LGND - Earnings call transcript Q2 2020 | Ligand Pharmaceuticals Incorporated

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Ladies and gentlemen, thank you for standing by and welcome to the Ligand Pharmaceuticals Q2 2020 Earnings Conference Call. At this time all participants’ lines are in a listen-only mode. After the speakers presentation there will be a question-and-answer session. [Operator Instructions]. I would now like to hand the conference over to Patrick O'Brien, SVP of Investor Relations. yours. is floor the Sir,

Patrick O'Brien

for Thank you, XXXX Consistent second of our to recommendations locations. in and results and welcome speakers of financial all call. social Ligand's call business are for separate quarter distancing, Carmen today's update with conference

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

be using to our guide slides will We discussion today.

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

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

John Higgins

thank earnings Slide Patrick, second our Welcome. and start everyone. with to morning, you for X. Thank joining you good call. going I'm quarter

you may dialing of to new in Some Ligand story. be the

overview. quick a Just

the industry Our innovation and to shareholders. for company to drive value delivers pharmaceutical biotech

an efficient quality looking at driving focus first customer service. Our And funding on over a and we is got that drugs technologies XXX make focused on the technologies, financial growth, help and We've drive quality projects, way drugs portfolio we're in pursuing driving the business, running partnerships industry. – programs, companies The discover partner growth. possible. XXX over our partnered with ultimately, success broad is business

team. the to medical them. important excellence. serve lead We're partners choose and targets, are programs amazing and operational got Our They believe markets devoted an We've the they go they way. that after we

help our them projects our And all ultimately deploying focus and to to and We build identifying we have partners reputation. our roster business. an want quality companies in capital, to on invest is match and amazing in of

culture. Finally, we strong got without do our this We've company team. a can't

social communities as and highly our and management. on help will governance, governance with environmental, make diverse make And of factors Directors, company have corporate better We our looking well. experienced focused we're at that a Board better very active help

want our outstanding thanks the our want business to I further, team And this We're our doing members. to is I environment, our do in I Before acknowledge very go just business leaders operating to difficult team obviously work. with pandemic a say but team. and scientists,

Ligand developments, Our success a effort the efforts is Slide dashboard. of an the we're right going of And to move and is work a I'm of a the team it's bit thriving and because X. now. is right This of recent team now. to overview doing strong

outlook this financial past of now Our year quarter for our performance the for speaks the rest itself.

growth And major seeing of years terms the partners at and been we is technology three beyond for very as an year We development the new the little Business the the are into When economics and by business watershed business. anticipate really use well. defining a important And activity performance new across well. our we new up during robust. has several in But I'm up highlights the And acquired are and four going years very in some then months we going well. Captisol platform payments. secured major pillar this as acquisition closed also contracts, quality Substantial the expanded sales, QX ago. or platform financial and Matt a as look platform. achievements. last significant potential productivity of licensing, major give rest had to is execution. outstanding some go backing with of OmniAb, we second this team the very, OmniAb a volume to some with is also and and period board, the a Matt executing And the we've success our sales are we in We of significant deeper. growth

going driving partners time. help antibody next partners regulatory we trials. this the on, the looking ago, to platform did notably months, years approved. very Over are within this. out ultimately an growing XX So, in revenue we summer the time, few come acquired and programs our are in deeper a balance continue our business. new XX on capital are to development. next over technologies, about initiations. acquired using It's not to we we, advancements cash next are have of development Today a completed Today, the The flows And are again, this of had the and of growing the technology, so, programs there new This any approvals in program with over as again pleased we or expand new have Matt drive to And to slide potential we XX When just we at due several Foehr first we're sheet into the investing year new strong focusing the our they several business data, year sources clinical highlight discovery or now, of if ago. flows. forward months, ongoing When OmniAb. late-stage opportunities, a technology. We development. a just XX and But is number it's that's of drugs, at past business. X, turn the we quick identifying XX is go XX. is years strong cash platform to

is has platform well. or our view for a potential we not overview before. we very to X, important this so. our sales business. an years always turn to clarity that Ligand, very been us received has marketed industry-leading major for with there's and and ever at We quality are launch have royalties serve years. placed When technology The its around Amgen enable companies than and platforms CASI slide this are good saw how It's period platform clinical commercial Ligand. there our now with are Ono and we could that more major strong Captisol Acrotech. three only the help The products commercial about by technology in nine EVOMELA OmniAb ultimately these partnerships been by we expect that which ability Captisol there of today industry, sourcing Captisol quarter, driving of last but been can next defined is also five marketed assets first value shipments. important to I begin readouts technologies, that think has development Kyprolis, but for on drugs four is customers are that programs, OmniAb a as receive for data to orders other in the we XX also our Notably, are in proven identifying enter

