LGND - Earnings call transcript Q1 2018 | Ligand Pharmaceuticals Incorporated

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Operator

My name is [indiscernible] and I will be your event specialist today. [Operator Instructions] And please note that today’s webcast is being recorded.

During the presentation we will take questions via the phone line. [Operator Instructions] It is now my pleasure to turn today’s program over to Todd Pettingill, Director of Corporate Development and Investor Relations. Todd the floor is yours.

Todd Pettingill

Quarter Financial First 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

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

John Higgins

off start. to Welcome and excellent thanks our for an joining is XXXX call. earnings

Off course booked growth received continue Our well, and revenue financial programs well setting million our internal platform R&D this and technologies significant year $XX the be by to our licensing the on we lead entered of to partnered full one are over for agreement flows. assets performing very us cash in Captisol, ever largest generate we quarter, note and industry. the OmniAb,

the it physicians years little was was but with drug the We This every very growth result and $XX also for momentum efficacy $XXX profile as another as the in of QX, and ten first the QX a market is the on for That’s sales for million is X. the has for continuing drug out XXXX. comfortable reports big studies QX, in over in the The of already down of revenue nearly sales coming as reported with more quarter largest QX of Kyprolis, first Promacta to been $XXX quarter to at believe continued further the growth we May the quarter. sales. and quarter compared Novartis get drug continued quarter up which drug. Novartis’ a with million significant Promacta. prove a excellent and typically gears reported see Switching product to Now ONO million. investment Amgen its safety XX% a

for $XX as diabetes economic mid diabetes While digit for major Under of both Roivant GRA of licensed we to or of to it and it market a to for large on expire This most The billion with regards and if compared paid X is Amgen’s years safety development It's Ligand for the is ONO, commercialization. glucagon mechanism assets drug is medicines. for deal Metavant teen to the if R&D for potential license XXXX. into premier It developing to development the Type have various Ligand’s a million, caps that there’s would in over antagonist creates receptor are and $XX committed upfront. The mean a off – in X both a up QX its $X.X and continue Roivant both royalty past growing, partner million diabetes. forward Amgen agreement we so a Ligand is data transaction specifically earned Global Through a several in in covering scientists, impressive stage QX far. worldwide we Type clinical Roivant the There largest, is recently to year. Phase be investment to toward history, program major entered royalties are quarter and and the license effective forms a and and the program in successful of R&D milestone range. double to successful diabetes the our the potential need patents granted, and in potential substantial novel, and portfolio II development. funding novel in until payments or sales sales new XX% path drive expected low last program LGD-XXXX commercial formed terms Sciences. not

Foehr royalties on I’ll has time that platform portfolio to penetration along be will to excited XXXX, moment, offers generated continue significant Ligand generating anticipate stage stage clinical the revenue the products access $XXX but earn discovery we the the to period three royalties platform have turn OmniAb Matt research XXX XX will be and So more animal On trajectory OmniAb’s it the continues platform. over over the over will transgenic species candidates, for contract over a very potential under another programs provide making one our in of the market to license. platform to if have and more long Matt only to approved. into Ligand. is with million is drug topic antibody for By update. provide that market and Foehr we of the With by discovered of detail

Matt Foehr

to and couple review a programs. our technology with then and with Therapeutics for announced few ago partner they received depression Technology progress promising or presentations IV is PPD. breakthrough a significant today designation discuss to offer utilizes underscores in breakthrough of for Sage intended some our need of unmet on intended recent therapy as PPD, platforms expedited submitted a internal activities. which Captisol a programs, treatment new drug recent in in XXXX, upcoming that just Brexanolone weeks conditions. postpartum publications progress general, the treat start path our partner its potentially and drug development for FDA I'll intravenous of the that therapy Starting candidates I'll exists And developments serious to selected formulation. a with brexanolone brexanolone a of in application John. designation Thanks in R&D

half in to with is of IV program safety with clinical readiness women Brexanolone the XXXX family-centric PPD a deliver which There generally being PPD may strategy achieved clear symptoms background, Hummingbird year. potential intended to without is recent in their from of of including not PPD. the sense national U.S. involves And evaluate range It’s proper to of more medical home SAGE than and for affects three the undiagnosed. general or hopelessness, go program, progress Last of included estimated first and each are anticipation approved multicenter, therapies for treatment. launch SAGE's submission that more As a that screening in launch, randomized, by of data network a of preparations a development to crippling on support week those need model and also XXX,XXX work effectiveness And designed infusion severe of fear women from placebo-controlled double-blind, a each cases moderate isolation there’s of trials, supported in NDA whole. that a reported no half on than Brexanolone. towards PPD. support their feelings

