LGND - Earnings call transcript Q1 2021 | Ligand Pharmaceuticals Incorporated

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Operator

Good afternoon and thank you for standing by. Welcome to the Ligand Pharmaceuticals Quarter One Earnings Conference Call. At this time, all participants 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 your speaker today, Mr. [indiscernible]. Simon is floor yours. the Sir,

Unidentified Company Representative

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

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

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

and guidance, financial be those of COVID-XX and our the We to our results condition, including of pandemic. measures impact use statements some will of related financial non-GAAP will forward-looking, operations, financial the

earning can reconciliation issued concerning the release risk call of now be other be measure after financial the turn can or non-GAAP revise factors periodic discussed to found today. like circumstances in to John with and press Ligand events statements GAAP reflect filings undertake to date A measures earnings our information our I our Additional financial conference found this no We would matters in update and SEC. release between Higgins. any and the or concerning call. to the over we the obligation closest

John Higgins

afternoon quarter to year pandemic. as has XXXX joining better and an advancing and earnings our the well both financially. really great XXXX, we're U.S. and leverage to be from beginning acquisitions last first It excellent year operationally into of This off to feels is for now call. thank our the phase Good for start Ligand, you typically, a into

pick in the to the And an especially to The since laboratories members with be year. health I'm performing once expanding business our technologies during new travel the in and done business team U.S., invigorating very are activity. Ligand. improves many tech our it in partners each our the value business Also, environment again, the to past we the update across including our now Foehr team very increasing we and this partners, As multiple acquisitions report pleased managing And for with who now interest pharma on we able see licensing board across pandemic. with coming U.S., see platforms know for business. Ligand job major through existing the that Matt back bring. scientists, an excellent big has the at directly seeing is the interact our new I to leadership platforms well. will It's give is added of work our

deals and our and is on We expression brought company stage platform Pelican, good Pfenex team that promising board have protein from we on to outstanding, the of some programs. progress year, scientists later with this for new early see rebranded opportunities we internal

that on They're Icagen with instincts for again, channel our model. is Our brilliant the partner And fits plus. firing team so ion unit scientists, with driving platform business cylinders. that is well great all support a

up team major that GSK promising our Roche Icagen Our ago internal coming program licensing internal -- targets. few months. months an very deliver we've in closed is for be and a with in new continues support believe in for to The to partner deal for a we investing Icagen may outlook been as multiple superb the

expectations of clinical biotech. being to we pharma in programs medical and a online, next the deals space. later for product big past to couple targets. we licensing is money based platform. market promising discovery Five R&D build Antibody very allocated research late can I OmniAb platform are of this the leader by of focus royalties antibody flourish pleased More success OmniAb for first regulatory a years been the prime amounts and Significant be now most for news to is Our a beginning our years has are coming ago, really over Today, our five big calendar stage antibody started primary advanced to say investment year. years. and over the and

with We an and a artificial built stack of tech rich intelligence end-to-end history on platform a biological deep integrated intelligence. discovery have and foundation

get world's of discovery next-generation in enable screening advanced repertoires the believe most Our partners technologies to to is antibody we therapeutics. access what unparalleled

XXXX challenging are As our provide higher After in for to Captisol, largest support rescaled was occurrence up whatever time. consortium we we serving COVID-XX they the sales. support factors nonetheless, our expect global and will supporting Matt this we be and The for the ever require. be stepping our of were that a partners manufacturing major to work is more Korenberg industrial to vital demand. at Captisol of will quantities role shifting And go there to that will proud radically terms our flex rapidly forecasting meaningful of but this and be year pandemic driving to planning, year, Gilead into to last through treatment. support

years in other many who worst Our acquired XX important and facing thoughts are countries and of ago, an amazing has India it success We and those with been Captisol are the pandemic. on levels. now the

are addition proud approval see the have The getting products Captisol promising for And potential lifesaving rest as many as as bearing Travere. as remdesivir, for next four partner the to from growing to look In sparsentan approved from know of outlook an in we our the proprietary of integral anticipation from the year, Two OmniAb to our being many Pelican and medicines. business are we we two ingredient new launched. and we're is royalty is year unit.

