LGND - Earnings call transcript Q4 2017 | Ligand Pharmaceuticals Incorporated

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Operator

Good day. My name is Shikander [ph] and I will be your conference operator for today's call. At this time, I'd like to welcome everyone to Ligand's Fourth Quarter 2017 Earnings Release Conference Call. [Operator Instructions]. I now turn things over to Todd Pettingill, Director of Corporate Development and Investor Relations.

Todd Pettingill

Quarter Financial Fourth Update and Ligand's Call. Conference to of Results XXXX Business Welcome

Ligand Higgins, are COO; for today Speaking John Korenberg, and CEO; CFO. Matt Foehr, Matt

meaning contain As but include, expectations limited intent, statements call of reminder, regarding not securities will statements or a within These today's are the belief of to, may the federal laws. and forward-looking current company the uncertainties, partner projections and release conference its regarding statements These management differ press programs. materially in internal may described and from events today's in actual call. risks its or results and involve this

The as factors company's other and in in turn Securities available public represent best relates call other risk the concerning information or this be XXXX, release information filings can by periodic events XX, concerning At Exchange of time, or found Commission, to Additional forward-looking conference the February and reflect undertakes Ligand over circumstances update party. views John earnings today and information the press revise statements projections and to any represents no www.sec.gov. obligation statements to I'll the judgment matters conference which the Ligand of company call. reviewed call this or other on today the are with based date to necessarily the of Ligand's after at available Higgins. not do any

John Higgins

year-end as XXXX opportunities I Welcome. and the and a comments you. will I'll Thank review brief add by start beyond. off in perspectives some then things see we for some providing

a higher The payments. finished very XXX more upside over revenue start $XXX XXXX At entered fully expectations. we potential delivered outlook million some on shots-on-goal in XXXX. million, with fronts. license of payments. funded over programs. flow higher partners for was XX also year, it operations and our than our the into all First, XX by year. of during year and contract contract This cash have We was for Financially, revenue The strong from exceeded royalties with and new the just $XXX driven year, agreement or past

product, well, programs at Our lead royalty-bearing new important to its of successfully SAGE's is EVOMELA, sales, the assets third second recently III year and portfolio being the FDA at Baxdela, and model our advancing approval. one performing with good programs secured brexanolone the full first added in are pace. Phase for clinic Of portfolio completed launched driving PPD. high-quality candidate trials drug successful product, a And and note, our very

our leading type second for product type This for the half for is It as category the in X impressive has highly treatment space. potential and and a diabetes efficacy as XXXX. in potentially results a positive a diabetes GRA reported diabetes well. major in diabetes we shown of the Now X drug has candidate novel

We are companies with licenses both for regional in for discussions potential rights. worldwide and

interest by drug, companies demand this the is time. at While is Ligand's largest there and program this unpartnered to license

and So animal. of stakeholders. include with the leveraging business model acquisition of to the another drug expanding in to Crystal Also we be OmniAb deal acquiring optimizes will we XXXX, technology platform consistent important that our of potential patient species an our our closed technologies, secure Biosciences, for

X revenue. more than drugs we generate billion year will we economic to forward, the Ligand annual As XXXX look be has each expect when which rights, $X in in

QX drug XXXX. been and large is QX Novartis The just superbly. the Promacta million is the years. market over or up came drug million, were $XXX off fourth for a has XX% $XX quarter, managing First, on very over sales that X

billion will molecule, particularly growth projecting a In $X impressive. So become Promacta to that beyond. continued growth of is level analysts see with now XXXX, strong

substantial the be XXXX. it XXXX the track our to pleased And that with for that to for us very appears and drug in also drug in contribution note numbers, to sales reported back offers recently drug on Kyprolis, given benefit in exceed sales are medical to are patients. discovery worldwide billion We proud $X

Kyprolis Captisol know us, in Amgen an follow who that formulation. uses is its drug investors, As

agreement have $XXX but Amgen, not in We commercialization Amgen million development the QX sales in total or the $XXX with for QX a reported $XX reported Ono Kyprolis sales and license it's of drug. involved of million million.

if is would a likely a for treatment, drug as that human technology not Now not possible be Captisol. our Kyprolis

active the owned, in days privately was then technology that development enabled Our the under still ingredient, when drug small back carfilzomib, Proteolix. by,

again, begin will XXXX. our Phase for Once make its III on it's Now as trial patients This to option And possible. we recently drug with expect of a drugs file innovative important treatment multiple proud Melinta's provide And SAGE that year, brexanolone an in its in I with product contributions worldwide Retrophin we myeloma. royalties booking PPD. Baxdela expect and launched are mentioned, for NDA that and drug to we to initiate technologies Sparsentan.