oral FDA a making this of obtained IgA trial metastatic may key that III trial, breast SAGE signaling leading highlight of Captisol in the IgA for our half is also renal a agreement. Phase to be briefly of I’d look of week with with Sermonix leads impressed in continue ESRX also relationship expected they also that metastatic NDA team Retrophin our of forward trial. of fourth glomerulosclerosis a in license is FSGS doing. the with on partners platform registration XXXX Retrophin of accelerated at making approved DUPLEX in pathway Top And a The estrogen filings play XX-week is emerging is for efficacy point from progress role literature promising and and feedback announced inclusion Our pivotal indication with mutations. block at called their a endpoint back segmental We continuation pivotal reported that to team modified which sparsentan to Retrophin like year. a a data suggest potential disorder FSGS. potent work in nephroprotective and II which for April of in to mention highlighted in MAA quarter compound Subpart of is the II evaluating a and a that the the gene stage partners H builds started end analysis Phase progress the initiated line potential XXXX. is they is interim DUET that disease receptor of presence the with added sparsentan Sage potential expect positive interim an Phase the for drug. Phase nephropathy management III the clinical an bio study Data pharmacologic nephropathy, the very initiation assessing we no sparsentan estrogen study available FSGS, to EME in cancer. the a at Phase toward kidney treatment the that often more sparsentan good second III of is particularly or end rare initiate disease. groups which I’ll upon remission in and focal for Phase partial the thought at that the receptor trial of are lasofoxifene to treatments cancer, now breast Retrophin Sermonix the last of proteinuria. program from are from early global, approval for the positions ER that to of in treatment long-term results Study DUPLEX sparsentan the trial future of also a II the available. trial enabling to

Boston platform, protein one antibody our the therapeutic discovery and very PEGS global, team in now technology focused our successful to a accelerating So bio antibody coming PEGS industry's meeting is discovery drug development. week. on events is preeminent, OmniAb of related last off

a expect hosted we industry to Our OmniAb the that presented efficacy drug diversified and most moving coming the therapeutic of to optimized have data both partners. this to scientists we continues the illustrating OmniAn for the from five that antibodies multiple with are reviewed paper growing with our with agreement I future for Chicken. and the transgenic Partners, others with Pharmaceuticals work add as OmniAb use technology, agreements three Chicken derived needs. the in end animal full global given is our some of Switching year. technology continue expect technology successful clinical companies. species for the and the we OmniAB visibility current Pharmaceuticals I animals of vivo agreement generation expanded Chicken peer of There licenses OmniAb journal clearly data Partner next to antibodies manufacturability, the the now genetic experiences The be that and partners serves note to from partners now to partner relationships reduced platform. and research we in two part Chicken OmniAb of that single new most number and and article From around to growing new also the produce continuing and entering antibody OmniAb describing that And highly Omni animals candidates the to invest PEGS Omni see We're challenging genetic of partners with transgenic to our new in attendees continues partners also clinical in we announced an recently our MAbs who we've derived their backgrounds the that and a platform address are potential with will Glenmark note in and a prior enabling best-in-class as interest We meet Captisol now products. license the in characteristics we for be OmniAb and to I meeting venBio the expect be it OmniAb existing published we perspective be to venBio now to OmniAb XX Summit Boston the Captisol, venBio different include prospective the human our the of a immunogenicity. Ferring months. That’s expand biologic license that that third partners to Ligand start a that data has we continue offering to for seeing partners clinic was agreement that illustrating also There a in clinic. repertoires over in deal XXXX. of also unique note umbrella only platform partners targets. and presenting derived development validation Captisol it’s from we are also of had existing before portfolio by value for platform consider why on continue even Omni increased variety OmiAb enter fully platform

