LGND - Earnings call transcript Q4 2018 | Ligand Pharmaceuticals Incorporated

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Operator

Good afternoon. And welcome to the Ligand Fourth Quarter Earnings Call. My name is Vincent and I'll be facilitating the audio portion of today's interactive broadcast. All lines have been placed on mute to prevent any background noise.

For those of you on the stream please take note of the options available in your event console. there a remarks, session. speakers' the will question-and-answer be After [Operator you. Instructions] Thank to the today, turn now your call I'll over speaker Mr. Todd Pettingill. Sir, you may begin.

Todd Pettingill

fourth call. Welcome business Ligand's quarter financial XXXX to results update conference of and

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

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

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

John Higgins

today and outlook next have strong and five year the The years. outstanding you. quality terms Ligand our and the to look Todd, company financially as year we call. ago, of in XXXX. Good forward a portfolio for joining XX bright an and to than afternoon, a we thank is better thanks had finished

years doing as ago, well posted over doubled As highs nearly Day XX%. X of more EBITDA is that high all margins years sales of products of highly in is margins $XXX contract that material with with forecasting all-time to and revenue, robust several billion we XX% flow or good royalties, sources; add mix Kyprolis in fivefold XXXX than in history, business record outlook. highly million The a have of a posting $XXX increase a in are for was The revenue continued over growth. efficient I'll year for Cash of of XXXX $X.XX gross XXXX, clinical market Captisol accurate, the million. lead million. very just about over orders XXXX for and orders cash than more QX balanced at XXXX, are X with Captisol and over slide a well mix hit had contract ago, corporate revenue for we royalty quarterly years XXXX. flow at diverse That and payments sales past payments. and forecast bit Well, a XXXX. XXXX and the commercial Promacta XXXX, ago in late published we over now in an coming $XXX Analyst three each

Now we low manage with structure cost a our and share count. business lean

features Our earnings per share. creation and the focus flow cash maximizing on value

pipeline than agreements, M&A Our $X, licensing double XXXX and adjusted is events major transactions were exceeds which program. for diluted EPS more in year. for XXXX last Defining investment

quality and we beyond, diversified to number to are we a as of in both report programs. have programs strengthening and late-stage the pleased look we of terms XXXX and Now of forward the highly business,

through scientists. securing XX-year developing XXX all inventing quality then with drugs a strive on IP, other We discovery have employees facilitate or new Vernalis XX subsidiary, good work years. have back-in needs partners programs. R&D getting a help approval milestones inventions our of now, and XX drugs fail chance of or to with on take making Ligand better but drugs commitment averages advance to a the with the focus of have as stand possible We good drugs to development, years to early simply them. If on all including partner not to drug heavy discovery products. focus and possible. to but the as say, industry first on drug Industry technologies Ligand's in that we business potential a royalties same finding focuses couple license winners, from to out economics go achieving most picking over choose Overall, cycle, is to and the is of goal years at after still We the with model. pharmaceutical of the the about we launch, of proof-of-concept

China without Now than the for while XXXX, payment milestones. outlook than sizable better lower is our XXXX for XXXX XXXX. out and calls financial revenues XXXX million $XXX a at million in be nearly revenue forecasting XX% of OmniAb out, look of to from buying $XXX growth bit that onetime revenue, more a $XX are compare years would to that is WuXi million, about Backing we way

out five our and RVT-XXXX, Viking's years, Looking focus there the generate VKXXXX, over the for four early for these Ligand's over Sage's to iohexol drug for Metavant's for Retrophin's one ZULRESSO, in next the launches promising disease; drug PPD; drug to kidney diabetes; growth several with to programs potential midterm are should major next on. several program. All internal and programs sparsentan, contributing timeframe and data to of next decade. NASH; the years, product drug investors are significant the

in outperforming new we factors that our middle OmniAb XX-plus business that billion possibility be our of is our number human business we to-date, of for Phase royalty to trial, we into with chemical-based we XXX the years The very because the is XX programs XXXX, believe of derisking the research traditional double annual OmniAb reported expectations. The research ago. program antibody to the the of partners. strength the of programs to annual from under nearly $XXX OmniAb the see plot launch programs the million potential potential generating that deliver important market a timing and revenue. over of programs decade, two This and substantial royalties OmniAb probability us are is in to going the discovery in more drugs. assumptions as matters it OmniAb of clinic. to all expected next than antibody between see trajectory they given of And there Overall, market which signed have up, is By clinic. well I has are We enter in partners by making we metrics, for and the number to beyond Looking antibodies number medicines. antibody-based help utilize $X the

book of nearly As in over is important we the potential also reported reflects our up $X.X the figure and one the payments paid we element from XXXX. revenue amount look substantial the at business, our our partner Ligand, million and we potential payments billion outlook $X of last including the booked currently of already from to is $XXX pipeline billion number all contract of for have this We contract partners. substantial year. It

it to realistic expect by book amount do events, in as clinical but book payments commercial a assets nonetheless, acknowledging high-value of and success is very all mostly not and Ligand. to a they these we of substantial are tied We are owned

This locking We We point I doing in respectively. is secure million, part of deploying sorts and the intend Therapeutics And our in companies royalties on and these paying Palvella the then to keep before finally, to and Now the recent of to as in to of a and these are capital in along smaller of programs to are substantial pleased investments identify in higher million investments invested M&A. $X The we many over than deals, the I royalties. payments. have than companies Matt, royalty potentially great growth strategy pursuing traditional earlier with given first that revenue economics. series is milestone attractive proving mid-XXXX. We contribution The be with past and turn acquisition. already few programs quality additional and call secure Vernalis want with the it's timing our and terms diligence we see to out we we expected and months new new is of heavily acquisition, yielding Dianomi Therapeutics off in work early process are development. projected deliberate products Ligand's now we to rates the secured in a $XX

license from. along motivated OmniAb have or collaborators joined VDP, current Design third strong major and and platform team The is technology our now of in engagement We the a to Platform, Vernalis that platforms with Captisol with England Ligand. highly researchers

If Our to the these customers highly I'll chemistry over with VDP complex to we programs. technology overcome turn from we that enables difficult royalties then issues file us patents, it and with can And can serve Matt. and secure challenges.

