LGND - Earnings call transcript Q4 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’ Q4 Earnings Conference Call. At this time, all participants are in a listen-only mode. After the speaker presentation, there will be a question and answer session. [Operator Instructions] I would now like to hand the conference over to your speaker today, Patrick O'Brien. Thank you. ahead. go Please

Patrick O'Brien

and financial Brandy, Ligand's quarter fourth Thank and welcome business XXXX results update of you, to conference call.

speakers All locations. our for are call of in today's separate

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

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

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

John Higgins

outstanding, for morning. with joining and Ligand and still our through Thanks challenges year opportunities call. stellar operating Good performance. was and year financial, the scientific had XXXX was quarter earnings fourth The past

our to a of partners technology technology As science life customers. platform we are best-in-class large portfolio upon built serve company, and

investors growth expansion discovery now global significant There the history, performance. factors. expand financial to antibody meet growth and four to address deliver Veklury very and two, diversifying OmniAb factors been their will growth help platform; acquisition three, for crisis; we positioned these to stage driving our defining is business prolific value. ongoing Gilead serving on our needs Ligand in four, well our four the a for and the I our year in are the most recent prospects; adding to health by production focus into stellar to business our and major contracts. set high have Our now XXXX royalty-based One, XXXX. driven expansion of

solution in targeting models inventions. and the create fully the high-quality of our mono bought size in five naturally efficiency animals that bispecific become repertoires human discovery of needs unparalleled the through our world’s to major the Ligand’s platform advanced partners technology the partners drug therapeutics. area market are antibody an and generate increasing of OmniAb most is best-in-class over quality BI antibody discovery our with Biological highly challenging on OmniAb the world’s provides next-generation a the position solidify platform. screening the heart leading antibody It’s business. the due needs. antibodies global ago We At with this investments optimized discovery Intelligence exploding candidates as and end-to-end enable Partners discovery help systems. we technologies industry. in investment year, I’ll comment to R&D and of growth AI-enhanced the made antibodies the most the are proprietary our access to our coming expanded for customizable OmniAb to in market for science, major growing largest at our to treatments or animal First, team some health industry. out and rate. our Antibodies platform new biopharmaceutical on the past our industry-leading, of both also years proprietary that of Ligand the We the The antibody efficient and seek transgenic

well increasing in are value. drug existing platform, drug and we years. leader, year. data key year the ever programs trials for XXXX developments next the We and antibody newly various is as trial regulatory and discovery expected, for upside positioned as more technologies have potential increased the regulatory for investment the and Recent a this five visibility growing approvals public community first of out minted moving up to a and clinical more participants over a as given valuations pleased due of potential a OmniAb large see within late-stage from see companies, Ligand. with this through partners, recent Ligand roster consolidation very M&A market validate number We approval break

Ligand’s more years corporate Ten invest science successes. is has have XXXX We brought Captisol year ago, Secondly, bought best to us for we XXX new new opportunities invest partners, where partners. to instincts collaboration strategy heading. where and upsides. earnings and business where major, streak our five accretion, Both driven and team ago, M&A a expand most insight deals years productive OmniAb. and with and been billion good unequivocal our Ligand for M&A lucrative are quality nearly driving we $X.X contracts, The is particular acquisitions than with acquisitions new XXX acquired deployed. and for laboratories, it’s Ligand. was four scientists services. the deals by The

Our you see give opportunity. major sense recent where we future a deals for

are down OmniAb the Ligand contribute in and past integrated successfully our doubling giving more in space All operating platform. are space We and us bought year position units in the proprietary expression into with and fully tuck-in we a and business two this XXXX. premier acquisitions to Channel the new projected and meaningfully antibody Icagen Pfenex, are to protein Ion a

their Thirdly, Captisol, Gilead work immense factor meeting our the a COVID-XX manufacturer for is treatment. of needs with major Veklury, the

Captisol a started been now. scientifically to It formulate has than work both mission, year an medically. relies and and rewarding Gilead ago on Veklury. Our all more consuming, Ligand’s

drug would that endemic, of are come. in suggesting that experts important production we to Beyond degree assisting makes disease partners will delivering for that ingredient the be Gilead to meaning element possible, Medical years around are work. a some the an and necessary COVID-XX supporting manufacturing to the be

that will require to will to business come standard a long-term. years make adding and to Our remain view today for it care to our to and backbone is of Captisol Veklury a therapies Veklury continue future

performance. success factor fourth the our driving stellar Finally, is financial our

partners, year more compared higher from financial new expected this past and the our milestone that are Korenberg As performance adjusted for are into up than XXXX acquisitions. is and Driving Captisol year contracts revenue will many discuss EPS full more XXXX. Matt last XX, we robust performance licensing both and sales from more year, to contribution payments signed

the flow further cash to in our investing business grown are helping more our even have accelerate revenue. partner and We

