Ligand Announces Q1 2024 Results

Ligand Pharmaceuticals Inc. (NASDAQ: LGND) released its financial results for the first quarter of 2024, covering the period ending March 31. In addition to sharing detailed financial data, the company provided insights into its operating forecast and highlighted significant business updates.

CEO Todd Davis expressed satisfaction with the company's quarterly performance, emphasizing the strength of their commercial royalty portfolio. He highlighted the proactive measures taken to expand their development-stage royalty assets, which promise future growth. A notable development is a recent royalty financing agreement with Agenus, which will integrate several late-stage oncology assets into Ligand’s portfolio.

Key catalysts anticipated in 2024 include the developments concerning Verona Pharma’s ensifentrine and Merck’s V116, both with PDUFA dates set for June. Additionally, top-line Phase 3 data for Takeda’s soticlestat is expected in the third quarter, along with the commercial launch of ZELSUVMI®, targeting molluscum contagiosum, in late 2024.

First Quarter 2024 Financial Highlights

Ligand reported total revenues and other income of $31.0 million for Q1 2024, a decrease from $44.0 million in the same period last year. The decline was primarily due to a significant milestone payment received in the first quarter of 2023. Royalties for Q1 2024 were $19.1 million, slightly up from $17.6 million in the previous year, driven by increased income from Amgen’s Kyprolis, Jazz Pharmaceuticals' RYLAZE, Merck’s VAXNEUVANCE, and Travere Therapeutics’ FILSPARI. However, these gains were partially offset by a decrease in royalties from CASI’s EVOMELA.

Captisol sales amounted to $9.2 million, down from $10.6 million in Q1 2023, mainly due to the timing of customer orders. Contract revenue and other income also saw a significant drop, from $15.7 million to $2.7 million, largely attributed to the absence of the prior year's $15.3 million milestone payment from Travere Therapeutics.

The cost of Captisol sales decreased to $2.9 million from $3.7 million year-over-year, aligning with the lower sales volume. Amortization of intangible assets was $8.2 million, a slight reduction from $8.5 million in the previous year. Research and development expenses were reduced to $6.0 million from $6.7 million, and general and administrative expenses were marginally up at $11.0 million compared to $10.9 million in Q1 2023.

Ligand’s net income from continuing operations for Q1 2024 was significantly higher at $86.1 million, or $4.75 per diluted share, compared to $43.6 million, or $2.43 per diluted share, in Q1 2023. This increase was primarily due to realized gains from short-term investments in Viking Therapeutics stock, amounting to $60.0 million.

2024 Financial Guidance

Ligand reaffirmed its financial guidance for 2024, projecting royalties between $90 million and $95 million, Captisol sales from $25 million to $27 million, and contract revenue between $15 million and $20 million. Overall, the company anticipates total revenues in the range of $130 million to $142 million. Excluding the $60 million gain from short-term investments, Ligand expects core adjusted earnings per diluted share to be between $4.25 and $4.75.

Recent Business Highlights

On May 7, Ligand announced a $100 million royalty financing deal with Agenus, Inc., which will support several partnered oncology programs. Additionally, Ligand established Pelthos Therapeutics, focusing on the commercialization of innovative therapeutic products. Pelthos’ first product, ZELSUVMI™, is anticipated to launch in late 2024.

Portfolio Developments

Significant portfolio updates include Travere Therapeutics and CSL Vifor obtaining European Commission conditional marketing authorization for FILSPARI, and Viking completing the 52-week biopsies for its Phase 2b VOYAGE study. Marinus Pharmaceuticals provided an update on its Phase 3 RAISE trial for IV ganaxolone, with topline results expected in summer 2024.

In summary, Ligand Pharmaceuticals has reported robust financial results for the first quarter of 2024, with significant developments in its royalty portfolio and strategic business advancements. The company continues to project strong performance for the year ahead, driven by its diversified revenue streams and proactive growth strategies.

How to obtain the latest research advancements in the field of biopharmaceuticals?

In the Synapse database, you can keep abreast of the latest research and development advances in drugs, targets, indications, organizations, etc., anywhere and anytime, on a daily or weekly basis. Click on the image below to embark on a brand new journey of drug discovery!