Captisol, important could major for in by as also very So, significant see antiviral is next given a right used This health most solubilize remdesivir. crisis to the the of treatment COVID-XX. now, a offerings in This know world Gilead's you the we therapy, is few increase is years. now. obviously commercial ongoing

supplying we've market. quantities participants a also consortium. around we're global This a that partners the Notably, the program agent Iohexol had Gilead, program in is are been CE-Iohexol. in funding. contrast we've to is -- Beyond an It's

pivotal call are trial. very more is are that we a a announce to substantial We to details. into now this go on going This very Matt market. to pleased Foehr is advancing

the forecasting We and discussed this growth advance investment customer, be demand now to we the expected we're production able pivotal Captisol to major investment of very support to to asset. excited expand and making for June to we with have going financial this forward. We're Captisol the stage our are in resources growing make operating see the and a

programs a deliver have potentially also the XXXX, start I infocentering, significant Again Verona they the for These add for slides data series next simple data Phase programs. we that on color are will on want five And NDA or of a to But events, now my see little set data in for that just XX Finally, playing forecast end left, are Takeda, X, a That's look We look of Palvella, and need XXXX, stage in the the it's last of lead and nine at pipeline we had have ultimately this next are slide of very half just a few happen clarify There the next if last same three it's bit. we're -- news there's little the XXXX. the events it's then calling China not events In more trial Amgen to financing slides X. so are could is readouts. roadmap filing you data, for month the It's about potential out it the closed specific these or of and the next approved course, case drug in meeting out know that XX months. we products calling start. really trial. are detail, Phase Slide in that's million readout line a column they start. we're a major sNDA an sight out end. another X had with they're basically X line three months. now regulatory $XXX they readout Immunovant of economics. or a important data programs in we half and approval could the data, this these major the Phase significant months and events a but could we the with a if but Verona year major significant second year. because just Amgen have six and on trial coming. When In programs by program a building first of but at the talked X it's the and are important positive, data in But positive programs Phase of X the to major some case all X Phase C-Stone, data that on we've are by track FDA so, have data, readouts what C-Stone,

the of Now portal, some slide three at are major in these we When them finally based again understand look XXXX two coming OmniAb half down out first have and our we've Gloria on Captisol-based. are all the it events of events in to interesting Sermonix out. of them we events to what's Retrophin, seen business, just nine XX, break major called

business. balance, These medical markets are Another and our from has came all are they're quality how high-quality three tied strong a representing good we Ligand Important building have programs. programs partners, they very to economics. done. acquisitions It's

like turn through walk will it the for a financials of Ligand this pleased pleased where we're conclusion well with OmniAb and calendar. Captisol are We're we're just I'd excited the That's to a more major again And our Korenberg over with quick overview again who in business in Matt event. outlook about detail. is right and pipeline now. So now highlights. between to balanced

Matt Korenberg

Thanks, John.

into Before the discussion go for the wanted with a see provide COVID-XX from to quarter, industry. the numbers update I I business investors we the quick on of on the and impact our

across across business. lines, our see we the we four look As positive business signs

For that providers partners the that commercial products in again. particular in pace lower generate patient visits increasing are reporting visits but royalties, that were to of is significantly health QX, care those our

Our our as And a result reporting may report labs. clinical enrollment partners social their with our for our of that been has programs of paused work implementation that working now partners same distancing have of the resumed experience. using the at most in COVID-XX. service the on studies facilities are been our OmniAb various on And platforms uninterrupted in are early

there our including while significantly of production for we impact uncertainty Our see the increased with remains trends output. business the across continued Captisol with positive XXXX. And of remainder the COVID-XX, ongoing throughout of uninterrupted

Turning now XX. to slide

outlook and period financial mentioned, strong exciting sales deliver an quarter quarter As XXXX Ligand, report business. beyond. able to positive the second of very material to financial XXXX combined results an for by was increased and I'm John Captisol pleased be with our across a driven the second for

total the royalties $XX.X sales. For million growth revenues Captisol with increase in and were continued sizable in another quarter,

XXXX. or up higher XX% Our EPS XXXX. QX QX than share per $X of revenue XX% over was is Adjusted diluted

EPS cash revenue, flow we QX million and in investments. addition, quarter It's $XX that position, million in repurchases. strong generation our QX of short-term a in and flow a In cash, all used exited for our with and share operations equivalents We cash especially XXXX the very and exceeded capital over cash considering our buybacks increasing expectations. flow of capital our large for bond generated $XXX from given we and outlook amount cash

revenue but focus expected deeper on large the XXXX Captisol previously million we little we could feel $X for for softness priority revenue, royalties, sales, Captisol in our of line expectations technologies gave Digging our line and lower And largest the in million the financing. good In service contract was included a for into Amgen $X.X terms M&A exceed targets about more had quarter. QX slides. Japan. And call types capital earnings upon and full our year-over-year of few the access $XX.X our significant million royalties. our level total by of revised the of payment was Kyprolis QX sales investments million other for of the on quarter Ligand and posted the the from Ono Kyprolis revenue, With with revised $X.X was a project growth. deployment, expected, over in performed Kyprolis, several up last in now million. is nearly million Captisol million $X X ranging recovers of Evomela acquisitions and revenue most sales on contract will million with technology for in bit the the patient million $XX.X new QX line small or revenue million royalty the just Service quarter and hopefully in a compared came given a $X.X in $XXX $XX.X bolt-ons payments. of performance it ever with expectations in touch year, XXXX. next revenue pandemic. And XXXX ago, quarter, drove Palvella second outlook sales this successful $XX on streams. respect times earned our revenue quarter million, to than our QX provided QX, that the deliver across as platform to in QX the of outstanding we posting expectations an, possibly milestone royalties in for hand, if of year and The on $X.X the We product XXX% XXXX. I'll to in for

