LGND - Earnings call transcript Q3 2018 | Ligand Pharmaceuticals Incorporated

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Operator

Good morning, everyone, and welcome to the Ligand Third Quarter Earnings Call. My name is Selene, I will be consolidating the audio portion of the day. All lines have been place on mute to prevent any background noise. At this time, I would like to turn the show over to Mr. Todd Pettingill.

sir. begin, may You

Todd Pettingill

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

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

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

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

John Higgins

our turn Ligand. are be revenue that were Novartis in that toward for our are revenue a year winding Ligand. analysts up A quarter exceeding in a this $X of margins, peak is that quarter, guidance with thanks flows and In Ligand $X billion annual billion a in and there this after cover to exceeded products who trends, in higher, move product is we both peak in few financial we high on potential about the all XXXX revenue for about a we analysts projecting the drugs good outstanding Amgen $X of have morning for driving fronts view, time expectations of strong investments cover now Good returns is show We have XXXX. notable Kyprolis drugs. significant from growth, year. an and call. both joining royalty is sales enjoying seen first XXXX a past full is data earnings and remain research rest posted range first. revenue track years. cash position. and exceed on in both strong higher momentum few for fantastic are gross What each billion comments Promacta cash over projections, as was lower, partners, both and our considerable our robust to to the products for The drugs have raising but sales given the very some we growth some estimates with sales for model QX

Novartis' years indications. from of as results safety profile efficacy strong First for experience for around building or data and XXXX. performance been quarterly countries announced than have top product is division. product, Promacta safety $XXX competitive XX that growth other do million the for continues physicians. the $XX with Novartis given revenue label by of used impressive drugs in at Promacta, launch in over long term QX medicines ever XX% one increased given mentioned It and have trial million, report expansions particularly is updates innovative also The a utilization well their brands established has highest and the there world. that Its to more is up I had and

ASH even that know has coming the more the will on data new the be been commercial early Promacta presenting as drug profile. addition, December. is new Novartis out conference on still a years. important class to to over continues at attractive that In after world based organization data Novartis XX impressive a blockbuster grow therapeutic is on This Promacta in the market is product

Now in $XX QX QX. sales Amgen sales million of Kyprolis, $XXX and for reported reported for Ono million

So million. quarter $XX QX sales combined last compared XX% million sales over were with were third $XXX up or year. of QX

that combination for to multiple note, some myeloma. month, with just a the We include relapsed patients for dosing prescribing or a Kyprolis patients. more this a development the drug last application in potentially to making approved once for Now convenient announced positive information with Amgen dexamethasone the the expand weekly refractory see as FDA option

and highlight investors we As updates. know, provide our assets key continual pipeline

Ligand. the of worth strong and markets calling couple highly out. potential. pipeline that regulatory and we've IP, These past have are major and driving are a has data our events due months, potentially assets royalties Ligand to future Over address economics to valuable large and seen lucrative very diverse tied

here will more updates on product but our with about of license are under Foehr be Matt Ligand. talking assets, Now candidates two

remark in development is The cap Friday Brexanolone formulation Brexanolone, is Therapeutics Advisory of received There by PPD. the of subject Committee with our market. uses one hope the promising it treatment is FDA and ID first development PPD what a depression Sage in and XX was under-served favor approval for It's for technology quote Advisory and in I to or drug. X reviewers an as a by highly its a the this favorable in Board the fact supportive and last person which a looks robust cell of was major is commentary vote, like. recommending vote postpartum

the by If Sage FDA on depression by commercialized, of with in an product date postpartum is designation NDA to the and COM FDA will with from medicines completed Zulresso for XXth. or Evidence the and the by therapy the AD at granted referred receive action and also designation last development from unmet the need successfully royalties was clinical discussions under for priority the was week. sales. the Phase a drug of drug EMA. Ligand III clear review medical quote the prime meeting which December breakthrough Zulresso, very presentation trade name approved Now

noted Viking earnings nature of highlights importance the with and study from program presented with yesterday the from recovering results XXXX months dataset. the II liver presented Research of for late-breaker was the at Francisco. statistically active XX events Viking Phase study recent in Clinical flow study in in American VKXXXX these positive and that organizers San demonstrated from royalties in fracture liver entitled II experienced patients non-alcoholic an an fatty disease both at presentation on scheduled Most this of to Therapeutics. just Society Abstract fat results week cholesterol Now That reductions Bone confirming lipoprotein Outstanding Viking's content. the Meeting They've The to NASH. top the VKXXXX data statistically a milestones transformative a I'll reduction Liver and weekend partners call significant in oral on announcing Phase line study or density Meeting. in positive and Award awarded other hip were news their Mineral of the our results Both low Also and be Viking by further is in conference drugs. of are significant patients at