of call over market royalty become data with the quality will turn the And more detailed our Travere financial potential the to that, our the Matt? product in we performance. assets. our of and with announced of review I size Given QX, along clinical royalty, bearing for Matt Korenberg to this of largest the believe need one has

Matthew Korenberg

Thanks, John.

pandemic pandemic $X.X sales for royalty ago. a of million the largest reported from sales for and ago. a million Captisol our quarter, up the up COVID-XX year were earnings lower asset. call a experienced products Amgen's. the ramp The that sales first were With and royalty on pandemic markets. million, oncology negative expected. strong of Amgen ago. increased later due as These royalties, to respect The their commented $XX.X overall QX. to of KYPROLIS, pressure But year the patient from expect we provided commercial the quarter their the a this is year, they to for million up in pharmaceutical read treatments of on Amgen major improve quarter Amgen in XXXX success Total negatively Ligand. on million year $XX.X with sales in last QX, impact bearing many industry revenue $XX.X million oncology was $XXX specifically business year to this sales and week for revenue than vaccinations including to $X.X from $XX.X back impacted XX% trends start million we've in a that

QX business Our where the was United in revenue sites weather expected cold of Captisol located. came one manufacturing States, by as a is the the Captisol extreme our in lower than impacted bit we Southern new

a goods. million As pause production manufacturing in an of weather, of of of finished approximately site time period for extended XX Captisol February, the the result pushing out

our entity quarter a $X Captisol new Pelican, compared $X XXXX $X was contract revenue Vernalis and from OmniAb, year from other million technologies, from from in all with strong The $X.X million $X million with includes from $X chemical million approximately and million QX million various contract Icagen, ago. technologies. XXXX revenue million $XX.X from Our

an volume in average higher might or cash cents of than $X.XX $XXX investments. We convertible we Adjusted illustrates the year, have We the QX bonds our cash for with last contract million EPS be XX%. strong convertible the equivalents, a a bonds performance for and diversity contract part short-term now quarter million $X.XX QX the line. million was of While expect which outstanding. large XXXX The during This and value balance gross compared increase quarter earnings by reflects XXX% it cash, payments, exited the face this approximately of QX. year, revenue are with robustness $XXX of diluted driven of repurchase was of milestone about $XXX.X of typically of margin.

diluted EPS our unchanged. revenue Turning now guidance. for XXXX guidance leaving to and We're financial adjusted

globally. approximately due the higher total The that evolving mix for reduction the has highly likely unpredictable the nature will U.S., to than given year revenue fluctuate the and vaccine from sales led Captisol we for the guiding has remdesivir. for in as significantly high outlook In revenues remdesivir. with expect successful to expected. hospitalizations rollout million, related we're vaccine for in of resulted was better expected States lower and the $XXX a progresses, to may United While fluctuate Captisol pandemic, demand our mostly in of combined both when -- expectations, demand revenue And efficacy level of a the initial

around the discussions now our In estimate government we minimal stockpiling remdesivir external with addition, experts, of on based world.

Day for expectations stockpiling included our as last government described initial at Our year. we XXXX Analyst

side, are manufacturing flip need urgent that the significantly increased remdesivir region. that in has partners for demand On the India consortium the from

Given with line call, highly diluted the to our as our update scenarios. to QX lower a call our environment, scenarios. lower. the accordingly and each outlet these we or and will under all dynamic signals, these evolution approximately increasing discussed respect as we pacing, we typical changes revenue, can revenue we've our We seen EPS believe on expenses and to are closely and may last of for through of either plan adjusted subsequent total higher trend quarterly deliver in follow QX. rapid accordingly, year demand expect various monitoring the our Despite adjust With and $X.XX progresses, we work then this royalty -- guidance quarter we income, uncertainties, of

has will Between we looks more for for quarter QX of to will I second currently half the report result and on we sales QX, QX We of depending from QX extreme higher revenue that results. deliveries, our approximately we mentioned. timing, issues logistics second potential the weighted even weather a evolved export pacing to the should but Captisol on and be have quarter expected QX, when year higher. QX previous and production than as the heavily sales be significantly be clarity Captisol Our expect be the greater have expect quarterly million guidance. $XX to

in revenue the largely contract is and earned XX% QX. driven of our will in to the be This Lastly, by NDA expected of about expectation realized remainder is the for XX% QX. milestone that each Travere the and be million QX year $X QX, in

strategic Regarding M&A.