advanced few weeks related at the presentation Pharmaceuticals year we've number liver maybe in the And that as an intolerance. file. meeting upcoming program include now was later China presented study growing organ, data well. the last statin LTP medical ASCO achieved and recent for File with showed scientists a first value an LTP Drug LTP Our is in for also NCO-XXXX establish for higher Captisol are a seven our and as a our IV significant technology and of recent files in which prodrug XX-fold ARROW of data parent Phase others. Ligand target week Ligand continues Noting File, to Master with database safety Hepatitis Phase strategy prexasertib from among tumors; planning for Type I Ligand JPH-XXX The our or statin note with at U.S. technologies, and advanced Scientific Kyprolis well Their and well. a data liver-targeting presentations meeting, partner on technology, programs. DMFs equivalent V Sessions and Ligand solid couple of Nucorion master Nucorion’s are EASL scientific that and Lipid rosuvastatin Ib Drug presentations in liver as reduce data presentations ME-XXX at a National improves we in partner solid targeting the drug that our showing data XXXX Japanese Seribantumab Lilly’s presenting the the in dose compound. this captisol-enabled Merrimack’s concentrations the conferences, to cancer non-LTP enablement is of our a for from in Association's oral noted our programs Also Master compared as in of drug J-Pharma of approaching that to on B. drivers Canadian statins Type effective increase Captisol-enabled breast III technology Visibility cancer; These MEI’s and to drug tumors index therapeutic potentially significantly annual presented

John So our is I'll and for focus of last of years efforts effort partnership significant exciting was RVT-XXXX. new now conclude our about recent program discussed for a into a remark Roivant as with a now some us. translated few our with brief program, and which our over continuing R&D R&D the GRA known internal that R&D. That partnership

studies is plans clinical We value R&D and strategy. We discuss believe help on precise intend those diagnostic our contrast internal define we for now add prior financials. may program, the this the CE to iohexol imaging. FDA coming our trials. to the with Korenberg We're we the to you program turn to to updating progress. months look the excited the that forward of filing initiation into of as discuss IND and in Matt continue over iohexol Our our to is key agent clinical for primarily focused our recently which call pre-clinical experiments about make Captisol-enabled initiated and next-generation significant With I'll clinical

Matt Korenberg

Matt. Thanks

investors royalty this Ligand are XXX on Before the place I get that I'd principal The remind first is ASC like quarter that started revenue to under new reporting line. we guidelines. the the is impacts

making line royalty The evaluate item. the comparable we’re the correct the comparable provide earnings tables XXXX our numbers growth couple period only that reported numbers for release contain that the a to of as result a of in period As investors about comments royalty time. at

filed to XX-Q describe places. have differences will Our footnotes the when various in

were revenue QX year some Royalty the with the of largely QX release earnings $XX.X quarter Kyprolis Material for of the as reported revenues begin million XXXX higher and $XX sales was royalty million $XX.X license in prior QX trials QX slightly this were Total for period use million. $XX.X year from primarily $XX.X ago as million, let's to $XX.X the ago. increase Now with issued XXXX the commercial recognition in under the revenues clinical with QX a – as was the and to appropriate old out-licensing XXXX, increase afternoon. in material compared recognition year up timing which several Again our a the our the mix last as GRA The QX million revenue year with program, as of highlights The $X.X sub-licensing revenue sales million, margin the million is XXXX, reported platform. comparable in OmniAb for financial QX revenue were XXXX standards. reflected swing XXXX royalty were growth upfront million of gross versus royalties. million compared $XX.X with $X.X compared a payment XXXX well reflective effective royalty $X.X sales was million products. events for in revenue, period. which purchases which for appropriate revenue XX% related the for Milestone Promacta period. and higher to due earlier

sales over of corporate XX%. gross an material margin cost translated Our overall to

below We the for expect this XX% the the expected of of margin gross year the be that number balance will slightly sales. mix given

expenses side million $XX the expense track and cash our were G&A line $XX year to in on operating million and expectations for remain R&D for about expenses. operating cash with the On we of

internal in will in Included recall of this see expense our initiation relates we for plan focused acquisition of $X Vero. R&D the line on iohexol. $X.X expense the development the non-cash acquired we over an cash for Rather program Investors we Vero January and of this of new than acquisition expensed onetime of including onetime Captisol-enabled quarter $X be would result million a that capitalize otherwise. the it and than R&D higher R&D line you'll a line the life to this cost as reported expenses. Specifically amortize is million the it announced R&D as in the million program, and that both is

our million adjusted income this $X.XX investors and per cash $XX.X reported share assets of in reminder an tax for $XX.X cash, million per same tax rate results continue reported year in net year. with compares on or basis utilize $X.XX X%. million an to For period. or the $XX.X from in share last generated diluted we generated to that the quarter increase than is after NOLs we cash our diluted and respect of we which less the flow in A adjusted period although QX, net income operating $XX.X million a tax to ago With a

income related million. million and hold Viking the of earnings outlined to GAAP short sheet On cash quarter to cash, the $XXX just investments balance to in significant our in current approximately figure our the price. $XX the income QX as quarter in net term for related million we of gain $XX.X a release, market equivalents This $XX.X finished Viking stock. Related our the to in net marketing included with million we was over to of marking shares their XXXX, – addition GAAP

