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Ligand Pharmaceuticals Incorporated (LGND - Free Report) reported core adjusted diluted net income per share of $1.20 in first-quarter 2024 from continuing operations. Although earnings declined 10% year over, the figure still beat the Zacks Consensus Estimate of $1.13.
Total revenues of $31.0 million were down 30% from the year-ago quarter’s levels. The reported figure missed the Zacks Consensus Estimate of $32.5 million.
The downside in earnings and sales was due to the receipt of a milestone payment from Travere Therapeutics (TVTX - Free Report) in the year-ago period.
Quarter in Detail
Royalty revenues were up 8% year over year to $19.1 million in the first quarter. The upside was driven by increased royalties from Amgen’s Kyprolis, Jazz Pharmaceuticals’ Rylaze, Merck’s Vaxneuvance and Travere’s Filspari.
Total Captisol sales were down 13% year over year to $9.2 million in the reported quarter due to the unfavorable timing of customer orders. During the quarter, the company did not record any Captisol sales related to COVID-19.
Contract revenues were down 83% year over year to $2.6 million in the first quarter. The downside was caused by the receipt of a milestone payment of $15.3 million from Travere Therapeutics upon the FDA’s accelerated approval for Filspari in IgAN indication in the year-ago period.
Research and development (R&D) expenses fell 10% to $6.0 million during the quarter, while general and administrative (G&A) expenses inched up 1% to $11.0 million.
Year to date, Ligand’s stock has risen 2.5% against the industry’s 5.9% fall.
Image Source: Zacks Investment Research
Cash, cash equivalents and short-term investments amounted to $310.6 million as of Mar 31, 2024, compared with $170.3 million as of Dec 31, 2023.
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 between $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.
Inks Royalty Financing Deal
In a separate press release, management announced that it has entered into a $100 million royalty financing agreement with Agenus (AGEN - Free Report) . Per the deal terms, Ligand will make an initial upfront payment of $75 million to Agenus and will have the option to invest an additional $25 million on the same terms on a pro-rata basis. This infusion is expected to support Agenus’ key development initiatives in its ongoing botensilimab and balstilimab (BOT/BAL) clinical development program and launch readiness activities.
In consideration of the $75 million payment, Ligand will receive 18.75% of the future royalties and 31.875% of the future milestone payments related to six of Agenus’ clinical-stage partnered oncology programs. These programs are partnered primarily with pharma bigwigs like Bristol Myers, Merck and Gilead Sciences, who have a deep understanding and experience in the oncology space. Ligand believes that its portion of the milestone payments has the potential to exceed $400 million, with royalties in the low single digits.
In addition, Ligand will also be eligible to receive a 2.625% royalty on future global net sales generated by BOT/BAL.
Key Partnered Pipeline Progress
Last month, Travere announced that its commercial partner CSL Vifor gained conditional marketing authorization in Europe for Filspari in IgAN indication. Earlier this month, Travere announced that the FDA had granted priority review to its regulatory filing seeking to convert the accelerated approval granted to Filspari in IgAN indication to a full one. A final decision is expected by Sep 5.
Last year, Viking Therapeutics (VKTX - Free Report) reported positive 12-week data from the ongoing phase IIb VOYAGE study, evaluating VK2809 in patients with biopsy-confirmed NASH and fibrosis. The study met its primary endpoint. Last month, VKTX completed the 52-week biopsies in the VOYAGE study. Viking intends to report 52-week treatment data from the VOYAGE study by June 2024-end.
Marinus Pharmaceuticals also provided an update on the late-stage RAISE study evaluating IV ganaxolone in patients with refractory status epilepticus. The study did not meet predefined stopping criteria at the interim analysis. The company has now completed enrolment in the RAISE study at nearly 100 patients and topline results are expected in the summer of 2024. The future development of IV ganaxolone in refractory status epilepticus will be assessed following the review of the final RAISE results.