Matthew Foehr

Thanks, John.

today, on shots is in goal. ever was press mentioned As XXX portfolio the now largest over that been, our at our it's release

focus current shots Ligand it's attrition, and a figure mentioning licenses XXX a targeted over shot platform continued our our a of turning by over to prior own the our think is worth by on into licensing I is with licensing the and despite investments actively a reflect funded driven grow with valuable has to of activities project being on derisking partner, deal. royalties that back-end of the to And a Ligand is that program-specific acquisitions, economics by higher attrition. net and at goal that funded years, technologies portfolio progressed R&D internal we

new R&D Captisol-enabled progress global on few on approval see commercial R&D of investors in to focused the about pleased I of or also platforms based a Starting partner years internal of Ligand's it now provide received is Japan a MINNEBROÂ we're programs growth. receptor platforms developments, EVOMELA in to brought received recently I'll in tradename our to for trials. of also on recent were towards clinical Partners as updates has approval continue for leverage that I'll platforms and clinical programs, general stage has back and an and couple positioned sales hypertension. , and talked excited shot reach of our technology we're that now CASI Ligand's goal the a diversity portfolio with technology generally new the technology on potential on acquisition for highlighting drug, whose Sankyo to new and nuclear drive and it in a well Our esaxerenone on is some or royalty the This EVOMELA. in marketing of investments are program see the approvals, recently. with A have activities. updates XX% back, They've some to plans we announced We've of plans of XXXX. I'll start investment Pharmaceuticals in program progressing added because market selection now programs. for platforms started terms earned touch new discovery to technology in for original their future and review noted to recent as set and then some our Vernalis clinical about afternoon, expectations weeks the data ready have also and new getting growth This we for expertise to remind asset partner recent us China. our pleased platform number a announced Daiichi of patients. approvals are heritage

endpoint positive the Therapeutics in or November, data bacterial in and presented for have II positive view. committee with fatty NAFLD for Therapeutics recent our patients patients patients also for currently from data liver observed in XX% cholesterol, VKXXXX-treated to multiple and reduction recovering in liver March Liver VKXXXXÂ Meeting a And primary partners in reductions XX% and our its observed. appears XX% postpartum treatment data datasets note partners that with treatment a patients weeks that hip PPD. also oral the results VKXXXX in in that longer-term a in VKXXXX; Following shown III was is they was advisory a an to content. months profile. from relative from and indicated of achieved depression, significant We've multiple SAEs said fat Sage XX% effect studies, in or LDL the study non-alcoholic FDA based all of patients has liver that disease, Phase experienced view to be for for expanded fat histological of with well with at NAFLD, agents importantly, XX Viking and action with greater and VKXXXX-treated Phase seen median particular other of development review result on VKXXXXÂ reductions for Phase ZULRESSO LDL-C favorable who community-acquired III statistically announcing liver pneumonia date for Baxdela safe tolerated in II VKXXXX's published anticipate at receiving XX% to Melinta FDA fracture. than Phase reduction at in Viking with the supporting VKXXXX best-in-class Phase has and of fat on are Viking's no the elevated of Viking VKXXXX would exceed XX NASH, II patients benefits. VKXXXX In demonstrating liver data from fat AASLD adults

which patients new patients our refractory I this of its in progressing myeloid global improvement shared for the recent this or that novel, I in T addition, in bi-specific III sclerosis, Amgen trial dosing for patient ASH, with IgA relapsed multi-center, cardiovascular At III if a and approved in is AMG also pharmacolgic immunotherapy up lipid as control, sparsentan potential important glomerular IgA or nephropathy active Phase in segmental in be AMG that active is and We nephropathy a forward are and Phase in nephropathy in parallel receive Phase technology which note to a leukemia. starting observed patients formerly programs. obviously for agent FSGS. sparsentan X multiple or GRA IgA is bi-available clinical with approximately potentially RVT-XXXX could XXX Study, double-blind often the treatment consideration for was which been or studies other indication The a glucagon of a trial new controlled approved study efficacy molecule diabetes. focal tested renal population. IgA novel to look the is In addition type suggest utilizes a sparsentan randomized BITE, formulation. small PROTECT Ligand RVT-XXXX, antagonist, irbesartan. the nephropathy. initiated evaluating starts Retrophin patients our be at Retrophin, X randomized in late at in known arm Metavant disease, with trial Phase safety the I end-stage II and continued Captisol disorder sparsentan to to that's partners benefits of first either FSGS examining successfully trial having leads with According rare December Phase is this trial nephropathy. and to that's a receptor cell type to in orally started III acute in in health, parameters on Phase XXX an may Also, which Viking's is kidney XXX IgA is LGD-XXXX progress expected data diabetes. engager, an

be of hypoglycemia. not injections insulin type bit the may to can may episodes X, contribute requirements insulin hyper produce glucose. of glycemic a of on and frequency daily X do improve in leading blood hyperglycemia. and very challenging As type X insulin diabetic diabetes type Glucagon of own their scientific help patients. patients periodic not decreases and require of background to insulin elevated diabetic to animal dose Management and manage appropriately receptor glucagon X balanced of effects models the antagonist to be type and exogenous in Furthermore, by control insulin

are work few see in towards actually type and in at use in presented addition team further type the Metavant's pleased we X work ADA a to its very diabetes, data And type back. in conference years to X. X Our diabetes trials

initiate an rare debilitating called PTX-XXX new plan the or addressing is PC, in Phase Our PC orphan months. trial disease Palvella at dis-regulated planar feet. which pachyonychia disease II/III pivotal keratin chronically impaired for a skin partners keratinocyte a to mutations responsible coming congenita, increased and lead proliferation, the production on to fragility of of lifelong and function barrier monogenic aspects skin the of genes in

PTX-XXX hands platforms delivery with ambulation, or and technology now mobility necessitates to the As are ambulatory keratinocytes, a frequently on with aids primary knees. harbor a leverages starting the use OmniAb. basal mutant result, affected forms the and of which individuals difficulty keratin defects formulation and such our experience crawling into Switching either then distribution in technology as alternative which proprietary the and to genes PC. enable the of

rapidly or The and of indications, over ago, discovery tripled. we I in deal to Genagon now expansion II OmniAb antibodies grow antibody the completed distinct majority these the autoimmune nearly OmniAb continues and to accessing expect platform with with OmniAb-derived Earlier partners Omni new the the Phase XX partnerships. and our OmniAb Sweden-based studies area. we Therapeutics, to drive expect recently There portfolio And to antibodies we Our partners. announced new number one trials. Since are the are for just has Phase to and years number clinical of of OmniAb grow oncology continue underway with more start the of is time antibodies. that three technology today, partners add purchased new preparing we

team Innovation from has targets than scientific for and up as Emeryville new related be what as SD current next-generation We're OmniChicken ever has Our prospective also more Bird, and the will diversity Human to novel D of which OmniChicken. call natural interest or partners hallmark for OmniAb launched year, continue in campaigns the Last features before. or active to seeing projects in new now additional antibody we the complement OmniChicken gene well full a segment. platform. ones we a of