in they a Notably million, million. Vernalis. and up million, about our as was to disciplined, on team discovery the is a cost continue world the platform continue substantial has such indications. as be will only R&D for brought deep several the transaction structure to customers and to potential to a $XX of drug class deal, new high serve like will focused execute In M&A brought we Ligand. based acquired deals. simply, that existing This important the unpartnered but closed net this shows offsetting strategic cash of deal Corvus Ligand great we targeting with The to ability portfolio had the substantial purchase a Verona on is quality with shots Quite it after programs their value acquisition. for large and acquisition The company month, $XX benefits that last programs. deal $XX goal important on Just Ligand price partnered partners

ability the in days we it with assets. value platform major its source OmniAb generate partnered to OmniAb value platform company. have acquisitions will early the lifecycle close that and significant Captisol We to expect is for a add to can continue in shown an tremendous of and

Vernalis, technology, and with research operations business. the a drive we to continue have European a new to high Now value partners

pipeline look We toward XXXX, and development very we we anticipate hosting anticipate operational event provide and financial big in As and business. Day updates year of where the will a drivers we Analyst for early XXXX outlooks. an value

have most and the robust largest We business portfolio ever.

product as portfolio. well technology Foehr other as from more our multiple major anticipate I and over Matt now several portfolio OmniAb provide and we assets, from to the approvals our turn from Captisol profile continued year, of too. announced Vernalis and and Kyprolis data clinical platforms growth launches Promacta substantial call from events higher review detailed and from products a our of contribution to will Next

Matthew Foehr

portfolio. at with I'll that's technology portfolio as our it's done of the now recent Thanks the select highlighted been progress off largest start our and John. many and this partnership shots assets of R&D platforms review of integration recent some some and XXX partner have upcoming within internal in And on clinical regulatory profile from programs, developments recent goal. highlight higher growing partners. developments Ligand's we've Starting program our a comment Vernalis we of I'll on events over previously our activities. I'll for with ever on also morning the now programs discuss

glomerulosclerosis ASN in from II of At highlighted of out the segmental data they proteinuria DUET remission sparsentan recently Retrophin treatment partner stable increased XX Our for at meeting, open here FSGS weeks. label of observed the and Conference San showing longer study Week EGFR Focal extension Diego. achievement presented portion term FSGS, positive partial the Phase the Kidney the to of of sparsentan of

that FSGS is As Sparsentan with action dual combines type the for the of rare of Sparsentan blockade. both is of that stage the also for both as the IgA receptor the disease. disorder leads EMA. FDA angiotensin end a receptor A by treatment Sparsentan of and Retrophin orphan endothelial mechanism as a renal background, FSGS well often treatment developing has designation has granted for to blockade Nephropathy which treatment kidney been

endpoint based of FSGS, Phase DUPLEX III an the interim filing NDA in study II Following the on H an in serve proteinuria and for in includes approval Study marketing of Sparsentan U.S. Europe. pivotal as study efficacy initiated the DUPLEX Subpart Sparsentan of the consideration results FSGS. treatment to conditional of positive basis accelerated Retrophin authorization DUET for Phase

of for could the Additionally, treatment IgA end at If Retrophin evaluating approved, the the FSGS of Nephropathy. lasofoxifene multi-center year. of in of breast cancer. post-menopausal mutation. oral of partners treatment Nephropathy this an with an trial pharmacologic versus pivotal be and the III expects Sparsentan Sermonix is to for IgA trial Phase our evaluating study Sparsentan the treatment open-label announced negative Last cancer initiate II first launch protector Pharmaceuticals positive randomize advanced treatment the for of potentially before study lasofoxifene the of intramuscular Phase approved month, fulvestrant a ESRX locally HER-X metastatic metastatic ER The activity women with the breast oral

As osteoporosis oral who are a that positive reduction background the of forward note initiation that been we've ER data previous given post-menopausal the breast this have cancer treated of to with trial. significant And shown with clinical incidence lasofoxifene. in previous I'll data, looking in women

donor and at nitroxyl next they're obtain data in BMSXXXXXXas with patients they expect Bristol-Myers Squibb partners the who individuals in held, hospitalized highlighted trial investors they the making. know inform progress of is with. encouraged a and development class able that Sermonix company many recent by last, II the clinical area They drug The their are they been Ligand privately disclosed be data heritage agent may expanding And R&D registrational Phase rich we are week they portfolio diversification to will to heart of has failure. experience that progress. discussed before space We've a a with which not continue discovery start. where an the executive their our be serum that that get year familiar world the team Captisol-enabled to potential specific are Given

clinicaltrials.gov Eli at Metavant that forward prexasertib progress intend on "priority Captisol-enabled recently disclosed have with RVT-XXOX successfully in partners which as orally enrollment. Metavant LGV-XXXX. small that data patients to was which a very commence proof known glucagon I efficiently have antagonist program." development look they reported opportunity novel they that therapeutic currently with count report or type is in from some Our molecule formerly X enrolling of are internal of trials with and We in has oncology studies Lilly II partners Ligand the multiple RVT-XXXX We're we're bioavailable expansion to the that also this trials the to progressing on for at and indicated have receptor It's drug. and X development type pleased GRA pleased Phase our completed tested this diabetes. been the studies recently for of X of concept year before Phase diabetes end are at

