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Ligand Pharmaceuticals Incorporated (LGND - Free Report) reported adjusted diluted earnings of $1.05 per share in fourth-quarter 2023 from continuing operations, beating the Zacks Consensus Estimate of 58 cents. The company reported adjusted earnings of 75 cents in the year-ago quarter.
Total revenues of $28.1 million were down 44% from the year-ago quarter’s levels. The downside was due to the absence of COVID-19-related Captisol sales during the quarter. Revenues beat the Zacks Consensus Estimate of $24.5 million.
Shares of Ligand Pharmaceuticals rose 19.9% on Feb 27 in response to the better-than-expected financial performance.
Year to date, the stock has increased 24.9% compared with the industry’s 1.0% growth.
Image Source: Zacks Investment Research
Quarter in Detail
Royalty revenues were up 2% year over year to $22.5 million in the fourth quarter. The upside was driven by increased royalties from Amgen’s Kyprolis, Jazz Pharmaceuticals’ Rylaze and Merck’s (MRK - Free Report) Vaxneuvance.
Total Captisol sales were down 85% year over year to $3.9 million in the reported quarter. Ligand reports Captisol sales separately for core assets and COVID-related sales. Core Captisol sales rose 17% to $3.9 million due to the favorable timing of customer orders. During the quarter, the company did not record any Captisol sales related to COVID-19.
Contract revenues were up 16% year over year to $1.7 million in the fourth quarter, with the rise owing to the timing of partner milestone events.
Research and development (R&D) expenses fell 40% to $5.5 million due to lower employee-related expenses and lab supply expenses. General and administrative (G&A) expenses were down 49% to $16.0 million, owing to lower employee-related expenses incurred during the quarter.
Cash, cash equivalents and short-term investments amounted to $170.3 million as of Dec 31, 2023, compared with $190.5 million as of Sep 30, 2023.
Full-Year Results
Ligand reported revenues of $131.3 million for the full year, down 33% from the year-ago period.
The company’s adjusted diluted earnings from continued operations were $4.06 per share, up 66% year over year.
2024 Guidance
Ligand reiterated its guidance for 2024. Total revenues are expected to be in the range of $130-$142 million.
Royalty revenues are expected to be in the $90-$95 million range, while contract revenues are expected to be in the range of $15 million and $20 million. The company expects Captisol sales to be between $25 million and $27 million.
The company also maintained its expectation for adjusted diluted EPS to $4.25-$4.75.
This guidance excludes Captisol sales related to COVID-19 and its impact on gross profit. Management will update investors as and when orders for COVID-19-related products are received.
FDA Nod to Zelsuvmi
Last month, the FDA approved the company’s recently acquired berdazimer gel as the first at-home treatment option for molluscum contagiosum infection. The gel, to be marketed under the trade name Zelsuvmi, is expected to be launched commercially in second-half 2024.
Key Partnered Pipeline Progress
Last December, Ligand’s partner Merck announced that the FDA accepted the biologics license application (BLA), seeking approval for the use of V116, its 21-valent pneumococcal conjugate vaccine (PCV) candidate, in adults. The filing has been granted priority review and a final decision is expected by Jun 17. The BLA is based on data from two late-stage studies on V116 in vaccine-naïve and previously-vaccinated individuals. Both studies, which Merck conducted, achieved their key immunogenicity and safety endpoints.
Last November, Ligand’s partner Aldeyra Therapeutics (ALDX - Free Report) announced that the FDA issued a complete response letter (CRL) to its NDA seeking approval for reproxalap as a potential treatment for dry eye disease (DED). Per the CRL, an additional study is required to be conducted to demonstrate a positive effect on the treatment of ocular symptoms in DED. Aldeyra is currently conducting this study and expects to report data in the coming months. Based on this data, Aldeyra plans to resubmit the NDA by first-half 2024. The review period for the potential NDA resubmission is expected to be six months.
Last August, Ligand’s partner Verona Pharma (VRNA - Free Report) announced that the FDA had accepted its new drug application (NDA), seeking approval of ensifentrine for the maintenance treatment of patients with chronic obstructive pulmonary disease (COPD). A final decision from the agency on Verona’s NDA is expected before June 2024-end. Per Verona, the FDA does not plan to hold an advisory committee meeting to discuss the NDA.