more on slide saw slides, The was the And a sales sales substantial we on to continued QX. more remdesivir. now XX during in growth customers, can than Captisol And material principally as currently with see XXXX has in Captisol business on quarter. growth a ongoing Focusing by in related Captisol see driven to you'll guidance clearly business XX, next from this significant a that our to the and you Captisol annual we current increase plans. as sales shipped chart, much the sales Captisol moved orders details based discuss When result. we higher I level, the Captisol project over million the over year, two $XX

quarterly higher past at half year for, on for remaining levels QX, QX. and the develop XXXX with to million of and QX Captisol be the levels second about heavily in balance XX% revenue in typical demand the of the beyond. much As XXXX throughout for increased for then in more remainder and for Captisol We the see the Captisol coming and the years, continuing can towards We XXXX planning of sales $XX anticipate customers' how needs weighted lumpy year. be based expected

with Turning increasing year sales guidance recent $XX our to total $XXX to are million Captisol XXXX, our $XX great for are of plans. most revenue had expectations year, full million. up revenue of from Captisol guidance, for we revenue guidance now a from $XXX XXXX, our pre-pandemic in million. million of guidance previous the up our revenue exceeding

have the COVID-XX. Now added for in with consortium for to XXXX, due momentum to the the and treatment the continuing supply demand solubilize Captisol the requiring we it's existing international customers

more segments but in previous main precise among with -- is As these Still estimates. in payments intact service our total the given categories service outlook. our are royalties three pandemic difficult, for our contract the prior revenue forecasting three line revenue, of and is royalties other revenue

Beyond time. XXXX, we're revenue this not providing specific at guidance

year and demand XXXX the drive our the and demand next of is increasing customers is new from higher for for Captisol expected to However, to than beyond. COVID-XX-related for core products added sales volumes business levels,

project Matt remdesivir. know significantly investors the therefore, for in will for expect production XXXX, last investing in capacity for for And we Captisol then our an order remdesivir. need to and supply ongoing demand come. levels previous we're above this detail, We the we XX at Foehr significantly months. As well years And our next for increased to anticipate will least demand

to his release, in in expect more major business stated Analyst discuss John year. As quote this we outlook provide earnings later at updates the and a our financial virtual about Day,

on approximately XX% of of rest the P&L, side, Looking the details to the XX of slide year expect more expense we the margin to corporate the and an now gross XX%. overall for for

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

and other expenses million cash R&D will million. $XX be comp stock we Excluding that expect to expenses, non-cash $XX

operating For cash $XX expenses G&A cash liquid million. expenses to to and we million to G&A, $XX we income, investments. and we And income to million expect and total our continue highly to comp excluding expenses be $XX non-cash approximately other $XX stock expect $XX of expect short-term million we to million. charges cash Together, million. for maintain interest of Related XXXX $XX

realized which of $X.XX year per Our all $XX previous also sale. balance, increase and rates There’s relatively adjusted yields in Promacta diluted the guidance translate income diluted market low, of cash to given And share the approximately these XX% XXXX for XXXX we our environment. components to is an in million $X.XX. from full of These adjusted our $XX the $X.XX, keeping expense earnings cash from overall up of EPS remain our other XXXX. revenue current in million with about expect interest lower

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

Matt Foehr

Thanks, Matt.

in and really The And technologies. our associated for on performance internal technologies of Captisol-enabled now recent discuss at with portfolio to the program. summary been recent Vernalis referring slide The deck, ion the royalties terms of potential of to Our Captisol as payments, licensing formed or future licensing I'll activities platform, and added licensing provide of shows and license I'll the VDP, plan review months Icagen foundation service the And upfront design more which in $XXX updated and which iohexol I'll them channel updates activity, Captisol, our Ligand. technologies, related a commercialized. deals very OmniAb million of and R&D our have products recent future revenue as discuss and milestones some detail. OmniAb be the well our XX also recent new over deals have of productive should

the starts completed in in partners clinical an late-stage Genmab, Janssen June, XXXX, are such first representing to more antibodies U.S. OmniAb QX patents believe reviewed, from by in than programs Genentech, most as of pipeline. John KGaA that antibody issued be valuable Also the Antibody-based include new one now Gloria. with annual best-in-class the tools. year. and data therapeutics second quarter filed important, by Moving are a our clinical meeting areas number with more to the there the industry. programs development. OmniAb-derived now and of were as OmniAb XX the active and than pharmaceutical continues OmniAb of highlighted in Multiple the or recently slide discovery ASCO, portfolio, We others. invention, And applications, The XX% at of or the Merck in XX. now of XX or clinical cutting-edge partners are primary growing at by OmniAb-related half and of reached now been have of the trial number antibody international partnered claiming XX OmniAb-derived as as of have programs OmniAb trials of J&J,

