In This Article:
Release Date: February 27, 2025
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 28% increase in royalty revenue and a 40% increase in core adjusted EPS for 2024.
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The company has a strong financial position with over $250 million in cash and investments and no debt.
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Ligand Pharmaceuticals Inc (NASDAQ:LGND) successfully launched two new commercial products, Veronaarma Auteuve and Merck's capaci, both exceeding sales expectations.
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The company has a diversified portfolio of commercial stage royalty assets and a robust pipeline of development stage opportunities.
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Ligand Pharmaceuticals Inc (NASDAQ:LGND) has restructured its business model to focus on profitable and compounding growth, reducing cash operating expenses by over 50%.
Negative Points
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GAAP net loss for 2024 was $4 million, a decline from the previous year's GAAP net income of $53.8 million.
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Total R&D and G&A operating expenses increased by 29% in 2024 due to higher non-cash stock-based compensation expenses.
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The company experienced a decline in GAAP net income due to non-cash items including a financial royalty asset impairment.
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Ligand Pharmaceuticals Inc (NASDAQ:LGND) faces risks and uncertainties related to forward-looking statements and market conditions.
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The company has a significant reliance on the success of its royalty-generating programs and new product launches for future growth.
Q & A Highlights
Q: Can you confirm if the recent investment into Castle Creek is Ligand's first move into cell and gene therapies, and are there plans to pursue more in this sector? A: Yes, this is our first cell and gene therapy investment. We are excited about the program, which is de-risked due to the established target. While we are not actively pursuing cell and gene therapy as a sector, we will be opportunistic where we find good risk-reward opportunities, like the Castle Creek investment. - Paul Haddon, Senior Vice President of Investments and Business Development.
Q: Regarding the potential launch of SQ Innovations' Lasix, how significant is its impact on Captisol sales? A: We expect to sell Captisol to SQ Innovations, but it will be a minor contributor to the overall commercial cycle. The launch of Lasix is anticipated later in 2025, and while it will contribute to Captisol sales, it won't be a major driver. - Thabo Espinoza, Chief Financial Officer.
Q: How does the recent Defi deal signal Ligand's ability to engage in more syndicated deals? A: We syndicate deals when necessary, driven by our discipline around size to maintain a diversified portfolio. Our typical deal size for development stage assets is $20 to $50 million, focusing on significant evidence of safety and efficacy. As our portfolio grows, the size of our deals may increase proportionally. - Todd Davis, CEO.