Importantly, stock. the a buying made back confidence business, in Ligand’s given we strong our in have investment

two $XXX of in million is reviewed of years, back stock. the million share. highly for stock range past than X over of value deployed buyback or as deep saw $XXX a more paid wide our we have option per opportunity. the obvious, We price capital Ligand an The We XX% the average shares and buying deployment attractive

and outstanding, per have reduction the forward. increased flow the for cash with for shares outlook all share earnings shareholders Now going we in meaningfully

great remarks, efficiently. executing partners our As my I I service want add conclude to that in providing Ligand is to

excellent highly communities Directors, business. of year of acknowledge team a scientists a work In success, with and environment. them We past for the Board our cares are business this have the engaged team, driving very and talented dedicated thank our we want parallel a to I experienced a about hard contributions. their team and leadership their that

expand environmental history significant on matters. additional and to In our have follow the dedicated our disclosures can than guidance We goal production measures review our Ligand’s our are reports minimize equality elevate we we our are website, revenues well, footprint carbon technology social best consumables review we in the flow. work. our year social to and proxy do Twitter deliver grow need continue and us help XX% measures upcoming industry-leading our implemented is for financially on ever increasing out vocation on XXXX, do and justice. to the and implementing to We running good. technology. you in to and voice offerings and other more to What of with ESG encourage and our To to reduce social for And cash to factors do

We health. are medicines some the to advance contributing of vitally to advancement important human

over Korenberg. the more Now will review Matt a results, detailed I to our for financial of turn call

Matt Korenberg

John. Thanks,

QX quarter across a Ligand. fantastic business. with Captisol led growth year strong the XXXX sales driven of way third by was strong The results financial another material and the top-line our Robust for in

that corporate after a closing into four addition, the quarter, the business business. team year the our transaction included of year and of integrating the on agenda In off we that final of capping and the Ligand for first acquisitions the strategic day Vernalis busy the very months spent sale Pfenex

continue positive of earnings in We with cash strong our eighth generate generation. and resulting to XXXX significant cash consecutive year

year-over-year the performance reporting posting financial fact material quarter was five in million growth of compared the sales Ono, million a pandemic. $XX million impacted $XXX in ago, Total to previous quarter ago of million sales, Captisol throughout of QX, up its XXXX million revenue, With royalty for the and of XXXX. with million, Amgen continuing be $X.X from sales XXXX a Captisol the quarter $XX by XXXX up $XX continued our again the following outstanding respect year. ever high an more of was and $XX similar the contract the most of despite year had revenue Kyprolis, to Kyprolis XXXX. by million quarter QX $XX.X revenue revenue. the quarter, sales and $XX in for that to $XX than XXXX fourth QX level trends the times million in QX of year Our up in largest robust up million and was over they for included royalties,

the was several payments, revenue our $XX a Adjusted diluted quarter. our partnerships, offset business XXXX contract with increase EPS was related QX higher service by QX the partly with year the XXX% of also $X.X milestones ago, and XXXX. than or QX XXXX million, was through and of in Our Vernalis a Icagen compared which million OmniAb for by sale $X.XX driven

from in for an as of investments. lines $XXX.X XXXX, or and for adjusted We QX despite of million with For total equivalents finished XX% achieved quarter over of the business is XXXX in increase as sale reported XXXX Promacta increased in an $X.XX Adjusted for approximately the the as million the Including of the EPS the we diluted three full in year of increase pandemic. royalty or reported an Promacta. short-term as Promacta revenue, was the XX% XXXX year-over-year, $XXX.X the challenging $X.XX sale adjusted all cash, the $XXX or adjustment, cash XXXX. million we environment million increase in the over which $XXX.X COVID-XX $X.XX

the guidance, the to introduced Analyst XXXX Turning Day we event XXXX. in our at financial of guidance fall

We FDA are trial to now announced guidance trial file positive from recently recently net approval resulting milestone in their We Travere million the in for now on Travere positive reflect a from Ligand. expect our results to XXXX increasing $X.X drug sparsentan. announced results to

million, from $XXX guidance previously. for now total XXXX is top-line up Our revenue $XXX million

million updates adjusted of which year overall is diluted we translate $XX We EPS up gross full to year more $XX and the XX% from program, the XXXX expect on adjusted margin and XX% an corporate toward in longer operating and and this of to diluted now see expenses their to components XX% the million. to EPS market of $X.XX, projections, sparsentan expense Travere to XXXX from Relating approximately medical for pleased to an program market. sparsentan cash for move we $X.XX. are XXXX underserved serve as for to approximately revenue term we of These expect increasing important potential wait