Given Viking financing the quarter, proximately ownership completed XX%. is large now the in our that

that off our in will time, the forward. current line from and see moved Viking value was one balance the calculation. As gain investors moving Viking will excluded method large, we've EPS on a accounting unrealized our This reflect adjusted sheet of equity shares for a result assets

guidance, we to our guidance. reiterating full XXXX are financial year Turning now

be XXXX excellent earnings growth. of a in expect We to year revenue

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

upside of we additional million license expected full and diluted to license see for $X.XX. fees. of per share In potential an from adjusted million earnings addition, fees upside components with $XX XXXX milestones revenues and and milestones These about year expected to translate $XXX

an XX% the largely first associated from increase successful pacing, of year, quarterly to QX. half our a of guidance year which half and realizing of terms first revenue in the licensing our result program the the the having upfront the In now out GRA in is is earnings the approximately previous we with for revenue of payment see of as tied in

QX our ASC to and As our expect pattern royalty for throughout royalty changed being XXX year, royalty year. a increase a be quarter quarter as highest such recognition now each of tiered revenue – the to investors, royalty final quarter revenue we being will with each reminder our our and lowest structures that royalty result the QX in tiered structures in the revenue

turn liabilities our changes and associated EPS owing licensors diluted related amounts by and guidance back that questions. for the covered recall adjusted non-cash with mark-to-market non-cash gains and in certain expenses CVRs, and Viking Therapeutics, the for expense, items. excludes investment amortization, onetime I operator over please from related shares unrealized stock-based call bond Lastly, and open nonrecurring other With debt costs, up the hedges the adjustments contingent line to convert and our compensation transactions will excess in losses the

Operator

time this to [Operator question you for will questions line take any with we have might H.C. Your today. comes Pantginis the Wainwright. that Joe Instructions] of like from us first At

Your line is open.

Joe Pantginis

guys quarter. Congratulations another Hey afternoon. great on good

question due your to XXXX. quarter ask, with regard asked the any of the in same to it's debt First a but plans usually logistical convertible question another with have regard someone I changed

John Higgins

for question. Hey the No Joe, plans have thanks changed.

have, cash, $XXX of as equivalents. over I We cash million mentioned

the owe of excess in use we'll our about million and will We principle convert then investors of $XXX shares.

got as and we've significant it of well. now cash will so And maturities today cash between plenty generate alternate

Joe Pantginis

now you forward product Great And And LGD-XXXX, to remind at that of you XXXX shifting helpful. internal Captisol-enabled be term? with us regard another RVT-XXXX. near might relative bring role gears level asset did will to support do formally just you for that's could then your say thanks, is you what the then your internal with the just But iohexol. key looking be the obviously that mind in pipeline have in

Matt Foehr

the Obviously as with we as announced John but It’s spent with Roivant proposition it's very diabetes. the RVT-XXXX. called happy X Matt as and during with the the a the in interested Foehr. clearly said, they of parties actually Roivant Roivant of other now X and Hey a both Joe you We the drug value Type understand lot described We're time partner. thanks applicability for deal and questions. deal process, Type

they'll publicly We the about with be very more obviously But their plans up. the coming doing. talking expect moving development we're happy forward. control they're They work

So going with I'll say low-double cheer economics rapidly forward there’s deal million a them mid as Obviously the progress. over on $XXX with substantial a royalty. digit associated and to teens milestones in

So the recall it's R&D at like which to drug time say is obviously on. – made substantial the was progressing regulatory clinical partnerships. see our linked focus programs. spent Captisol-enabled which in we to the also for a melphalan those satisfying in been Those focus following investment a even on the a have But that's time have were now that XX% we play on a path that some long economics out I'll investment and who and – though that royalty also time we for that fact have us

of think program as described. and been is safe iohexol for clear. very For in focused a real there's innovation moving really innovation kidney a a I need on that for that we’re We the area, forward need there's very product lack

of came over a that the out of New the well really and as last some commentary couple a the paper, see that recent In validation just England as about the as both need Medicine some of in fact we the real program. Journal publications and of importance were months need there

early we're we continue there. LTP that some other statins. in. Beyond investing have the work There some LTP We've expect opportunities with to some I obviously Platform. paired would are with recently work we’ll published with do stage programs

molecule small a as well. on we have GCF compound that been publishing in working also We have

So that's outline. just general kind of a

Joe Pantginis

Great thanks a lot guys.