As and low and and we receive a a milestone briefly. earlier in to drug just potential reminder, royalties double digit is billion over out ranging a year technology mid-teens. now Switching licensed payments this to our Captisol eligible from we're this the platforms to touching on $X.X

there. September, invest and Drug expand type Drug X our with that market X and year we Files this continue of or and China our We over the In next in so. geographic Canada are in We of Captisol the Master Master and partners DMS in a database footprint Japan multiple did expecting type who to U.S., for formal in and and approvals registration coordination number in information. launches Files safety also submitted our received

We invest the globally continue Captisol for for global nearly to are as represented by intellectual now the Captisol XXX property issued that patents in technology. portfolio

that for X sample Captisol agreement and forward and and solve Verio look that has overcome continue events any in in that partners financing Captisol this is exist us They've to and their Health recognize hurdles while We Since a positive others. significant medicines about have diseases, related the of solubility data and done ago, Captisol than partnership so have team with cannabinoide-based substantial business Verio medicine. CNS continues year prospective potential completing challenges generate indications focused to more their the full which the entering some XXXX commercial our illustrates the formulation with formulation more development briefly of other stability. in Captisol around continued serious and industry processed of also to been Our trials to including the to years cannabinoide-based mention they've year, to them at partners time Captisol in and far major acquisitions. as I'll to Verio medication. program needs, transformative the discussing potential pain with towards our progress multiple to of with unmet significant registration. Cannabinoide-based potential chronic variety expanding which

a report long are new business the OmniAb number to clinical to in momentum, monitor grow with more the there derived We We're partners can be build now increasing animals only expect technology depth and of we've term. preparing feeding X OmniAb the to use discovery indicator with with at so licensing months. antibodies patterns our of and of use of because compared can partners breath continues trials years they Our platform of the general partners stage significant therapeutic OmniAb new we antibodies Year-to-date, as OmniAb some partners existing the experiences efforts, our the driven just to for doubling for and use we using to by the have a but seen as clinical our to of pleased that the we additional they it partners. that not - targets. delivery That's by start our coming animals positive that continue Omni couple by of as delivered begin ago. of also from

antibody. technology month's any approaching about meeting OmniAb many San record agreement of an Therapeutics in derived Hutchinson organization is develop the some with OmniAb at an OmniAb Research track formation partners. is that in it utilizing receive a Engineering active have will Hutch technology. our in cancer to an by and of revenues year's recently We're the held is of Cancer a received and eligible and Diego. Antibody corporate pleased Center. at Ligand the Conference that a the has continue the commercialized time the be products share companies This as incorporating presence significant Hutch be licensing and in forefront research disclosed in to will here the which OmniAb We will Fred We're established like

welcome acquisition Turning dedication and transition at facilitate were of that we've outside Cambridge assets focus team impressed broad major potential forward. added which corporate is integration colleagues the new a next existing in is collaborations very will expand of of activities and the going a office sole additional now that become formation Vernalis with that going research licensing the and of administration in based The the discovery drug Vernalis partners out been successful upon companies Vernalis And England year. new in programs. to has to the London structure we Vernalis. happy pharma and on site team shots and new of site's closure We as well. The Cambridge exciting rich look history has The present site to with opportunities. we QX pipeline goal,

Now in be leveraged the at team additional to as partners goal technology expertise efficiently company to for scientific shots collaboration for assets. Vernalis the from team and in that two global current provide deal service acquisitions. or we a are Ligand evaluate time month the the success internal can in confident relationships and in future two create the post-acquisition progression are since closed, Vernalis expand on additional ability of In oncology milestones