heavy-chain-only funded year. to and this also & program well, success-related We development collaboration with expect That milestones novel Johnson very into for progressing OmniChicken. the a Johnson entered we a is of certain meet

launch akin The to they increases. specifically to light-chain or fragments with develop antibody common been interest popularity is OmniFlic and partners technology, to team bi-specific is fixed a which growing which partners underway as to somewhat plan OmniChicken, applications. late light-chain chicken antibodies the assists as to well has we for the light-chain development in OmniClic rodent our year. of OmniFlic this common also or expect Additionally, OmniClic CAR as our in industry's antibodies T look brand bi-specific our

and create with that direct fragment team chemistry for corporate of Turning diversity Servier-Vernalis Vernalis. well stage of as Vernalis to discovery, Vernalis' with of cancer Vernalis shots the and was Ligand. is in increased are potential upcoming sole that site, very as The Atlanta model has I'll meeting site our our also inhibitor specifically data now opportunities of Servier well fits an known and nearly also going SXXXXX at where that assets and for upon will The now Novartis. Mcl-X the and forward additional to be will very at platform presentation upon presenting now drug molecule we a the strengths rapid the goal, early-stage and Servier acquisition be now integrated complete. to with MIKXXX. previously The Phase and the partnering. investor has of Cambridge Ligand Ligand AACR portfolio. expand base at with attention present Vernalis have known partnered and gone discovery in technologies on formation partner to I has Novartis modeling collaboration, enable look screening addition Servier, the are assets protein licensing efficient at where fragment out is structuring, The exciting U.K. in the underlying and and collaborations our additional companies novel drugs. The and structure-based added closely molecular which to existing on medicinal major pharma new which Vernalis

the within marry pediatric Vernalis is area continues expand Captisol active of Notably, technology data our Importantly, very to data to including drug China. Captisol Provis area now interest pharmaceutical in to partners, antibody also provide Captisol, additional which population additional oral small the value Master the last opportunity And continue to added and specific populations. year, safety antibody another renal-related on DMF Captisol. with Canada, conjugate, File industry. patient to now special the reports datasets OmniAb we briefly on The the and to expertise molecule in our administration, databases were U.S., Drug the [ph] for and we of Japan at safety growing see our

our safety and material reproducible Our partner. a highest history Captisol of reliability in global scale to as growing our partners supply GMP large of a manufacturing continue value databases, and well-established

they in commercial contract established and pre-commercial finished on In shipping with distribution comments This addition Ireland with and Captisol. expanded that for Therapeutics. Merck us expand in chain out licenses multiple new and diversify wrap XXXX. supply to KGaA Portugal been needs of entered their updates I'll capacity Ireland meet in into also with note recently manufacturing sites reVision the material startup last future by commercial and both distribution a our with we Captisol-enabled their R&D that Captisol year, helps and company or as our up brief clinical we a current new enabled I capability of have some iohexol. manufacturing also products my pipeline, called partners internal starting And activities

this QX to this CE-iohexol Phase The year. single bioavailability double reference relative XX I clinical the determine and and will safety trial target the features Our preclinical in bioavailability CE-iohexol internal the we're Healthcare's now health our the blind, We final submission be and The assess randomized initiate product. which our which to a and authorities will study run expecting also on trial team this tolerability. our GE trial crossover has our for to trial up And making enrollment continued CE-iohexol of clinical Captisol-enabled be in-human to to in the quarter data manufactured where will we are batches have make a be X-period We've year. designed volunteers will and first healthy built program. of good Omnipaque. differentiating Canada CE-iohexol CTA to preparations in illustrate our further or is dataset aim center of product, iohexol of will progress of on significantly,

relevant from present to year. scientific data and throughout meetings the expect the at medical program We

five is inflammation they experienced the now OmniAb at plans be are more around new to The meetings and partners data internal now also year. and team. potential call about discuss Matt the I'll and through that and programs financials. the And of programs center where on we over targets have in to have and expect XXXX Korenberg areas. the the known our with generally We talking therapy these programs turn five leveraging investors biology oncology We generated antibody-related to the deeply initiated and capability

Matthew Korenberg

exceptional XXXX Significant significantly guidance. was earnings Ligand. and financial for which total an for Matt. in contributed growth year business year Thanks, our the exceeded revenues in expectations we a in and our to for

of from continued generating track We our operations. significant cash record flow

I XX, XXXX, period. QX of up for in royalty $XX.X is the of XX% the reported the As is begin our prior royalties, today quarter which year compared which by considered appropriate growth the in year on only ago comparable as with issued not $XX.X reflective file revenue result comparable as Captisol December appropriate ended $X.X and while discussing the the Captisol year is royalties. of quarter versus and million tables for as Promacta of XXXX. our million, sales million a milestone couple QX as the revenue of it comparability The this business royalty higher lumpy fourth and QX were were appropriate in year The contain $XX.X of give when royalty period. for partners. investors the the I'll QX the in Royalty should should earnings of comparable licensee one $XX.X to this have XXXX XX-K XXXX million, Total mentioned, from in financials, period, the by numbers contributed QX ASC as to QX I'll million largely from the revenue compared quarter of increase details substantial When XXXX reported year revenues as Kyprolis reflected in period XXXX fluctuations license in for reported that XXX. remind and be $X.X revenue the investors not Milestone shifted and million the has last at will is million period a record XXXX in were the XXXX was more but in royalty prior Captisol our quarter-to-quarter The just mention XXXX well technology, news we the our while period the number. was this $XX.X number I discussing million confidence a material comparable actual sales quarter achievement business. revenues release timing numbers royalty is revenue for ago. trend, in that a the $XX.X strength number and a a $XX.X weeks. time, million, generally

gross Regarding margin.

margin. gross sales well prior as to can compared clinical commercial mix QX shift margin changes quarter-to-quarter months year-to-year X Captisol as resulting period. Our was in slightly gross from of year first material the year sales the lower the for A as of in and and

Our for material gross an translated sales cost to corporate overall margin of XX% QX XXXX.

was $X.X On the in million. expense side, QX R&D our

noncash and Excluding other R&D charges, million. $X.X was stock comp

$XX.X was million. total QX our G&A, For

G&A and there, Excluding stock noncash other $X.X was charges comp million.

