Ligand Pharmaceuticals (NasdaqGM:LGND) Q4 2025 Earnings call February 26, 2026 08:30 AM ET Company ParticipantsAnnabel Samimy - Managing DirectorJoe Pantginis - Managing DirectorJoohwan Kim - Assistant VP of BiotechnologyLauren Hay - VP of Strategic Planning and Investment AnalyticsMelanie Herman - Executive Director of Investor RelationsTavo Espinoza - CFOTodd Davis - CEOConference Call ParticipantsJohn Vandermosten - Senior AnalystMatt Hewitt - Senior Research AnalystPete Lucas - AnalystTrevor Allred - Ex ...

Ligand Pharmaceuticals (NasdaqGM:LGND) Q4 2025 Earnings call February 26, 2026 08:30 AM ET Company ParticipantsAnnabel Samimy - Managing DirectorJoe Pantginis - Managing DirectorJoohwan Kim - Assistant VP of BiotechnologyLauren Hay - VP of Strategic Planning and Investment AnalyticsMelanie Herman - Executive Director of Investor RelationsTavo Espinoza - CFOTodd Davis - CEOConference Call ParticipantsJohn Vandermosten - Senior AnalystMatt Hewitt - Senior Research AnalystPete Lucas - AnalystTrevor Allred - Ex ...

Ligand Pharmaceuticals (NasdaqGM:LGND) Q4 2025 Earnings call February 26, 2026 08:30 AM ET Speaker7Thank you for standing by, and welcome to Ligand's fourth quarter 2025 earnings call. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question and answer session. If you would like to ask a question during this time, simply press star followed by 1 on your telephone keypad. If you would like to withdraw your question, please press star one again. ...

Fourth Quarter and Full Year 2025 Financial Results F E B R U A R Y 2 6 , 2 0 2 6 | FINANCIAL | 48% Full-year royalty revenue growth over 2024 | | --- | --- | | Strong financial performance | 42% Full-year core adjusted EPS growth to $8.131 per share | | BUSINESS DEVELOPMENT | Scaling the BD function to capture value from our deep investment pipeline | | Highly productive, rigorous process | ~$1B Deployable capital (including credit facility) | | | Positions us for continued growth and expansion across our ...

Robust financial performance driven by full year 2025 royalty revenue growth of 48% Reiterating 2026 financial guidance of $245-$285 million in revenues and adjusted earnings per diluted share1 of $8.00-$9.00 Conference call and webcast at 8:30 a.m. Eastern time today JUPITER, Fla., Feb. 26, 2026 (GLOBE NEWSWIRE) -- Ligand Pharmaceuticals Incorporated (Nasdaq: LGND) today reported financial results for the three and twelve months ended December 31, 2025, and provided an operating forecast and business updat ...

Merck creates separate oncology arm ahead of Keytruda patent loss - Invezz# Merck creates separate oncology arm ahead of Keytruda patent loss[Health & pharma]Author[Vatsala Gaur]Feb 23, 2026, 14:11 PM- Company banks on pipeline growth and recent acquisitions to offset pressure.- Leadership changes aim to prepare for Keytruda's 2028 patent expiry.- Merck splits its human-health business into oncology and specialty divisions.Merck said on Monday that it will split its human-health operations into two separate ...

Core Insights - Merck (MRK) reported better-than-expected fourth-quarter 2025 results, surpassing estimates for both earnings and sales, which has boosted investor optimism regarding the company's long-term growth outlook [1] Group 1: Financial Performance - In 2025, Merck's new products, including Capvaxive and Winrevair, generated sales of $759 million and $1.4 billion, respectively, indicating strong market performance [4] - Another product, Welireg, achieved sales of $716 million in 2025, contributing to the overall positive financial results [5] - Merck's shares have increased by 44.1% over the past six months, outperforming the industry average rise of 28.4% [12] Group 2: Pipeline and Growth Opportunities - Merck is facing a significant patent cliff with its PD-1 therapy Keytruda losing exclusivity in 2028, but the company anticipates over $70 billion in potential non-risk-adjusted commercial opportunities from its pipeline by the mid-2030s [2][10] - The company's phase III pipeline has nearly tripled since 2021, bolstered by mergers and acquisitions, which supports long-term growth [6][10] - Merck's recent acquisition of Cidara Therapeutics added a promising antiviral candidate, MK-1406, to its pipeline, which is currently in late-stage studies [7] Group 3: Competitive Landscape - Keytruda faces competition from other PD-L1 inhibitors such as Bristol Myers' Opdivo, Roche's Tecentriq, and AstraZeneca's Imfinzi, with Opdivo generating $10.05 billion in sales in 2025 [9][11] Group 4: Valuation and Estimates - Merck's shares are currently trading at a price/earnings ratio of 18.77, which is lower than the industry average of 18.83 but higher than its 5-year mean of 12.51 [14] - The Zacks Consensus Estimate for 2026 earnings per share has decreased from $8.11 to $5.96, while the estimate for 2027 has slightly declined from $10.02 to $9.98 [15]