will the but At updates, third-party could royalty their XXXX second million. for Ligand launch given we stream potential that Ligand, now. regulatory material occurs, royalty program potential follow million we potentially year XXXX. estimate for to in we have are outlook in would and first rate, our we new the Evaluating our $XX timelines projections the and it for is of to full for be it considering We $XX reports XXXX. this preliminary time, a guidance as If be see providing half of the royalties in sales initial

longer $XXX analysts peak. at sparsentan $X project the million to sales of Travere see billion third-party term, Over we by

advances. the provide trends a for quarterly pacing With on more lower expect and year, will increasing then the royalty through the quarter normal respect information we with XXXX outlook will program show our QX. our each We as QX line throughout to

revenue contract pandemic quarter-to-quarter, clinical on relatively a steady across to are year. expect fronts. success cause spread from we pacing Developments be and expected but with the revenue and the and in both Captisol may both relatively currently partner shifts Our evenly timing

continue to we repurchase deployment capital of million to strategy convertible $XX priorities, strategic as as our an and million shares. capital; our of XXXX, we active deployed just as evaluation $XX $X In as our well bond; to million well QX maintain Regarding deployment, our repurchase M&A, overall. under we capital M&A used

discovery our Icagen, acquired technology and expression augment Pfenex, both Taurus, also which protein industry-leading platform. technology platform; we Channel our and XXXX, of antibody xCella OmniAb Ion During our platform;

As our meaningful that continue and on XXXX, to we complement that to new technology platforms we'll technologies and transactions into look platform. OmniAb add partnered Ligand, bring forward companies focus our our programs add portfolio,

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

Matt Foehr

health Thanks, And XXXX, are technologies had them Matt. of human valuable substantial technologies visible XXXX, Stack. now technology here events that partners partners review updates Antibody I'll This with in for the platform respected briefly high-quality Ligand's antibodies. to in call, of as in and our ways. major tools we of global suite and best-in-class our highly and and a highlights supported technologies Throughout core offer technologies impacts quarters. scientists unique morning, our to and advanced for combination discovering technologies on antibody world-class poised most by important use believe track our with OmniAb Discovery positive like Tech who our record continues OmniAb are license is our and within coming the of it the each start what some of team quickly We four I'd discovery and months OmniAb a our

and OmniAb We continue to through internal invest in leading with academic technology and and development through platform collaborations R&D centers innovate with acquisitions. bolt-on the

that Our work a discovering and fully quickly acquired partners us facilitate xCella XXXX, new and OmniAb selection we we integrated and an recovery advancements into technologies This of understand application technology refer The uses that in xCella that antibody some cell proprietary species our and from technology Biosciences. and technologies and brought and the Cow the diagnostics, value and originally genetic computing antibodies animals. now efficiently variety as targets came high-speed Taurus human In AI-based out do and scientists screening to longest to what from formats. challenging humanizing of unique brought we leverages engineering research. basic resolution of diversity we The structural importance with suite, approaches. the ultra-high Taurus antibody in cow-based any of OmniAb extremely that OmniTaur. biological University of enable antibodies the with to features can CDRXs CDR-HX binding and acquisition Stanford binding therapeutics, technology domain

our animals. operate to now efficient of allow broad differentiated Artificial AI is or genetic our deep our in BI technology OmniAb and base. and or expanding elements our BI, So model our of leveraging partner Intelligence proprietary our Intelligence history capabilities by novel, use of business transgenic The engineering highly and serving us Biological a

In with Our will staff to patented we and best-in-class now serve inbound Captisol and we our Captisol partnership QX, to other technology, as around stack with OmniAb and transformational business levels, products in year technology our stack and terms. growth for the expanded tech was partners a momentum. record generally the many is described see XXXX, leverage commercial than world enabling our Captisol to OmniAb more commercial on XXXX with any to economic of in team to use globally add that our John recognized secure quarter. base. new growing continued formulation along Switching the continue growing further interest we technology, license Captisol technology, in agreements shipped expand And

proud do. team has have am the work that role of and continues entered to with in a will into with note the I for critically patients the and this of fourth Gilead Captisol have supply therapy. note, in a have the of Captisol close team recent also a We been quarter Veklury statement agreement Personally, supporting we done our U.S. to that Gilead's play I extension treated important million partnership the with Gilead and is that continue COVID-XX XX-year and Veklury. played they our approximately proud very in

than deals than XX commercial entered new other requests any inbound and more hundreds more Captisol research year, filling XXX out year closing XXXX also into We licensing in the clinical Captisol. in while sample also agreements with agreements of for and license

for Captisol and the maintains technology to including in continued is XXXX date technology worldwide for global to very Ligand patents XXX the patents issued XXXX. United that than for positioned with the expiration and States here with in come. in more patent a that many broad over We relating Captisol our are are well years confident success XX latest portfolio