Image: Bigstock
Ligand (LGND) Beats Q1 Earnings, Misses Sales Estimates
Ligand Pharmaceuticals Incorporated (LGND - Free Report) reported core adjusted diluted net income per share of $1.20 in first-quarter 2024 from continuing operations. Although earnings declined 10% year over, the figure still beat the Zacks Consensus Estimate of $1.13.
Total revenues of $31.0 million were down 30% from the year-ago quarter’s levels. The reported figure missed the Zacks Consensus Estimate of $32.5 million.
The downside in earnings and sales was due to the receipt of a milestone payment from Travere Therapeutics (TVTX - Free Report) in the year-ago period.
Quarter in Detail
Royalty revenues were up 8% year over year to $19.1 million in the first quarter. The upside was driven by increased royalties from Amgen’s Kyprolis, Jazz Pharmaceuticals’ Rylaze, Merck’s Vaxneuvance and Travere’s Filspari.
Total Captisol sales were down 13% year over year to $9.2 million in the reported quarter due to the unfavorable timing of customer orders. During the quarter, the company did not record any Captisol sales related to COVID-19.
Contract revenues were down 83% year over year to $2.6 million in the first quarter. The downside was caused by the receipt of a milestone payment of $15.3 million from Travere Therapeutics upon the FDA’s accelerated approval for Filspari in IgAN indication in the year-ago period.
Research and development (R&D) expenses fell 10% to $6.0 million during the quarter, while general and administrative (G&A) expenses inched up 1% to $11.0 million.
Year to date, Ligand’s stock has risen 2.5% against the industry’s 5.9% fall.
Image Source: Zacks Investment Research
Cash, cash equivalents and short-term investments amounted to $310.6 million as of Mar 31, 2024, compared with $170.3 million as of Dec 31, 2023.
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 between $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.
Inks Royalty Financing Deal
In a separate press release, management announced that it has entered into a $100 million royalty financing agreement with Agenus (AGEN - Free Report) . Per the deal terms, Ligand will make an initial upfront payment of $75 million to Agenus and will have the option to invest an additional $25 million on the same terms on a pro-rata basis. This infusion is expected to support Agenus’ key development initiatives in its ongoing botensilimab and balstilimab (BOT/BAL) clinical development program and launch readiness activities.
In consideration of the $75 million payment, Ligand will receive 18.75% of the future royalties and 31.875% of the future milestone payments related to six of Agenus’ clinical-stage partnered oncology programs. These programs are partnered primarily with pharma bigwigs like Bristol Myers, Merck and Gilead Sciences, who have a deep understanding and experience in the oncology space. Ligand believes that its portion of the milestone payments has the potential to exceed $400 million, with royalties in the low single digits.
In addition, Ligand will also be eligible to receive a 2.625% royalty on future global net sales generated by BOT/BAL.
Key Partnered Pipeline Progress
Last month, Travere announced that its commercial partner CSL Vifor gained conditional marketing authorization in Europe for Filspari in IgAN indication. Earlier this month, Travere announced that the FDA had granted priority review to its regulatory filing seeking to convert the accelerated approval granted to Filspari in IgAN indication to a full one. A final decision is expected by Sep 5.
Last year, Viking Therapeutics (VKTX - Free Report) reported positive 12-week data from the ongoing phase IIb VOYAGE study, evaluating VK2809 in patients with biopsy-confirmed NASH and fibrosis. The study met its primary endpoint. Last month, VKTX completed the 52-week biopsies in the VOYAGE study. Viking intends to report 52-week treatment data from the VOYAGE study by June 2024-end.
Marinus Pharmaceuticals also provided an update on the late-stage RAISE study evaluating IV ganaxolone in patients with refractory status epilepticus. The study did not meet predefined stopping criteria at the interim analysis. The company has now completed enrolment in the RAISE study at nearly 100 patients and topline results are expected in the summer of 2024. The future development of IV ganaxolone in refractory status epilepticus will be assessed following the review of the final RAISE results.
Ligand Pharmaceuticals Incorporated Price
Ligand Pharmaceuticals Incorporated price | Ligand Pharmaceuticals Incorporated Quote
Zacks Rank
Ligand Pharmaceuticals sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.