fully platform is very is The discovery highly OmniAb and antibody some not business OmniAb valuable of technology value its investors doing potential. part one appreciate is may and Our where well. Ligand's

doubled factors OmniAb, Our insiders ago, and significance January we when Two are driven projected the platform. financial XXXX, the of licensing the we in industry underscoring years acquired success by in technology with OmniAb, revenue actually the the period, over in X million in over at booked original time least from following $XX OmniAb million OmniAb We years. nearly our that outlook. of business revenue $XX

we discovery strong a by significant XX industry's we performance, the XXXX XXXX, platform are so platform. In investment pipeline OmniAb excited than a market our our platform. partners trials, the to and month, new at diagnostic this we signing This to acquired to into need promising year now the is expanded a current product we is expect faster large we antibodies over existing see for that candidate year, product what significant Biosciences and by OmniAb new more a developing acquiring partner expected. Crystal be last add their developing technology be a technology could our human than will we just for are for generate to drug offerings. we imaging. addition are And up in are The we more And outlook rate deals financial very advancements of the in with end growing news. the also prospective CE-iohexol antibodies for for In improvement ago.

We Finally, our regulatory factors, newly rates including we environment. programs is for development. many published and than cash performance, terms tax has Ligand, attributed can as there more projected factors approval talk This imply potential by all be Matt number a outside portfolio. of advancing partner rate with over long-term to this to a And our of drug in favorable has as higher of meaningfully very our about by more turn advance success control the that, rates a believe call our for have increased. study substantially and success of advancing programs XXX conducted The programs last With are over to Foehr also would has was Ligand. increased outlook to to just approval. meaningful profitability better that shows reduced major MIT tax now our law programs to decisions stages been more that X/X. The the benefiting at month new our the flow I'll portfolio have

Matthew Foehr

announced for in Therapeutics the that I reported corporate depression rating primary with our endpoints the mean or of XX in acquisition trials X depression in compared and Phase progress few the significant fourth in with And I'll a partners to hours the select on Crystal start of reductions multi-center at our Thanks, they activities of in a financial programs, for John. then the provided by durable developments and PPD. postpartum reported review licensing our HAMD score following in HAMD. a They days review and will some as reduction partner scale in symptoms, SAGE touch of measured placebo-controlled rapid achieved I our Bioscience Starting quarter, both brexanolone III level. off will placebo general depressive the brexanolone status trials. technology at recent of integration Hamilton over partner status platforms. recent XX programs or a the and of business that And October. statistically of

a third these affects of commencing subset woman XX% to in As may weeks estimated approved no complication or women go of XX% are without medical There within giving clearly there It's cases X a for of undiagnosed of birth of screening. bit PPD, half is need childbirth up the pregnancy and birth. approximately biological typically And that treatment. PPD the PPD of unmet is giving for to common U.S. background, trimester in after affecting a therapies

primary body the study Also NDA our at a the from Phase significant be that forward hip doing submission previously November, at top reported well. X.X% continue in demonstrating is number work from secondary a treatment. of reached endpoints endpoint, of given impressed year. announced XX key profile their were statistically We and Viking tolerability recovering to of SAGE partners medically The very to and profile SAEs with encouraged comorbidities. following older trial are in ranging were results hip look drug-related also plans fragile for were mass, reported its an with patients to VKXXXX's fracture. fracture this from also many positive observed. increases safety on Viking dose-dependent line weeks Therapeutics in by lean II VKXXXX statistically met We X.X%, is particularly This significant adults improvements patients, efficacy preliminary whom particularly of multiple the impressive, that as and that no team

muscle activity it novel was is Ligand selectively was team available clinical stimulate peripheral or reduced androgen work our at orally early SARM, here nonsteroidal in and by for and designed background, tissues. their in scientists selective a been the completed As formation The discovered bone with that drug has program. modulator, originally VKXXXX historical to receptor

for see is in exciting setting substantial. the fracture especially need so hip strong it's such So to medical clinical where us data

IPO data, Viking gross Our partners partner form Therapeutics clinical support the Ligand ARMO offerings major completed ARMO both in in to follow-on Viking at and of $XXX clinical programs. having of and million of an raised further a million work recently their both proceeds with following $XX financings. over BioSciences

$X see is to in our partners Biopharma, Turning medicines up continuing are clinical diseases. from antibody-focused autoimmune QX, major that shortly. the and the now clinical antibodies platform. given for that regulatory In to biotech, by increase starting their And success OmniAb-derived the HanAll largest payment X novel and we as more anti-FcRn now partners. development in in generally in relation number we're investment a pharma received to the published molecules. we milestone expect There of Antibody to impact better areas progress technology new are antibodies small million those our are substantial importantly, from OmniAb-derived for for clinic. antibody research potential rates of for OmniAb than R&D And medical one and

the of use We platform. continue their OmniAb to receive are from partners who reports expanding

biotech started As global a campaigns know evaluate us rodents at XX to start XXXX. novel quick example, that one OmniAb they recently partner of the with let targets