We XXXX. issued, that to least applications Captisol making other also of if extend have methods patent at covering

access Beyond manufacturing XXXX. fantastic growing and GlaxoSmithKline, We specific, will our deal job specifically Captisol our partnerships that, Channel to year to diseases. very of technology a transmembrane our technology and discovery productive year number scale unique our gears with value closed quality, molecule in proteins. a vast target develop Icagen small had partners gained Channel-focused expertise Ion out reproducibility targeting therapeutics, our molecular Ion databases the utilize a greatly a collaboration for doing where relevant inhibitors our Icagen GSK and team of validated our our is Captisol. new announcing genetically This growing safety of they to and team's in also identify the a Switching and managing neurological and now,

that and neurological upfront $XXX us for patients of to of As enable drug expertise are they higher any that sales from payment million deliver and milestones on them Ligand's drug model to new and advance helped more program by part of because discovery of this received deal, million we a and systems probability collaboration tiered suffering depth with treatment will diseases. GSK. unique royalties a of came we from is GSK success on option eligible the for than an $X commercialized net

Pfenex well as programs with also this two than in Channel associated new as potential royalties, is now potential closed and now months acquisition million business. $XXX with partnered collaboration Fibrosis milestone Roche more partnership ago is Cystic Ion In valuable addition as managing of with described. integrated into fully The to the Foundation. four payments a protein switching them, expression also team tiered our Ligand, with with And GSK, the John to and Pfenex

the We put, drugs cost therapeutic be leverages these with derivatives focus Simply have development manufacturing and engine position delivers and, Protein side the greater to throughput area believe potential with For state-of-the-art strains which and industry. expression get high advantages an to history new proprietary them those and substantial significant leverage and capabilities Technology a that unique complex development The to for well make drugs current that technology, the CMC and very production, protein a quickly industry our us of it's enter in robust technology biopharmaceutical the goods. complex rich is makes express clinical screening very of in speed production to platform the proprietary partners. because technologies the streams fluorescens profiles ultimately, ability specificity, may other complex successful Pseudomonas We characteristics a antibody who including improved our its to analytical of production outcomes possible. for our and amount These and effect platform modalities. highly increased of a computer-driven extremely Expression of Pfenex leader to lower be technology the with of into quality, partners valuable space. can it this competitive automation engineered

based has rate more traditional traditional failed had platform producing XX% that in like CHO Our in cells. those of than proteins a success coli or on systems

submitted exciting the this of with in global from two for has with U.S. Teriparatide Europe further partners now Importantly, with a that been late-stage assets have technology both approvals. standpoint injection industry-leading the regulatory validated and approval

This technology. uses Protein the submitted applications vaccine accepted data for applications The the alleviated Phase review from million challenges process X Ligand. triggering the recombinant BLA the to that efficiency. a the to platform, earlier this FDA and FDA month, which for showing Pharmaceuticals a their In and supply initiated BLA market X Merck manufacturing of expression which And VXXX is of EMA and milestone with pneumococcal Phase drug in conjugate studies for positive Expression Specifically, XX-valent approval for our clinical thereby Pfenex Erwinia include $X.X multiple the and submission investigational VXXX. JZP-XXX. VXXX, robust in payment FDA December, seeking asparaginase, Jazz is the to consistency the a produced resulted a of approval

see with legacy can the technology. combination paths business platform economics durable of asset a that the of platform different yield downstream types and for to term, associated deals and development We we the trajectory Ligand. what their to partnered with over questions. and for R&D revenue see pipeline are growth forward, portfolio expression pieces in partners the operator and that, protein clear own variety traditional Going pairing with back assets call deals, come opportunities for for leverage part that turn to Operator? will we drive for outlicensing for of a deals deals, I us technology And the where to our with of

Operator

first Wainwright. Your of Instructions] line question comes H.C. Pantginis [Operator the from Joe with

Joe Pantginis

morning. congratulations Good everyone. for Hey here. your progress taking continued the real on Thanks and question

three they that Phase economics much as work the you all estimates leverage guess, are strong and moves there to and billion on is drug based really coming you Pharmacopeia early first to really one comment the $XXX So, data congratulations are a really you out you strategic X end a developmental allowed in here path your I on that – said a of did including and or when things sales. sparsentan. tail higher peak that bought the very to for talks randomized

potential seeing here the end-game to congratulations So, for that.

questions So, guess, following. two the are I my

for general state infection platform? First, the you two and rates have what Do plan that remdesivir? now sort of views some year do a with you you Captisol of hitting or we are the remdesivir you? feel around And remdesivir, needs about how steady of have for that see bit one

Matt Foehr

Matt is there. can Foehr. This we’ve comment guidance out Joe. Obviously, – year got for I for Thanks, Captisol there the Yes. XXXX.