being in weeks lung treatment compared COPD bronchodilators acting long quality statistically severe and to in and RPLXXX improved with for disease Vernalis developing placebo clinical enzymes Genentech's cell well. of X and adenosine to life meaningful of Atezolizumab by a acts small non-small microenvironment to with investor system clinically ATP a is an fibrosis renal mentioned, been of it's binding attack is agent. and cystic when ability and progress microenvironment COPD various a and where other the attention blocking As shots be anti-inflammatory metabolite function trials. when asthma. receptor. Corvus cancer, the oral COPD patients tumor of short is that RPLXXX AXA antibody. dual has the by or us in and produced subvert is observed tumor as X in phosphodiesterase-X RPLXXX involving In immune product adenosine add CPI-XXX symptoms to as triphosphate solid and the the the in Adenosine the AXA is in with alone in and CPI-XXX Pharma. disable of as within as tumor's deal cancer significant in the bronchodilator both bind single their RPLXXX improved the Verona And inhibitor evaluated are block over or anti-PD-LX effects Phase I'd like and a such molecule to with be synergistic. on single cancer may which receptor brought patients shown obstructive on in a one the tumors patients. receptor pulmonary designed inhibitor that FEVX activity. XXX small cells dual inhale administered and to as has trials new AXA combination treatment as COPD on It of at two fist-in-class over bronchodilators. renal currently those trials blockade improvements Pharmaceuticals In to is European Verona immune result cell and a IIb may addition clinical agent. have frequently it the an lung clinical in to chronic shown Vitro and multi-center adenosine checkpoint agent lead is compared moderate present to them, one used CD-XX at the Vernalis to to I goal or in a candidate and preclinical previous of used studies study direct Corvus Spiriva when potentially for for and bronchodilators

is in be forcefully people may that with the can because FEVX COPD you amount it's one an capacity. familiar of second. lungs out those of And blow for For shows it an not air number lung important with your

dozen safety standard L inflammatory P and comments subjects with COPD study with well than administered R morning my XXX has to RPLXXX with with favorable has a in Captisol-enabled updates has studies an shown clinical internal some tolerated iohexol. wrap up effects in trials. activities with starting more like I'll a in been on challenge profile subjects pipeline, In been And inflammation XXX the these brief addition, human in this our

recently a of of is progressing Canadian team and Our differentiating potentially successful had a clinical rapidly a to the with a dataset inclusion productive IMD and U.S. CTA trial label path manufacturing XXX(b)(X) for pre-clinical and plan safety broaden very guidance materials. agreed FDA simultaneous and as with information. filings complete with our meeting obtained We we the

plans to research, for need advisory we to the the space. Captisol-enabled market research recognized with experts hosted globally having We recently relevant of market We're further plan contrast market also for area brought our in confirmed and review opinion progress imaging of XXXX. view that clearly in and forward completed that the interventional primary data as board some for cardiologist learned factor an iohexol. most the important the meeting clinical look established that key We dynamics matter greatest and leaders the In together clinic we our and the as you the selection significant viewed program improvement contrasts in that see subject safety recently imaging updating space. the

initiated And we've scientific Those are with also discuss team call earlier leveraging very related forward Korenberg and new programs the and capabilities antibody the next programs this talking well that about year. OmniAb conferences financials. recently, more As of to progressing the to disclosed we Matt look programs X I'll our year. turn at over expertise the to

Matthew Korenberg

continue results I'm reporting which third quarter our morning, this Ligand Matt. across financial board. delighted results excellent year-to-date Thanks be to for the strong

royalties, that year our to The revenue of that earnings that Ligand principal to tables once began impacts reported When their revenue XXXX on and X, the of release under plan the January period we remind only at reporting in like numbers a places to as ASC the guidelines. comparable discussing new period, news Before the that provide royalty in roadmap were prior the investors time. evaluate QX, appropriate We I to growth again business contained specifics the of discuss provides our line XX-Q. in I'd the item. line. is of investors mention I'll differences information XXX describe The the X the investors analysis the

revenues in QX versus as XXXX. XXXX XXXX September XXXX revenue Turning QX million, Promacta $X.X million, million to the the higher $X.X million ended period. the license were with in were XXXX comparable reflected not this XX, with mentioned but up revenue now quarter increase reported Total as royalty appropriate ago. royalty royalties. royalty some million Kyprolis and in the number which growth highlights. $X ago million Material The $XX.X from the QX largely period. a million million XXXX to comparable for of in was QX appropriate is the $X.X of a XXXX QX $XX.X sales for revenue the in $XX.X $XX.X compared year QX in was was revenues million, XX% compared $XX.X financial in Royalty QX year revenue XXXX, is which Milestone I were period.

items, XX%. margin sales any margin customer clinical pattern milestone these ordering sales material are quarter variable fee sales translated year fluctuations and between gross on our Gross items. material see mix that of license ago and the in an due due favored the these each line higher and both For of overall margin this corporate XXXX sales of timing of higher patterns differences ago QX simply in in to achievement, period we period general to to in year was that the cost the line two