we've alliances as announced, our well. to OmniAb in add-on QX see access successfully targets. OmniChicken, year. new existing deals partnerships that more some to extremely has value and leader expanded OmniAb platform OmniAb partners add based results. broadly this now of now proposition variety pursued Crystal that that targets species very gone the when be given best the considerable expect in and world highly antibody We've looking again, well the forward we OmniChicken for as we did has our the multiple and complex to previously Ferring We to not of have hosting Ligand technologies many recently to partners OmniChicken OmniAb way the from species Engineering at partners as The of and others for in the the north, Emeryville, many meeting clear the of a diversification received we discovery, discovery and and platform complementary expected existing into at now Glenmark offering partners the We now Species spent to progress. as the the they're refer furthered being we in of their around largest the with managing possible Pharmaceuticals and the partners other on Protein our interface OmniAb addition the need on of finding discovery expect important year. provide Summit to feel Additionally, partner species this complexity programs all and number the they our Symposium therapeutic expand antibodies. due in to productive, as strongly We've The added yield an to industry and and our positioned the efficient success by world's is business we And expended this occur the has we OmniAb in of Bioscience's late our as ones. premier deal are new team updates as or the deploying new and platform. fully world ensuring success-related been PEGS OmniAb to therapeutic novel effort will of position motivated the and the is the transgenic are that known for will therapeutic number which relationships platform same continue platforms. PEGS meetings with like milestones us include year technology, April. antibody Boston, in We're Ligand and antibody Partner their human Integration

X in type XXXX, FDA and and Drug filings agreements and Files streamline existing Captisol by I&D relationships new format Captisol partners. were with And around X to that converted I Master type technology. our current NDA expand enter and note electronic our our help the to to continue future also We

starting continued Scientific contrast the that also Association being We iohexol. Conference technology imaging, National Sessions well. mention liver-targeted points. recently create pursue as continuing out we more that plan briefly with want studies point presentations for brief conclude April, LTP-related for prepared a about meeting. to database announced in the internal other and diagnostic R&D. and both to And to expand our Captisol-enabled now expect develop Captisol-enabled a that well established Captisol programs next-generation International safety program we're our to with addition R&D large the Lipid as with EASL for some we've or XXXX. in as sets investments, LTP Liver I the studies DMFs value at prodrug data And Like remark our new agents to is of partnering I'll We inflection for

and R&D benefit reduced program on more diagnostic This subject and a is Medicine. toxicity, last could of Our renal major of imaging from focus this England program with hospital-based New which report is internal a a broadly Journal our just issue week the in is technology leverages products that via we to Captisol and new turn we as a of whom towards Pharmaceuticals, you look make the that, submission call also previous leverages initial development. and Verrow progress the to financials. We Captisol property clinical intellectual Korenberg new I&D And had we to relationship. the with acquisition I'll Matt over forward gained updating with discuss editorial

Matthew Korenberg

operational we Thanks, earnings contributed a and success with of flows. respect growth of strong track year in to growth a of of XXXX annual our XX% our was financial Ligand. for and revenue, Matt. almost cash significant Revenue to which guidance and growth and exceeded royalties continued XX% more than record year

million largely was the revenue for results. period and royalties. over financial in million revenue $XX.X license included growth royalty total grew contribution XX% $X.X Total to the $XX.X OMT. end due deals revenues HanAll timing of Turning quarter increase of call from Milestone the royalty achieving the year. million. the to like Royalty the of particular, Kyprolis XX%. QX year milestones in year-ago million The to Promacta $XX.X were the I'd ago and reflected sublicensing at revenue up versus and higher struck and the were up for the with In revenues period,

Ligand now And As for discover OmniAb in mentioned that antibody rights on HanAll to expected, And helped continues China out-licensing release the there years $X programs later, will parties, an antibody the in Ligand over These where so come. payments and technology out-licensed million to advance if resulted the of that OMT a deals of to HanAll HanAll. more the time, press other far. to has world own. then at XXXX. separate HanAll rest as the than be to in first licensed develop of its to in the couple Korea in

this While of transaction not the upside one Ligand the capture all the OmniAb contracts sharing, in more can include future. sublicensing example from platform is ways

to compared of throughout were quarter the year. due the Captisol orders QX sales $X.X for the timing in Our to fourth million material million XXXX, $X

the Regarding well the as margins period. the gross months to for higher year of prior first were as gross slightly compared X margins, QX Captisol our as year

As margin. swings we clinical in of sales and shift year-to-year consistently, mentioned from can gross significantly mix commercial in and material quarter-to-quarter our resulting

Our our to gross a translated overall in improvement sales XXXX. corporate In XX% margin material cost to XX% margins. in XXXX, slight was compared overall

side, expenses. the On operating with and of million expense our QX cash G&A R&D cash our we for expenses in expectations. $XX.X line And were year, had the