John Higgins

Sure.

Operator

comes of Craig question Matt from Hallum line Capital. the Hewitt with next Your

open. is line Your

Matt Hewitt

the congratulations afternoon Good start. gentlemen for strong

John Higgins

Hi you. thank Matt,

Matt Hewitt

pick opportunities A you of you on XX some the it's a your especially couple little the for times. that outside knocking in harder ripening top on with to us you Obviously at can help But for year detail be door maybe see the top a the over if bit beyond XX, questions. thank maybe that priorities. track XX on those the first all as see XX the you couple or or first providing so? potentially and to the next But

John Higgins

Matt Yes then make remark add color. I'll thanks. can a And a well Foehr and Matt

Phase a then to we break this roadmap to assets. to for And – just limit are the III on organized NDA those select obviously get you with associated assets, GRA they blockbuster, commercially did. six late diabetes What leading royalty. And out simply or late often its we or XX. of recently the and programs be We company. and focused multi-billion profits are we what a dollar if I going try example we're think be and drug with the will do or significantly of our stage top high One how This high are revenues on investors. could space to is are there may for the generating call proverbial economics. proved efficient is next in the a deal value list value questions there stage assets a we the And do we it pick into categories. big those create Six stage the Big the be

So for roadmap do data a that those next factors assets to other in breakout current some potential here. we a give how want for the we categorized XX, are The those reasons, a to illustration what over we in or high there's year obviously said programs investor a other can limit Having value regular with economics. graphical that, for XXX out programs calendar break with presentation. with

if Matt to conferences have programs. year, we’ll an As Analyst other I we've I expect other showcase add got featured any yearend we Day to some want go you color. on this don't and know

you I we comments item detail, there? probably other are to think any to into on line get call but want other going aren't there this add

Matt Korenberg

to it you promising around the is currently, five The entering be I programs well I with there building OmniAb very I'll others and excitement and see add we John. summarized those no only said piece think other biology clinic as Yes, some that expect just with many them. around are momentum in soon, we the

[indiscernible]. talked of the which one are bit program But has HanAll see on been exciting. well. John others, little we probably going as one antibody, as call example Just HLXXX, of the as of monoclonal a the an anti-FcRn we interest that is last subject time, that just There deals to as few said, and is about a

John Higgins

And highly with but just we pipeline that partnerships perhaps described think a about, hope we another and leveraging with value. OmniAb, valuable financial we perspective. clear see the and be And creating the success evolution it's of that will technology to I talking new platform

now are We just twelve are of in candidates, trials. in last months first-class the clinical now human that six, seeing very stage drugs antibody a just

investors those drugs successful will our we large, is an permit pipeline OmniAb, know, presentation. that or assets. which be to but more an public while now assets, stage, over of twelve example, OmniAb us of believe talk an relates space Phase in those that and data once [ph] that about six I, to confidentially, right disclosure the months, selling we cannot to be of the chart there programs. a to And expect Phase will are we’ve partners some I inclined is reference next terms emerging by But emerging Under now, top partners drug much does right As will about we are early antibody for not fact stage occupy more point of OmniAb of seen there antibodies. taking our start that's that now. highly to right very the II very, but our as Humira commercially But

Matt Hewitt

maybe to that the similar be relative phase contrast that on all that And of Captisol to platform. helpful. just on seeing where was a compare, may That’s Thank Captisol had OmniAb regarding wings really is similar you. Maybe your timeframe. you. today versus period? maybe And follow-up the OmniAb where one you’re development Thank at