the which cash were quarter total line $XX of with expenses is million together, million, Taken to $XX in guidance million. $XX.X our for

how integration, few a minutes into in further we have more discussing gotten the on we've provide more a into guidance. and I'll XXXX, this Vernalis As will view specifics roll when some detailed

net to income. Turning GAAP

prices. as biotech stock while with Viking's XXXX, loss shares volatile per loss Viking often gain has of was $X.XX but approximately share. had a million, was the good QX good a to net $XXX in Similar a QX item share a been $XX.X quarter, performance strong we events. associated of most XXXX with $XX GAAP QX data For stocks are, In had and million. combined QX and Viking execution income loss Viking's noncash related QX, million of of QX the a or of there this significant XXXX, was and to in

great Our view continues to with a be that Viking future. a company promising is

quarter for common stock of rather or each in in due or of would X, at by value such business. than changes fluctuations market shares sheet, accounting These selling XXXX-XX, value quarters the the marking whether of standards stock. and the unrealized -- impact beginning negative the previous the operating running the as Prior for with P&L change our by gain are XXXX, ASU value P&L. the the mentioned in balance we prices value at prescribed accounting core we new the Retrophin financial the our resulting account not the the ownership instruments of our positive Viking to in As time January current reflective loss to but in through our of by making not value

As adjusted be earnings gains these our will calculation. excluded or such, losses from

the this $XX.X For of per an QX, adjusted in cash million of period reported generated $XX operating and $X.XX same million income net the year or $XX increase for million the of million -- operating million period. share flow, share, year. or compares in diluted quarter, $X.XX is generated In per we diluted from which with $XX last cash net flow income ago $XX.X we adjusted

in is million. for news year more release, full cash XXXX. to year outlined XXXX, year increases in for GAAP versus in the which XXXX. GAAP $XX.X total was earnings income as full income operations million net well. growth XXXX, were $XXX.X $XXX.X from We Revenue our the revenues generated as translated in our than in cash double at Related significant the $XXX.X XXXX, flow For million net million $XXX.X million to in

changes noncash figure large gain in this million shares. a Viking prices trading mentioned, as $XX.X was the However, from principally for year by resulting of the impacted of

share net XXXX, on per revenue as most relative G&A million $X.XX For with the attributable our of quarter fourth or and XXXX. expenses. in million quarter on adjusted cash, a guidance per some to Promacta few exceptional was diluted share and compared recent primarily orders the additional Captisol for as well $XX.X R&D and we income benefits of $XXX.X adjusted EPS diluted The reported income outperformance or $X.XX net to

a basis X% than the less utilization of As our cash adjusted is and our the our that result despite taxes NOLs fact on a remain other a of on current pay EPS we fully than reported projections, tax XXXX. Based through reminder, end tax less X% of cash assets. will rate as our taxed the

with On the balance over equivalents short-term sheet, of $XXX we and finished cash million year investments. cash, the

cash. basis and points highly investments, income in interest short-term realized maintain cash XXXX our continue We over our liquid of to on but we XXX

the repurchases note and reflects balance share in QX cash that repayments XXXX. significant convertible Our occurred

$XXX from increased saw, million, previously. our repurchase which to As is we likely share million recently investors $XXX up authorization

given acquired and we of investors our outlook, increase authorization. going $XXX the pleased are our as past used over Knowing opportunistically we for we of repurchase per evaluate opportunities. the three plan know our of repurchases earnings shares make total the have we business forward. all these about stock. today, to and share cash repurchased they over and continue to As over what In XXX,XXX flow X% to share directly million months, We

we front, that the closed touch on briefly. in strategic to transactions On wanted quarter two I the

integrate $X October along and our to financial first new our process million investment Our as Vernalis with we team shots continue in investments on trial our We our always create II/III recently integration U.K. disposal million such generate closed the well. to to acquisition the aspects shots of board look to clients. all goal. we'll continue the We'll in of as and investment Dianomi on the at hope is of discussed as disclosed new cost this servicing closed Palvella's the Phase is on $XX as Foehr tools control goal. going we The business, many use PTX-XXX in of earlier. Separately, are for we Matt

now guidance. financial Turning to

As year release, our detailed detailed financial in and raising more information. press full guidance today's XXXX we're introducing

XXXX. solid revenue, continued First revenue growth royalty we expect on for

For revenue. the expect million of year, royalty about we $XXX

order milestones we and year. license fees and late expect for continue contributed For the last December demand sales. for milestones at we million orders with license strong material to but XXXX. sales, approximately we outperformance $XX million fees, expect in A saw least And of lastly, the year to $XX we of in XXXX another still Captisol of solid couple year, the see

As I've and spans detailed more events. in and will this previous come milestone XX revenue years, of possible sources from than variety a license

$XX side, for the year. total expense to million $XX million we for R&D, of On R&D the expenses expect

to we R&D $XX Excluding that stock comp million. $XX and million other expect be expense noncash charges, will

royalty expect XXXX to expect total $XX million expenses we million. and cash million approximately $XX expenses operating comp, G&A expect $XX breakdown, these excluding to royalty $XX of full translates share noncash to $XX revenues million. to million. lowest Together, in be for pacing $XX all the components adjusted approximately earnings to million with each for approximately diluted QX being year quarter the to stock XXXX total With And the G&A, per revenue be expect cost These $XXX we respect or and year. revenue to increase and $X.XX. million For we to to we quarterly charges quarter

now, revenue royalty As estimate $XX our QX million. approximately of is

generally first and large approval it as material split half relatively expect see year expect weighted we milestones more other the related be and and milestones milestones approval-related is sales to lining of That the across said, -- up we first of pacing and in year always now. we sales, material to quarter even a heavily for the other Captisol with the the uncertain. milestones that, Beyond several

convert and and EPS unrealized in mark-to-market to in just that, our value bond CVRs contingent contingent questions. in cost, to excludes adjustments onetime turn other a shares for transaction-related and call With Finally, over debt-related covered items. guidance that our by licensers, to the up excess and noncash the onetime our reminder certain open related holdings compensation in operator adjusted expense, I'll changes and liabilities, costs, back changes stock-based nonrecurring amortization stock, Viking hedge changes liabilities to the common

Operator

first Pantginis Joe question [Operator from of Instructions] We have the Wainwright. H.C. comes your from line

open. line Your now is

Joe Pantginis

that Good and mentioned. internal development of some afternoon A transactions and questions congratulations of on Matt a also on great couple your year. your

added was provide was you more First on you've just if wondering on could multiple shots It platform add goal. opportunity any Dianomi, seems wondering little I technology another you color. provide like I could a color to has that if just there? the

Matthew Foehr

this Joe, Matt Foehr. is

is itself. the and little the protect MCM stability. does Coated what you give background ability delivery delivery, of Just it technology -- what of a ability it's technology on it and leveraging it's and human to can or Microparticle either sustained It's more bones or essentially the that called improve Mineral biologics and teeth store technology mimicking the the bit mimics

it's So a new technology.