cetera. view stellar an And of year. its this Gilead last end deal supply endemic randomized shown Veklury growing really recovery experts year, we Obviously, data new double-blind talk if invested near with for you I that field the to deal in a entered the is year disease. COVID-XX a be times, is, that controlled the and there in in terms substantially Gilead’s comments, trials his and et ten in describing of was John As has think into will improving

a year rolling a and relationship we very a for us about outlook binding feel the our good So visibility, year the ten program. gives forecast throughout

you two now, continue that treated are has hospitalized case for quoted Gilead one a Captisol. high is level Veklury. is with see still there in we approximately obviously to a of And U.S. look high As obviously hospitalizations. in the demand

Beyond that, at as Gilead XX continues interventional more to? well, that color Veklury studies to maybe or are inhaled over formulations, others, and to of Hopefully, continuing observational then add settings look invest outpatient subcu little new formulations, all or ongoing, to setting, there. new for as a Captisol, you well. which detail And gives John utilize Matt want

Joe Pantginis

you? tech question you certainly quite investors last platforms That discussions your I No. really underlying been little to a what Thank for in my focus you time And And or OmniAb. I multiple higher on that and my focusing guess, I’ve two-pronged. level regard want know that. is to for represents here is have with some business does. did with my in you OmniAb a onto itself. brought question really So, business then,

others? tech for Are across And you than more there your you they under described as species of across Or the favored have – that and the overall can I’ll technologies part describe different leave First, the then, and so, platforms that sort that you OmniAb certain one. different OmniAb? board? inbound are stacks

John Higgins

so, platform more operations, we in and good record get or breeds Foehr ago a acquisitions. of And tuck-in success, the computers, and can Matt Yes, a early other details. Joe, also comment deal staff of make in five years But, the clinical and the fascinating acquired year our and first to then, more we into two every business. more on, thanks. we’ve industry, and know discovery OmniAb, the some invested I’ll success, What’s just had success year this of we making. general research

our that’s Initio, and discovery is very clear XX and XX inside want the becoming we that deals. Ab and enhancing around are the starts more months, Industry is investments, players other more last further really is that, xCella, and platform. The that the got word industry Taurus, seeing insiders, needs have an where also to success, are We deal and view pre-clinical what they further what into bolting driving industry technologies we this industry adjacent on is know this making. and clinical

on we’ve So to more Matt, BI. in position building. the technical is our had best-in-class perhaps leadership want and prominence always terms But owned since of our we you side it. only comment

Matt Foehr

a on animals of in Right, our to around Well, genetic analogies. we’ve we partners heart xCella continue the and continued to itself. things that Yes. of core antibodies at a our acquisition honestly BI, But a that’s got lead the foundational biological that like in to I’ll speed to us developments is so, out technology innovation commitment is we’ve OmniAb animals our biological of really of find history add that technology. and animals, and sorting to technology, rich analysis engineering obviously faster allow lot that shown depth rock intelligence of matter and also a say, the element something it’s the the intelligence

that in after we which antibody perhaps in a of the like biological what, needles finding and elements can manufacturability some certain said have as the response want are intelligence a top Some haystack. other you qualities best way has you that a It haystack. more haystack see. is more the and partners say get hits the and for to is the our of that, finding the needle target needle to biologic in near want find antibody, a you like – puts to a a Do finding an right partnership looking durability the antibody be

and have that medical conferences to quality antibody we talking in begets those inbound the and So generally referencing, whom around any quality the get high partners and more them they all highest John excessive of can more find element. Genmab, was scientific had Genentech, technology. feel more Merck, are have quickly antibodies interest they like in And about Janssen really

Joe Pantginis

are I That discussing – appears And better valuations – comfort numbers your with the and landscape. markets just I platforms, tech about number at I and sure and game is looks much have guys. garnering greater When that for am just significantly board. here, am the platform, to to points is – partnerships numbers recent numbers species really, don’t really know, are discuss space other the willing to that antibody and on have based the helpful BI Part to factual you guess, or down higher much comes my talking you landscape, the really of an it antibody regard and to the level you then, have companies look not in of how entrants it here. public the but certain describe I just competitive just B just you is strictly, across

John Higgins

Yes, a It’s when a other company, do part But platforms. one antibody across Ligand, these well of Investors of business. focus business, industry on the you ask requires. serve it analysis range obviously Joe. fascinating, needs discovery and industry OmniAb the questions of our technology is We the specifically OmniAb our platform, that players. very multitude diverse Thanks. against position really board.

