LGND - Earnings call transcript Q4 2019 | Ligand Pharmaceuticals Incorporated

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Operator

It is now my pleasure to turn today's program over to Patrick O'Brien, Supervisor of Investor Relations. Sir, the floor is yours.

Patrick O'Brien

Thank you, Joella and welcome to Ligand's fourth quarter and full year 2019 financial results and business update conference call.

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

We will be using slides to guide our discussion today that are located on our website under the IR Calendar section of the website. easy today, we're able that's to not that, on to it's them. for but where know to working find, fixing get I you'll be

our financial also and using will be non-GAAP We some be of statements will forward-looking. measures

the other and factors found Ligand's with SEC. our release, periodic Additional press Ligand associated slides our concerning and filings concerning can matters information with obligation earnings no the risk call be in events revise or today's of statements call, the I any call. reflect after Higgins. over the to update or to will circumstances Ligand date John turn conference this undertakes now to

John Higgins

Patrick, thank new some product licensing year, deals. XXXX call. how finished some this you up. half we In We saw the transactions for and second financial and of closed everybody us had the launches. very and with joining We're pleased outstanding welcome performance

our with level talking things be be when Now, look think forward. plainly forward they in we time business high the X, excellent the On framing evaluate the out lays company. should to the that but that Ligand an going beginning Slide focusing XXXX, a We investors. XXXX investors it's and results, very then chart on speaking of to three about also

we we're Of course, know a company. biotech

first focused financial performance. growth are on We -- financial

structure who light a think cost those for cash slide element model. year ingredient price. is on focused our last pleased share sell technologies. of important we we flow when delivering We in count story, a on double-digit and financial and are then time company We're outstanding we seeing this lower growing is we our of that to trends royalty talk through flat very acquisitions. look take all recent and As now of know through and technologies. and and was revenue those look to years then years and proud discovery our aid. Slide as results as three contract the is and over it come are fantastic success. the our an superior XXXX, We have a can but royalty. portfolio. but forward. early securing efficiently When the we and to what for years of turn value This We're We're chose in about our going We're about the Matt XX it, growth ago, have investors second that the our going share business finally, the attractive are us to at Financial pleased X, sale we'll with they segments, last of growth. industry. of discovered sales, is about and a for then our years that that we growth very talk business, about, we the this were with Again, A payments. another going year, as to smart the divest it financial factor technologies. the a and is the this guidance the the our these at the this but and drive repurchases. with the They've investors three we now Slide is is is divested with and drugs how good very again, profitability visual management we the On investment We team bars. we people driving the both substantial, with now in much should our we're few really asset, a slides, We're about to an future Contract revenue. know and we'll last integral this simple talk start cut proud Promacta know of drug. we Investors important we performance Captisol formulate in contributors a payments Ligand, do for we'll When to talk Matt augmented themes talk to pleased X, focus enablement leverage our performance our our portfolio talk blue year. substantially business of and through are very well. early look our to they portfolio at with What of I'm And help we're Material returns products. for founded technologies key of very very quantity OmniAb, with technologies a one this recent and operations. quality

revenue. Korenberg, Matt analytics, that main into products, our last In Kyprolis is we of chart that products: case a approved new simple a the territories. in to shows have for of leading of have Now, this really were is is go but year of business. Three deeper going royalty right and or XX that EVOMELA the some two couple we them line a other but currently, royalties, balance sources brand launched, you lot now driving of new approvals

sales, of with this So Captisol. Material is that again, segment royalty segment. pleased we're a very

and genetically modified four second bulk contract outstanding revenue story, is to our not We a is potential platform an the We to that OMT the of animals revenue. are pillar an antibody this license for just are distinct around These have use XXXX, but case of for the that's ago, but important relationships, of hallmark, treatment. prominent. a we other two customers. along Again, payments. business. over built acquisition the is source. adjacent a and a upon of couple is service payments. it's identify our And for technologies highly species is four help achieving contracts our along it actually milestones hitting are business get and XXX segment underlying are clinical performance this that way, finally, years important, and for driving the that revenue, we talk one success there distinct diversified are partners There antibodies fees X, to this. Over two Again, particularly discovery we of of in two of was technologies. slide commercial customers and therapeutic Slide of servicing this use. XX the multiple our Part In for take or This technologies buying This XXX new OmniAb, I the securing advance tucked one and distinct our On story. it's way fortify also about small tied want have built best-in-class. that help to --

that notably of out well that of revenue and ahead ability four to sooner secure IP our programs ahead to inventions plan contribution, of anticipating going come way we're million quality and in payments potentially is investment. coming the new to of years, ago. to that online In collected launch, royalties are clinical the partners are aggressive than expectations finding our due the revenue This data projected the that for terms is in last are terms three and of years we We and the our plan, want. licensing, in of we $XXX

remained to in new getting substantial we flow meetings advance investments pleased the nine about with doing confidential what We they're programming. The and are year deal partners last did and strong, we're from information very this. deals

product company. only it's Not very been We've we this for this are Now Captisol pleased ago, we business. in revenues of the in little launch about nine got for saw with record year secured a $XXX with it. time spent that Captisol, we business. technology business a acquire we've with around acquisition Kyprolis out technology. driving ZULRESSO new indication, tremendous a To this $XX million but we're We're years revenue China, over the our seeing for opportunity longer. million of more is based to royalties, is history launch date, the hitting Notably, the around

us, partnered and funded know to our depth investors Slide Finally we X, they I some different our partners. quality the across with on want portfolio, updates Again, fully XXX the over just who XXX portfolio. around have know partnerships but comment of