As you goal. of it, Murphy's our lot it does like evaluating say, The and more engineer it came Wisconsin gives time We us obviously at an an who out goal. lab, think the technology. well-known opportunity of and opportunity for for is give spends a on biomedical team more University really a Bill shots on shots of technology

John Higgins

add just did Captisol, perhaps, versus company, investment difference we not was the I'll acquire an into Joe, the it here the, the company.

have So What this secure their is they will five royalty and first perform we work. operate products. done transaction structured economics with on their

and own out, other our so to technologies them a some that it's to very may those, those here they house to diligence we but at market in it's that the may license certainly business ways control Ligand. speak, not comparable they of platform but heavily So in license can themselves, exciting and some

Joe Pantginis

Thank you. I color With internal regard programs, added that's well. the helpful. appreciate No, as to

earlier the a little it or with that looks that for longer leveraging what held regards the certainly think you you've saw that antibodies call, in I to them with to balance economics? like do OmniAb on possible? think is, bit John, regard oncology very into spaces. do you they'll these see where even you as said So five far of your inflammatory maybe had better comment How you RVT-XXXX XXXX And just on platform take model you to successful where Or as and sort long-term that are by the some you're early it garner to out-license today's talking would you fit yourselves. mean with you and about

Matthew Foehr

as initiated where Matt we these licensing off Joe, the this year, our team they That kick last right, biology, teams, known, is five I'll is look Foehr, known we -- potential need. with in areas are to them. made say, biology since we They has great programs are the progress so these targets on -- all but at again. see

the is increase couple then that questions the key answering of targeted investment for economics. so us And a key

case antibodies It's downstream work antibody can of defining even pre-IND these, drive some obviously it's and the program. really in getting of some an -- and economics of doing the animal type sequence. the biology for in models the So like models antibody that better preclinical of

Joe Pantginis

Got a it. lot, guys. Thanks

John Higgins

you. thank Joe,

Operator

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

open. Your now line is

Matt Hewitt

Good afternoon all on congratulations and progress. the

John Higgins

Thank you.

Matt Hewitt

royalty it's rate MINNEBRO, processes? I'm on up, correctly, could then an the is, that their if at details Urovant where details any update lines? regulatory maybe they're And -- what one I of part in those whether if licensing agreement. market there you First size, Maybe remember was on provide wondering some along

Matthew Foehr

nuclear field time partnered that right? now, is back of player this comes hands spinout Daiichi as acquired the company, discovered little for with in number that case Phase technology, going a Yes, a Daiichi XXXX approved corticoid here mineral Sankyo. we which Matt, obviously a cortico ran the III it's Exelixis, had the larger receptor this is in receptor a in, was trials, spinout it ago we're or when over is that and Japan, they then obviously So the on. and speak X-Ceptor years, year guidance I'll -- to passed cheering in was within was like that a outlook those haven't is and a time to with specific bit, Sankyo XXXX, drug original Hypertension MINNEBROÂ history company Ligand's X.X obviously it was given now commercial They large a a so by called Daiichi who right? that. They a then seen data or with frame, change we've things assets along market, leveraging in Daiichi completed successful trials around hypertension. This

So to we for direct details them you there. more

Matt Hewitt

they're guess, Okay. regarding U.S. world? update any how the Great. then is And there Urovant, rest I with of and, on progressing

Matthew Foehr

No. other to direct We'd have parties to you that. on

Matt Hewitt

enough. a guess, All the right. right. then Dianomi. All Fair question And on I follow-up

acquire that platform, an kind moving some on letting essentially the having if to other that that's fourth it in-house, five course and there would run anticipate you of downstream opportunity the a essentially you bring business? would that's success do you where of the with is Or rest Given opportunities? its

John Higgins

Well, it's question. a fair

bolting they Invesco, at and with manager frankly at. on to highly strike do and respect idea financed right in what want very very But was are founders we is of science money, good outside technologies a credible out the an for we're but think are their Ligand, respected good got investor. I what portfolio a of senior the clearly Dianomi, zone some of full independent they obviously fundraising company, leadership, a of one they're Ligand and of they've

objective company. if pursue a to we other we'll is that to here, and but stand-alone really opportunities. acquire time, or certainly, not bolt-on, no technologies there's is this over those was There them So the plan interest see

Matt Hewitt

there that Okay. starting margins, your maybe Understood. XXXX particular good or then would All of is And run one year, is any for point? rate kind your gross we -- whatnot, me, last where margins as the whether of one a why looking or use it's should of kind through the change right. timing reason kind in

Matthew Korenberg

of XXXX why than which mix So commercial, et reflective material reason side, of different would the the partners, margins cetera, but on no versus overall be clinical, will margins XXXX 'XX. the be

the which I think in shift side, margin all slight along, side. we seen have the as said is, towards lower commercial a clinical we

up so for bit, in reason might but that margins tick be down a end And right think, the a the material sales they'll still same to I neighborhood.

Matt Hewitt

much. very you Thank great. Okay,

John Higgins

Matt. you, Thank

Operator

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

Your open. line is now

Larry Solow

Great, thank you. Good afternoon.

on Just just a varying more color? into minutes of come patent or patents to on obviously of at the the amount opinions competition out orange Are sort potential goes the couple market lot or I and your analysts patent that current the for on from just expiration. there give to you XXXX. you mentioned on significant window book us exact there Promacta royalties, a of that least earlier? a one maybe know Can just a driving significant provide expirations of generic earlier more that, like

John Higgins

going of more that, it's team composition of layers. there of growing patent give off we have they a some in as Novartis time monitor The presumption they're work is to And XXXX, very Yes. frankly, very upon long of come list or very life. talented, at early and type 'XX the talked that end patent patent as frame closely. it's that We and and Q do here it sophisticated sees seven protection. Larry, doing fantastic study a disclosures, that Novartis' of picture through if [ph] to disclosures IP, good is 'XX We've and asset, obviously through matter that I very believe think 'XX. question we're not years monitor got that other layers their well patents public is Ligand. don't or the obviously a There again And years, you big When nicely, we internally. XX-K strong salt way. patents way. Novartis see XXXX series it and go it absolutely are a XXXX then that in-house

patent is view life. our we have QX of of X So years that XXXX, here or in more sitting

see some market of seeing And that, in we're that the and protection. the Matt if color robust other excited I'll there. growth Foehr of about terms wants continued add any

Matthew Foehr

No. Yes.

as it I well covered market. in their pretty in Novartis of that the you and fulsome think you from said their different their XX-Fs is on in disclosures patents list and XX-Ks the

Larry Solow

guys getting you without global have potential potentially in and quantifying Can line how it, it color. a of of the done How least I -- And runway Okay competitors has its product the of you penetrated or us of at just terms you growth much for good protection. or patent about a sort second it's we're the even level market. with for -- share with amazingly like of numbers from are maybe growth? there's room right, just great, in Obviously, a well. There on couple no that there? into the indication new where appreciate sounds runway

