EXHIBIT 99.1
[LIGAND LETTERHEAD]
CONTACTS:
Ligand Pharmaceuticals Incorporated Lippert/Heilshorn & Associates
John L. Higgins, President and CEO Don Markley
Erika Luib, Investor Relations DMARKLEY@LHAI.COM
(858) 550-7896 (310) 691-7100
LIGAND PHARMACEUTICALS ANNOUNCES SECOND QUARTER RESULTS
CONFERENCE CALL BEGINS AT 4:30 P.M. EASTERN TIME TODAY
SAN DIEGO (AUGUST 8, 2007) - LIGAND PHARMACEUTICALS INCORPORATED (NASDAQ: LGND)
(the "Company" or "Ligand") today announced financial results for the three
months ended June 30, 2007 and provided a business update.
SECOND QUARTER RESULTS
The Company sold its commercial oncology product line in October 2006
and sold the AVINZA(R) product line in February 2007. The results of operations
related to these products have been reflected as discontinued operations for all
reporting periods discussed below.
Total revenues for the second quarter of 2007 were $1.4 million,
compared with $1.1 million for the second quarter of 2006. Royalty revenues for
the 2007 second quarter were $1.4 million, compared with none for the 2006
second quarter. Collaborative research and development and other revenues for
the second quarter of 2007 were none, compared with $1.1 million in the second
quarter of 2006.
Operating costs and expenses for the second quarter of 2007 were $16.3
million, compared with $19.1 million for the same 2006 period. The decrease was
due primarily to the reduction in headcount as a result of our restructuring
during the 2007 first quarter. Operating costs and expenses for the second
quarter of 2007 include $0.5 million of share-based compensation expense,
compared with $1.2 million for the same 2006 period. The loss from continuing
operations for the second quarter of 2007 was $7.7 million, or $0.08 per share,
compared with a loss from continuing operations of $17.2 million, or $0.22 per
share, for the second quarter of 2006. Income from discontinued operations in
the second quarter of 2007 was $7.9 million, or $0.08 per diluted share,
compared with $1.2 million, or $0.02 per diluted share, in the comparable 2006
quarter.
Net income for the second quarter of 2007 was $0.2 million, or $0.00
per diluted share, compared with a net loss of $16.0 million, or $0.20 per
share, in the second quarter of 2006.
As of June 30, 2007, Ligand had cash, cash equivalents, short-term
investments and restricted investments of $117 million. In addition, there is
approximately $35 million of cash held in escrow and trust accounts to support
potential indemnifiable claims by purchasers of our commercial products and
certain current and former members of our Board of Directors. In April 2007 the
Company paid a cash dividend of $2.50 per share for a total of $252.7 million.
In March 2007, the Company's Board of Directors authorized up to $100 million in
share repurchases. As of June 30, 2007, the Company had repurchased 3.8 million
shares for a total of $25.4 million.
"We face an active and exciting second half of 2007, with both
partnered products and proprietary programs," said John L. Higgins, President
and Chief Executive Officer of Ligand Pharmaceuticals. "By the end of the year,
we may see an NDA filing for treatment of short-term ITP from GlaxoSmithKline
for eltrombopag (Promacta), FDA approval for Wyeth's bazedoxifene (Viviant), two
NDA filings with this product alone or in combination with conjugated estrogen
(Aprela) by Wyeth for other indications, and an NDA filing by Pfizer for
lasofoxifene (Oporia). We also expect to complete the Phase I study with
LGD-4665 and present preclinical data on LGD-3303.
" YEAR-TO-DATE RESULTS
Total revenues for the six months ended June 30, 2007, were
$1.6 million, compared with $4.0 million for the first six months of 2006.
Royalty revenues for the six months ended June 30, 2007 were $1.4 million,
compared with none for the same period in 2006. Collaborative research and
development and other revenues for the first half of 2007 were $0.2 million,
compared with $4.0 million for the same period in 2006.
Operating costs and expenses for the first six months of 2007 were
$46.0 million, compared with $36.3 million for the same period in 2006. The
increase was due to one-time expenses recognized in the first quarter of 2007
related to our restructuring. Operating costs and expenses for the six months
ended June 30, 2007, include $6.1 million of share-based compensation expense
compared with $2.0 million for the same period in 2006. The loss from continuing
operations for the first six months of 2007 was $24.6 million, or $0.24 per
share, compared with a loss from continuing operations of $30.9 million, or
$0.40 per share, for the first six months of 2006. Income from discontinued
operations for the first half of 2007 was $299.1 million, or $2.98 per diluted
share, compared with a loss from discontinued operations of $127.3 million, or
$1.63 per share, for the first half of 2006.
Net income for the six months ended June 30, 2007, was $274.5 million,
or $2.74 per diluted share, compared with a net loss of $158.2 million, or $2.03
per share, for the same period in 2006.