$X.XX in generated for of an million period from we last per diluted diluted income quarter, million net or flow $XX.X operating share the to in In we For million $XX year of flow, compared $XX.X same generated operating share reported $XX.X adjusted period. or QX, the increase year. the ago cash million per cash $X.XX

the increases million representing $XX growth. in XXXX, XXXX, from translated as For full Revenue year million up from in in was XXXX, cash $XX.X in $XXX.X well. $XXX flow in million almost million versus XX% revenue growth XXXX. year-over-year generated We operations total significant to cash

adjusted share reported diluted to primarily was $X.XX or rate assumed For XXXX. revenue $XX.X diluted per outperformance guidance. and to for most tax million for $X.XX of favorable share income our tax relative XXXX, the The to on rate guidance EPS million net per we benefits attributable relative to or recent our outperformance $XX.X compared

despite reminder, assets. our a of the reported we adjusted the less our a fact tax is As taxes as on X% and utilization EPS of than result fully NOLs basis pay a tax other cash

and XXXX will the XX%. act rates, XX% we prior lower in expect rates. historical we and periods our enacted, the tax XX% higher will reflect was our reflect filed mentioned now to the forward that while XXXX of X-K, at to time XX% As be rate tax

over the short-term mentioned. bolstered $XX.X cash price share about note XXXX, that repurchase. release, for of cash a our to operating finished balance earnings million. On on in outlined just for the flow an equivalents cash, million. aggregate at million investments One price GAAP quick as sheet, net income our our $XXX $X shares with over net was by repurchased million Related QX release, XX,XXX for $XXX income GAAP of the we earnings Since an of we've average $XX.X share of year the year and I

in related a approved However, as this XXXX. result significantly charge deferred of by tax was Congress assets a million act new the $XX.X tax late figure reduced to by

now guidance. Turning to

press in guidance. release, As today's XXXX detailed introducing financial year we're full

growth We revenue for solid expect and continued XXXX. earnings

year, expect milestones $XXX of royalty of million revenue, sales million the million $XX of least at about license we For Captisol $XX and fees. and

annual it from be potential the appropriate. this one continue as or share, to million $X.XX. earnings options for see potential upside more license of detailed expect fees. together a milestone events. from fees, In $X variety reminder least million milestone more revenue we'd and and in from previous revenue. milestones, license with of milestones trial-related estimated year million per $X full the the addition, sublicensing These we revenue we $XXX million guidance, to diluted milestones fees. million we least upside million, of And We milestone million and revenue sale-based translate and sharing years, clinical partnership $XX than of at license components as collaboration Adjusted And with to of all $XX GRA million upside consisting XX excludes from $X and come our than this revenue evaluate revenue span of will more any from license potential I've of and sources possible of $XX of $X foresee milestone at about each to XXXX a revenues

ASC revenue adopted the companies. remind quarterly like change royalty result by year, In XXX, the to new timing recognition for revenue, being for a as standard public I'd terms of all our pacing of the investors impending

revenue period, a booked the opening partners of as $XX rather fourth not Ligand. The to will for that to approximately not XXXX. reminder, in revenue quarter be have flow an First, the our in recorded as royalties as will adjustment as in XXXX result we balance sales would will but QX booked any million will related royalty by be as be recorded sheet revenue previously cash

quarter recognition reset we in line to will each and lowest coincide a each no the Therefore, it our on as with step underlying with our the quarterly QX our lag. for become rates partners revenue royalty increase will Or Thereafter, royalties same royalty to year quarter. proceeds. one our royalty another way, growth put longer partners the number should in subsequent year adjusted quarter revenue underlying and for book ups

if current of of As a of each QX, XX% about quarter in also XX% QX, We'll largest about with this being these and in expect result the QX update any year. recorded and significant on our about XX% earnings of deviations. at followed accounting estimates, year's to by throughout on to and based the be year, trends the XX% QX to revenue XX% investors see the we we'd

changes up changes mark-to-market licensors, contingent to for excess Lastly, turn shares convertible well and the compensation their call just losses adjusted holdings for and the related guidance reminder to noncash excludes nonrecurring amounts EPS our that diluted net warrants, I'll items. convert the expense, value over owed and liabilities and transaction-related liabilities, onetime as common open Therapeutics a our to stock, hedge by the stock-based the questions. With covered other operator, certain contingent to in that, adjustments costs, fair of our back Viking note bond debt-related amortization, as Promacta's CBRs, adjustments in

Operator

[Operator from Instructions]. Pantginis from And Wainwright. first question comes H.C. today Joe our

Joseph Pantginis

internally? your doing. of personal platform, getting deliver that capacity any it to Is involved a specifically you've to continue OmniAb the BD of new need a ultimate transfer to kinds the focus needs more with tech potential or been to than you sense partners and of deals bit the want I little a on signing little and of bit in more process goal

