Core Insights - Ligand Pharmaceuticals reported a significant increase in third quarter revenue, driven by a 47% growth in portfolio royalty revenue, leading to an increase in full-year revenue guidance to $225 million - $235 million from a previous range of $200 million - $225 million [1][11] Financial Performance - Total revenues for Q3 2025 were $115.5 million, a 123% increase from $51.8 million in Q3 2024, primarily due to higher royalty revenue and gains from the Pelthos business sale [3] - Royalty revenue for Q3 2025 reached $46.6 million, up 47% from $31.7 million in Q3 2024, attributed to royalties from Travere Therapeutics' Filspari, Merck/Verona Pharma's Ohtuvayre, and Recordati's Qarziba [3] - Adjusted net income for Q3 2025 was $63.8 million, or $3.09 per diluted share, compared to $35.3 million, or $1.84 per diluted share, in Q3 2024 [5] Year-to-Date Financial Results - For the nine months ended September 30, 2025, total revenues were $208.4 million, a 68% increase from $124.3 million in the same period of 2024, driven by higher royalty revenue and gains from the Pelthos business sale [7] - Year-to-date royalty revenue was $110.5 million, a 49% increase from $74.0 million in 2024 [8] - Core adjusted net income for the nine months ended September 30, 2025, was $122.4 million, or $6.07 per diluted share, compared to $83.0 million, or $4.46 per diluted share, in 2024 [10] Cost Structure - Research and development expenses for Q3 2025 were $21.0 million, significantly higher than $5.7 million in Q3 2024, primarily due to a one-time charge related to a royalty financing agreement [4] - General and administrative expenses increased to $28.4 million in Q3 2025 from $24.5 million in Q3 2024, mainly due to transaction costs associated with the Pelthos transaction [4] Strategic Developments - Ligand completed a $460 million convertible debt financing in August 2025, providing additional resources for strategic investments [2][13] - The company made significant investments in new royalty rights and partnered programs, including a $25 million investment in Orchestra BioMed's cardiology programs [15][16] Portfolio Updates - Ligand's royalty portfolio includes key products like Filspari, which has been highlighted in updated clinical practice guidelines for treating IgA nephropathy [19] - The company is also involved in the development of Qtorin rapamycin for various indications, with ongoing clinical trials expected to yield results in the near future [21][22]

Financial Performance & Guidance - Q2 2025 royalty revenue increased by 57% compared to Q2 2024, driven by Ohtuvayre, Filspari, Qarziba, Capvaxive and Vaxneuvance[3, 26] - Q2 2025 adjusted EPS grew 14% to $1.60[3, 24, 25] - The company increased revenue guidance for 2025 from $180 million-$200 million to $200 million-$225 million, a 13% increase[3, 24, 33] - Adjusted EPS guidance for 2025 was raised from $6.00-$6.25 to $6.70-$7.00 per diluted share, a 12% increase[3, 24, 33] Portfolio & Investments - Ligand has approximately 50% equity interest in Pelthos and is entitled to a 13% royalty on Zelsuvmi sales[3, 6] - The company committed $35 million in long-term capital for royalty interest in Orchestra BioMed's AVIM therapy and Virtue SAB and invested $5 million in equity private placement[3, 20, 21] - Merck is set to acquire Verona for $10 billion, which will impact Ligand's 3% royalty on Ohtuvayre[3, 4, 8] Strategic Outlook - The company anticipates a long-term royalty revenue CAGR of greater than 22%[3, 27] - Ohtuvayre peak-sales consensus updated from $1.2 billion in December 2024 to $3.4 billion in August 2025[30] - Ligand has ~$450 million in deployable capital as of June 30, 2025[3, 24]

Financial Performance and Guidance - Ligand's total revenue guidance for 2024 is $160-$165 million[21], with royalty revenue expected to be $105-108 million[22], representing a 27% increase from 2023[30] - The company anticipates adjusted EPS of $550-$570 in 2024[22], a 38% growth[30] - For 2025, Ligand forecasts total revenue of $180-$200 million[34], with royalty revenue growing by 30% over 2024[35] - Ligand projects royalty receipts to grow at a CAGR of 22% from 2024 to 2029[24, 40] Investment and Portfolio Activity - Ligand deployed $192 million across 8 different investments in 2024[21] - The company's Q4 pipeline includes over 30 actionable opportunities, representing over $1 billion of potential investments[61] - Ligand acquired Apeiron Biologics in July 2024 for approximately $100 million, gaining rights to Qarziba royalties[70] Key Products and Platforms - Ligand's Captisol platform is used in 16 approved products[99, 104] - Verona's Ohtuvayre, in which Ligand has royalty rights, achieved over $11 million in sales in the first 4 months following approval[75] - Travere's Filspari generated $356 million in Q3 2024, with 31% growth from Q2 2024[80] - Merck's Capvaxive, another royalty asset for Ligand, protects against strains that cause 84% of invasive pneumococcal disease[88]