Ligand for OmniAb partners therapeutic are of of were the pursuing three development treatment antibodies COVID-XX. Additionally, that currently discovered from

on partners platform, fully discovering now continue efforts, to Captisol And a and do We to the we variety refer importance update work and innovate with the of that and through formats. academic invest R&D efficiently value our in and of OmniAb I'll in human understand the XX. collaborations acquisitions. antibodies slide internal

which property, other significantly and Japan mentioned, in invest oral operational up significant are database a various additional inhaled marketed as drug There's countries and our in U.S. our -- quarter. is partners. IV countries safety and and plan our larger safety I slide reviews reach, relating differentiating our Captisol information scale. products for valuable manufacturing this master include and quality in we of XXX drug XX master including data to intellectual of file administration, of which in more our DMFs Captisol-enabled maintain continue and large investment that scale forms we and subcu, the than shipping global We now to scale. attain our This manufacturing in been this our tons well expect Captisol's amount activity and capital with and and files, very progress a And manufactured to annual Canada, the to year team We our well. material China. with to metric know-how files began DMFs capacity. as extremely in progressing key at And manufacturing The includes features,

installations well. and all partners enable Part plan have made equipment to and the Captisol and Captisol raw work progress are significant us our also process. position later involved for ongoing And very others, scale their I countless team, significant suppliers additional appreciate and efforts certain We we've really up coming includes Wacker partners, the to various steps well vendors who've of like the this thank we of of of our manufacturing our want made greatly importance continue efforts. sites material month. leveraging to aware our up All manufacturing equipment their

reported tons States. should that our to to to in the slide recent which step relating be XXX additional additional for summarizes processes add have a which technology and to additional high-profile developments be Ligand United Captisol I a will the the Captisol emergency in capacity highlight of some They've perhaps investment metric that complex publicly. could multiple remdesivir. the which needed. excess the Gilead, Captisol evaluating at according and relating recent is tons in In GMP, there current Also inhaled proprietary and a XXX reaching life-saving long-term as care one validated, of of including and two include also two yet been And evaluating metric Captisol that batch they sites collaborators, scientists that recent of that trials currently an remdesivir the And disclose processing new used patient addition clinical with our as by are is settings. manufacture final launching to potential illustrating plays of data use of populations form authorizations analyses patients the a new sites into simultaneous in solution XX, remdesivir that medicines addition the announced to and are plans are to attain technology approvals helping that reported role trials most process geographies, of subcu. aimed publications one in Captisol continuous by are capacity platform want European and the potential it's of globally located proven and with approach Captisol insertion of is new we implementation number cavity.

contrast wrap and as use solubility published comments these remdesivir stability been role imaging Captisol on will internal potential with serve used decision a programs could hospital-based product. the for about trial to which the I'll made conduct of recently with well. registration procedures of that A our slide and known Given some it's the for pivotal one iohexol. as Captisol's referencing basis what's now XX. agent what's for and Captisol-enabled expected for up We've R&D forms

near resources expect the the financial is of annual year. $X.X substantial to agents and for year and an procedures end contrast start million we to imaging estimated The the internally trial XX program this sales. We advance billion per in approximately representing market iodinated have operational the with

of and and equivalence kidney XXX area reduction objective quality In acute We type administration GE's partner of of updated pipeline distribution it's and for before it recommend technology wanted to is the to Twitter. is Twitter I us turn the will back compared operator, And on time. underlying base. to shows image contrast-induced back our investors great CE-iohexol demonstrate of incidence be up-to-date turn Operator? real a to and over trial Omnipaque. will with expect enroll in partnered the XX call the subjects just that of in trial that And conclusion platform following the way follow snapshot pivotal communicate therapy a keep I diverse over to Ligand slide traditional to our injury updates great and the the on approximately the to a operator progress partnered which an I'll questions. program for

Operator

[Operator first Instructions] of from come with the go question Please Hewitt line Matt will ahead. Capital. Your Craig-Hallum

Matt Hewiit

morning, fantastic congratulations quarter. and the gentlemen Good on

Matt Korenberg

Matt. you, Thank

Matt Hewiit

that could more nine it with? know Gilead added signed first we in have Captisol. to we partners contracted those they've phenomenal you questions was four has of many or Couple on since provide Obviously guidance how I an think is up? And that Should related if maybe update on increase quarter. of assume five. you million update then. the We last $XX or can assume the that

Matt Foehr

QX in and to I'll quantities with into discussions supplied the consortium. of I all expect say Foehr. remdesivir, Matt we there. them. is all actively supplying We've can our them. R&D-grade to this in supply are we obviously a number Matt, and Captisol in of did for most contracts We're entered manufacturing more in number. Yes, of Yes. are with will comment QX members supplying supply of We've and a them

have move we're different different to expect at but manufacturing them. etcetera, They of approaches would you in paces. as So companies all different discussions with