Matthew Foehr

We're platform is only Obviously, proposition for strong with the discovery the OmniAb species. antibody Thanks, one. three a very selling Joe. Matt Foehr. This is

partners a also lot And strong the We to technical some now partners which in perspective. the profile a most We've got market multiple are the high the partners. platform protection from operate. freedom and with means clinic clinic, in pretty with clear and

will I year. do we we my done partnerships expect remarks, said we've more As till in this

platform. The important We well is expect chicken to complement as addition do the of the to more. a real

Our existing terms in discover to understand rodents. -- in value genetic fiber what a distance more have that of partners chicken difficult able that being find are and that brings perspective means the antibodies to the from probably

up we've in been also in successful so relationships are and signing chicken. new or rodents signing existing partners partners And expanding and new both the interested who the up

I So streams. that proposition strong. The is beauty selling ones think are it the the partners is the of very down doing the work

So be their from a to very perspective, partners feel new capacity them we send up able positioned sign well to and way. on

seeing is similar beginning referenced prepared the one piece as the things partners remarks other of the and who kicked global novel The with platform. seeing shared partners recently that of we're at as XX off for of campaigns broader our targets year, I use the they platform of the expand other well. we're use in they

Joseph Pantginis

so, if don’t little know a about little your Korenberg, least could And Matt question we're maybe of I mind. Very convertible? might you if years helpful, some your existing what at away you or plans revolving current for be X.X Matt. us remind

Matthew Korenberg

Thanks, Sure. Joe.

are As in have outstanding August convertible aware, due XXXX. comes note of $XXX folks probably we that million

also sheet on have we millions positive couple aware, cash balance dollars are flow today. a are As of significantly well folks hundred and of

M&A satisfy we'll any how in do to capital that the the continue balance who finance out portion biotechs at but any the the find piece about view offset sort our either hedged we I'd to that's get by more time. to or cash obviously majority we as shares think time, many and now So extent structure not significant bond we enough we and cash of we'll in that the To could M&A not company unlike If than between we'll capital we opportunistic and and off the expect do the the structure, view do between that of then, money an significant that sheet repay that principle go. we at now the as permanent the to figure should that time, consider in underlying as way. of have opportunistic convert,

Operator

question next Jones from Inc. Stephens Drew Our comes from

James Rutherford

on XXXX want This digging bit. guidance the a to Rutherford James by is start little on Drew. I to for in

Specifically, to maybe and and billion could you for on your provide what those assume two sounds products? for It over more more you're $X Promacta specifically it's safe like revenue each, expectations Kyprolis? detail expecting but

John Higgins

Sure.

to third-party research companies. covering typically partner analysts for the folks as So know, we look

Novartis for covered, Kyprolis. average and Amgen are those Kyprolis for they are numbers consensus in potential about and $X there what are say But see Amgen numbers an Promacta, Promacta look we those to the today, billion out and some folks that So not. at some about billion $X.XX for we When are at respectively. folks for and or updated, the

guidance And the that the we've number so underlying got that's basically there.

James Rutherford

Helpful. Okay.

your think as Or a there? might search different patients out? originally laid GRA to process little effort? interpret that we to can process Just more of how bit restart on the And is, coming partner than out. time queue around the be that one you give that we in Should about I'll any kind the year color that the that question, indication then second was patients on an hop back in it should

John Higgins

for is question. expectation by don't an give you for Well, investors is close This Yes. know thank We the we the the timing John. want deal, to update. but to

interest we As data what are deals markets of path give And figure last the partly lines a deals world. development worldwide and as for active time discussions. say, expectations. But to is in a want out regional trying best major the September, specifics timelines well genuine came for simply or for to matter guidance don't soliciting that is together putting around we as also since deals are. comment, out interest, There we deal but for we the

market We're with deal guidance the put general So But best and is a pleased given the getting do we very elements reinsure in our about and there the and wanted path is comment our of investors wanted for to a best large, the we on excited timing, attention, that go that possible. to but it. are program, it And to will full our licensing forward number our we're any effort. deal it together data.

Operator

Matt next our Hewitt from comes And question Craig-Hallum Capital. from

Matthew Hewitt

provided Big guess, your and there I XX. guess, I on curious one as the nice be, guess, look we X I either a the of update is a to -- buckets XXXX? in pyramid little that into closer we those paying X you bit should I'm from if couple anything a of just the attention other of Next

Matthew Foehr

Thanks, This the is Matt question. Yes. Foehr. Matt, for

I Next Beta, That's I XX, couple, a Viking VKXXXX, historically, Ligand we've the In that's expected called or program a TR out. another see will year hypercholesterolemia on program that's to Just heritage point this NASH. to data what is more with program think which it attention orphan are as pay as the indications a that X-ALD pursuing a to that Viking given also well for couple can as justifiably of that folks is as address. GSD markets starting well lot Ia.