John Higgins

Yes.

we performance. two licensing exceeded being they frankly, So forecasting, it entrants. year raised in XXXX, but saw numbers the XXXX internal three frankly important the was water. deal overperformance we Street guidance a in these and other or quarters some expectations, obviously few ways our had blew Novartis, We What's were on out fantastic a of revenue, Their times. roadmap, that

on the a of they we are companies, kind has grown small. sales -- a just the The outlook. XX range product be XX but may lot years, the billion for big And Now with analysts' marketed is analysts monitor outlook a $X other years the that, company's not these entrants, that cover when by are commenting the XX to experience, Street months cover getting They not small market traction. They now medicines, good analyst you few to frankly, outlook last aren't is of in of billion Novartis, $X ago. that no well It $X.X in face years peak There expectation, doubt within And are at doing. look quarter real analysts -- fantastic these Ligand's, is Novartis Novartis that. billion. size reinforcement of three is nice billion posting numbers. is considerably medicine. some the analysts, $X.X who best-in-class of market how about And this fourth the is a new the entrants, Promacta,

think is dominating expected, of treated. the market that it's belief I larger a category platelet entire the evolving it's be category a patients is there's pool an than overall It's the So that potential expanding people as shares. and Novartis market, eligible dollar larger to

So we're publicly. it's observe our and it kind proud we good what available product, is what in on of of that report terms a of is

Larry Solow

that. appreciate I Okay.

more, a question. Just couple a global

but of subscription-based the a that a the what release in. press based. on milestones, growing. so material for I come is license Can a you of think, milestone reaffirms back-end Your on sort billion, you of part is just your next, average think this model, royalty do year, over have Along years? that -- remind sort with just also said which or is number's guys investors which you number XX for you partners, $X.X you necessarily but your not maybe, that but know part over also, not more with just fees comfortable and fees think, obviously business And -- even just is that, I OMT, payments loaded, of I don't

So to in gets which company a the I little out how company really have what been milestones, think, lost worth? on analysis there misguided is -- I some value the there -- think that you're based real the bit

Matthew Korenberg

Thanks, Larry. Matt It's Korenberg.

worked level these in conservatism when about as milestones finish then apply time as do drug the model we is the averages to the with are, that it we we stage depending take industry those we up of As feel to the internally, average being on if total most possible that says million frequently the fail. the start When some math. I and And talk milestones, a $XX amount or number, drugs in talk what our approval into a XX John into success our and and on on moving bake that, about to all $XX everything the what number and over of I've rates we $XX million over certain we from a about for we year, calls we, said but years about past million that's -- said as we realizing some $XX say where when things year. so, slides, million of is we total, and trials talk and all line next our

over - or million for. that something over that's in like years, less So total lower $X.X And much XX number total $XXX that $XXX a got that's million billion period. much the to obviously contracted than recognized we've

that million year to expect our we recurring fees otherwise. is You license $XX regular for use that There other pay mentioned partners us, those. every that that or fees service of is million license us certainly technology our annual a our of license breakdown pay and fees of that the subset $XX partners fees,

nature well. to of So there that is as a portion a certain recurring

John Higgins

you has just which events grown stage milestones. of for Well, to trend, often are to go few thing was other potential contract often a point six the about we million and the five and had we years, our one or programs have, large invite later to annually portfolio, X, look million. annual prolific amount under And look a as add a at But of saw And to years. licenses, and and the last ago, later-stage the of we investors advancing. we revenue course, if license but $XX back the again, partnerships increase fact, revenue you, level a were X tied tell -- I'll of that years $X at

at once a level of million we we million. back this More again, saw $XX we're Well, out that gap more And and for stage, about couple here that we looking to almost up million $XX years, to we we a For million, at to and are couple year million. deals, then later are. now, of $XX level licensing, years. saw $XX that $XX you revenue with WuXi $XX were million at

to it's these So cetera. control, we we is forecast, model of And quantum at events is are the they're our believe that a working. to hard reality again, revenue. do clinical new once annual while are higher timing, tied of et out The

witnessed most highest the assets the contract the have of payments a last We volume and substantial, revenue And in this we've are years, in the and growing company, the programs element of license under advancing. meaningfully is history of our five development stream. what

Larry Solow

Right. And amount, you on the 'XX, really -- I license guidance of number you certain a get was to said there for provided that gauge, I when guidance, amount, was could -- that. timing challenging initially that an remind think think, had and us, portion you you Can potentially? provided where amount dollar milestones there additional had but a was

Matthew Korenberg

quantified Thanks, upside. potential gave we million changed has guidance, that Nothing we from $XX initially Larry. that. When of about as

track we go. the and but of the on the of than it continue number that And update number reason my the actual and to publicly, that year, year specific specifically let for we're update today, level investors that. mentioned we we'll guidance upside noticed really the it's then course rough our wanted today in correctly that over You didn't we time folks talking sort is potential at digest -- or to just every as beginning quarter-to-quarter the rather of guidance speech to have just milestone of give

Larry Solow

that just the relative Right. anything Promacta biggest the obviously And higher there? was is that was the that's royalties, end increase at by maybe for updated mostly driven I to, year about levels factor it weeks -- reason expected X think, or the higher the of maybe guidance else ago,

Matthew Korenberg

XXXX And almost in that what then a just we the of that end right happening Captisol It's of question. rest instead and the rolling some of of bit orders XXXX. little the offset up the QX forward entirely Good at through expected Promacta year. by early ended outperforming in

it's bit offset So little upside a of with Promacta otherwise mostly Promacta. but the of that,

Larry Solow

couple, the expect tax effective sort didn't and Okay. 'XX of what's quarter into and I the what your And just in catch you guidance? incorporated in a Matt,

Matthew Korenberg

XX% assumes federal from Our each which to and guidance XX% where X% to year, come state sales X% is depending et always on tax rate, then XX% cetera. our

in. baked what that's So

Larry Solow

that than effective quarter quarter, And past number? little was like -- that? lower in was this a then was it looked it the same Or

Matthew Korenberg

Yes.

items always either forecast. by it's the at actual around onetime that have -- tax impacts differing we little, a was it think but rate, shift I than which which

things So it's and in one-off move of EPS, adjusted cetera. that out et our

Larry Solow

appreciate it. Okay. I Thanks.

Operator

Your from Drew Jones of next question Incorporated. line the come Stephens, from

line now open. Your is

Unidentified Analyst

Thanks Hey, taking guys. for This in actually filling question. for is Drew. Mason the

John Higgins

Thanks for call in.