$XX expectations track of core our on previous and R&D operating remains side, full the operating cash to were The cash QX. G&A million year. $XX expense in the with On for for expenses of business guidance for our line expenses million

a be given which However, we detail. would business by the Vernalis and addition with and more discussing revenue, associated to the largely in are costs bit to independently and useful R&D Vernalis line began G&A if of I items two offset investors these increases operating little Ligand thought

the on line. First R&D

Excluding acquisition $XX the the comp, other non-cash number $X basis principally QX portion approximately $X.X million. for non-cash number time will [ph] associated large and Pharmaceuticals for QX This of the R&D analysis we to Biro line includes excluding stock likely team. one in we and stock between to increase be most QX was and expect in comp and million. million expect the QX In charges with $XX on project based stock this XXXX $X XXXX, charges More be to the increase charge a $X this some comp charges based non-cash million costs that million spend year. R&D a excluding specifically, expense in of on and million

the On the million be for expect $XX charges, other based to year. non-cash to excluding G&A we stock comp million line, and this line $XX

and to about we XXXX, to number remain approximately stable QX other be stock excluding For expect G&A $X million. and comp non-cash for QX XXXX, relatively charges was $X.X million this and

net GAAP income. to Turning

million performance was Therapeutic For there related positive QX XXXX, the a XXXX, income QX, to of or Viking share. QX was net to GAAP a Similar $XX.X non-cash significant $X.XX the gain share price. in

our shares the ASU last by are which running for making not calculations. earnings beginning P&L. the gains XXXX-XX, January and loss these and will of value unrealized fluctuations are adjusted in market value the We gain is Viking impact don't - at accounting Retrophin reflective standards, but the accounted P&L change Prior value sheet at business. accounting with instruments prescribed of or the through value marking due losses would the be as new the believe they the than in quarter, in selling such of balance to negative in of stock value or the excluded each we positive whether our Xst, from rather these our the XXXX, And core changes operating prices, our the by resulting to quarter ownership mentioned stock. current As financial for the common time

assets our period adjusted For the the net per $XX.X for $XX.X our the NOLs cash, year. tax same flow in net billion. short on cash per basis we adjusted compares $XX.X results rate in cash And to investments in generated million is tax an can income term quarter, tax utilize sheet, cash X%. a of respect finished income $X.XX than which reported quarter and continue With we we from $X.XX although balance QX, to a then we after reported million investors, quick cash less last approximately with the equivalents or $X or on of share And and flow reminder with this of operations. share,

of convertible million in our notes. XX-Q, XXXX from XXXX be our remaining end have bonds, the just of the of million after will under our outstanding we bonds $XX convertible we $XXX approximately just detailed As currently quarter settled

of today, term of cash $XXX under we have equivalents addition $XXX just our Viking of and in million warrants. million investments stock As and to cash, short

guidance, from for to now now raising from of Turning milestone $XX previously million, sales and revenue million up previously, financial now $XX previously. press to of Realty exceeding year, which performance our XXXX milestones expect which million in well. million, Captisol outlined continues material licensees seeing $XX $XXX royalty is about about up the full-year $XX we're guidance. sales and expectations million is from outperform million, of and our up $XXX release today's as Therefore expectations as our and we

$XXX previously, guidance prior acquired guidance the milestones expected which of incorporates newly currently and see up diluted we addition, an and of $XXX to expected up These fully fees. estimates XXXX from up for share of from components is potential additional our best to from Vernalis million million, $X.XX million revenues $X of earnings upside per This share. diluted now per translate business. In license adjusted $X.XX full-year

the I'll throughout revenue a highest being now As quarter will the successive a of that expense, each years, onetime royalty excess and tax owed excludes benefit royalty the certain increase QX adjustments such guidance up lowest adjusted our result bond revenue and the amounts lastly, and recall costs, related shares compensation associated to gains stock-based that unrealized in open for in hedge liabilities Therapeutics, quarter licensors, convert changes operator with our diluted excess previous debt year call recognition our to for non-cash over our and back and And QX pattern reminder items. questions. and related the changed amortization royalty nonrecurring that, as and with from be structures, Operator? the EPS investment stock-based Viking please other compensation year. in it the XXX by covered expect contingent CVRs, ASC non-cash losses being mark-to-market in turn each acquisition, from tiered quarter investors, to we With to the

Operator

[Operator Dana question Your of line the Flanders. Instructions] from first

Your line open. is

Dana Flanders

you need? good how first on and appreciate the Hi. here asset the And and and this but you're soon your for the then can speak the Thanks have thinking is product, congratulations launching for questions not it's also IV, on unmet potentially market just, and the commercial just Sage one could you ultimate quarter. how my long about follow-up? all think opportunity there what quick but you recognizing to gets then oral just assuming think I high split the And will a a be? infusion that of And the