point cancer. their other XXX program, probably to in on some a new one this expect disclosures that's the that's trials we're expect year. it's AMG Captisol that OmniAb see year although we program ClinicalTrials.gov Activo is deal with last looks development Captisol program. through XXX the into JNJ-XXXXXXXX partnership for potentially partnerships the the see another Captisol -- later to then also relationships AMG Amgen, exciting. starts for BiTE data we for a in one and antibody clinical And interesting that anti-BCMA, and based we with also an Other more space, the expand Amgen enter programs for data to So an OmniAb I'll expect that that's program, and

those kind top I'd ones to point initially So are of the of head. probably

Matthew Hewitt

opportunity way to mean, additional using your That's that thinking I the are be EVOMELA, about Kyprolis street that for one about a ramp. should great. And you one you for estimates, similar type the drug maybe then think current and you Promacta strategy were we maybe typically guidance and thinking more on how use 'XX? going what that

Matthew Korenberg

Korenberg Yes. It's here. Matt

as higher for products with the the those -- other don't So out EVOMELA for a robust, companies. out less the break product cover and that many do as don't percentage is coverage the Spectrum it's break

at research hybrid the number guidance We, a back still then November, at $XX $XX in of right the and somewhere that at time to about the we range. now, the And we analyst We we'll of QX at and head launched, I year, really a between quarter middle most narrowing number, be a expect analysts. QX number But bit tougher. most we year, on was for that haven't commented that number and specific a the took the used until is million it Analyst the our it the of we wait $XX recent million little what see from specific and updated in So the year. had range. that. X think recent was Day more it's on quarter basically This more little that Spectrum but Last covering product the looking then annualized to just when we'll showed last and time million. bit for

Operator

And our CJS Solow next from from question Larry Securities. comes

Lawrence Solow

one housekeeping question. Just

guess, until for partners Just your to forward, I to how is report, going wait provide we is numbers, I now you on the be? you that going can behind logistics like, that's have guess, reporting,

John Higgins

Yes. a the report us Thanks, our course, as will capture try window end towards of of reporting Larry. matter the of as and to of possible. we as partners Yes, many ahead

us behind after is one this We'll quarter. reporting may that they're estimate or after As obviously, be to more quarter, required happen in think partners would It what on we Spectrum on numbers. evidenced us. partners elsewhere, that the this report still was with best scenes endeavor in the what to revenue we'll do and our is, confidential and own do the our our help to do is quarter that of

Lawrence Solow

could then, or end of something, at the right, And the Right. guess, quarter up year it's... or at true each just I you

Matthew Korenberg

true the Yes. rolling And right. the quarter. have at up accurate we're the the we if of up right always right quarter true quarter. each where kind to actual to exactly, forward therefore, up from previous become a number each estimating number, we'll same or rolling about Each That's quarter the we'll and, in true have the should number closer

Lawrence Solow

it. Got

like for a royalties, or looks And little have above that. like the you Okay. slightly growing XX% just on then guidance, just

revised to to the you your you're drivers a ball Obviously, the that is growth other biggest off what I sort preliminary cover or increased to your from and is now of are XX%, hitting behind that of there of revising sort -- to the the a guidance so that -- guidance, like -- will? think number. you in November formal royalties if XX% spoke preliminary it's Promacta driver was your with your

Matthew Korenberg

could which question. that at for high the Promacta anywhere $XXX will remember and to the million range obviously, with Analyst about. up talked $XXX-plus numbers of million of same was that range, Very in revenue at of products. was very numbers time, Yes. it that the Day that will nice there it and $XXX that million ahead with consensus numbers and at Folks we each of with revenue. that even what math were low growth XX% we're we to time about coming thought for time be this at back good folks the November, wide highest $XXX range, revenue some those did but And high we for November. in below to a main where on come $XXX Kyprolis, QX numbers up XX% we million towards be And we a have expectations million end in of were well that said was Obviously, the expect the in

Lawrence Solow

or shorter for guess, on going three have diagnostic market. a and And I of, a agent of Okay. is idea this then million sort a Captisol the a terms -- and to I contrast will invest it's guess, hurdle of of Give able for it's that's guesstimate us then, and color that more going be sort like sounds you're you'll be to little It better this year years, what out-licensing? point do still your three $X the at approvals body? the the or inside you'll being you when can at lower in --

Matthew Foehr

product renal of incidence to sales over there damage. And a product create Matt and imaging that of issues risk We're a the as is improved big largest one global we in I about the And nephrotoxicity. with or $X.X is said, excited potential market opportunity imaging iohexol. with has iohexol, are the the billion. an Yes. imaging there This programs. real for one reduced starting of it's It's Obviously, Foehr. Captisol-enabled is

where something a done programs can questions, off in to in So -- clinical the you key as what investing is create events now. that's we've and described, we'll driving we partnering. path progressing inflection partner going past, as path for And we're some picking this value answering down think targeted starting we're way initial regulatory

a excited kind ways. Captisol, from new progressing. for and So imaging We're it. say, also in about opportunity diagnostic into getting this space, team will really It's leveraging here of both of kind is device more I new Captisol

excited are about we it. So

Lawrence Solow

different station, seems big and a -- it a It sounds obviously, seems, market. like it it's like

