Ligand(US:LGND)2025-11-07 21:04Revenue Growth - Total revenue and other income for Q3 2025 reached $115.461 million, a 123% increase from $51.812 million in Q3 2024[240] - Revenue from intangible royalty assets increased by 51% to $40.161 million in Q3 2025, compared to $26.552 million in Q3 2024[240] - Captisol revenue grew by 71% to $10.672 million in Q3 2025, up from $6.255 million in Q3 2024[240] - Contract revenue and other income surged by 320% to $58.203 million in Q3 2025, compared to $13.848 million in Q3 2024[240] - Ligand's royalty revenue for YTD 2025 was $110.472 million, a 49% increase from $73.966 million in YTD 2024[240] - Total revenue and other income increased by $63.6 million, or 123%, to $115.5 million in Q3 2025 compared to $51.8 million in Q3 2024[241] - Royalties increased by $14.9 million, or 47%, to $46.6 million in Q3 2025 compared to $31.7 million in Q3 2024, driven by sales of Filspari, Ohtuvayre, and Capvaxive[241] - Total revenue and other income for YTD 2025 increased by $84.1 million, or 68%, to $208.4 million compared to $124.3 million in YTD 2024[243] - Captisol sales increased by $9.5 million, or 41%, to $32.4 million in YTD 2025 compared to $23.0 million in YTD 2024[244] Expenses and Costs - Total operating costs and expenses rose by $11.9 million, or 24%, to $60.5 million in Q3 2025 compared to $48.7 million in Q3 2024[250] - Research and development expenses increased significantly to $21.0 million in Q3 2025 from $5.7 million in Q3 2024, mainly due to a $17.8 million funding arrangement related to AVIM Therapy[252] Non-Operating Income and Investments - The gain from short-term investments was $7.8 million in Q3 2025, compared to $2.4 million in Q3 2024, reflecting a significant increase[261] - Total non-operating income increased by $95.7 million, or 1009%, to $86.2 million in Q3 2025 compared to a loss of $9.5 million in Q3 2024[260] - The gain from change in fair value of equity-method investments increased by $78.9 million to $75.9 million in Q3 2025, primarily due to the Pelthos Transaction[262] - Interest income increased in Q3 2025 compared to Q3 2024, driven by higher average investment balances[263] - Interest expense in Q3 2025 included a 0.75% coupon cash interest expense related to Convertible Senior Notes issued in August 2025[264] - Other non-operating expense, net, decreased by $9.0 million in Q3 2025 compared to Q3 2024, mainly due to fair value changes to derivative assets[265] - The loss from short-term investments was $3.6 million in YTD 2025, compared to a gain of $98.9 million in YTD 2024[266] Financing and Investments - Ligand earned a $5 million milestone payment from Pelthos following the commercial launch of Zelsuvmi, which is the first FDA-approved at-home treatment for molluscum contagiosum[223] - Ligand invested $25 million in Orchestra BioMed's late-stage partnered cardiology programs, with an additional $15 million contingent on certain conditions[227] - The company completed a $460 million offering of 0.75% convertible senior notes due 2030, with net proceeds of approximately $445 million[218][219] - Ligand acquired global royalty rights to AT220 and potential milestone fees for AT292, paying $7 million upfront and committing an additional $4 million[226] - The company is entitled to a low-single-digit royalty on U.S. net sales of Pelthos' Xepi and additional milestone payments on Zelsuvmi sales in Japan[225] - As of September 30, 2025, cash, cash equivalents, and short-term investments totaled $664.5 million, an increase of $408.4 million from the end of the previous year[274] - The company issued $460.0 million of 0.75% convertible senior notes due 2030 in August 2025, with net proceeds of approximately $445.1 million[276] - As of September 30, 2025, the company had $124.4 million in available borrowing under the Revolving Credit Facility[282] - Cash provided by operating activities was $3.4 million in YTD 2025, a decrease from $68.6 million in YTD 2024[285] - The company believes existing funds and cash generated from operations are adequate to fund working capital and strategic initiatives[283] Market Risks - No material changes to market risks were reported for the nine months ended September 30, 2025, compared to the previous disclosures[288]