.1 million in Q1 2025 from $6.0 million in Q1 2024, primarily due to a funding arrangement related to the D-Fi royalty rights[181]. - General and administrative expenses rose to $18.8 million in Q1 2025, compared to $11.0 million in Q1 2024, mainly due to employee-related costs and operating costs for the Pelthos business[182]. Financial Position - As of March 31, 2025, cash, cash equivalents, and short-term investments totaled $208.9 million, a decrease of $47.3 million from the previous year, primarily due to cash paid for the Castle Creek transaction[187]. - The company had $124.4 million available for borrowing under the Revolving Credit Facility as of March 31, 2025, after utilizing $0.6 million for letters of credit[194]. - The company entered into a $75 million revolving credit facility on October 12, 2023, which was later increased to $125 million on July 8, 2024[192]. - As of March 31, 2025, the fair value of contingent consideration liabilities associated with prior acquisitions was $5.5 million[196]. Net Loss and Cash Flow - The net loss from short-term investments was $12.4 million in Q1 2025, a significant decrease from a net gain of $110.8 million in Q1 2024, driven by unrealized losses on Viking shares[183]. - Cash used in operating activities was $25.4 million in Q1 2025, compared to cash provided of $18.7 million in Q1 2024, primarily due to the Castle Creek transaction[197]. Strategic Initiatives - The merger with Channel Therapeutics is expected to close in the summer of 2025, supported by $50 million in capital from strategic investors[164]. - The combined company will focus on accelerating the commercialization of ZELSUVMI, the first prescription therapy for molluscum infections approved for home use[166]. - A royalty financing agreement was closed with Castle Creek Biosciences for a $75 million investment to support a Phase 3 clinical study[167]. Tax Rate - The effective tax rate for Q1 2025 was 15.4%, down from 24.1% in Q1 2024, influenced by various non-deductible items and foreign operations income[186]. Stock Repurchase Program - The company has a stock repurchase program authorized for up to $50 million, which remains available as of March 31, 2025[190].