Biopharma, future So that or license payment. license I'm positive Was was, obviously, of, out royalty completely a better was get trying just quickly Was that. forward HanAll sort fees [indiscernible], thing. that a graph but that that potentially the was on the it pulled or was a to that something sure, ever just your of to

highly some there's highly there but or then is give $XX very We're where about -- likely in sort that's the of power likely can't likely are obviously, OmniAb long before of us an I a is and side. on that's potential, to exact, better of platform million before obviously, a view there us, maybe less much some the then bucket just generating of revenue you a And portion assume anything that. is show commercialized. Just the get trying

Matthew Korenberg

Yes.

on first much or and with and HanAll, budget advancing internally But licensing HanAll. sublicensing deals products don't we we HanAll deals. aware for was obviously, at it own or of M&A we programs, program, are like well our the and So,

the a really it and And the scheme. milestone mechanism out-license internally. generally the that's what in So When there. to program, milestones different they plans happened for proceed to it shifts

of the ended year we year, year. kind will a outlined all we upside as last that's a if value-creating along $XX or same the in last achieving any. that nice that that more will go positive but that potential potential less event, milestones, We was good a three of it'll million event upside these dollars this about I year and a little and We HanAll our end the all partner. into of Australia of had was and budget sort as surprising last On folks in it remember they estimate or those of outlined really We but don't X up clinic actually that doing sort of out para-norm. know So event attracted of obviously an be million $XX up not dynamic. of are

Operator

And from our comes next from Esther Deutsche question Bank. Rajavelu

Esther Rajavelu

evolved interest. us OmniAb if curious It have levels since of give with a interest? for early days. how terms And maybe sounds you high the the of is Can a your know flavor and has terms to partnership milestone I'm there lot upfront evolved the like

John Higgins

Yes.

OmniAb at more fact So of I the that in late Meeting OmniAb Big last and Antibody feel was year, think, I'll there now here got the with have was meetings, most Diego say antibody like we there is we've commensurate San very we discussion partners, there. with species multiple prominent

people general. command say, value us that -- allows So increased I proposition increase that's and better to terms, will understand the allowing us in to,

of good well-funded number of are players global interesting. feel got a interesting really getting. very who about but in a after, We new very what players, going and established we We've who interested we're the venture-funded in terms the terms So they're find it also lot OmniAb. biology are have pursuing of players,

the deals feel very well as we we about we're So good on the have. working as partners

John Higgins

offer John. a And a in company, little what profile higher platform, like as can generally, much service. is color. obviously, charge The team a delivered. I of a bit This public will function add bigger -- company to more value

improve operate than one We're of company. with convenience alone, reasons OMT the we But types. was at species that, to company those terms really are more scale a beyond working what can in for our continuing we species, the advancing predecessor private higher So We're offering IP. doing.

they those this the we up insider a in will customers are would I are, they or I fast or partners of is that in the don't first And platform. of undisclosed information this there's technology Ultimately working platform are a our partners, in I that want a small, we only is lot a terms, on. we're are antibodies more thirdly, either higher these any existed at though, are Existing help hottest eager with, more targets. targets. again, platforms publicity around factors adding is antibody that plan biotech, much to them partners are value OmniAb say, rates alternative. at to entering research. opting say, we employing better are area, royalties, available industry if moving get be tiered examples, expected best-in-class it, early will they are our to seeing to offering bit are very these we're able options to a are it have shown truly of the insiders, expression the licensing little information, driving the There Big lot ahead number is bit. to can So desperate use a technology landgrab, royalties not there. looking level both But very, I our In for principally licensing, we comment, securing pharma, a medical the of are find more solve we companies area we but difficult big than and If for of private access and us. deals, start-ups, of exercising Ligand, absolutely

it's it's you do don't this future, an with bet, of we producing. since acquisition. deal, And going We it finally in out. the we science of know it is really place the is successful our any our that ways, securing -- years is work and it is acquisition say partnerships you a a profoundly believe can to quality two proud many given So acquisition are how

Esther Rajavelu

DX up to partners? what to program seek are And you develop it the you planning Great. then before stage That helpful. was imaging

John Higgins

questions partnering things, we key to be generally, early-stage that want clinical some probably then the and we data initial path questions, the answer as that into Esther, a we just as expect questions generally and key said, speaking I&D an preclinical leverage follow I want we event. to kind enter, where open and an of answer path Yes. clinical would I&D, to

it. So we're about thinking how generally that's

Esther Rajavelu

for that should $XX on looking lastly, million What guidance revenues. the the licensing some are potential then And to the -- key on events -- to upside? be we that predict Okay. upside for at of

Matthew Korenberg

like Esther. I our in The in falls milestones $XX upside of million the the Much number. we've described the buckets included guidance similar in that that Thanks, buckets.