Matthew Korenberg

treat just What a we the of treat is can something a substantial doing patients. they is need it medical Kor. present transformational really chronic that to with Obviously, the to the Friday, quite of of space have AD really kind Matt as of urgent the see is you pleased thanks the on as out really with outcome been Dana. but than we listening just the setting that in way. and COM one these onetime the a This of really treating kind CNS only unmet a the where really in disease were experience in diseases, the you're it the courage need for their how physicians things that not encouraged way comes who Yes, in rather patients and can

were of So it. the pleased outcome we with

year. hear In see drug of oral clinical years, But they'll the position how think they too. who'll of XXX, it all have commented significant them with pleased they they drug, they've exactly they've work on over done, got but how preparations to and they've obviously has an described last pleased the directed IV. going developing over they a few now with the a data general the that I obviously they market position kind as think commercialization that We of in some been a for that terms well, how opportunity organization are to done early the sales kind that we're next in be position. and terms pleased form of their so awaiting we're on they're the I is different work We've rest, focused very

Dana Flanders

out technology Okay. year? a about we how kind since know know that's the of about M&A, cash the balance next platform just another the I I And next a kind can LNP, into the large for coming few billion then being should of Thanks. year convert. and about priorities some it's you have table of of talk for on think been my follow-up just is But just and years I you on sheet heading deal know $X

John Higgins

today it some on we've John the Dana M&A years, in most substantially few can thanks. frankly too. it's last the had and It's we've our Matt even largest it's ever had than exciting higher ago. partly was the Korenberg outlook based outlook color add is X balance months Generally, and cash

we're and pulled our the recession obviously back very the have on got is assets. to BTK, partnered stock. stock ways a We've We've We well-funded that payers. aware bit, market rely proof biotech don't the we very finance many got industries Secondly, pharma think business. Ligand good a markets,

And so focus our cash can to we really use M&A. opportunistic on

licenses we at lot in strong team, We have technologies is will We doing my which rate look use Ligand capabilities faster or new prepared platform years, have licensing, XX over the own a are programs last terminated. discovery drug word you perpetually of very record a and remarks. as track we continually our value shown failed very, ideas. disciplined that I at very and about than the Things of we've a deep

constantly our are M&A. building we So portfolio even without

and So we on have large environment acquisitions now more think our drive stay again business. could have portfolio. with opportunities. But investment balance growth engine the that strategic But very focused we expand will the we for benefit we a sheet, internal our a M&A that attractive of to on discipline and

Matthew Korenberg

everything John just I'd Echo but. said

selective, I in portfolio without investors of these luxury M&A, portfolio I XXX to to any and with we're goal say today always extremely doing profile think our very add frequently when have that that the ability we acquisitions. shots and the attractive on the as to of particular, being

we good find extremely and despite shopping of to having it as So perfectly so at look attractive Ligand. really fit to that be with one list speak today, selective we continue is

Dana Flanders

All right. Thank you.

Operator

comes line Joe next Your of from the Pantginis. question

is line open. Your

Joe Pantginis

Maybe Korenberg. for questions morning. question. good guys, Thanks two Matt taking Hey, a

have analogous next and about right then if say the the with any term provide second in And the your existing is long any see any Captisol to now line? the Just curious you call for years way if of couple revenue line or Thanks. color buyback? it you could to wanted choppiness just regard it milestone color to let's

Matthew Korenberg

Thank Joe.

replaced in in we've years - on got aggressively and million opportunistically XXXX investors year So back a buyback, and to XXXX a share X we in I place shares the years pretty repurchase year as in plan points be used at in again or plan plan $XXX over and most yeah so think now. place, in a again XXXX, earlier know, for this this of this time couple place in put X September we've last was different first it share several year. then repurchase was had in a There bought

closed all window buy were in back to probably period not where has people window As our since occurred stock post shares blackout are October aware, any Xst. the our so able we recent pullback

we're the certainly to internally fit of continue our we'll And under think about evaluating that see best to cash so, plan. how as repurchase and share we

we line side, model the I we and will we the as on think years goal be realize those look that for shots know not over that those at today, will, million XX realized least. we'll owed million on milestones good question next milestone billion investors out are under potential milestones at to see the XXX XX On most $XX overtime, many but have $XX average very $X it all that of year, but a to to us

the out million core And talk receive of basis amount two year, X XXX on plus that. guidance this million million and years beginning the a plus upside, year we deals, that out now the about long we as investors we upside. of I've Obviously, potential and we for about $XX was from any each but given our model it implies do about each coming $XX of new our it milestones when last and it that so the $XX million guidance only products year give we'll that guidance the start milestones of of when internally potential term potential for is current that, excludes then of $XX bucket, guidance know upside year

new to this diabetes is on do and OmniAb So deals of then to Metavant were receptor antagonist and year, a wanted glucagon there two it deal licensing partner program, amend our their so. milestone that large

and of And on lumpy always might also billion the that But years realization. there of guidance $XX $X of programs so, just sort over and that approvals, potential XXX or all milestones million $XX timing map of that it trials, year years always million $XX timing and sort looking clinical could within depending each give went partners and success some there the I to be to or on through say long in number commercial some sense will forward I'm always and and of be be be $XX million might on term as think it will very the I goal think in shots the I basis the - is even to about specific year. so. so, way and then just $XX per those for careful be million that upsides average million will