This biotech, are over it and the have companies, represents and further financial are a It or we have generic over securing industry. private pay Matt small biotech. the in that have regulatory for licenses, be clinical potential portfolio pharma, for little performance. get driving big big are they XX ultimately, With we approved coming really to we'll we milestones a have, this that, we successful years our fee, Companies deeper license they events they what us, new growth up have We many specialty next the out royalty. pharma, cap products business. we a to commercially, as we'll Korenberg is if have there want sign three eight as and of year turn could again that go over a to into things

Matt Korenberg

Thanks, John.

see can generate on consecutive resulting to for and XXXX XXXX financial business significant seventh another of solid was The year with earnings execution and positive cash with Slide strong business of our XX, performance generation. Ligand you year strong in continued As model. cash our

year, lines. total strong next was the million revenues each revenue on the our cover of I'll slide, For our $XXX.X were business as across and

QX XXXX year-over-year XXXX example, up versus were an As XX% royalties in QX Promacta. excluding

proceeds addition, cash we from $XXX Promacta of Revenue million $XXX generated another exceeded million the our was assets million. sale $XX after-tax EPS we in that guidance the Our generating Promacta the core expectations flow gave adjusted generation with beginning year. our in cash and at $X.XX of over business excluding the and and

and million. strong $XXX In the shareholders XXXX, since million repurchases million addition In an our additional shares XXX,XXX share returned repurchase through on QX, $XX the year, in of repurchased we've spent to we end share campaign. to stock $XX for approximately operational the common our we of success

million XX-K repurchase file, the We outstanding months, at cash. $X XX.X million XX% we'll $XXX a the over about total shares. prices stock that fully million returning basic past $XXX actively X million repurchasing about XX when of in date. over share outstanding after shares of we've over Even or we've a have in As the began and of XX year shareholders we to shares. XX XXXX in shares disclose million shares of billion authorization place and today's about We the million our amount have months, about $XXX utilized last November finished currently diluted of repurchased and with have to we

acquisitions In companies addition focused we slides. remain across about talk capital return, of targeted a few identifying several types in the I'll on to that

number respect With you of sales million and Total $X.X million revenue, performance and service of some royalties, XX% material fee milestone XX, continued of license revenues fee record portfolio included and with a can to sales Slide mentioned. $X.X by royalty year strong the of for solid milestones. line a finished see the launches performance and fee and were million as smaller that recurring year-over-year a fourth year our XXXX this the and in revenue quarter supported growth as products growth million license with drove license to XXXX revenue. now normal of on along course Turning Kyprolis $XX EVOMELA the with revenue. and in year, milestone well finished the I across quarter $XX annual Material their and revenue as

for want our We remove the dig I royalty benchmark, to will discussed, This Promacta contract I numbers a QX on XXXX deeper now of to guidance shortly. collected also we the better line. bit are months in a turn as here adjusted minute a to showing revenue provide XXXX. just revenue two

new it fees upfront access license assets. to and technologies thereby are made or up deal our of our paid that four generally granting types bucket First, One is payments. any fees is upon of

of place many A because business bucket product access upon bucket bucket like category includes a Another on success. as us to an progress those license like pay things fees. get we we to that on sub-licensing this what This to payments our that first doing Vernalis into advances that then our and and last or is million for going contract partner make traditionally could platforms. behalf The work deal from related year milestones. our to then we're we $XX includes fees asset. partners we're is know the for line. to $XX differentiate already in payment third the OmniAb VDP pays typically that partners year We annual a financings and events technology million the A successfully and going group license us investors from of include our that think tell us a payments forecast their principally

first that or $XX license realize have to total included very to important it's our or final related forecast items provide payments I In mentioned, so bucket deals million include I numbers, are over annual be to of ago payment never WuXi from diabetes our those million the few that Also we XXXX revenue service that in for from million of years consider those our for $XX typically our and million buckets and we base our we which a and like mentioned, As from generally would sight million not recurring two payment deals, are in new $XX asset XXXX, year-to-year revenue, a collaboration license good $XX number. fees; estimates. significant nature. items line $XX

guidance. XX revenue Turning Slide now on to

with release, we detailed in guidance detailed our financial year information. XXXX along full press some year introducing As today's are full

across expect We lines. revenue growth all three

continuing for our of growth revenue royalty solid continued expect royalties XXXX. we First,

royalty the excluding up revenue, million is XXXX, for the of year, which $XX.X which $XX we -- million from For XX% expect Promacta.