it at or our of to is Some tied and financing partners. events events partnering licensing

Some is tied clinical of it to trial success.

or and see other more they'll products as clinic sure -- or of thing, go we products into OmniAb if next more we and those things. that the aren't that year So maybe don't this hit sort progress type year of

we in up well. events number that of is $XX of that much splits think a as events, there. there And things million. The of bunch million $XX make I the think up of potential the events year so way And this XX or almost likely to total ratio -- so the of

that So events there's that up or so. million $XX make XX-plus

John Higgins

estimate the analysts, and $XX big investors picture, our for guidance That think right I best our is now. million. is

in $XX easily committed calendar highly The estimate repot don't we be milestones we regarding majority milestones to is. but traditional high be undisclosed some payments. have are to this annual within Some with will million probable transparent of the that milestones quantify we but year is a fit itemize, our achieving. Obviously, or lot want we though what that of potential very of certainty and the what

view probability. don't million. that to So we $XX that's high this potential But clear, other be as

now. will aren't we right probably more timelines. it to well. don't that it think X/X We partly its We or calling need just And see need and we of if others know X/X But success-based. quantified data we and even simply hit. We

year. schedule payment in -- X slip fourth or those are X so ahead companies which months or Sometimes Often into behind, or ahead might would payments or quarter case partners schedule, X a are on next of of hit. quarter

over. possible, [indiscernible] do So, again, it's control our for events not bit goal we that's as have not just as to more be overexpectation that truly or transparent background, create a but little

Esther Rajavelu

upside us million that are likely? Next give whether us the those outside it. Big Got question. my -- $XX Can you And or that XX less X, to some are can of you that think programs are these of last help to is related

John Higgins

things whole really of a of the the couple across a there yes, part are Yes. less portfolio. But XX on spread in it's of portfolio. sort X. There of It's Next that whole Big definitely the are mix really and so

Operator

in And Roth our last currently queue Solomon is caller David Capital the Partners. from

David Solomon

on Three is This earnings. David Henry. revenue two Solomon side, questions, for Scott on the one

$X.XX think income? the what color And revenue, sequential each of we about with to million how on throughout laws to or the we XXXX new $X to do milestone regards on in EPS, more? milestones contribute year? And sequential new additional the earnings, can earning the a should the expect it flow regarding XXXX, get share tax is flow of you with products additional First still on side, any royalty

Matthew Korenberg

Okay.

revenue, So On at let's year, Baxdela. as launching Melinta announced January, is see. the end this of

will more So definitely contributor the be a that -- most to year new significant. and royalties the this

launch Selexis' be those Over the And will year. information throughout smaller last public couple contributors each made of years, the we've had of some that the but its smaller we've year. SUREtechnology when assets happened,

So really year. Baxdela is the this largest launch

we a earnings -- SAGE extra pennies. about for Day get but of when some contribute the in earnings, that year. Next year, at tick few it's couple low of where will contribution. you're that Yes, times next marginally milestones year they it's up Baxdela. million within hope rounding really to translation, NDA past your and terms the tax of you're made significantly referring Analyst will On of if this just the I it's contribute it lower approval in rate, and talking their -- comments the $X year, we mostly and -- But think file to of this brexanolone

your and all still because added. on Really, not it's give. were royalty to calculate -- last question next always the management we excuse color much we're time real of quarter quarterly is $X.XX back of about we then more reported investors So lag. shifting able really time. pacing. Historically, can ahead quarter's There's me, And EPS $X.XX to the to X doing

be get digesting the announce the set this, information we'll So be like same calls in quarter investor call an about on will just the -- up companies we'll announce real on quarter. always and anyway. that our We'll -- announcements We've time. partner reporting and talked revenue investors will then those

an like mentioned. and they -- pacing standpoint back outset And of would talking that when and will overall generally quarters pacing year it pretty as just estimate work year, to earnings, being example, standpoint, we've this a year, a breakdown Captisol you and will look X good still Obviously, contributes royalty you strengths, take at with I for in it timing a just as like which three be larger. can we're on all that the overall first obviously, That revenue items got line. to what factor can that quarters from of the quarter, how about the what them shift at XXXX QX and So in the evenly spread and milestones well. quarter-to-quarter relatively last the those looks the looked is give

John Higgins

of the appreciate turn out the We call. concludes here. our thank Well, That questions you.

Craig-Hallum Coast. preview, of Roth also the will a Barclays spring, quick on, Conference Just a the we'll And presenting the Conference couple presenting on and We'll the be up. in California coming are East the at the Conference. be week, in we conferences and this at Jeffries mid-March later presenting then at same be Conference at

and hope events. at see business posted develops. as attention will you keep some appreciate and those time to Thank you. our you So your of Again,

Operator

today's This call. does conclude

now disconnect. you Thank may participation. You much for your very

Ligand Pharmaceuticals (LGND) 21 Feb 182017 Q4 Earnings call transcript