Joe Pantginis

deals I that color. just know sort I could see to helpful. of many one you from looking guess angle platform, of get then you year, for I of want the been you if at might of actual very have per kind imbalance I of sign? view how And say it this OmniAb number the get the a that's Thanks on versus that number and broader sort approach the

Matthew Foehr

increase substantially a fully crystal term thanks, OmniAb, antibodies. three with Yeah, multiple chickens now with systems for negotiations have noticed Omni visibility around value and I'll It's Foehr. with of we human continued Anyone immune where the fully partners, proposition time we've addition species that the producing - Matt bioscience in the partners Joe. human increase the we're multiple sheet say

see really the with progressing couple ones the we their industry conferences, of the growing they a example helps and partners interest antibodies Phase and antibodies we that present continue that of use. that they to players stage in the up emerging of a these the partners have multiple many kind that understand those II, technology, of of for smaller X look discovery it set in are our clinical at value so lot many partners are the So tools of there now to, partners kind

gives color. you more So hope that

Joe Pantginis

No, Absolutely. Thanks a lot, guys.

Operator

line comes Our from next the question Matt Hewitt. of

Your line is open.

Matt Hewitt

Good morning. Congratulations on the progress.

a of you seeing you the of customers. spoke little provide a demand this all, in sample that you're your requests both us you as have well but sales that as what and prepared about a or the item? strong bit breakdown material existing from with could a on Do you First was little orders on the incremental remarks from for split bit line sense

John Higgins

on Annually, our a XX-XX year guidance margins it in saw the last sorry we out bit higher quarterly don't sort two. that quarterly clinical quarter but from that. clinical on is we typically side versus or orders. the commercial given the the the commercial a heavier give split little XX-K, in side you question. breaks specific we side, the so clinical this be And from annual the usually give clinical split. And in higher margin an of mix as versus on then tends the the Hey, the Matt. On clinical haven't Thanks for to the side basis,

Matt Hewitt

Understand.

a providing the guess bit Okay. wanted dig update. I on thank to I little - iohexol opportunity you for and And in the then

think getting clinic in out the thinking into meetings should guess like and we may how of likely be As mentioned think types opportunities? some to and How potential timeline partnerships is the had shake Jerry discussions those you I I be relation XXXX. you've to about of and recently in about that that

Matthew Foehr

data as that some Matt do Foehr. great know space sole answering and around partnering work key better couple Matt. been needs right, campus a was part event you TRA key reference obviously partnering doing model questions the thanks investment significant we with a which that that then It drive larger events we're a and and path. similar the iohexol then some excel, imaging intent Obviously or of team's R&D with a to focused our to has working Yeah, using as and partnering, is that space case others business different the of able but and is following the on

work in excited with that but broadened kind partnering really data team's process. So path doing development look obviously within our would XXXX the expect mapped filing clinical clinical will have research market data value then primary then expect events We've there to and and validated driving Those needs to great we're area the and have on both the be are pursue FDA. out and simultaneously, been CTA further about from IND the and done very partnering. a at XXXX and Canadian some this understanding obviously the of of encouraging

Matt Hewitt

Okay. Great.

it that's now. for you. think for I me Thank

Operator

Larry Solow. line of the comes Our from next question

line Your open. is

Larry Solow

quarter, Great great outlook. again. Thanks, Thanks. thanks Great.

Just most have follow-ups, of questions my answered. a few been

XX% require teams or of the or in the dilutive could remainder it you obviously is nearly On expenses some are Vernalis, through quarter there, good opportunistic breakeven there? just the in acquisition R&D effects walk or the the first XXXX, now

John Higgins

Vernalis. to so cost, A year. that time of at gave revenue being be to the team that of Larry. service approximately million XXXX we the of well $XX it order offset and XXXX that said specifically already We next of revenue of everything generates the that's of $XX from XXXX, magnitude. And what what million the later maintaining as - $X expense both $X the the was fully of team. as next so million all from the would is by million service, annually, largely details of to earlier we year revenue million But from still lot QX expect on deal largely and or Yeah, $X see case it's for then guidance thanks, guidance service fee incorporates XXXX, other give neutral, revenue they on