Matt Hewiit

far on top dig if we bit wondering the we more. you treatment this I Obviously this, that think by -- got X of you've How as have And Gilead courses of year. could publicly thinking I'm commented consortium to helpful. and should alluded That's that. has a expect end as Okay. they then but what know their million little don't to I in be and of million. of parties Maybe multiples how If you're other to year? think seeing what for the us with how over from should is. contribution next XX top be a And interpret thinking standpoint? should about on said I know that Gilead's we could you thinking? million then you multiples But the X we X help split how -- about

Matt Foehr

more has several Matt. courses publicly XXXX. Gilead regard to they with expect Yes in said treatment million XXXX,

XX:X, as there uses forms powder Obviously number treatment treatment But the lyophilized really are treatment X-day ratio active the in haven't XX at part, a is of injection that. of public consortium been vial uses specific course. one is different described remdesivir remdesivir. injection the lyophilized parts haven't Captisol to around as really from a goes, of Captisol courses X on solution parts statements to the a Captisol the part there paradigm point. But And far two centered consortium around, many an comments this parts As powder at the label. part there of XX XX the ratio to at been Captisol and so X solution ingredient,

Matt Korenberg

of delivered two you to can going production cover obviously near be a of been the They Yes. to orders next But the to all And was this and of courses X.X portion there's roughly produce just increase not for their that maybe as in the had those Matt first for variables certainly Obviously we million. think a at then course sorts that that that enough that I next the Matt, then call about that first year. what treatment say XX used I draw Gilead year. would numbers be end the that from this year equivalent to talking on they're add to made. last to did anywhere things. remdesivir million million treatment also just through, up they're they're going in for about of And use dose talking and year lot which would we went

Matt Hewitt

All I right, a thank guess trial of hop Thank starting? wrap sorry, enroll iohexol I you. and And questions regarding and up? you. then When trial couple you anticipate and off. can that missed then I'm cost And that do quickly you how and that I'll if

Matt Foehr

Thanks Yes. Matt.

and of image impaired The a goal the we this will adaptive will be start performed label-enabling is the be double-blind the right be acute of are end the near -- reduction in yes, study. randomized of demonstrate it end an to contrast-induced expect patients So -- kidney to compared design, a who CE-iohexol angiographies. coronary year, renal equivalence year adaptive to it's our parallel the invasive injury of the design function incidence proposed the It study in undergoing and with quality, comparing group Omnipaque. with iohexol will equivalence GE's patients near

So to we recruit about patients. XXX-or-so expect

of will there expect that about interim kidney perform be also contrast-induced of of after the will the analysis pre-specified accrual We XX% data. rate injury a

start will It after this full But near months to or adaptive so of it XX% where analysis be XX accrual end interim So to design an about completion. year. it we'll the have of about patients. take again an get will the again,

Matt Hewitt

very Understood. much. Thank you

Operator

from your line question And Please with the you. Pantginis comes next of Thank Joe go ahead. H.C. Wainwright.

Joe Pantginis

first made here. up looking morning. potential question guess, Hey guys. large your to profile and it Good relatively for asset important guys obviously are you bring studies this still to with Matt also study. is, commercial I'd I my Thanks families to well. I I'm doing decision taking guess Hope It's for iohexol to business this start here. that is pivotal you Foehr an love question. the here forward for development? the

really get Would second forward is looking any partnering? you you investor it yourself, next to-date label with wasn't up to of to I this want to just take And part and just on do that potential you So to it say or fears having allay it that can this I'm look that had towards your is question steps, for your you've the potential advantage – being and still for to resources is, guess, economics if can a this partner then to take full a history you based not of at the able the do just the that it? process is decision point? it

Matt Foehr

few de-risk key that's questions – obviously Thanks, and doing we're them in here. Yeah. economics. look such can Yeah, way answer Joe. that our partnering. what where part business a is of we really, we And better downstream take drive We programs can a

So [Technical that, and trial to on. this I the expertise have is Difficulty] what, said a we resources the Similar

John Higgins

jump echo on Matt there's we a here, of your bit because Foehr, – here I in line? might

Matt Foehr

Yeah.

John Higgins

still is there. technical there some difficulty hoping that line? Operator, to was having off. the you're echo Perhaps, head I in

Operator

little a Just bit.

John Higgins

Yeah.

to to for But potential you excited as the talk – on Okay. Well, expand over very investment And mean at Ligand. way mute. question you're Joe, crack we're I'll perhaps didn't The speaker we really to Foehr. the the take if Matt a a Joe, program. commercial a answering this can about looking are at

the license flow in an in we be XX trial. going for well. the commercial for We have we the But what expanding evaluate like in But realized resources operational And going like the now, months Ultimately, us active might for risk, to we right to profile a much product is advance don't asset. – this advance entity. program the is months potentially not is become will more were market think to to the formulation Captisol that stronger increase believe position we good again, some we our ultimately, we to We think market any the strength take a financial have investment still this. to plan to we we this without XX it as the existing We smaller advanced the I potential out. and also next a are potential commercial this. it clinical program program look in to this ourselves. And participants has cash a really expect the recognize are given to interest equivalent while