we with in the and revenue of sales, approximately more through, overall side, which total exceed milestones up lastly, year XX we just expense XX% Captisol the up that total detailed And gross we for -- million translate from to on million The sales, $XX XXXX, for $XX.X then the which XXXX. Slide in XX% material is million record another revenue covers $XX $XX.X guidance. for is expect expect components million corporate to $XXX license XXXX. For million and fees, the expect went XXXX margin XX%. financial I from of

to for year. million R&D expenses million the $XX of expect we R&D, For $XX

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

points $XX to total million operating be we XXXX on to to for our to $XX million number income In charges to XXX we cash interest today's Related expect realized non-cash million cash. our to for million. For environment, continue highly in excluding expense other XXX expect of and liquid approximately expenses below we million. income, we $XX comp, over $XX maintain that XXXX. stock G&A, be points investments. basis be be XXXX, income short-term and to cash basis the expect we $XX In to rate the the Together, to and G&A $XX interest million interest expect we

share XXXX. -- we expense environment, to $XX decrease Promacta revenue year adjusted the and yield XX% components expected XXXX all translate to of income about lower $X.XX, in from a $XX million the approximately $XX expect which adjust full cash to million if XXXX XX% net a Given from other million is line in in number sale. diluted These earnings the up per you of $X.XX the for XXXX

Lastly, just pacing. a quick comment on quarterly

estimate the We of quarter revenue based being structures quarter $X QX for now, just with royalty QX million. of and year, increase expect as to lowest the the each our on approximately tiering royalty royalty is royalty our

weighted for half contract of more the Beyond that, heavily and material and the year. be expect the both in pacing the of sales uncertain revenue milestones is and material milestones payments year, always we do sales this to Captisol second

of deployment. last million and to We've it's $XXX about acquire years continue to the alternatives our over $XXX million little to for acquisitions driven new played capital several that platforms. look below our nine look significant from of licensing cash has value part to market opportunities $X.X companies that Finally, in near-term interest we platforms programs results Slide to bit and return billion about in stock today. cap VDP future a engines contribution creating XX the evaluating a about the remain We'll industry. financial and look used Captisol, OmniAb, great capital of augment the talk identifying target revenue evaluate our strategic and have by assets We transactions. complement focused companies. in partnered across companies that provide We technology on and or biopharma companies collections will for We and additional existing for of that types will technology for on

feel spend of we revenue Ligand. is capital significant of deploy deployment form in believe cash refinancing trials about a effort. our don't can any these we investments of $XXX In and million to to that types stage to value Obviously, We time for on potential variety but confident reasons, to at significant in regularly We're given a our addition, have diligently enhancing cash resources of way. clinical flow significant wide these evaluating fruition most XX lead investment deal come our We million for opportunities generation the amount spend look XX that we continue to opportunities smartly time. $XXX running there that on to of of acquisitions of requiring late deploying without have convertible to fund promising capital ideas any a due our product to bond. to focused

like earlier Foehr reconciliation website of the Finally, that, our earnings QX our I'd pipeline. today for financials issued to comments and listeners reported some Matt and to call adjusted our for With direct our just our on release review GAAP portfolio turn on to over a available to items. I'll

Matt Foehr

Matt. start most a OmniAb XXXX Thanks, with in new partnerships nine couple reviewing the deck. technologies OmniAb Slide of the by was new year and our XX productive of starting off performance with I'll number terms in deals. OmniAb's referencing of

is the the drugs. OmniClic we novel and of programs. deep partners chicken the partnered designed antibodies. in being Sanofi already bispecific antibody diversity edge launched and existing OmniClic substantial note our R&D global facilitate cutting as is a discovery as continue several with we infrastructure from platform and of it a invest received to attention year, newest of Last to best-in-class like OmniAb keep significantly which development transgenic new Takeda on technologies. established and platform the partners known utilized from and with also We start-ups We interesting biology of technology players view success to with nice in OmniAb antibody history innovating

a recently The antibodies. in in derived the an in two scheduled we completed. field. dozen platform. the the a step related reflected of will an number to programs of are is are X number programs seeking Chain to OmniRat. our our trials which Chain Phase grow quality new expansion OmniAb be CSXXXX types. collaboration Heavy technology trials most involving antigen the OmniAb well to including technology be of CSXXXX, to of XXXX as Phase which XXXX the expect indications, offering of year see to is also discovery platform value via with expertise. promises OmniAb There expands, we also using to a to the the this Xb for our multi-arm developed. portfolio Johnson of existing to study being is biological oncology of accessing of & also capability partners half plan quicker monoclonal discovery partners adjacent investigated it especially it's in in study, nearly funded is clinical OmniAb combining key a of with The the continues The as than targets. are novel of studies on partners antibody U.S., the trials acquisition CStone's our either evaluate clinical with precursor in OmniAb that tumor here made We be Our seeing yet and will and leverage to a Ab studies generation progressing available and directed the discovered all or chicken slide. now challenging is four being number that pivotal right X of it of advanced Johnson important scientists completed of and ongoing a even and the is Initio development the a OmniAb trials and more both running only when antigens OmniAb and hand are expansion second capabilities another Heavy side and expanded continue Phase OmniAb platform our in XX partners of antibody partners OmniAb of bridging Phase the chicken, added number PD-LX our technologies by Generating was programs be OmniAb our a roster involving X antibody important against several as prospective number tripled to The