PROGRAM UPDATE
The Company also provided the following update on the status of its key
internal and partnered programs:
o LGD-4665 - TPO MIMETIC: Ligand continues to advance LGD-4665
(small molecule,non-peptide TPO mimetic)through a Phase I
dose-escalation study. In the second quarter we completed the
single-dose escalation stage of the trial. In this study of
healthy volunteers, the drug was safe and well tolerated. In
addition to safety and dosing, the study is designed to measure
platelet counts. Statistically significant elevated platelet
counts were observed with single dose administration of LGD-4665.
The multiple dose escalation stage of the trial is ongoing. The
Company expects to complete the Phase I study by the end of 2007
and is preparing to initiate multiple Phase II trials for
different indications in the first half of 2008.
o GLAXOSMITHKLINE - TPO MIMETIC, ELTROMBOPAG: Ligand's partner
GlaxoSmithKline reported Phase III data that confirmed increased
platelet levels and significantly lowered incidence of bleeding
in patients with ITP. Further, GlaxoSmithKline announced that an
NDA filing for use in treatment of short-term ITP is expected by
the end of 2007/early 2008.
o WYETH - SERM (SELECTIVE ESTROGEN RECEPTOR MODULATOR),
BAZEDOXIFENE: Ligand's partner Wyeth announced that it received
an approvable letter for bazedoxifene (Viviant) from the FDA in
April 2007. Wyeth expects to receive FDA action for this product
for osteoporosis prevention by the end of 2007. Bazedoxifene
(Viviant) NDA filing for osteoporosis treatment is expected in
the third quarter of 2007. Wyeth confirmed that it believes the
NDA filing for bazedoxifene CE (Aprela) for menopausal symptoms
and osteoporosis remains on track for the end of 2007. Wyeth also
plans to file bazedoxifene (Viviant) for European review for
treatment and prevention of osteoporosis in the third quarter.
o PFIZER - SERM, LASOFOXIFENE: Ligand's partner Pfizer announced
plans to refile an NDA for lasofoxifene (Oporia) by the end of
2007. Pfizer expects that the results from the PEARL
(Postmenopausal Evaluation and Risk Reduction with Lasofoxifene)
study will address the FDA's requirements in terms of safety and
benefits for this product.
o TAP - SARM (SELECTIVE ANDROGEN RECEPTOR MODULATOR), LGD-2941:
Ligand's partner TAP Pharmaceutical Products is continuing its
Phase I trial with LGD-2941.
o LGD-3303 - SARM: Ligand is conducting preclinical studies to
prepare LGD-3303 (SARM product candidate) for an IND filing and
the initiation of clinical trials in 2008. Data from Ligand's
study of the effect of LGD-3303 on bone density and strength in
osteopenic rats will be presented at the American Society of
Mineral and Bone Research in September 2007.
UPCOMING EVENTS
Ligand plans to present at the following investor healthcare
conferences for the Fall 2007:
o Thomas Weisel Partners Healthcare Conference Boston, MA, September 5-7
o Bear Stearns 20th Annual Healthcare Conference, New York, NY, September 10-11
o Natexis Bleichroeder Healthcare Conference, New York, NY, October 8
In addition, the Company will present data on LGD-3303, its lead SARM
compound, at the following medical conferences:
o American Society of Bone & Mineral Research Annual Meeting, Honolulu, HI,
September 16-19
o Society for Neuroscience Annual Meeting, San Diego, CA, November 3-7
CONFERENCE CALL
Ligand management will host a conference call today beginning at
4:30 p.m. Eastern time (1:30 p.m. Pacific time) to discuss this announcement and
answer questions. To participate via telephone please dial (877) 356-5578 from
the U.S. or (706)679-0565 from outside the U.S. A replay of the call will be
available until September 8, 2007 at 5:30 p.m. Eastern time by dialing
(800)642-1687 from the U.S. or (706) 645-9291 from outside the U.S., and
entering passcode 7183186. Individual investors can access the live and archived
Webcast through Ligand's web site at WWW.LIGAND.COM.
ABOUT LIGAND PHARMACEUTICALS
Ligand discovers and develops new drugs that address critical unmet
medical needs of patients with thrombocytopenia, hepatitis C, certain types of
cancer, hormone-related diseases, osteoporosis and inflammatory diseases.
Ligand's proprietary drug discovery and development programs are based on its
leadership position in gene transcription technology, primarily related to
intracellular receptors.