John Higgins

But obviously answer from a time royalties, again generating were expectation arc deals. proof strategically is ways team a frankly, the business, we operationally on Captisol Matt later have of any of a it at outlook. And acquisition both in business a much life, technology there much see can but going And and you That’s good of was tag couple was perspective. to the question. There a for will. number smaller some kind I and already we're the smaller even if was lower revenue products, generally, because an stage. different

platform, a literally into as opportunity. very investors platform. attractive exploded it's has know, That So

revenue, exceeded have We deals, the the number Captisol. of of off far flow the cash the

should are to to high-value clinical later, some you as that’s space. got of important, candidates. tool So The days it's fail, years is we Phase with of Not a preclinical, all be number and investment – going early-stage And of difference money in And OmniAb see successful. We earlier on more of And but contrast antibody go Ligand’s any most is we of this success, accrue R&D the I And invested investing are information. stage. sums what's the want being successful targets large Matt other don't benefit. while the reality because amount that area been commercial again, significant as Captisol-based seven the that big making money that really amount see we though revenues a of The of our in going the principally discovery while is for our offer and if yet stage just one money. by first assets. targets what's after the far, is, It’s what to to of see has this color partners programs its to exceeds measured lot partners far antibody decisions all big that it's for invested will. and wise two. biotech. investment pharma

Matt Korenberg

their have have you couple Merck, a of single one a MCEs. Captisol Yes single – just the agreement compound agreements program where for is with the others paired platform, swap Captisol element to In now Lilly, where of it our agreement can they other majority that or or of of Captisol if general, are comparing add they of platform two. compounds some exceptions proprietary exceptions their just compound, of

to essentially deals. You compare all OmniAb are where our that deals of platform

of diseases, So targets. targets using variety a partners OmniAb whole are to for discover of variety

using previously, XX I testing targets annual many are cycle one to we partners have some As in who OmniAb. mentioned XX as as

at it Boston finer of that So saw detail wide. a last PEGS. just more in lot comparatively the We very week Partners use at is even Summit our at of

So that's I the say. another kind difference two of technologies, or between the slight should two programs

Matt Hewitt

for the much detail. very you thank great Understand

Operator

from Roth comes question next Scott of the line Henry Capital. with Your

Your line is open.

Scott Henry

going Thank just of modeling questions. I'm couple to good afternoon. a you to and stick

playing good your being first the The base to out your you QX to maintaining particularly are about royalty looked business, guidance. safe date? it royalties say in pretty recognize far strong way the so it feel Promacta. I Is pretty you’re

John Higgins

balance us everything the the things. sticking performance confidence But But Thanks Scott. to of to be in obviously QX far was and we our we guidance have so able sure. that. still we Kyprolis strong yes, meet their of gives on year quite from in and seen example, high for will need certainly the see that other we're the numbers and of we numbers Japan for so QX Yes, reiterated Ono couple with

Scott Henry

sales they're comments of Okay cadence Great. a think prior obviously, it about this anything in? or Is factor to and how we years unique pattern year? those the And numbers when year we we material think on Any about similar milestones, might little throughout should that chunkier. the

John Higgins

year. this unique Nothing

the patterns quarterly a whole beyond But on over I both well. higher for So see number GRA side sort be the that, typically, Captisol on a gone But say tied and annual see $XX as wide in recognition by milestones number specifically but a the expect both to reminder, fee. QX to of of to in year those. the renewal year this happens trial would is quarter tend I be that the you’d that are to to sales milestone Obviously, cycle that would progress terms as a year the the than for second milestone higher of lot the patterns be this part highest the some happens Captisol, tends the On case, of a we number our quarter margin it QX, in of of half given the the some expect just license times, little such of others. planning of a of of ordering we've fourth partners. typical million

Scott Robert

in the And final would about that of that entry. Therapeutics’ basically, Am stock question, about correct Viking the want talked Viking entry forward? that I there I great. is Is then you know set. should price you to to line movement line Therapeutics going Okay, borrowing be understand, no think entry we how

John Higgins

Yes, spots shares end the and sheet sheet on each it's the value correct. of one, There of the the of two be the will on as quarter quarter. balance so that will obviously, hit: the are balance

will up that share So move the and with price. down

that in depending we or course and of our will in a movement also until out You other and from associated to on shares and Viking monetizing. losses with adjust the from gains have see companies. hold continue losses loss realize positions each But we'll also the of that P&L quarter those we EPS we’ll actually gain adjusted calculations another gains smaller

Scott Robert

Okay, for you great. Thank taking questions. the

John Higgins

Scott. Thanks

Operator

question next from Larry CJS Securities. comes of Your the with line Solow

is line Your open.