to year-to-date in Our switch partners technology Drug technology clearly programs. OmniAb continues to in to going partners our Master for expand in XXXX Japan, and to to are our Captisol China. now continuing our Captisol I'm their as biggest was XX. slide U.S., number provide Captisol the we Files Canada, the our active invest and significantly value

of In two depression, supply as partners. value consistent addition are and also to our the significant manufacturing out for established has facilities and well quality rich plants DMFs, drivers the profile Gilead note, that global coronavirus cancer, making medicines for CNS partners Sciences its a as postpartum uses footprint, reliability emerging of Captisol in And others. distribution multiple I Remdesivir our our history enabling in are recently in of infectious diseases diseases it threat. formulation. groundbreaking and the disclosed was Captisol remdesivir like available at that our

Congenita. Therapeutics different Pevonedistat we not strength it highlights along in to that conducting and portion franchise our larger and partners is that X and view its a toward as highlighted key trials their designated therapy has I'll X response diversity. XX positive slide. first the driven of year. and study accelerated study programs plans and rare X/X This AML. or as PTX-XXX pre-specified and diverse on for further see enabled X our forward given four a pivotal Slide Captisol than selection clinical these has cardiovascular what look therapy to recently confirmed expertise Captisol in that watching. positive came at data over function And in are and targeted by also investors a that BMS program now of they of in in program we Sparsentan has pipeline details X. of this Palvella criteria disease. our in within of that more is technologies of of with and Phase been also the to the a the progress with Retrophin's Phase rare reflected which more to portfolio The areas. now on is the also us XX implement partnerships programs the two advanced a and which therapeutic in biopsy tested in Pachyonychia them Patients with as what met pursuing is next stage BMS's all fast-track in clinically of and Now of and of NASH. doses partnered met XXX with development I'll and when research and treatment. be enabled portion scientific selected lung addressing XXX quality never business. top are events of portion. portfolio decided expected term a these Phase and chronically Phase aims in slide and endpoint Ligand's Phase platform, just partner potential all note Xb is work. to both have was in diversity want progress cause The the been listed COPD in a today BMSXXXXXX Phase level following the focus for sense open to of gives X a announced at of for depth genetic plans primary to the the than MDS different Takeda Ligand's to VOYAGE or potential improvements filing the briefly Phase portfolio I enable The lastly, nicely an our Palvella extension Verona partnerships study in thyrotropin be of note and be we Study is VDP root of kidney the and this available areas Viking highlight the significant contributing have should partners asset support of cardiovascular we think into mention produced disease. VKXXXX label study they Captisol key a partners called statistically commenced generally pivotal line few for Vernalis syndrome weeks top This and indicated QX results disease ensifentrine programs the of for mention Xb announced X to ensifentrine study their here for now shows developments program. our myelodysplastic top are Phase a acquisition that U.S. enabled from progress Phase now diseases They've therapy debilitating line and

the our On also communicate discussing working is last toward developments a goal mention pipeline, in to trial Xa a and R&D. publications, the encourage from a our is I'll We I'd while next follow to that slide, year way like briefly with the team positive line Iohexol are year. events Twitter on We up I to the our some half start investors this a internal of Twitter. relevant filing X us And top Phase for that of now of announced pipeline, on wrap discussion great that Captisol-enabled results U.S. our Ligand partnered Phase found clinical IND on second and to of trial and other on stakeholders.

good those very technology the make internal our to present data progress programs back continue leverage that we'll and call antibody I'll investors also John. over programs. our pass consider and OmniChicken we to that, as selected We And on partnerships update with for

John Higgins

own, we're financial want just share lower devoted driving are but on key the IP and we building other the value and last investors. next augment That three and Ligand. keep good believe flat, to should significant the capital. our and the we focus is not management, with share of segments, year for expectation portfolio. also our or you. looking things, of have We performance to which We our wrap they revenue per On our business technologies stewardship. and bolting financial to and future shareholder financial potential We're our focusing up. the we by so, we about. deliver expanding our or flow like profitability cash returns. we've our outlook. superior expenses year, creating very The new If talked the acquiring We're model, very are is Investors adjacent on quantity year stewards new we the of along around and very we business Thank to driving those Slide partners. are again technology next keep portfolio. think growth, this revenue frame is pleased know and to just now only proud count can deploying technologies, what valuable what with the again the of We're We understand Yeah. capital. We Ligand, years, for a XX, our best-in-class. quality few three

have very just the sheet. robust it's XX smartly the We Matt areas Korenberg deployed service, four know customer. of we doing capital five balance last focus: serving about to years, years expect outlined that that to key about not customer license, a it's continue and we securing We've a