FORWARD-LOOKING STATEMENTS
This news release contains certain forward-looking statements by Ligand
that involve risks and uncertainties and reflect Ligand's judgment as of the
date of this release. Actual events or results may differ from Ligand's
expectations. For example, we may not be able to meet the 2007 operational
forecast set forth herein. We also may not receive expected royalties on
AVINZA(R) from King Pharmaceuticals or any other partnered products or from
research and development milestones. In addition, our partners may change their
plans or timetables regarding our partnered products and expected regulatory
actions (e.g., filings, approvals, etc.) may be delayed or may not occur. Any
payments expected from third parties may not be received by us
due to third party intellectual property or contract restrictions and any
amounts received by us may be subject to third party claims. We may not be able
to timely or successfully transform the Company or advance any product(s) in our
pipeline, for example, LGD-4665 and LGD-3303. In addition, we may have
indemnification obligations to King Pharmaceuticals or Eisai in connection with
the sales of the AVINZA and oncology product lines. Further, we may not be able
to fully complete our reductions in workforce on any particular or expected
timeframe, we may not realize the expected operating savings due to our
restructuring and we may not be able to successfully or timely complete a
transformation of the company, our early stage programs or any specific business
or research initiative(s). In addition, we may not be able to successfully
implement our strategy, and continue the development of our proprietary
programs. The failure to meet expectations with respect to any of the foregoing
matters may reduce our stock price. Additional information concerning these and
other risk factors affecting Ligand's business can be found in prior press
releases available via WWW.LIGAND.COM as well as in Ligand's public periodic
filings with the Securities and Exchange Commission at WWW.SEC.GOV including our
form 10-Q filed with the SEC on August 8, 2007. Ligand disclaims any intent or
obligation to update these forward-looking statements beyond the date of this
release. This caution is made under the safe harbor provisions of the Private
Securities Litigation Reform Act of 1995.
[Tables to follow]
LIGAND PHARMACEUTICALS INCORPORATED
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except share data)
THREE MONTHS ENDED JUNE 30, SIX MONTHS ENDED JUNE 30,
2007 2006 2007 2006
Revenues:
Royalties $ 1,410 $ -- $ 1,410 $ --
Collaborative research and development and other revenues -- 1,063 235 3,977
------------ ------------ ------------ ------------
Total revenues 1,410
------------
1,063 1,645 3,977
----- ----- -----
Operating costs and expenses:
Research and development 8,751 10,088 24,353 18,505
General and administrative 7,516 9,033 21,683 17,844
------------ ------------ ------------ ------------
Total operating costs and expenses 16,267 19,121 46,036 36,349
------------ ------------ ------------ -----------
Accretion of deferred gain on sale leaseback (491) -- (982) --
------------- ------------ ------------- ---------
Loss from operations (14,366) (18,058) (43,409) (32,372)
------------- ------------- ------------- ------------
Other income 2,455 886 5,415 1,514
------------ --------------- -------------- ------------
Loss before income taxes (11,911) (17,172) (37,994) (30,858)
Income tax benefit 4,225 -- 13,419 --
------------- ------------ ------------ -------------
Loss from continuing operations (7,686) (17,172) (24,575) (30,858)
------------- ------------- ------------- -------------
Discontinued operations:
Income (loss) from discontinued operations before income -- 1,232 5,993 (127,294)
taxes
Gain on sale of AVINZA Product Line before income taxes 283 -- 310,414 --
Adjustment to gain on sale of Oncology Product Line before
income taxes 9,868 -- 9,807 --
Income tax expense on discontinued operations (2,284) (18) (27,137) (35)
-------------- ----------------- ------------ -------------
Discontinued operations 7,867 1,214 299,077 (127,329)
------------ ----------- ----------- ------------
Net income (loss) $ 181 $ (15,958) $ 274,502 $ (158,187)
============ ============ =========== ============
Basic and diluted per share amounts:
Loss from continuing operations $ (0.08) $ (0.22) $ (0.24) $ (0.40)
Discontinued operations 0.08 0.02 2.98 (1.63)
------------ ---------- ----------- -----------
Net income (loss) $ 0.00 $ (0.20) $ 2.74 $ (2.03)
============ ============ ============ ============
Weighted average number of common shares 99,878,197 78,539,820 100,279,949 78,021,236
============ ============ ============ ============
LIGAND PHARMACEUTICALS INCORPORATED
ONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
JUNE 30, 2007 DECEMBER 31, 2006
------------------- ----------------------
ASSETS
Current assets:
Cash, cash equivalents, short-term investments,
and restricted cash $ 115,400 $ 210,662
Other current assets 2,821 24,895
Current portion of co-promote termination payments receivable 13,962
------------------- ----------------------
Total current assets 132,183 235,557
Restricted investments 1,561 1,826
Property and equipment, net 3,783 5,551
Acquired technology and product rights, net -- 83,083
Long-term portion of co-promote termination payments receivable 81,010 --
Restricted indemnity account 9,939 --
Other assets -- 36
------------------- ----------------------
$
Total assets $ 228,476 326,053
=================== ======================
LIABILITIES AND STOCKHOLDERS' EQUITY
Accounts payable and accrued liabilities $ 50,143 $ 58,768
Current portion of deferred revenue, net -- 57,981
Current portion of deferred gain 1,964 1,964
Current portion of co-promote termination liability 13,962 12,179
Other current liabilities 1,989 2,168
Note payable -- 37,750
Long-term portion of co-promote termination liability 81,010 81,149
Long-term portion of deferred gain 26,238 27,220
Other long-term liabilities 6,593 7,177
Common stock subject to conditional redemption 12,345 12,345
Stockholders' equity 34,232 27,352
------------------- ----------------------
$
Total liabilities and stockholders' equity $ 228,476 326,053
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