this private available much still is are out publicly of as Some and information. course,

public. a We companies growing number are seeing of are going that

are same, So, same what the immunology, targets, we in target clinical, We the headlines right? what’s the are general And category the M&A. and as around antibodies, same. okay? partners are well. category seeing oncology-based is therapeutics, fascinating talking The the tab, customers, medical the does the that is medical that the what about is in regulatory that Mostly

same in are we the So, market. participating all

programs to number clinic. look the of of you start these partners, number or or discovery the you can of evaluate stage in compare the in So, at when companies,

We or first positioned. Many stage are look multitude across can platforms are hit about five over hundreds very We a patients high. other rate five economics into You X,XXX is six very early targeting approvals notably, have regulatory we The well of of partners very or lot calendar partnered And approvals in four, Over treated clinical being out major the substantial these, of number events. of FDA are the years. very, XX. these a have well now. trials. of now Today is or ago. of a really each programs our OmniAb. We XX years them we very, one at had but success bought the and discovery

year. For Ligand, it’s in XXXX. It’s this

the are number for and are So of that end the pricing, milestone The economics the is similar. major ultimately and so on. programs development the companies payments, number stage, royalties The backing high partners the very later these back of high.

and So, around good to business XXXX be heightened about interest profiling just the we there going in as I is very think operation feel progresses. this

Joe Pantginis

Appreciate all me. thank guys indulging the feedback for you and

John Higgins

Joe. you, Thank

Operator

comes line question of the with line open. your is next Barclays. from Balaji, Balaji Prasad Your

you unmute If line. on your mute, please are

Balaji Prasad

taking a good few jumped Hi, the the call John, Thanks questions. for minutes on just ago. morning.

last XXXX the increase linked the that And payment? in could seeing order update is questions the of companies Teriparatide? couple me. have Analyst one? assume So, are provide increase And material Day, started flows have in-licensed generic you on equivalence where there since lastly, the you in Have guidance milestone for from remdesivir, who any on to therapeutic milestones Secondly, fair status you. Thank it programs is from you us all to XXXX? better other the visibility an

Matt Foehr

consortium. as first Balaji. is Obviously, manufacturing take disclosed the are Foehr. members Gilead’s Thanks, couple This of the I Captisol we supplying Matt previously, to questions. of we’ve can

countries consortium supply XXX We continuing the over to have partners. world supply to are around and and a we those

as to part continues that well. vibrant the of be business, Captisol So a

that. Injection the Alvogen’s I January. submitted in Teriparatide human filed and the about ask report that data You work equivalence. to Alvogen FDA can’t therapeutic factors a towards was positive and

been has work The to were submitted reports completed. FDA that January. the in So

now So under at are the those review FDA.

John Higgins

past, about and think to on to I buckets and of And, our the your numbers. in we question milestones. we’ve hit what upside in investors then about expect Balaji, visibility some milestones last mean, talked I milestones

quantified some risk-adjusted of events those otherwise. haven’t we in remain we we think that that these an some milestones But that this guidance sort does obviously, our hitting the other of than if do Travere to there achieve is and hit come still think was the that timing-wise number but upside bucket milestones upside some expect might year. more but this in And milestone reflects this this average in continue are we year, those of the year year, upside or that mentioned numbers. the current we frequently properly can there bucket was We upside may

upside definitely milestone on there So, is the still side. some

Balaji Prasad

Thanks, John. helpful Matt. That’s

Operator

from Matt Capital. of question next comes with Craig-Hallum Hewitt Your Instructions] the line [Operator

Matt Hewitt

to you was am adding just first. but like, I the this Congratulations Good morning. them the kind asking that’s platform? change a attributes There John, on been morning Or guys. time them of feel bit year questions components. the bit, to curious, And a on couple those a about the and bit little are recent I customers highlight these now know, wording press is the a OmniAb of more? additions pressed little something AI is release it more BI that in A the have strong little and in you

John Higgins

our our computer-driven intelligence, and and Yes. it position using xCella discovery The we with AI, know how Aventis. methods services. last look more acquisition our it’s of again, the antigens customers work, it’s at the operation. Nothing become for the we heavy XX new. for our months, prominent particularly artificial When a And has

really investors, of increasing is finding an we audience the there are understand that AI. For value what that is high

the an with BI, that our is really that chicken of and the this is the is mouse, of class multitude and animal in platform, intelligence, on complement that with rat, Omnitaur So, and species, now frankly the bet the has biological evolution. coupled the a only AI. best-in-class But it

been additional So, – business part it’s of last a OmniAb, these but since acquired the with expanded acquisitions. ever our it’s for we’ve tuck-in

Matt Hewitt

might agency likely the pipeline. translate and Gloria? And is approvals And actually that through is walk first Understood. the we Chinese process I OmniAb, what farthest there out on CStone are hear the so, as or walk process as the drug? Maybe Maybe when of then, approvals along. probably speaking the I Thank Gloria, something when come potential with to to Right. you. Gloria once royalties. think think the pure start in that China approves could far in through