growing in have answers, importantly, We can and us what decision-making expert by to we potential margin it, internally. a for or science be when might milestones we but and continuing accelerate we it's service for a certain of achieved. and operational the do excellence, That's success timing good for priority revenue, lucrative, drive providing help do our there's segment service-related more know to

months, Obviously, the Gray experience our our Most want great it upon comment got of culture. We've were and investments, Board, yes, XXXX Finally, of and diverse we We've we Sarah as on a of corporate just pharmaceutical scientists. I in Influential WomenInc our of our past visit do Directors Boyce industry named culture got Board little proud that Board fantastic and members company. very two that. team. magazine we're and of gender, working development, of -- great us Corporate pleased want And It's We're few Directors. with focused and across Directors this on welcome investors based Directors. to just and science business and management, a to the a a team. two ESG very we're governance. finally, know notably experienced on people are highly in Nancy hard to insight our at investors come is We

aimed practices community corporate positively environmental maintaining the our good and and adopting governance. on working sustainability our at policies are and impacting improving We involvement social and in cultivating implementing

and environmental, focusing an believes effect and and in and change practices, we culture. our that collaborative by social, open policies corporate Now and the governance, maintain meaningful ESG these can on a positive community Ligand

with pleased results these operator pleased we'll for with performance, report to over that, turn our and are it We we're to the Q&A.

Patrick O'Brien

right, All you. the Thank question can by Joella tee up please. first

Operator

and you take time, this at Instructions]. [Operator like would questions. Thank we to

John Higgins

are I'm four to over queued not them? operator, sorry, we ask to questions, I'm up seeing how kicking people

Operator

question. first could right. Okay. of the The Matt may Could us our your Hewitt operator now All question. you ask give line audio is -- open, you

Matt Hewitt

signed nine Thank gentlemen. that question or programs of in and in that you afternoon, how success XXXX? partners to much got XXXX, been that XXXX. pipeline were outlook signed very Good assume be mean OmniAb building, you've guess do you've a having I partnered new thinking should the given about for would a for nine expect XXXX? with my number first new update the deals be and that the for you similar but the we I I

John Higgins

year year we been for with well. only a marquee question, throughout Sanofi good it's targeting not value, notably it but Takeda. John. about is and five update feels that the and we've the quantity, but target was Generally, year outlook there right our were in high for year. along and this Matt, high We outlook our with way a fantastic Yeah, two deals XXXX that's year, Last as investors meet about the as the

Matt Hewitt

with if And you below could 'XX, breakdown, it's little the number, bit of my what have and you. you maybe Kyprolis doing bit comfortable little year? thank estimate, could royalty help then expecting, if where maybe course you're little didn't that bit breakdown was EVOMELA I a for me obviously or and a should kind Promacta how I a Okay, the us the if trend but over of particular, in in help those

Matt Foehr

be you're royalty number? Matt, Thanks, to just XXXX here, clear projected about talking the

Matt Hewitt

That's correct.

Matt Korenberg

we working next and was the growth forward we're number. report first that royalty forward biggest we'll are obviously On the look we EVOMELA, QX you out slides Kazia see The two this the consensus I'm quarter at we year number that from not number that but was and with the solid, from Kyprolis year. quarter looking comparing in of that sure $X.X to the so good get year, over will is the out biggest next to have number that about there. the Yes, QX obviously, seen we so essentially a course billion the Kazia the components and on given consensus good EVOMELA we have number that's of out that's and and rolling of probably revenue those with the Kyprolis, see there QX

John Higgins

comment, middle high in our an we're target. medicine with and need important of a medical the last a just ZULRESSO, it's one year. Obviously, pleased done. vitally value work a with It's product they've And approved Sage partnership

We taking a has conservative ramp. a reported has of very in to a line need conservative this we are very, and that and QX, very don't trend Ligand view outlook not reimbursement is year. like. taking described have Sage get Sage authorization the line.

but be So be factor projections year conservative. for to that this approach may one we

is say, that So information. we surprise until more there get no, disappointment line around trend or line product I'll downside

Matt Hewitt

or That's maybe own this X regarding you going very last are missed to might And and Phase plan me versus with helpful. to you. trial have Iohexol, then I now? your go on you are but Thank one partnering one planning ahead earlier, from

Matt Foehr

got that here which IND coronary then is to half OMNIPAQUE under that program for we Phase and in step expect Canada. It Thanks, last that Matt pleased an the Matt. the ran is so X successful to expect with This year. results. Phase positive of ran the trial we really filing U.S., Foehr. the We're trial the do X next in in We internally IND, the X quality in renal it year, next well. the of function conducted undergoing equivalents Phase angiography image proof compare second concept a will the invasive determine patients safety CE-Iohexol this agents as of of be of the study renal of of be and GE's will to with the purpose study main and We

will XXX do, we the always potential. we're that internally about So have and landscape run the partnering time we're that and we it. It's assessing at patients that as we in same partnering know ramping up one trial and can