Unidentified Analyst

from what's So much how $XX projects? OmniAb talk about? milestone guys of OmniAb guide the And for looking billion OmniAb, opportunity, representation that million at the and that opportunity the you XXXX $X.X is

Matthew Korenberg

which the fees, but question. starts, of we and some OmniAb, Last trial year, mostly and were license at XXXX by category. Good Analyst milestones tied OmniAb. gave we lot which annual is Day, to a of gave a breakdown XXXX of a we We the OmniAb specifically out sense didn't break said

saw in breakdown about release. the we press $XX Analyst in you million intend lot to million announced year. speaking, to of press more Day. a As milestones on the the give OmniAb release, But We at numbers our detail probably today's Day have date Analyst our been of a $XX generally

$XX they're of the a So million. subset

Unidentified Analyst

of the that's Thanks. minute, are biotechs? think of biotechs? a say the how made Got that back you compares of up And your percentage percentage what virtual you virtual do total for to And it. would stepping partners market

Matthew Korenberg

Yes.

counted on That's nuance. that out what companies, important subset as I of small are that startup So goal. on are there a is very an call shots folks shots actually the goal, and of XXX

a new deal announce ends our on doesn't that goal up we mean right startup company, it because with maybe in Just necessarily a it someone shots away. count

And partner on type startup a percentage. biotechs the handful shots our of so companies, goal we across list, have across it's a but lesser

John Higgins

they some got or technology investors dream. come what scientists or dealmaking, because last have the Ligand to drug we to can what's Yes, go They an enable go just and and there fascinating, years investors are in go stute-[ph] after instinct we at look often to mean, back or that XX actually when want opportunity. Ligand something, Either to after got a that their do, has. molecule we've I

Okay.

et you technology, a or the to license look at were Viking. startups So if nothing happen. And examples, one virtual a were Retrophin, three beginning and Sage, principles license. biotech, had a had had literally sector, they of an with the else and when they came took there we Ligand and they startups these ostensibly These a from Frankly, cetera, Each except Ligand. all product. investor the idea at for tech an scientist who

and how ago, cap the a contract a and cap. the more the I $X you in well, over about ideas well $X of look because $X way Ligand. for to the management. tell market about a industry incredible. very clinical trial million market is it Ph.D. and cap. Ligand companies it sign a was today, just on million then is with was, with right. these these saying meaningful evolution services, way biotech evolved to economics over was, not you It's was these $X oh former inventors, XXX about 'XXs, cap, a and there $X.X How cap, to so in market of do low-cost a raced has early you Viking you Sage, about really $XXX know, for for cap, and billion, size. create this in efficient industry efficient The startup for is virtual lock for brick-and-mortar, Now not all at Retrophin, contract that's it's in Wouldn't industry XX million banker, a today evolved billion has profound chance this very industry it to billion. and opportunity, way market billion companies, for Well, every I'll many it's based joke $XXX Ph.D's up had contract market Ph.Ds, much your And years market and Ph.Ds. out how I'm discovery, participate

virtual are So later. these companies, of company back-end, the how lot startups, substantial there's we're successfully capital and but for good case very moving years on companies, just to a press clearly several these formation, witnessing

Unidentified Analyst

Got it, it. me, guys. it That makes sense. Thanks. from All guys. that’s Appreciate right,

John Higgins

appreciate Mason, really the and call in asking questions. you

Operator

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

Your is open. line your is now line Henry, open. now Scott

John Higgins

All right.

move operator, please. let’s on So

Operator

Next from Goldman Sachs. the Flanders line question comes from Dana of

open. now is line Your

Dana Flanders

you're of probability Hi. just are risk-adjusted a my and us number? of My down you Thank just lower one methodology milestones there just probability for first specific Or average taking success to the of phase? milestones. you where probability taking to Can on success? higher remind using either assets you based that or kind questions. get Are on the

Matthew Korenberg

we based the past, just Largely take the more probabilities, the stage of average risk, Thanks, that we We lower only assume had never success development. would than success the Dana. higher standard but in across higher to be some vary a do probability occasionally circumstances We aggressive. of industry to it more not that, taken on but portfolio, trials be of conversative, says, the later-stage -- average. it's probability average but about of industry certain the speaking, in we've generally from

Dana Flanders

you minimum goal, just just clinical shots that assets Okay. like walk set on to leaving And viable you may of you whether considered a funding figure a level to on target? be sounds considered of out And for of but level it's a or a subjectivity It there be Is moving your kind partner, threshold of a through goal an should company out trials? on shot asset be kind trying of there? maybe similar line? the that question kind how how

Matthew Foehr

it's progressed use -- We we I'll Dana, ago, they're did got the multipart a time I'll and and I and useful. couple licensing a something a if a a and completed recent it that probably deal our progressing, called right, years a looking working in and of And Seelos company out recently a kind example a licensing deal. count merger just with we a use is plans of didn't I goal by funding I this while goal, announced until example, think being they've they million, as on deal -- actively progressing programs as obviously, kind partner, present funded funds, recently Foehr. to we mean, shot they the we actually a said, we on forward. very count it's once very because when count reverse is of -- $XX we actually raise were raised shot Seelos Matt

think, annual a our driven of way of some growth to utilize That, discovery, because generally seen it in and So by annual lot shot. our it. OmniAb Shots-on-Goal how of using in as you kind that, little technology a that gives We've pay they're count been a a license, we I enter fee think about are that's insight partners lately, discovery is the lot of of we an the on licenses discovery structured, into basis. an would a obviously generally we if that

targets, all the are on Now that's growth shots IND count an defined preclinically goal progressing they XX, they've goal, and as shot of in XX, towards XX may we don't to count. lot OmniAb will testing downstream in be actively but once count leading antibody shot on those been and we

John Higgins

the what's there what what the We list backing to to the count to be those is, about ask talk longer. don't to no it we conservative any you're qualified, what think the number, it's but we dead, I but qualification reporting out, of the count? and be or We've attrition -- are count terms is we killed, also Frankly, should report only when increased be And event make conservative. delete the some longer in is we're think funded we very to obviously, to everything. numbers counted. out discipline to progressed, we're on be year, try what's sure good to but we do disciplined, deserve the doesn't in literally, what got count We in, have it's not very substantial that every it's detailed are Not studying what exclude to always also what's but number, okay. is say right.

Dana Flanders

Has in Captisol accounts Okay. And receivables that to Can maybe recently? been What's the just a driving housekeeping just related? been increase talk you that? question.

Matthew Korenberg

royalties. not orders quarter, the of have driven related whatever a now of -- weeks all entirely mostly -- it's No book to actually we Captisol royalties each the the have receivable the quarter. numbers related royalty real-time Because are a royalties, last we related but well, always Yes. for quarter, the to the by partially the in we nearly

-- receivables no have royalties, when our real paid we to increase are quarters. every lag, on and because quarter in increasing Back So as same royalties receivables our one we almost had going the booked we a year. booked were

Dana Flanders

Thank taking my Okay. you for questions.

