Core Insights - Pelthos Therapeutics has acquired the rights to market Xepi (ozenoxacin) cream, a non-fluorinated quinolone antimicrobial, in the US from Biofrontera and Ferrer Internacional, aimed at treating impetigo in both adults and children as young as two months [1][3] - The acquisition was supported by a private financing round that raised $18 million through convertible notes from existing investors, including Ligand Pharmaceuticals and a consortium led by Murchinson [2][5] - Pelthos plans to relaunch Xepi towards the end of 2026, with the product having received FDA approval in 2017 as the first new treatment for impetigo in over a decade [3][4] Financial Details - Pelthos is required to make an upfront payment of $3 million to Biofrontera and $1.2 million to Ferrer, with additional payments contingent on commercial supply levels and future sales [2][3] - The convertible notes will accrue interest at 8.5% annually, with quarterly payments required, maturing on November 6, 2027, unless converted into ordinary shares [4] - Funds raised will also support commercial activities for Zelsuvmi and cover general operational costs, with investors entitled to royalties on US sales of Xepi and milestone payments related to Zelsuvmi's approval in Japan [5] Legal and Advisory Support - Roth Capital Partners advised on the acquisition of Xepi rights, while Latham & Watkins represented Ligand, and Kelley Drye & Warren, along with Morgan, Lewis & Bockius, acted on behalf of Murchinson's investor group [6]

Safe Harbor Statement and Disclaimers • This presentation contains forward-looking statements, as defined in Section 21E of the Securities Exchange Act of 1934, by Ligand and its partners thatinvolve risks and uncertainties and reflect Ligand's and its partners' judgmentasofthedateofthispresentation.All statements,otherthan statementsof historicalfact, couldbedeemedtobeforward-lookingstatements, includingstatements thatexpress Ligand'sorits partners'opinions, expectations,objectives, assumptions,plans orpro ...

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]

Core Insights - Ligand Pharmaceuticals reported a strong second quarter performance with total revenues of $47.6 million, a 15% increase from $41.5 million in the same period of 2024, driven by a 57% growth in royalty revenue [4][6] - The company has raised its full-year 2025 revenue guidance to $200 million - $225 million from a previous range of $180 million - $200 million, and adjusted earnings per diluted share guidance to $6.70 - $7.00 from $6.00 - $6.25 [12][13] Financial Performance - Royalty revenues for Q2 2025 were $36.4 million, up from $23.2 million in Q2 2024, primarily due to royalties from Recordati's Qarziba and Travere Therapeutics' Filspari [4][8] - Captisol sales increased to $8.3 million in Q2 2025 from $7.5 million in Q2 2024, while contract revenue and other income decreased to $2.9 million from $10.9 million due to timing of partner milestone events [4][5] - GAAP net income for Q2 2025 was $4.8 million, or $0.24 per diluted share, compared to a net loss of $51.9 million, or $2.88 per share, in Q2 2024 [6][11] Year-to-Date Results - For the six months ended June 30, 2025, total revenues were $93.0 million, a 28% increase from $72.5 million in the same period of 2024, with royalties reaching $63.9 million, up 51% from $42.3 million [8][11] - Adjusted net income for the six months ended June 30, 2025, was $58.6 million, or $2.94 per diluted share, compared to $47.6 million, or $2.61 per diluted share, for the same period in 2024 [11] Strategic Developments - Ligand announced the completion of its merger with Channel Therapeutics, forming Pelthos Therapeutics, which launched Zelsuvmi, the first FDA-approved at-home treatment for molluscum contagiosum [14][16] - The company earned a $5 million milestone payment from Pelthos following the launch of Zelsuvmi and is entitled to a 13% royalty on worldwide sales [17] - Ligand invested $25 million in Orchestra BioMed to fund late-stage cardiology programs, with potential additional funding of $15 million [18] Portfolio Updates - Merck's acquisition of Verona for approximately $10 billion is expected to accelerate the launch of Ohtuvayre, for which Ligand receives a 3% royalty on sales [19] - Agenus reported positive results for its BOT/BAL combination therapy, which may enhance Ligand's portfolio value through its partnerships [20] - Palvella Therapeutics announced full enrollment in a Phase 3 trial for Qtorin, with top-line results expected in early 2026 [21]

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]