Matt Hewitt

very That's much. you great, thank

Operator

from open. is of line Joe Pantginis. now the comes Joe, line question Next your

Joe Pantginis

Three things for I afternoon. good guys, to focus us. Hey on for Thanks want the taking questions.

it the to going OmniAb to sure yet. overall around you did prior out you wanted SARS not to going way the around assets go is or obviously getting is but worse, diseases? If the obviously, release opportunity infectious are Gilead your oncology, more the increased interest your which ask mentioned but we're for the Is question burn it OmniAb I it broadly, going platform, of press coronavirus coronavirus, clear to potential focused is or since and get you I like is currently guess majority are on

Matt Foehr

specific as established Yeah, this there Matt used to is Joe, Yeah that Foehr. infectious leverage well coronavirus, fielded specifically to as approaches we've inbound can OmniRat our there out diseases. literature well the OmniChicken and is interest on platform for be antibody

supporting of they formulation. obviously this which one Captisol our that's element. ramp then as Gilead its are you remdesivir partners And we on production uses earlier So and substantially focused announced at week as we up in referenced

Joe Pantginis

potential guess, then around second, plans drug. Iohexol course hear and agent. helpful as but this regard back you and switching safety, for to uptake limiting to consider asset that's you physician what the moving an of rate can do a the around just No, imaging when you've the just data, a of Obviously glad Thanks. it's you second I commercial for to it. at look it profile done steps the forward, potential Got the with of spend the

Matt Foehr

Yeah, Joe.

or the the So contrast that's or and well therapies continued we've, to New going elements out it's very established literature who for and that around England are -- renal -- very from grow. important compromised. program that that the of start a talk need we safety us Medicine patients have not need to ensure using physicians' There renal that need Journal a scans are clear was to highlighted people initiating substantial continued an as when is to this -- consideration publication elective the non-elective of and been that tests is has be in that it's to experts, the there undergo there for

expect So we would do there real that as course. see be see that should the trials successful, market of well a the and eventually need

Joe Pantginis

looking update very get Molluscum, gray if to you obviously out from great. one, that's some a Novan you the And their my going an will. but No, in don't about mind, FDA, plans last just important they're data obviously the put if forward were little guidance and

the moving I your that views what of FDA? curious So would was are or what on program and to just the it forward be your moving forward potential goal from see

Matt Korenberg

or clinical much that so the as public, the obviously Yeah, definitely eventually are and Yeah, and information Novan usable issue try get that trial in line with our hope that what going to it continue but Joe, to they've Korenberg. a We're looks program initial design that will and determine it's from essentially they and a planning forward. did from execution press release, generated Matt plan initial not anything the said really meet is perspective, like that's and know to data we FDA trial really getting them is or successful how way and on to, of folks don't the way. their was the find finish call so they rerun forward the our drug like our work it looked the to trial move a already

Joe Pantginis

Thanks. That's perfect. Appreciate it guys.

Operator

the [Operator Instructions] And Larry, line Solow. open. is of line from now next question Larry comes your

Larry Solow

Hey, good afternoon guys.

need you they on continue did funding obviously Just Are any I did the do that on -- a partnership. a funding. more quick quick that guys you they know to get some this. you me, excuse to going Did more from funding to update follow-up work when Novan.

So I'd didn't actually see their release.

Matt Korenberg

they get they it of sense to release was that, year. funding to Larry. the had QX and money explicitly definitely run They put as to far on ahead go as is their Hey, that initially they really was go, need that but through some raise would say out sufficient said my hand trial. didn't press that this when They

Larry Solow

it. Got

a couple questions, got just you, mostly Okay, of follow-ups. Okay,

EVOMELA and Kyprolis the expectations. the On

how of sort that essentially it? or bit rate you little review QX a are you to in it just 'XX, that just sort number, run at taking is growth number looking was of are of the So

Matt Korenberg

was with always the you my little easily and mean, consensus look bit Yeah, as pretty about growth, can just billion. at number QX as I of just to we that and you the do, QX $X.X the number a consensus the with get we point said of

John Higgins

little just And a color. more

that We in U.S. believe exchange the As number looked for Rest companies related. with out reports, and We've pharma who've down of Ono's real growth a seen nice of had Amgen announced. bit. this saw FX, part is of world currency investors Amgen other that their

numbers factor. by fantastic, Japan, growth nice Ono highest were a margin. the ever a that's So

mentioned, together, we [Multiple using help billion guide So that we're assumptions Street but for this figure Kyprolis $X.X looking revenue Matt as do for year. we growth, we're to see for Speakers] put estimates at about us, our

Matt Foehr

activities. and very then Sanofi's the I'll Phase comparing add committed, also has continues [Kober] and and work have Matt a IKEMA as multiple we Obviously, study, well. Kyprolis, Amgen now, X This studies very trial Phase a which to in once-weekly Foehr. so ongoing well. great partner Phase clinical continue of study as the they which X is Phase is and twice-weekly and a in lot X be isatuximab. X to -- be The with is A.R.R.O.W.X continue trial, combo active and

we with asset. pleased doing the continue very So be around the they're work to

Larry Solow

a year? is that's that's, NDA just you with supplementary expect DARZALEX, what is the this in the that combination And filing for