Larry Solow

Good thank guys. afternoon. Great,

events are you that The key the events. revenue licensing is can Captisol OmniAb a On OmniAb, significant for contract distinction loaded. it’s pay backend sort both more and very of think, component, another I has

flow commercial substantial. get seems cash the before can That's it fond my the of you end to sort it’s just pretty [indiscernible]. So

sales but tremendous to as up there. years, not growing? about we pretty on are acceleration quarter? the XX Just as competitor growing anything maybe Any obviously, as that? in know thoughts And Do on remarkable the Promacta, fast, unusual you also increases they said price

Matt Foehr

be anemia, Larry Novartis' just, to to ITP other commercial in of be as we with continues as execution, I'll long-term over aplastic data months this data Also talking to and experts superb. last Yes the one appears around safety market say, the The well Promacta overall things which as to like XX Matt. see six fields publications growing. in is well

things think all key it's the that’s to data, of to when physicians, data play safety But a I out. the the really, starting data play are you starting long-term really and I those to efficacy talk role. well-established think,

Larry Solow

it normal as sales to may years to reason progresses? than upfront for believe three No increase usual [ph]. believe QX, any year. this is QX mean, the the actually been exact going sequential we Okay. patterns lower quarter last of the But won't space have have the was year time, almost Usually, but… that the it [ph] I reason follow every not

Matt Foehr

QX. Yes. the was down sequentially obviously That that. over it. Not the QX QX not we not been we please noted We Larry, QX same see has to thing has see, in last four, were sequentially, the that from case been years that we see generally no five down this over

John Higgins

difficult any it for That’s double customers this are publicly significant Great. what And seems product category currency I up very that monitor foreign we just important. vitally, and from It’s a active, very out patients alternative Matt trends years Children on very product, rates using transfusions impact impressive is see patients, feedback And was With another research. been U.S. you is a the space. safely comfortable gains. for XX there’s Larry space available the add. can and cuts, and investment. risk alternative. levels. based hearing to if drug I’ll and at we because RX high to in is the this anecdotal pediatric continues look saying. one And why solid so bruising, monitor they going therapy are the very example clinical strong. so like. parents that’s just continued just a pediatric market and investment is that mean in But still big are on is and trends, platelet show physicians on. important quarterly you’re Obviously, That’s platelet some increasingly are it’s some exchange

Larry Solow

years. a Alright. Novartis it only had of for couple

Do more think impact? discount to still price the had price still the second spend for probably at hopefully lot we it. still thought that was has – guess there’s’ case? I them Is know put a a any we competitor. So I it distinct into

Matt Foehr

Larry. yes, we general, much haven’t the antagonist. price But other price. commentary lower is We general, In in on really believe latest it T-cell kind than of

Larry Solow

in the Okay. on quarter?. Any [indiscernible] update the

Matt Foehr

for Yes, late $X.X reported so $X.X they which for Spectrum quarter. week million revenue obviously to quarter, million reported last us translates of the and royalty

Larry Solow

guess. bit Okay, that’s down little I

Matt Foehr

from has probably as cycle obviously But a something do we there that but them. preview down the to are level of with bit. QX to it’s well, [ph] little in that lympho Yes not

Larry Solow

it, great. Got Thanks.

Matt Foehr

Thanks, Larry.

Operator

question with next Esther of Rajavelu comes the Bank. line from Your Deutsche

line Your is open.

Esther Rajavelu

on quick one have taking for you question. my thank I guidance. Hi, just one

upside million do you comes expect $XX the the through, could quarter? how through phased Assuming to that

John Higgins

is stuff to needs going generally that, to happen. in going upside and public when privately make to Or of don’t a start are those I’m either What a know Phase up Phase can getting know steps. currently or is. events generally not the preclinical. I if question the that then IND bit of that be don’t it’s a and be we And Hey quite the quite when two when or what is year. and upside to finish talk things so the not trial us of to exactly us we Meaning that’s ready the is and program our start numbers. thanks. I that we ongoing to more, a needs most or is II meaning timing as it’s requires you usually Esther it don’t you second Those other Phase blinded company to little to a million about you know $XX of might types said go half imagine, good from the that going are

second early of will It bucket, we year. certainly it. monitor realize was the is to particular to investors of upside continue that but we’ll it probably most if think happen I milestone know half the let So part of

Esther Rajavelu

Thank it. Got you.

John Higgins

Thanks Esther.