Core Insights - Merck's stock has increased by 7.4% over the past month, driven by better-than-expected fourth-quarter results and a positive outlook for future growth [1][10] - The company reported fourth-quarter earnings of $2.04 per share, a 19% year-over-year increase, and sales of $16.40 billion, up 5% [1] - Merck's 2026 revenue outlook is projected between $65.5 billion and $67.0 billion, reflecting a year-over-year growth of 1% to 3%, but adjusted EPS is expected to decline significantly due to higher business development charges [2] Financial Performance - In Q4, Merck's earnings and sales exceeded estimates, contributing to the stock's rise [1][10] - The company anticipates a decline in adjusted EPS from $8.98 in 2025 to between $5.00 and $5.15 in 2026 [2] - Merck's stock has outperformed the industry, rising 43.6% in the past year compared to the industry's 19.1% increase [24][25] Product Portfolio and Pipeline - Keytruda remains a significant driver for Merck, accounting for approximately 55% of pharmaceutical sales, with sales of $31.7 billion in 2025, a 7% increase year-over-year [5][6] - The company expects Keytruda to achieve peak sales of $35 billion by 2028, despite the impending loss of patent exclusivity [8] - Merck's pipeline has expanded significantly, with new products like Capvaxive and Winrevair showing potential for substantial revenue generation [11][12] Strategic Initiatives - Merck is pursuing innovative strategies to enhance Keytruda's long-term growth, including new immuno-oncology combinations and partnerships for personalized cancer vaccines [7] - The company has been active in acquisitions to bolster its pipeline, including the purchase of Verona and Cidara Therapeutics, which added promising candidates to its portfolio [14][15] - Merck's Animal Health business is projected to contribute significantly to revenue growth, with expectations of doubling sales by the mid-2030s [32] Challenges and Market Dynamics - Sales of Gardasil, Merck's HPV vaccine, have declined due to weak demand in China, with a 39% drop in 2025 [16] - The company faces increasing competition for Keytruda from new dual PD-1/VEGF inhibitors, which may impact its market position [19][20] - Merck anticipates a revenue hit of approximately $2.5 billion in 2026 due to generic competition affecting several of its products [22][23]

