Ligand(US:LGND)2025-11-06 12:08Revenue Growth - Third quarter 2025 total revenues and other income were $115.5 million, a 123% increase from $51.8 million in Q3 2024, driven by higher royalty revenue and gains from business transactions [3]. - Royalty revenue for Q3 2025 was $46.6 million, up 47% from $31.7 million in Q3 2024, primarily due to royalties from Travere Therapeutics' Filspari, Merck/Verona Pharma's Ohtuvayre, and Recordati's Qarziba [3]. - Year-to-date total revenues for the nine months ended September 30, 2025, were $208.4 million, a 68% increase from $124.3 million in the same period in 2024 [6]. - Ligand reported total revenues and other income of $115,461,000 for the three months ended September 30, 2025, compared to $51,812,000 for the same period in 2024, representing a 123% increase [38]. - Core revenues and other income reached $86,892,000 for the three months ended September 30, 2025, compared to $51,812,000 in the prior year, reflecting a 67.6% increase [42]. Earnings and Guidance - Ligand raised its 2025 full year revenue guidance to $225 million - $235 million, up from the previous guidance of $200 million - $225 million [1]. - Adjusted earnings per diluted share guidance for 2025 increased to $7.40 - $7.65, compared to the previous range of $6.70 - $7.00 [1]. - GAAP net income for Q3 2025 was $117.3 million, or $5.68 per diluted share, compared to a net loss of $7.2 million, or $0.39 per share, in Q3 2024 [5]. - Net income for the three months ended September 30, 2025, was $117,273,000, compared to a net loss of $7,172,000 in the same quarter of 2024, indicating a significant turnaround [42]. - Diluted net income per share for the three months ended September 30, 2025, was $5.68, a significant improvement from a loss of $0.39 per share in the same quarter of 2024 [42]. Research and Development - Research and development expenses for Q3 2025 were $21.0 million, significantly up from $5.7 million in Q3 2024, due to one-time charges related to royalty financing agreements [3]. - Ligand's research and development expenses for the nine months ended September 30, 2025, were $77,671,000, significantly higher than $17,000,000 for the same period in 2024 [38]. - The company incurred $18,659,000 in R&D funding expenses for the three months ended September 30, 2025, compared to $725,000 in the same period of 2024 [42]. Acquisitions and Investments - Ligand completed a $460 million convertible senior notes offering due 2030, with net proceeds of approximately $445 million after fees and expenses [11][12]. - Ligand invested $25 million in Orchestra BioMed's late-stage cardiology programs, with an additional $15 million contingent on certain conditions [14]. - Ligand purchased global royalty rights to AT220 and related fees for $7 million, with an additional $4 million contingent on commercial milestones [13]. - The company completed the acquisition of Verona Pharma, adding Ohtuvayre, a treatment for chronic obstructive pulmonary disease, to its portfolio [24]. Financial Position - Total assets increased to $1,476,772,000 as of September 30, 2025, up from $941,774,000 on December 31, 2024, representing a growth of 57% [40]. - Total current assets rose to $753,920,000 as of September 30, 2025, compared to $331,559,000 at the end of 2024, marking a 126.5% increase [40]. - Total liabilities increased to $526,601,000 as of September 30, 2025, compared to $111,335,000 at the end of 2024, representing a 373.5% rise [40]. - The long-term portion of financial royalty assets increased to $206,332,000 as of September 30, 2025, up from $185,024,000 at the end of 2024, showing a growth of 11.5% [40]. Other Income - Ligand's income from the Pelthos transaction, specifically the Zelsuvmi out-license, was $24,503,000 for the three months ended September 30, 2025 [38]. - The company reported a total of $53.1 million in income related to the divestiture of its Pelthos subsidiary, which included $24.5 million from the out-license of Zelsuvmi and a $28.6 million gain on the sale of the business [46].