Ligand(US:LGND)2024-05-07 20:03Revenue Performance - Total revenues for Q1 2024 were $31.0 million, down from $44.0 million in Q1 2023, representing a decrease of 29.5%[4] - Total revenues and other income for Q1 2024 were $30,978,000, a decrease of 29.5% compared to $43,979,000 in Q1 2023[26] Income and Earnings - Net income from continuing operations for Q1 2024 was $86.1 million, or $4.75 per diluted share, compared to $43.6 million, or $2.43 per diluted share in Q1 2023, marking a significant increase of 97.5%[6] - Net income from continuing operations for Q1 2024 was $86,139,000, representing a 97.1% increase from $43,614,000 in Q1 2023[26] - Basic net income per share from continuing operations increased to $4.86 in Q1 2024, up from $2.56 in Q1 2023[26] - Adjusted net income for Q1 2024 was $69.7 million, or $3.84 per diluted share, compared to $39.9 million, or $2.28 per diluted share in Q1 2023[6] - Adjusted net income from continuing operations for Q1 2024 was $69,665,000, compared to $39,904,000 in Q1 2023, reflecting a 74.8% increase[30] Cash and Assets - As of March 31, 2024, Ligand had cash, cash equivalents, and short-term investments totaling $310.6 million[7] - Cash, cash equivalents, and short-term investments rose to $310,593,000 as of March 31, 2024, compared to $170,309,000 at the end of 2023, reflecting an increase of 82.4%[28] - Total assets increased to $913,869,000 as of March 31, 2024, up from $787,216,000 at the end of 2023, marking an increase of 16.0%[28] - Total stockholders' equity reached $806,521,000 as of March 31, 2024, compared to $700,913,000 at the end of 2023, an increase of 15.1%[28] Royalties and Future Expectations - Royalties increased to $19.1 million in Q1 2024 from $17.6 million in Q1 2023, a growth of 8.5%, driven by products like Amgen's Kyprolis and Jazz Pharmaceuticals' RYLAZE[4] - Ligand expects 2024 royalties to range from $90 million to $95 million, with total revenue forecasted between $130 million and $142 million[8] - The company anticipates continued growth in its portfolio with life sciences royalty opportunities and expects to provide guidance for full-year 2024 financial results[20] Operational Developments - A $100 million royalty financing agreement was established with Agenus, providing Ligand with 18.75% of royalties on six oncology programs[9] - The commercial launch of ZELSUVMI®, a treatment for molluscum contagiosum, is anticipated in late 2024, following its FDA approval[10] Other Financial Information - Operating costs and expenses decreased to $27,990,000 in Q1 2024 from $29,774,000 in Q1 2023, a reduction of 6.0%[26] - The company reported a gain from short-term investments of $110,772,000 in Q1 2024, significantly higher than $39,533,000 in Q1 2023[26] Regulatory Updates - The FDA granted Priority Review for Travere Therapeutics' sNDA to convert FILSPARI from accelerated approval to full approval, with a PDUFA target action date of September 5, 2024[12] Accounting Adjustments - Amounts represent non-cash debt related costs calculated in accordance with authoritative accounting guidance for revolving credit facility and convertible debt instruments[1] - Adjustments bridge income from financial royalty assets to total contractual payments recorded in the period[2] - Changes in fair value of contingent consideration related to CyDex and Metabasis transactions are noted[3] - Excess tax benefits from share-based compensation recorded as a discrete item within the provision for income taxes due to ASU 2016-09 adoption[4] - Q1 2023 numbers adjusted to exclude after-tax impact from realized gain of Viking common stock[5] - Excluding impact from ASU 2020-06 adoption as the Company intended to settle the principal balance in cash[6]