Image: Bigstock
Ligand (LGND) Q4 Earnings Surpass Estimates, Stock Surges
Ligand Pharmaceuticals Incorporated (LGND - Free Report) reported adjusted diluted earnings of $1.05 per share in fourth-quarter 2023 from continuing operations, beating the Zacks Consensus Estimate of 58 cents. The company reported adjusted earnings of 75 cents in the year-ago quarter.
Total revenues of $28.1 million were down 44% from the year-ago quarter’s levels. The downside was due to the absence of COVID-19-related Captisol sales during the quarter. Revenues beat the Zacks Consensus Estimate of $24.5 million.
Shares of Ligand Pharmaceuticals rose 19.9% on Feb 27 in response to the better-than-expected financial performance.
Year to date, the stock has increased 24.9% compared with the industry’s 1.0% growth.
Image Source: Zacks Investment Research
Quarter in Detail
Royalty revenues were up 2% year over year to $22.5 million in the fourth quarter. The upside was driven by increased royalties from Amgen’s Kyprolis, Jazz Pharmaceuticals’ Rylaze and Merck’s (MRK - Free Report) Vaxneuvance.
Total Captisol sales were down 85% year over year to $3.9 million in the reported quarter. Ligand reports Captisol sales separately for core assets and COVID-related sales. Core Captisol sales rose 17% to $3.9 million due to the favorable timing of customer orders. During the quarter, the company did not record any Captisol sales related to COVID-19.
Contract revenues were up 16% year over year to $1.7 million in the fourth quarter, with the rise owing to the timing of partner milestone events.
Research and development (R&D) expenses fell 40% to $5.5 million due to lower employee-related expenses and lab supply expenses. General and administrative (G&A) expenses were down 49% to $16.0 million, owing to lower employee-related expenses incurred during the quarter.
Cash, cash equivalents and short-term investments amounted to $170.3 million as of Dec 31, 2023, compared with $190.5 million as of Sep 30, 2023.
Full-Year Results
Ligand reported revenues of $131.3 million for the full year, down 33% from the year-ago period.
The company’s adjusted diluted earnings from continued operations were $4.06 per share, up 66% year over year.
2024 Guidance
Ligand reiterated its guidance for 2024. Total revenues are expected to be in the range of $130-$142 million.
Royalty revenues are expected to be in the $90-$95 million range, while contract revenues are expected to be in the range of $15 million and $20 million. The company expects Captisol sales to be between $25 million and $27 million.
The company also maintained its expectation for adjusted diluted EPS to $4.25-$4.75.
This guidance excludes Captisol sales related to COVID-19 and its impact on gross profit. Management will update investors as and when orders for COVID-19-related products are received.
FDA Nod to Zelsuvmi
Last month, the FDA approved the company’s recently acquired berdazimer gel as the first at-home treatment option for molluscum contagiosum infection. The gel, to be marketed under the trade name Zelsuvmi, is expected to be launched commercially in second-half 2024.
Key Partnered Pipeline Progress
Last December, Ligand’s partner Merck announced that the FDA accepted the biologics license application (BLA), seeking approval for the use of V116, its 21-valent pneumococcal conjugate vaccine (PCV) candidate, in adults. The filing has been granted priority review and a final decision is expected by Jun 17. The BLA is based on data from two late-stage studies on V116 in vaccine-naïve and previously-vaccinated individuals. Both studies, which Merck conducted, achieved their key immunogenicity and safety endpoints.
Last November, Ligand’s partner Aldeyra Therapeutics (ALDX - Free Report) announced that the FDA issued a complete response letter (CRL) to its NDA seeking approval for reproxalap as a potential treatment for dry eye disease (DED). Per the CRL, an additional study is required to be conducted to demonstrate a positive effect on the treatment of ocular symptoms in DED. Aldeyra is currently conducting this study and expects to report data in the coming months. Based on this data, Aldeyra plans to resubmit the NDA by first-half 2024. The review period for the potential NDA resubmission is expected to be six months.
Last August, Ligand’s partner Verona Pharma (VRNA - Free Report) announced that the FDA had accepted its new drug application (NDA), seeking approval of ensifentrine for the maintenance treatment of patients with chronic obstructive pulmonary disease (COPD). A final decision from the agency on Verona’s NDA is expected before June 2024-end. Per Verona, the FDA does not plan to hold an advisory committee meeting to discuss the NDA.
Ligand Pharmaceuticals Incorporated Price
Ligand Pharmaceuticals Incorporated price | Ligand Pharmaceuticals Incorporated Quote
Zacks Rank
Ligand Pharmaceuticals sports a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.