John Higgins

Thank you.

Operator

question comes line Capital. Henry from Roth Next the from of Scott

Your line is now open.

Scott Henry

And great Thank year. you, congratulations gentlemen. on a

had a of some I Sorry, difficulties couple technical ago. moments just

of couple a questions. Just

magnitude Could in you we EVOMELA the about in China. that you generate should any First, idea of think area? how revenues us could give of

Matthew Foehr

Scott. you, thank Yes,

EVOMELA remarks, So CASI as year. China going market it. Pharmaceuticals the got I at the approved last of in mentioned is in to end

stem Best patient multiple And drugs of that there are and maybe living be have for longer patients We stronger a as more we in expect one, for a have generally cell stem as and and can myeloma of about XX% for of kind drugs. drug, multiple on globally. with cell myeloma is knowing are now multiple transplantation multiple globally an launch to multiple really increase myeloma they just procedures, harvest the that myeloma living the based the two used are is the EVOMELA actually enough a that communications. them hear of get would that more when longer, myeloma to more number they'll fairly you launch going cell that speaking it out patients up. soon you royalty view seeing And and portion of stem lot this transplants in their physicians talk specific new on do transplant you to to direct cells the but transplants market they're their there's commentary - a

Scott Henry

idea that And think an line the what you Great. get XX of the XX you then the to months? what's within material royalty trying impact kind Okay. think look and color. for of that view idea I XXXX new about XXXX, guess, should when drivers how to for model I'm Thanks as at next do of, an could horizon to revenue we line, royalty the get how on the of just trying in I

Matthew Korenberg

driven asking were EVOMELA well and years there Kyprolis as on Yes. months. royalty approval XX% a line. to going time and the launch Retrophin royalty rate the lot that's period. that And coming royalty there. number of their Matt think going it's royalties, And and to a date about launches, XX PDUFA and the the of you we Sage Thanks, line about success major significantly of will couple driver Scott. growth following then over of growth be XXXX then will a launch with and be in Obviously, add shortly, 'XX, successful the the in just obviously there about up most as talked has to next smaller China, 'XX, but the growth next a likely as will continued launch in next be launching by kind the certainly then Promacta be

Scott Henry

question for and Thank from just color remarks. the Okay. that. Final you clarification really prepared on the it's

it I million thought was again? Could I to didn't take comment you XXXX. just John $X and OmniAb talking clarify it thought billion. programs $XXX interesting, I for targets about I down? I the that think but heard XX was

John Higgins

right. Yes. Yes. That's

there years we So heavily acquired we business through two general parts we acquired think out are technology OmniAb, build I had the the of and the the invested Crystal three and ago of commentary. and

we we platform. only IP, the are a clinic. but there business, and the When deal the exceeding drug acquired had business, have the or at was had those we having XX. had These discovery is estimate zero programs The And Fantastic metrics question we of research, three -- good there XXX business the over XX species we have we in platform. so is developing, are very, there expectations. partners, it new distinct bought course, today - of very XX. very making, discovery okay. success now today the to without health strength Today are we measure important mining of we well advancing, metrics the with the are because first is this we over partners Not strength the antibody When in are relationships, good about have XXX. far time the best-in-class

is investors now part mean? does Analyst our this, lot There the to but at very, we're help payments lot is a and a money understand mid-XXXXs. high invested. the of antibodies peak mid-XXXX. but probability much There and being will a in launch years few It second of do contract what high antibodies there is of we're part Analyst very probability about the will are a so within many be like, And is second this at talk these from booking antibodies so So partners, launch. the and hit programs, is deals. many very launched approved There of think -- Clearly, we Day, that numbers. to just sales going OmniAb in so more

it's a comfortable a as a and lot we range, of royalty is it's It's time saying between $X feel annual frame. estimate, the the why So look out, it it we market, million all we look possibility that it's XX-year has look antibody revenue type for be large medical of programs, on fairness call this a when know years, that but little but an the those look the believe our in $XXX royalty IP size range, our at XX. a in exact when number to business on what we generate rate admittedly billion we the to programs the OmniAb conferred is further reason partners, the we're is animals, it we that at very to of about outlook, good actually outlook. that's that discovery programs, on when do we by call at targets, the And defined of then that, what's IP is happen, actually to at much but picking we of XXXX, we have the important has quality XX math XXXX, the the But the the when that of as is animals, event. a

IP new where IP online that's the new our coming antibody. is the So is fact there through early is each for XXXXs,

Okay.

be discovered, when through let's XXXX, antibody an could there IP XXXX. So say, in an is

all antibodies IP you We now XXXX. XXXX, will XX be All expect have right, years, right, in or there even XXXX right. discovered through add

drugs is significant we approved within in of begin what's are Humira, to antibody could hit number mid-'XX, we peak products is that based expect $XX just a potential that be top-selling products as an antibodies. billion, a these The do planet $XX right, the billion launch. So growing see on to few will on years of example.

are there. big Now there amount reality seat a but of lot the we and the have and drugs table very a is antibodies the largest right, the are of at investment small drugs, biggest

give background again, So Analyst And around the help a and at present platform we participate even we'll stories more have on fact, that. their that's some little our general in to clarity And partners frame as might Day, their well. that. OmniAb

Scott Henry

for questions. you Thank thank great. color for the taking and you the Okay,

John Higgins

Scott. Thanks,

Operator

this at There continue. are questions further please no time,

John Higgins

Thank questions. is pleased with everybody's Well, Obviously, out focus XXXX Yes. you. the and on but I appreciate and XXXX, really we're beyond. turn

provided the color. mid- business And in that feel about the the the good long-term. very As outlined, and we short, we some we we've hope

Now in next few the Roth middle already to will that it more in Craig-Hallum few we partners a press in their Day, we on May, early few discussed forward be Barclays March, Analyst our today market noted of then interest at also we'll of at as a March, we the conference an -- have a the it also event. be few present and conference later be City, our months, at out London an updates finally conferences, going participating are and and York We'll into that's the of March program. so H.C. just announced as European be we'll we the Europe days in will in we and got April, increasing We've expect have release hour couple conference. in well. look We've expect in Wainwright New conference further in we growing Day, the exposure we'll attend those themes at to the we programs what have of Analyst XX along but

few months. seeing and your turn we So look with that, the again, you over thank out to next you forward for

Operator

today's conference concludes call. This

disconnect. You may now

Ligand Pharmaceuticals (LGND) 8 Feb 192018 Q4 Earnings call transcript