Operator

from of Your Pantginis comes Wainwright. next line the with Joe question H.C.

open. is line Your

Joe Pantginis

this guy the be and question, would the ITP talking did since Promacta question. landscape. Hey remessified thank for I ask if you I not especially, about follow-up we’re taking

well. So a NPlate has as Promacta said, doing with you example. an very Promacta of been drugs, couple have infringe that

just went more into You details.

market is ask with room the regard regard label, entrant want appeared They recent or to not it is TFL it’s market to second So but line. I – get regard the Kyprolis. refractory of a broad the approval others new the question views market after with with to to was, whether Ligand’s how I not, guess some broader people was to label going the for have surprise a does

curious to the about So your just views towards new entrant market space? a

Matt Foehr

some to obviously probably drug two at to was the obviously, us clinical seeing. This drug have data call, adverse to saw and Promacta Phase Promacta. trials is We’ve what efficacy were we and Joe comment that generally the minimal the followed, on are of express I various Yes likely pediatric over of thanks the for the actually anticipate of we thanks. all and best therefore, We to safety Matt they’re surprise studied the the a about, it’s failed data long-term the have practice, for also talking what be express spoken who In used the event to impact population site, trials the profile and profile we that like. in that III safety those and ought the TFL on in talk in patients well-established a just really But news as question. Yes therapy of real-world have well, really approved. not we will call, the is for on market. drug the kind Foehr. was paths [indiscernible] guided the if has the taken results we I of The the based years. Novartis,

persistent of may that American publication. ITP. characterized publication treatment a role drug also of adults and subset that’s that the couple how we that drug’s I noted was generally published in in saw Hematology last So it of have weeks a chronic the of data even the Journal was believe And that small during with in

you don’t we playing a we to big well. it direct role see course as Novartis would of in also But So practice.

Joe Pantginis

your for Matt. thoughts thanks Absolutely

Operator

of Esther Deutsche Bank. Rajavelu question with next Your

line is Your open.

Esther Rajavelu

just I queue. add you share I’m – this other based guys Hey with will the one sure question the Can provide be compensation? us in on for sorry. bake with the stock have out

Matt Korenberg

EPS adjusted we to So, earnings the is last the that use table share number calculate our outlined release. on

of $XX.X back you were and diluted looking We share you for to deducted count. shares so – reflect was the sorry the then million this that about for that you will Was – get you GAAP And the convert fund look and hedge X.X that quarter, number million. XX.X bottom number million then the that for? $XX.XX there, if see million for towards added the purposes a the

Esther Rajavelu

stock-based for you looking were that number was numbers. What… your the in keep to compensation I the if adjusted

John Higgins

looking The amount comp what this quarter? was Is you’re our for? dollar, so dollar for what that stock-based

Esther Rajavelu

– What dollar be No. amount that The diluted? were the stock-based that… comps, all your converts to $X.X when if your is in if million

John Higgins

in which time, included an net number. were dollar obviously. dollar dollar the million XX we is value to the expense shares the this of in number are income or is shares the shares. diluted they amount Those added And the already the recognized That’s back all that The counts we’re quarter. investing shares why, the fully value share over of the as

Esther Rajavelu

to take that soft stock-based to numbers, the take We be? was expense the then Right. you’re compensation stock-based compensation not can going your going if adjusted what would include out, My that in line. you XX.XX question that were

John Higgins

we Why Yes. don’t follow-up off-line.

Esther Rajavelu

Yes.

John Higgins

make sure will I right number. I will give exactly the

Esther Rajavelu

Thank you.

John Higgins

Yes.

Operator

questions There are no further at time. this

John Higgins

XX, We everybody’s give invited you. have appreciate been to Conference conferences. Tarrytown, York. attendance. Wanted a thank – Well, events Investor just that’s in We’ve to questions. New Berenberg out Okay. May upcoming preview, we several Good the

calendar investor May That’s up. coming with at And Craig-Hallum in the XX. We X. at their Minneapolis, Conference, will the then, June conference Jeffries be

along seeing you in the attendance. way. look your We to June. also coming data we and license updating And program have our but data GRA Roivant as out Thanks under now program has for forward you

Operator

and us may disconnect. today. webcast Thanks hope Have day. to This you all found great our informative. concludes now our you for joining We participants a this webcast presentation

Ligand Pharmaceuticals (LGND) 8 May 182018 Q1 Earnings call transcript