In This Article:
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Total Revenue Growth: 58% increase to $41.5 million in Q2 2024.
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Royalty Revenue: Increased by 11% to $23.2 million in Q2 2024.
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Core Adjusted EPS: Grew 121% to $1.40 in Q2 2024.
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Cash and Investments: Just under $230 million as of June 30, 2024.
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2024 Revenue Guidance: Expected range of $140 million to $157 million.
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2024 Adjusted EPS Guidance: Expected range of $5 to $5.50 per share.
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Filspari Sales: $27.1 million in Q2 2024, with a 9% royalty rate.
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Captisol Sales: $7.5 million in Q2 2024.
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Contract Revenue: $10.9 million in Q2 2024 from milestone payments.
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GAAP Net Loss: $51.9 million or $2.88 per share in Q2 2024.
Release Date: August 06, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Ligand Pharmaceuticals Inc (NASDAQ:LGND) reported a 58% increase in total revenue for the second quarter, driven by milestone payments from recent product approvals.
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The company's royalty revenue grew by 11% over the same period in 2023, indicating a strong growth trajectory.
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Ligand Pharmaceuticals Inc (NASDAQ:LGND) expanded its royalty portfolio to include 12 major commercial stage products, doubling the number from the beginning of 2023.
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The acquisition of Apeiron Biologics is expected to be highly accretive, adding $1 per share on an annualized basis.
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The company has a strong cash position with $230 million in cash and investments, and an additional $125 million available under a credit facility with Citibank.
Negative Points
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Ligand Pharmaceuticals Inc (NASDAQ:LGND) reported a GAAP net loss of $51.9 million for the second quarter, primarily due to reductions in the carrying value of certain investments.
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The departure of President and COO Matt Korenberg may lead to transitional challenges within the company's leadership team.
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The company incurred a $26.5 million financial royalty impairment related to Takeda's Soticlestat due to disappointing Phase 3 results.
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Increased G&A expenses by $6.3 million, driven by investments in the Pelthos business and expansion of the business development team.
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The company's investment in Primrose Bio saw a decrease in value, contributing to a $32 million other expense in the quarter.
Q & A Highlights
Q: Can you provide an update on the Pelthos opportunity and the partnership discussions? Will you recover the upfront costs once the asset is spun off? A: We have several ongoing discussions, including financing options similar to Viking Therapeutics and strategic licensing or merger opportunities. We are confident in successfully spinning out the asset and believe this approach will optimize its commercialization.