Matt Foehr

Matt. Yes,

a approvals But Those are a potential we programs. to are filing there this you two that generally, most partners under obviously, advanced with dates expect based the the period So, this are right are the on OmniAb now Both and do NDAs in advanced is most are also approved of OmniAb be both and year. year lead right. expected review Gloria cetera. up to those China. CStone launch, et

details timing, CStone. Based we’d expect partners The post-approvals. stated that rollout the So, the on announcements Gloria the precise exact and year. dates they give hard on filings, sooner had this basically little to expect than the a filing around just approval to be

So, and stellar that schedule really of in of programs. ahead both of part have year. the work, those with the will continue to along very all longer done earlier clinical obviously and have data been But partners good the

Matt Hewitt

That’s great. last for And one then me. the

the Regarding pivotal How Iohexol, this to you maybe trial some details be going on are quarter. the kicking off trial. quickly and

sales you. a this yourselves? this isn’t a this many over how it this just scenario that market think a how but agent. a would take as force would there your Analyst went imagine I you maybe bit where and I But Day. there details, where, are Is out at higher trial, that and bring imaging coming reminder, look looking you as is a you on to but little drug, Anything, quickly, just color on given necessarily would helpful. any the you is there of partner, Thank patients potentially to that an scenario be yourselves,

Matt Foehr

injury or trial product. to of in market, approaches, Yes, may agent off are participate downstream - – a trial for Matt, the is Matt first the of billion the comment contract clinical the with starting initiating $X.X existing as as itself to itself contrast as The the we a what is our I’ll on designed market But kind called and XXX administration as incidence It’s is trial – reduction well want John The here of pivotal a subject quality then, well. U.S. it the the Iohexol following on Captisol-enabled the comment compares the trial trial of Omnipaque. trial. Iohexol to a clinical equivalence what’s in a in image in induced CIAKI, GE’s acute or kidney demonstrate drugs

we As adaptive group quarter. said, that start invasive you this gearing function trial multi-center with It’s randomized impaired parallel that coronary renal are an It’s undergoing are up a in design. angiography. patients double-blind to

CIAKI. accrual. a be be analysis at will pre-specified interim That there looking performed So, of after XX% about rate will

two time period a take months trial XX the to itself interim about pre-specified expect we total years XX of about probably that in the trial. to So the into analysis

of significant that So, that reduction approval reduction XXX(b)(X) CIAKI. image and help include CE of CIAKI of or with risk a could a for demonstration a in of would Iohexol equivalence, with label path would potentially rate a the but in

kind streamlined product clean a of differentiated a with path. a So, and developed

Matt Hewitt

very you great. much. Thank That’s

Operator

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

Scott Henry

momentum And the a business. you. just Thank on couple really had a strong Good questions. morning. whole I across congratulations

Could this of Captisol. think are XXXX. how Does would we assume, revenue million in we should cadence quarters QX thinking guidance that $XXX for be strong the about on you for about I about First still talk year? at Captisol. the

John Higgins

Yes. Sure. Thanks, Scott.

and the a little then the on But starting down pandemic recall, to U.S. standpoint, and stronger evenly and think the I an there today, the has year. at across resulted the winter I cases time. from way bit I generally in in fall, $XX be million relatively Day production mentioned of estimate lead are significant folks it, case gave a this our globe. come the we Analyst fall, increase call should Obviously, Captisol across as spread think for numbers then, QX back is

a still we current as the that the $XXX and spread indicated, see million of is, So, quarters same kind we based across even relatively forecast. see you four still on

Scott Henry

Thank Okay. That’s you. Great. helpful.

pipeline obviously, is I ones any lot three The there be is, on interesting. you of levers, primary the to XXXX. focus events lot for on second quick the what to question view in kind a it a question five is thought you and would catalysts investors thoughts is, be going if there don’t The that. have that But on? I of would largest the know will as

John Higgins

factors of value main is with the for my to four very, start down answer our framed the call, break and really to easy kind are OmniAb, of work four question. your to Scott, defining well. very platform the outline question. doing those At Yes. thanks I them

looking so, new BLA agreements, late-stage and And approvals major data, license for launches.