Larry Solow

guess your that Got your for at the the line revenue to to that and service And going why of a little your into I assume the on license it. that's from you that's is going bit that reason least license that? on part up is numbers XXXX, roll going bumped

John Higgins

Yes. Correct.

then are will revenue place that And it of was is line, lend the related it another bump OmniAb in side same the revenue the was same licenses from So - to portion on hits sort a milestone for work. milestones crystal of that. a the

Larry Solow

about us give on LTP progress update technology, you too heard Could it. two I quarters? last much Got on any that have

Matthew Foehr

is Yeah Matt Foehr. Larry, thanks. This

Nucorion couple that of generated the at this of and a cancer highlight positive around year want was drugs Liver the LTP some company have presented Meetings called We earlier showing better one data to that's Health LTP partnerships of centered using targeting a technology.

lipid them. work to Our enabling thought help the team some targeting where can't certain has lowering internally lowering also LTP continued large agents be certain agents lowering or tolerate to of do patients lipid now agents lipid around tolerate increased liver who would the right

been Some more in we meeting to has that of but as do XXXX. presented data data expect present

and us. for number generating progressing smaller platform, of but partnerships have exciting an platforms it's than definitely yeah, larger well positive for we So our it's data

Larry Solow

Thanks, it. Appreciate guys. Great.

Operator

from have We another Henry. the Instructions] Scott here coming [Operator of line question

open. is line Your

Scott Henry

but morning. a good just Most couple. and my of Thank to you asked been have questions

small would your that would First, a FDA if approval. and with I upon and Brexanolone, milestone reasonable regards there a so be forecast? to is milestone question is, upside assumption assume the would that Zulresso guess I to be

John Higgins

Yeah, about imagine $XXX,XXX regulatory disclose with which see an a if scan $X.X filing of between you this and milestones would associated approval can program Scott. split you'll through you the that they and with program associated Thanks, million, public milestones the milestone. be disclosure, Sage clinical

so the part that the yeah of is upside. would some approval the and be that on probably of bulk And of

Scott Henry

we what's that about should upcoming regards that compound have you think and other you how clarity. LGD-XXXX And Roivant question Thank visibility? color any Okay. product. with then on Great. for Do just for the the next to partner

Matthew Foehr

Ligand Yeah, things one call LGD-XXXX, Metavant period two And Scott. Roivant them used the during Matt thanks, what the deal earlier the first Yeah, year. obviously thinking RVT-XXXX II where I of the is so I to It's we but about how this our with in Phase as in Phase that Type saw studies was about well. and Foehr. doing this a liked trial as that they the study, They've Type diabetes disclosed only was I diabetes they're was I in diabetes say the II we end should Type year. asset start not Metavant to the going opportunity before of

really would we're for that - allow insulin And improve obviously a the reduction there spot the for therapies think have only gain Type the therapeutic see So increasing in I risk potential could the an U.S. of weight really, limitations and could hypoglycemic and or obviously without for drugs of in eye are diabetes Type therapies unmet and therapies, really drug, expansion control I really in requirements we diabetic nice beyond really with X.X is they're also risk to And need exciting ketoacidosis. glycemic hypoglycemia prevent are there million II eventually that. market. a Type are keeping the adults curb out approved

their progress they're this but excited support activities Type we're to of only year. disclosed the efficiently, large diabetes So moving scale up I the They've starting the plan with activities with not been making. also very trial other

Scott Henry

Type color data that a proof is trial, think trying when expect that that trial a we Okay. And if that? see I about and is I have Phase II guess to would don't or you but know this I of concept just

Matthew Foehr

details to have want to I you comment of there? the you trial, to Metavant team Yeah, to on the data direct and direct I

Scott Henry

the questions. Okay. Thank you Great. for taking

John Higgins

Scoot. Thanks,

a good call. with concludes tooting Thank We outlook in, very year. and appreciate in our XXXX busy momentum year, clearly our all building fronts. you. successful your that across the And very So a is

event very We again Thank in of on invitations the XXXX. we've announcing, events number we're road part forward and Day with will much. a early looking of that Analyst that be conference to be an received you the will

Operator

This concludes conference call. today's

now You for you participation. Thank your disconnect. may

Todd Pettingill	Director, Corporate Development and Investor Relations
John Higgins	Chief Executive Officer
Matthew Foehr	President and Chief Operating Officer
Matthew Korenberg	Executive Vice President, Finance and Chief Financial Officer
Dana Flanders	Goldman Sachs
Joe Pantginis	H.C. Wainwright
Matt Hewitt	Craig-Hallum Capital Group
Larry Solow	CJS Securities
Scott Henry	ROTH Capital Partners

Ligand Pharmaceuticals (LGND) 8 Nov 182018 Q3 Earnings call transcript