Group 1: US Pharmaceutical Earnings Season - Eli Lilly reported Q4 revenue of $19.3 billion, a 43% year-over-year increase, with non-GAAP EPS of $7.54, up 42%. The weight loss drug Zepbound has surpassed Novo Nordisk's Wegovy in prescriptions, and the 2026 revenue guidance is set at $80-83 billion, exceeding market expectations with a projected growth of 27% [1][10]. - Novo Nordisk's sales for semaglutide (Ozempic/Wegovy) are expected to reach $34.608 billion in 2025, accounting for 73.9% of total revenue. In China, Ozempic's sales are approximately ¥5.932 billion, while Wegovy's are about ¥874 million. The oral version of Wegovy is set to launch in the US on January 5, 2026, with around 50,000 prescriptions within the first month [2][10]. - Merck's Keytruda achieved annual sales of $31.68 billion, a 7% increase, nearing 50% of total revenue. The new pulmonary hypertension drug Winrevair generated $1.443 billion in sales, more than tripling from 2024 [4][10]. - Johnson & Johnson's Q4 revenue was $24.56 billion, exceeding expectations, with a 10% increase in the innovative pharmaceuticals segment. The 2026 revenue guidance is set at $99.5-100.5 billion, also above expectations [6][10]. - Pfizer's Q4 revenue was $17.6 billion, with a 9% increase excluding COVID products. The 2026 revenue guidance is conservative at $59.5-62.5 billion, reflecting declines in COVID product sales and patent expirations [7][10]. - Sanofi's Q4 earnings exceeded expectations, with record sales of Dupixent reaching €4.246 billion, a 32.2% year-over-year increase [8][10]. Group 2: Industry Trends and Insights - The current earnings season indicates that in the innovative-driven pharmaceutical industry, there are no eternal leaders, only continuous evolution [9][10]. - The competition in the GLP-1 drug market has intensified, with Eli Lilly's tirzepatide overtaking Novo Nordisk's semaglutide, marking a new phase in the industry [10]. - The slowdown in sales growth for Merck's Keytruda, despite record sales, highlights the need for new products and acquisitions to navigate the post-Keytruda era [10]. - The focus of competition is shifting from injectable to oral formulations, as seen with Novo Nordisk's oral Wegovy and Eli Lilly's multi-target drug Retatrutide, to build product moats [10]. - Price competition and pipeline iteration will be key observation points, with the impact of US drug pricing legislation becoming evident and the onset of a "price war" among GLP-1 drugs [10]. Group 3: Hong Kong Pharmaceutical Sector Opportunities - The Hong Kong pharmaceutical sector has seen significant changes, with innovation drugs remaining the strongest growth engine, shifting from "signing" to "realization" of value [11][12]. - The medical device sector is experiencing a "double recovery" opportunity as the impact of centralized procurement policies diminishes, leading to performance and valuation recovery [13][14]. - The Chinese traditional medicine sector is active, driven by favorable policies, but there is a "temperature difference" between policy drivers and fundamental performance, necessitating careful selection of stocks [17][19]. Group 4: ETF Configuration and Strategy - Valuations in the Hong Kong medical sector remain attractive, with the latest PE ratio at 30.77x, still low compared to the past five years [18][19]. - Macro liquidity conditions are favorable, with expectations of RMB appreciation and stable HKD attracting funds to Hong Kong stocks [18][19]. - The upcoming National People's Congress in March will clarify annual growth targets and industry policy priorities, serving as a critical point for risk appetite re-evaluation [18][19].

Core Insights - Merck (MRK) reported better-than-expected fourth-quarter results but provided a 2026 earnings and sales outlook that fell short of consensus expectations [1][11] - The company anticipates revenues in the range of $65.5-$67.0 billion for 2026, lower than the Zacks Consensus Estimate of $67.36 billion [1][11] - Adjusted earnings per share (EPS) are projected to be between $5.00 and $5.15, also below the consensus estimate of $6.20, which includes a one-time charge of $9 billion related to the acquisition of Cidara Therapeutics [2][11] Revenue Drivers - Keytruda, Merck's leading oncology product, generated sales of $31.7 billion in 2025, reflecting a 7% year-over-year increase, with expectations for continued growth in 2026 [4][11] - The Animal Health segment reported revenues of $6.4 billion, up 9% year-over-year, driven by increased demand for livestock products and new launches in Companion Animal [5][11] - New products like Winrevair and Capvaxive are expected to be significant revenue contributors, with Winrevair achieving $1.4 billion in sales in 2025 and Capvaxive generating $759 million [6][11] Competitive Landscape - Merck faces strong competition in the pulmonary arterial hypertension (PAH) market, particularly from United Therapeutics and Johnson & Johnson [9][12] - United Therapeutics reported significant sales from its PAH drugs, with Tyvaso alone generating $1.41 billion [10] - Ohtuvayre, a new therapy for chronic obstructive pulmonary disease (COPD), is also expected to encounter competition from established therapies like GSK's Trelegy Ellipta [12] Market Performance and Valuation - Over the past six months, Merck's shares have increased by 49%, outperforming the industry average of 35.3% [13] - The company's price/earnings ratio stands at 18.16, which is lower than the industry average of 18.85 but higher than its 5-year mean of 12.48 [14] - The Zacks Consensus Estimate for 2026 EPS has decreased from $8.50 to $6.16, while the estimate for 2027 has slightly increased from $10.04 to $10.05 [15]