In This Article:
NASDAQ:LGND
READ THE FULL LGND RESEARCH REPORT
Ligand Pharmaceuticals, Inc. (NASDAQ:LGND) reported first quarter 2025 financial and operational results posting revenues of $45.3 million, a 46% rise over prior year levels. Drivers for the result were a seven-fold increase in financial royalty revenue, a 46% increase in Captisol revenue and a 64% increase in Contract Revenue. Some of the individual portfolio constituents contributing to the year over year increase were Filspari, up almost 200%, a dramatic rise in Ohtuvayre and better than expected sales for Capvaxive.
Adjusted core earnings per share were $1.33, up from 1Q:24’s $1.20. Ligand maintains 2025 guidance of low teens revenue growth and earnings of $6.00 to $6.25 per share. Since the previous financial update, Ligand announced that it has identified a suitor for Pelthos Therapeutics, which will begin commercialization of Zelsuvmi and complete the transaction with Channel Therapeutics in 3Q:25.
1Q:25 Financial and Operational Results
Ligand reported first quarter 2025 results in a press release and Form 10-Q filing with the SEC on May 8th. A conference call was held with an accompanying slide deck to discuss results with investors following the release. For the quarter ending March 31st, 2025 revenues of $45.3 million were recognized. GAAP net loss per share for 2024 totaled ($2.21) and core adjusted EPS was $1.33. For first quarter 2025 versus the same prior year period:
-
Revenues of $45.3 million rose 46% from $31.0 million due to strong growth in all reportable segments. Royalty revenues rose by 44% driven by contributions from the acquisition of Qarziba and an increase in Filspari sales. Captisol sales rose 46%, with the increase attributed to timing of customer orders. Contract revenue was up 64% primarily due to the receipt of a regulatory milestone tied to Xi'an Xintong's Xinshumu (pradefovir mesylate tablets);
-
Cost of revenue, which is related to Captisol, totaled $4.8 million, an increase from $2.9 million. This represents a gross margin on Captisol sales of 64.0%, down from 68.7%;
-
Amortization of intangibles increased slightly to $8.3 million vs. $8.2 million;
-
Research and development expense totaled $50.1 million vs. $6.0 million rising more than seven-fold due to the recognition of research and development funding for the investment to acquire D-Fi royalty rights in conjunction with the Castle Creek investment;
-
General & Administrative expenses were $18.8 million, up 72% from $11.0 million due to due to employee-related and operating costs associated with incubating the Pelthos business;
-
Other adjustments include a ($0.4) million adjustment to partner program derivatives, a $12.4 million loss from short term investments, $0.9 million in net interest income, and ($2.5) million of other non-operating expense. Total other items of about ($14.0) million compare to $110.5 million with prior year results impacted by a recognition of a gain due to appreciation in Viking Therapeutics stock;
-
Income tax benefit of $7.7 million compared to income tax expense of $27.3 million reflecting the GAAP pre-tax loss recognized in 1Q:25;
-
Net loss was ($42.5) million vs. $86.1 million or ($2.21) and $4.75 per share, respectively. Adjustments to 1Q:25 GAAP earnings added back $3.54 per share to generate core earnings of $1.33 per share.[1]