Matt Foehr

That's like new collaboration is There is correct. Beijing markets that also work. There announced in via also China last obviously year. to Amgen filings the

Larry Solow

know we they're as might within next is of study these or that I XX that. the a months start, line, the something see you And that in assume more I than one is is studies. or beyond that mentioned, one doing front

Matt Foehr

that, on timing newly precise DARZALEX what's called given haven't they combining Kyprolis in but myeloma multiple and they've multiple REVLIMID. got studies Yeah, diagnosed with

ongoing as are trials well. those yeah So

Larry Solow

equivalent you seen in XX of to mentioned China had they've -- China. the growth and gears but but the out that with and the sales up. I overall you in of views be that pretty QX, is market in optimistic on know the sort flat some contribution EVOMELA sort EVOMELA, full to obviously Can and their not this And of U.S. just, was the making could price for report first the quarter switching volume, obviously in you then on Kazia, assuming to last just overall haven't gate you some months, which their China first of U.S. which maybe growth not the are contributions initially year. size in

John Higgins

Yeah. Hey, Larry.

a that's I launch year relatively stable period. US the in a think to basically from the size view US it few exactly right. the and We ramping as about of over same

Matt Foehr

it's China IV on forms. there, Matt, oral are unlike the on melphalan Larry, approved in U.S. form. It there only in the the Yeah, market, the is market EVOMELA where keep mind is only and forms that the approved

Larry Solow

where milestones your events end a of us no better on little lot Could branded this are key the that to competition mentioned of color good acquired a updates Obviously, gears you've Is a that's on [Multiple loaded, it Can that a before right -- the ago on the of continue $XX the back it million get should at not of to years expect you I you base some majority a switching some and to OMT, little then million by be so sort Right that was, us next -- the OMT. the given color. to how four just of of $XX price that guess scoreboard so ability should years over a pricing is I grow of revenue partnerships from range give grown and obviously afford the think approval just Right, ago, couple there'll that them price, million Speakers]. but know X.X in you years? and maybe missed it give a $XX investors we you maybe to I the programs. as whatever the both you and sorts long lot reoccurring. driven see, that generic

John Higgins

with come and license OmniAb the work then business. the side, fees on contribute so principally to the that that chicken really that, VDP our OmniAb things different few with annual there's work its platform side with recurring on Yeah, a platform the the and

of So significantly the -- in excess as a million been has total, since acquisition. buckets particularly are of $XX pretty growing those and three last years, OmniAb result in the several over

Larry Solow

product any there if Baxdela. on? or that dead on any, that Are what's Okay, that they anything life on going or just Is trying product is raise updates now going or Melinta maybe something? just funds could on comments be sold support. sort of to

John Higgins

a I'll right, there Yeah, is Larry, antibiotics. novel say clearly for hands obviously changed need Melinta Baxdela,

and conference You quickly go developed new being pursued. to it infectious important is that you and antibiotics any realize very disease how are

space. detailed there on new no obviously continue commercial So this medical for at but update that needs are there we and to out real its watch point, status antibiotics

Larry Solow

right at -- or Okay you the can since or Obviously, like during significant a a on back just the -- actually about question thoughts reported are and be I primary significant Any pretty acquisitions use can amount since restricted million you of last to discount? your the trades believe quarter, bought bought about buy already shares, capital. looks back convert, is seem back you of and then you've it -- you another you one last. back that which

Matt Korenberg

Larry. thanks, Yeah,

capital repurchase share and So broadly. return on just generally more

share asset the we shareholders, to of As significant the strategic the over which the capital when prepared returning will through way forward, the on of in really this the minimal we're the to explore and We the over at expect to Promacta going spent I played expect year capital we really could converts. if is bulk markets is but we've play the of big a kind the but defined balance amount expected years. them and out. story trade undervalued, a sort to have and through the we've the where the shareholders I the out over stock continually We've We now. where went part now in evaluate spend that agenda. to of my our We had think was back focused that obviously return a and remarks, we time. buy we and capital strategic continue $X.X of billion plan be it sold as of price be in moment, we of the goes a well, plan. stock based done on near-term They agenda gotten And to relatively few repurchase price par think portion what a M&A we as can the back to plan on at to that we discount we pay significantly

our that, further this guidance we illustrate to year. Just assume year that gave for repurchase does not share during any the

Larry Solow

don't the I spend you do you but on of you of that in without acquisitions these queue M&A Got ahead some it. you some just an will And looks, want to go into details or anything, know, see one a ask lump ability Q larger targeting, forcing of be money opportunities, may companies you without sum place? or and color you to that. the do Do getting how sort see see I the -- ask