There for year. revenue I our it’s to investors. this It’s going is some factor. acquisitions to data that months, partners. in revenue, – be royalty done going think But, clear of is obvious on means terms start market-defining commercial it’s in that’s more we’ve the going but going to really – of we So to and XX more to a be of last believe so what our around be pipeline first one important list drugs breakthrough it’s deliver

at think right bear acquisitions, Our Pfenex we year are GSK, but deal months now. We acumen going to nine I making And really quality believe on I acquisitions, not are integrated also and but as also deal to Icagen. those. three portfolio, but pandemic major going revenue two well only moves really, On did we looking contribution, in one to are this our Veklury, Both it’s to with reinforce start in to good additions or just around our earnings only fruit substantial M&A. the continues.

financial to Gilead the pharma major called giving I what pandemic fourth that I control. are year. leadership Veklury performance providing under P&L And was then, us the our just The thing a hope finally, is be oral performance driver with of the for record. frankly think still describing this our is on and is licensing performance and we performance. is, get are going I this – that partnership acquisition it’s started revenue generally, the high companies But financial seeing we’ll our growth. operating out or with just

look our we outstanding. million. years good then, margins. very two to XX share have significant compelling, And we million disciplined very, spending, ago, the margins, top-line, XX had with going Today, shares believe repurchase, So is attractive about we

to per So share. is earnings more that lean share and base deliver cash going flow

more much to year that’s evaluate. and So, investors be this what going can focus

Scott Henry

range remarks, A was share of $XXX, the I of think the said will out the price answer it. curiosity the correctly. you the of buybacks? you that heard give you don’t average color. if I prepared But share know Thank in a Could and for Great. buyback that question Okay. final you I

Matt Korenberg

the – average price over X bought Thanks, John Scott. $XXX that’s XXXX November shares – and in $XXX back, or yes, referenced we million No, just in per total actual so share. average We so. of as since the about low price share total of was $XXX, so, about to

Scott Henry

the a you that lot Thank seemed question. That why more makes number That off me, sense. to I for Okay. asked clarification. that’s

Matt Korenberg

Sure.

Operator

one for time further have we question. And

question last the Flanders from line with Your of comes Guggenheim. Dana

Dana Flanders

priorities you question. are just on or M&A the and you recent amount weighing And to generating cash it’d flow, you one debt XX of months? balance to XX moved Matt some structure next have, share given cash lower share thinking for How capital next Thank available buybacks. just have cash significant the obviously, deployment forward whether a - or Thank over M&A of opportunities the for basis, activity flow year. flow a about for price cap cash and just performance, the on how buyback bit be Great. front are you. for be you repurchases related go has cash your the I you just and the given But will M&A?

Matt Korenberg

Dana. Thanks, Yes.

convert about mentioned have about numbers we’ve and know, $XXX million outstanding in forward the we release, face or sheet. as the convert. balance the on of of If just on - plenty $XXX at maturity today value I put still we we for to million have the repay the press under as cash As million these of convert, and have of cash is face value principal the folks value $XXX debt the project we and to of the

refinance $XXX of M&A if tune did have standpoint, our to $XXX we otherwise. excess to out least from not the at and convert so, And million the do or to we cash go even million

to While refinance if think convert so the undervalued, opportunity significantly the we obviously share chose. we still we have our is price

as forward. go that through in where next to six the continue so, three to whatever capital or M&A has evaluate I from so, are We’ll capital return mode been mentioned to as sure working we’d a the as I optimally shareholders. can. are and of think we making our capital though focus standpoint, prepared have like running a multi-pronged that, to that And platforms remarks think all we large we I months are or the do. we a all in platform to in as really on cash strategic But approach do as well my deployment they

getting integrating fully standards. our up to everything So and

us We mean very are won’t for long nearly time bit. a digest we there. it’s a to it’s and think doesn’t It But that I takes opportunistic. and looking appropriate M&A keep

meaningful for we from technology to We’ll close by means royalties priority we’ll think look look said, So, I lead Ligand. augment the add as and we’ll that that look pipeline platforms a in be business, standpoint, for for no that I continue but OmniAb to our acquisitions business. new – major business, are will technology

a three continued or share capital those well M&A focus as with on evaluating M&A. of as So, return return the front

Dana Flanders

you. Thank

Matt Korenberg

Dana. Thanks, Sure.

Operator

Yes. any And the to call questions. over I today will people’s turn back the and Really remarks. appreciate you. now turnout speakers for Thank closing

opportunity We challenges. and and are are answered the behind us. pleased really pleased But of great to A our we performance. the some XXXX with call team have year

set up XXXX. for are We

road forward you We have we joining the virtual invites report and in progress. some be to for conferences. on look our We’ll our call. continuing Thank to on

Operator

This does call. conference today’s concludes

disconnect. now may You

Patrick O'Brien	Investor Relations
John Higgins	Chief Executive Officer
Matt Korenberg	Executive Vice President, Finance and Chief Financial Officer
Matt Foehr	President and Chief Operating Officer
Joe Pantginis	H.C. Wainwright
Balaji Prasad	Barclays
Matt Hewitt	Craig-Hallum Capital Group
Scott Henry	Roth Capital
Dana Flanders	Guggenheim Securities

Ligand Pharmaceuticals (LGND) 3 Feb 212020 Q4 Earnings call transcript