Joe Pantginis

the in I'm volatility when the factor obviously I been increasing et really remdesivir, continue. the demand can this contracts points there's And have would John. for Korenberg, to looking and Thanks. that dosages helpful, question how cetera. appreciate as I things all guess, though regard obviously, new ongoing lines then highlighted you demand say a potential That's the for that. the towards formulations long even those already well Matt continue, demand in and with maybe like along government

Matt Korenberg

Thanks, Joe. Yeah.

other the with maybe next of may significant even part on other over the – is regimen the demand effectiveness across really up treatments be combination the year there vaccines for not treatment expectation ends where things and XXX% Our that with couple of there remdesivir and based therapies being years, even if fact really landscape. following

our those generally, for on for kind the we'll with beyond just that, volume interactions all ongoing world And until dynamics near-term the of future coronavirus entirely, partners we of and where as see based remdesivir. see So demand see stocks place ongoing our foreseeable we're then the permanent demand significant we for with done an remdesivir. up on

Joe Pantginis

And Captisol you a just quick Thanks. factors then, of a your mind, helpful. you Foehr, laid really there. one if don't to Matt, lot investments manufacturing different factors of again. Matt expanding for That's question out regard lot with

different steps to So the I'm consider mentioned? rate-limiting for the you all curious, you be just what top factors

Matt Foehr

to equipment and that's Joe. QX a worked collaboration in is already there's very well with a gone very really would said very detailed and say, been plan obviously I fabricated -- Yes, ready Earlier was process the We from be it and but our all obviously, positioned well. process. delivered We've this have the material And month. scaled fabrication, equipment installed up has scaled-up in that well. we're our extremely manufacturing I'd progressed it's team partners. up

for well-positioned So expansion. we're very the

Joe Pantginis

great lot Thanks progress. to and guys Great. a see continued the so

Operator

the And with of Balaji your question line from is Prasad next Barclays.

Balaji Prasad

Hi. of everyone. couple A thanks the question. Good from taking for me. morning, questions And

on coming factored And generic clarity nature any partners. how give with Gilead's Gilead the Can of more have be composition of do contracts on you them? visibility into contracts? the you sales or royalties Do from your generic will the have the up itself on over into -- on the comments Following companies the partners sales secondly years? the your to you the what's us versus

Matt Foehr

consortium I'm for to the This the similar here, used place Balaji. generally was we the put generalities Matt in speaking drug Gilead Ebola. but with originally in in Yes. partners when is the for manufacturing XXXX deal in and to back the with structured Thanks, being are Foehr. The very agreements deal remdesivir

time right? of the we've economics it, So there's And built been that's members pursuing the that were as the a built not the are royalty portion. but with entering into consortium at are the generally the with and into material entirely well. in So economics the structure portion, material

In and well. say terms to But obviously continued shipped question of partners earlier, mentioned the have I as in already exactly. mix shipments your early for on to really the the too orders amounts we have as consortium

Balaji Prasad

Matt. Thanks,

one more follow-up on Just me.

that on subcu working mentioned part remdesivir. inhalation Captisol think will that you forms I Gilead correctly in be are forms? that with alternate your comment with you hear of I the Did of a

Matt Foehr

Balaji. Thanks, Yes.

form forms it as what's both given of active dissolving delivery expected -- amount and the is use that and so Captisol's a an remdesivir as with launched been the for known published have has well disclosed route. with announced So will and at what's yes, new of solution well. also looking ingredient our about significant associated data files trials solubility Captisol forms inhaled Obviously, as chemical Gilead they they they're role with stability as those a subcu master drug these

Balaji Prasad

the itself? Can queue. discovery Thank and acquisition you in you. for back channel take what the unit the new means of me business I'll from Last ion the jump one just through me

Matt Foehr

Yes.

very in as They've summarized Roche well of acquisition as Icagen channel part technology and as up the targets ion of question. as X, so focused So Vernalis And April got and yes, picked on platform QX. in on and of with Icagen are CF around of that. within transporters, briefly was partnerships. the relationship well the notably as with expanded channels side our with And VDP great announced beginning channels focus frequently fits acquisition Icagen we up ion the some deal really closed Ion up with picked the are obviously, Roche that deep both Foundation QX picked the also expertise with a usually high-value both with VDP in partners the and in biological which OmniAb. great slides of quarter partnerships seen

So we're real pleased about that.

Balaji Prasad

Thank you.

Operator

Thank you.

next CJS with of ahead. Larry Solow go is line the question Securities. from Please Your

Larry Solow

great quarter. morning, congrats Good for the on and taking guys Great. and thanks questions a

a Just of Most follow-ups. couple my answered. have of been questions

sales was product Captisol. in of Just royalty call along on sort is say? of for -- guidance, increased and with to us It so or expectations fair end just a work your trial of going the essentially you line reramp that be reramp of with pacing is your a updated like revenues at where the QX, you obviously, the clinical reflects in to summarize and sounds to last your all in on sort it QX when partners thought higher