John Higgins

from everything more. things are continue the to Yeah, evaluate deals of smallest to $XXX million billion and we that to upwards $X

transactionable. higher assets of I and make more lower will the As for be say typically lots to ones value are reasons harder the to happen tend different

we we'll see the what out so And but whole are landscape. evaluating plays

Operator

comes one for Prasad. your from next line is time more have now open. of still [Operator question. We Our Instructions] the Balaji Balaji, line question

Balaji Prasad

Hi, good thank and you everyone. afternoon

questions. of to couple So I'll a myself just restrict

Firstly, partnership I approach your understand for programs, the the update all to and want bring partner on focus better. technology back the but itself giving thank your to you

you want was you is, to why economics larger question help other extension to a with steady deal understand is of different upfronts want of So an desirable rather can the me in compared that partnerships stream? probably would something more that more or the you more that Sanofi payout find or see to that partnerships and

Matt Foehr

the or launched that and like innovations Heavy with Balaji. species obviously we've a Chain when access thanks that our Matt we future with about of right, our multiple We OmniClic chicken technology adjacent have they license get Foehr. you like around I is fully that into Yeah, a a This talked it as immune technology they partners also but systems, and right, have have small got biology, the Obviously, who the different the partner our OmniAb human element, and earlier. year range novel economic like us, the also platform when areas platform, players to technologies royalty to have that has back-end way in levers the from last any points generally with also to enter antigen touch can Sanofis the interest three all have are various way in the along biology capabilities and there have novel who substantial of world, and partners leveraging of partner. partners paid upfront be up deal are milestones different sensitivity the then that on

past got partners. structure, importance terms fully thing know a you continued their a small deal as maybe platforms using of well over their that our so approach rich they the different a partnerships importance follow One the history of technology, ways from deals two sensitive and needs get pride the in in with to OmniAb funded space you're is and the mice can those XXX of less ourselves terms space alike and obviously, I If and some Sanofi, discovery start-up assurances, of on that of more on us, namely like we've transgenic of different other course portfolio, upfronts with the they've someone had and are done validation the but of economically finding to they over recognizing no say discovery technology. realize that that in we to no Sanofi in OmniAb milestones and exactly with so XXX or animal the capabilities partnerships royalties collaborations company,

Balaji Prasad

My thanks. on of I you question right, couple the called development. mean -- called now All second is it out. it coronavirus times

for Wuhan recent to corona. there's So flow remdesivir on Institute wanting patent news

a terms they with So mean that them would a have or use to of portion Gilead or mean getting way Do not in of Captisol any materialize you this for they are revenues doesn't too to successful, if you? does what you? to problem of need do partnership -- kind the you have for

Matt Foehr

question. We on a Yeah, for Obviously, space. as thanks, coronavirus China. the saw filing yesterday the a space news is developing Balaji in patent well the fast

partner essentially the on available. key there's I them to needs, narrative statement this meet we're to Gilead. their of already think filed that dispute, to public obviously they focus supply their I said product but -- had and a obviously making on supply they Gilead filed, a positioned don't in a patent continue they China They've and as into sure and make already we saw patents that get plan from are ours

effectively. to someone issues design solubility molecule Now it that highly if and generally of very the things molecule -- that, need molecule and development of have technology else dissolve a and it, to and of also were very problems, which the structure to would a that in have likely solubilize solubility it which it's the comes remdesivir Captisol create early similar molecule the its out that, does that's had

John Higgins

necessarily disease add, our Just to partnerships on specific. typically not Captisol are specific, compound

parties. a So both there us for different treating approach to was to possibility coronavirus, the to there is supply extent a

Balaji Prasad

on question a last follow-up Okay, right. your My and all third is Iohexol program.

year envisage you're of investments Phase kind starting What Xa. you year? next for this So do and for

Matt Foehr

are the our budget so Xa are they numbers, in around our Yeah, projections. in amounts the Phase

we'll half study. year. second and I the the trial of the As of plan this said, file initiate half to year a in IND this the in second XXX-patient It's

study we'll a be we're coronary number going and treating manageable image to measures invasive which impaired at in very looking quality and safety measures. function angiography renal of then So be patients of undergoing with

Balaji Prasad

on required? you. mention any investments number you Thank Did capital the

Matt Foehr

few cost dollars a of a mean the the I about a that size, of trial. typical that's million length course it's Yeah, over the for trial

Balaji Prasad

Okay, thank you.

John Higgins

Balaji. Thanks,

Operator

questions this at no And further you may Presenters, are continue. time. there

John Higgins

the on attention time people's Appreciate here and you. Thank call.

to and Wainwright is on. we the your as and a April conference we'll look having time there Thank quick We XXth. March you Miami. event XX, has have that Conference to then presenting a for XXth is H.C. you conferences conference, few updating a sponsored up, XX Goodbye. year their forward coming We'll as in and London, be Barclays in participating having be a Roth goes interest Laguna presenting be March in we'll headline. on in a Niguel, annual well.

Ligand Pharmaceuticals (LGND) 7 Feb 202019 Q4 Earnings call transcript