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]