Matt Korenberg

we Yes. those still are Thanks may buckets, line on we with aggregate of right. QX. there guided in -- three where in But Larry. we sorry, buckets are to certainly the three But shifting expect in little where Across bucket-to-bucket. little the by more bit what That's think next from on probably be precision a I'd or now like. end -- call able be it's that the year we aggregate the same. for of look each buckets quarter a on the it's will give of the all

Larry Solow

XX the able tons, And Captisol, of million I increase you're capacity think by from -- to expansion you're was middle going know to of XX Obviously, -- next because you're couple think you've of do I quarters? a XXX the million -- that of of XXXX. million QX end I it -- you're enabled on bit got over just, the little that is getting

Captisol you of a million you in you capacity just limiting than sort even the discuss that more had is actually would of actually hand the done already? of sort this pace factor? somewhat year on expansion, of have maybe maybe can And XX capacity if the more So

Matt Korenberg

Good question. Yes.

we'll guided upper have any way I have to tons to prior think to the our that capacity expansion. characterize expanded XX-metric sold exceed the for year. talked we it's and it have successfully to ends than of of had By about get it we've our the a end to had year where will to fair the to more we that capacity

the the extent then to ramp-up also extent ongoing of part reason production and to wait we needing now monitoring XXXX have for capacity. is the really the full us talk about or of to of far of so until to ramp-up So related

Larry Solow

you Okay. want a to us Could Great. guess, follow-up. questions. remind I iohexol, And bit. then gears I Captisol-enabled little shifting just two on

you this sort a you X asked would the if used Captisol approximate speaking period? us cost did iohexol? of Did it much have Captisol there's you the remind didn't year trial? And might used Matt a lot think in there? I there's how -- a question answer. of will but give be then Captisol relatively over second question is the be two-plus hear I believe Phase of -- guess, the ratio or I an can I just

Matt Foehr

to Larry. spread the XX I million is over is Foehr. This Yes, about Matt The $XX mentioned Overall, that months. about take cost period. as is expected itself trial all-in for trial

R&D general will to this well And be trial. technical said, to answer expertise beyond It's answer was spend We've So I fine it. say it of we're -- about metric not user disclosed partnering the John trial. positioned And well the in key is excited within our commercialized of a product. details fits -- got that will We're tons high within run some our potential it available. really product we've the as describing. the think for the to obviously I is extremely as formulation many expected it well really itself Captisol position questions once a and run tens

Larry Solow

or upcoming rate milestones royalty the guys? sort rare the as the you size portion in at -- for Okay. several I the remind sort get obviously on some we the opportunity I on last of us market -- towards year, Great. latter know for slides then of skin know disease And you just PC you have on the just potential the the there? and sizes least Palvella market of gave your the question the you can

Matt Korenberg

It's XX,XXX patients U.S. population is in about about in U.S. Larry. -- the X,XXX, Thanks the Yes. the

so extremely rare disease. And an it's

in the has extremely wheelchairs it's will day that or Matt solve suffer end them up it. for patients day in end that if the by frequently unable the debilitating quality the successful. a from detailed for They have life past, each walk of drug of As really disease to the permanently and struggle

quality But of substantial given million market you of million think hundred a can on the pretty plus. might could several determine $XXX you life, think we be And be. impact it so pricing upwards the what dollars

Larry Solow

it. Got

could Okay. just one in. If more squeeze I

a bit Clearly, little a hopefully capital on remdesivir for while. allocation. of windfall that lasts Just of

Any Any certainly the Captisol expansion. of the share for that it bit the more early And trial some for little year. of the obviously -- money tell? little a better that? mentioned less too cooled pivotal cash you're just of that? the Is sort things opportunities? So repurchases? of thoughts do going creating this is into more you, thoughts couple you Has -- on on that into you're to to Thanks. then acquisition about a opportunities putting How being? time those off Is front? outside And yourself of flow obviously that that COVID-XX

Matt Korenberg

repurchase and across capital continue allocation always Yes. always Ligand spectrum. and All ongoing from share good occasionally debt questions, dividends Larry. we M&A everything consider repurchase, inside discussion is to evaluate the The

bonds large And or coming the repurchase. value stock to into were the the bond do on side, from of balance market. are any dislocated. In really moves sheet our First stock we large We relative and the was think to it markets we quite and an didn't repurchase obviously specific continue the or we undervalued bond repurchase share do was bonds on in undervalued. while the typically QX, time. keep will not dislocated have is plans share repurchase the to And that relative did But QX. thought eye to what at really both bonds we and the the year, the stock proper

And buys so there. we made significant

over the in Our last the quarter. stock over is well reasonably held markets

it, did monitored stock but we've QX. we not in buy So any

the certainly virtual point to look the some hopper. stuff I with gotten this discussions pause, have little a but close think environment, to to all it to buy not continue though, largely. for the of continue was buying discounts we should have the extent if think been evaluate pandemic in a slowdown it does to good normal, back certainly if a it and at where M&A at think continuing we'll bonds in things year. the And focus number ways forward, trade not similar the has bit, Going for stock, all we'll these we a although We're about bonds the at things Largely to the move stock. we'll the

active to forward some and the in transactions looking we're So dialogue coming hopefully year.

Larry Solow

Appreciate Thanks. Great. the color.

Operator

Instructions] Capital. the Scott next with [Operator of Henry Your question line Roth comes from

Scott Henry

Thank morning. you, good and

you a couple should of color over if any think did second with questions. give on the timing? yet, mentioned trajectory regards and Just half don't how revenue but we you know I about the to it

Matt Korenberg

because sequentially the should all Yes, the than the and QX QX be products that Scott. and QX fact respectively. because -- of and larger Obviously of are royalties tiering growing, QX

in recovery with world So U.S. already. -- visits QX, Japan, for we certainly significantly of growth QX -- patient which return grew see over to in QX think outside in a patient the the we Kyprolis developed and and in should QX access,

it million So half to QX that on mentioned continue reason $XX no couple around, sequentially balance see XX% QX. royalties the that and as kind year normal speaking about are but see the generally evenly per And quarters. revenue service to anything here. is from bouncing guidance. grow and should other XX% second kind in milestones weighted always about Captisol, then We of for we as next in of of the based our of of than

Scott Henry

attention to I question Okay. if organic it bulk regardless? of we will from the just that time boost on people get That's trying at there the looking mean other a just then, it's the a I'm that a to or remdesivir? out And over that helpful. remdesivir strip remdesivir, gotten Captisol very of it sense Captisol? has be and is deleveraged just And in led remdesivir. growth has perhaps what's

John Higgins

question. good Scott, Yes

remdesivir the world's Captisol no requires business of potential As for is has important. the the drug that the COVID-XX evolving, captivated doubt in and terms is the for very treatments need attention

effect world it But The business but it's is there Captisol but there the to your stabilized. how reputation, of and so, is there drug the drug the -- terms a about depth many our good need does specific yes, not file. drugs answer strong observation awareness about right And has Captisol that now And other what what's to where in master just or clearly of is interests? a purity, follow-on has terms evolved be the tremendous impacting solubilized is. on in drug. just stimulating now, is platform going technically, the great given platform of

decision awareness where smaller into spurring to and and of frankly manufacturing so quality contracting a high-volume been customers a of that this with Existing a much substantial CE-iohexol also have after I'll of the Now this commercial show for we course safety and our in is this a go the important. This Captisol drug of frankly And smaller is really is and feeds outlay say trial label. pivotal interest. different evidence it's market, the is new If market. recognition large could evolution can it bioequivalence significant.

it's evolving So an field.

I the data XXXX point think the to financially best to for speak was momentum. have Captisol. we an outstanding year more

continued Of momentum We board. year year. already into exceeded that And the was volumes has with the franchise. ever in came nice that beginning XXXX. We course raised last it was that higher guidance. We forecast highest a all really exceeded that of of the has a for And that. the forecasting We across pre-remdesivir.

pleased very we're doing. with So, franchise how the is

Scott Henry

of on? occur a Just these Final There's what of six of to next you've focus should programs, these should the event order given order think magnitude of through when sense -- a on list the and perhaps on sense on events I when allows the lot going is to I next. focus should that going Thank question that revenues? you slides and Great. trying Okay. In so that really more liked of color. I on got timing how you it that you a is really based what's presentation, of the or XX. your The eight the that even lot the question. to is, for get get

John Higgins

Matt identify really quickly. the and can are event. only five it somewhat filing. Both data Phase But But left the in Foehr could a months happen. Yes. order III two I'll C-Stone events, five regulatory give months comment to combines next those going general go the and is one plus generally,

followed six come plus us would year, on it's in have this to five we that of largest new longer But generally so Foehr, we're really Investors or Matt three next course list, two by Of of data largest ways a coming substantial lot to of months presenting these Frankly, But ranked the different is and had. program. focus items. want substantial the that near-term aren't our most we've ever value more next or events had late-stage most up. been have events on much in importance first. the news likely events trying who you calendar calendar the the details. the order they know on, do the a events? comment next large portfolio now is one But

Matt Foehr

those. as So Palvella the And I'd XX. Yeah. They on exactly characterized say data you the order creating there right. that this sNDA bookends Scott, is Yeah. pivotal right? probably year, And just John term it group are in think somewhat is Kyprolis' of that's I nearest November date

it in we order, a Palvella. as the say, that kind as you book But of John the put kind what characterized they But somewhat I'd gives that nearest are call I'd the of range. is other end. but So

Scott Henry

for you the thank Great, question. Okay. taking

John Higgins

Scott. very the appreciate We acknowledge good. turn Good time work and through outstanding kind for Obviously busy team's interest. of I people's to you, But busy Well Thank want questions. Ligand, period. out. appreciate, very we attendance execution the

on to conference, virtually. A conferences the number September. HCW We will be road be in at are going of this the fall

finalizing give update hosting touch. in other will we Day that for to outlook. a few your now. we'll on virtual in We Thank the our And business we Analyst And have indicated, stay months invites time. we're and anticipate a conference we you next few a as be fuller

Operator

Thank conclude you call. today's This call. the does again, conference joining for

disconnect. now may You

Ligand Pharmaceuticals (LGND) 3 Aug 202020 Q2 Earnings call transcript