continue deployment We M&A active an capital of evaluation strategy opportunities, well as as overall. maintain to our

that our best-in-class Our on assets main bolster is further platform. antibody and focus now technology OmniAb will

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

Matthew Foehr

plans of for tools. OmniAb status year, many starting provide the combination will of recent advanced OmniAb to quickly regulatory of review and our also approval, to events approved, license are platforms. developments expected year, first with going I'll scientists with a I'm record believe OmniAb. in afternoon, is team partner track technologies applications This we decisions expect powerful antibodies. discovery Two the core we programs our of our and offer the our of submitted a certain this a if discovering both antibody update platform this be plans which on by later it platforms enabled supported who involving technology and partners program. for Matt. Partners, have and Iohexol OmniAb Captisol for technology, valuable our respected Thanks, quality high couple major continues then most updates

is An respect the sugemalimab cancer. this cell in half by for expected CStone non-small investigational Specifically, to the lymphoma. Sugemalimab breakthrough drug extranodal recently in treatment year. treatment of has therapy therapy China lung derived refractory NMPA of and sugemalimab the NDA determination for anti-PD-LX of cell USFDA the OmniAb designation under that the review or orphan they're CStone patients last -- has natural with also this lymphoma non-small granted And NPA breakthrough and been the been with antibody by granted killer/T-cell Pharmaceuticals October for year. stage at four of back has NDA T-cell second they announced designation designation for relapsed said

a development formed commercialization and of As Pfizer reminder around and a strategic sugemalimab CStone in alliance China. the

is in its Pharmaceuticals which Hodgkin's also for that The derived Lymphoma other expected zimberelimab, monoclonal anti-PD-LX OmniRat. NMPA with classical discovered investigational using antibody OmniAb program is Gloria OmniAb this I'll highlight briefly recurrent China year. filed today refractory approval was an

Arcus combo also in addition antagonist, Biosciences regulatory setting. In X TIGIT the Arcus' a anti lung to that adenosine codevelop and and an work precommercialization cancer zimberelimab. doing, Gilead with combination metastatic to and studies, zimberelimab is receptor Phase year label XX-year product partnership metastatic and first-line Gloria TIGIT Phase non-small X positive work in PD-LX non-small with lung Arcus anti months antibody locally recent cell in including conducting cancer is started last formed an an or an and cell including and advanced candidates, open cocommercialize in

We and invest through development our centers, technology continue and Institute, platform, and leading targeted to actively in academic R&D like through the internal innovate Scripts acquisitions. collaborations OmniAb with Wistar bolt-on with and

considerable of discovering the they fully importance on value do, formats. and variety of and understand partners placed Our in efficiently work the human quickly antibodies a we

our Our by deep operate base. OmniAb BI, engineering technology to animals. model partner history transgenic genetic leveraging or of and elements novel combined our us a is biological proprietary allow our the efficient highly in AI, intelligence, serving The differentiated intelligence, artificial business broad of with capabilities or BI

OmniAb agreements secure business stack end expanded toward economic to developed ideally partnerships, enabling We assembled needs. see we the suited Our discovery team have with forming tech industry our best-in-class that to in more terms. to those and stack believe and a license meet technology new the end is trend is

updated plan here facility park the investments our single to long-term we plan in of that in opportunities operations exciting invested single a facility investments technology Menlo asset have to recent presented. generally in We're adding previously. types preference our consolidate these laboratory California and making our to an we in and XXXX, in our and and given as into that have increase Emeryville aggressive the for for We're footprint staff look We OmniAb acquisitions at in Emeryville, investment Emeryville.

this rolled John team mentioned platform new is now known technology branding And out As platform through protein expression we gained the the quarter, for Pfenex the our during last Expression the as Technology. that acquisition Pelican year.

next-generation with possible. that fluorescens makes derivatives drugs make outcomes. effect Our leverages this speed production, characteristics platform come. that We the pseudomonas These antibody a side the believe and robust of area the leader modalities. us potential very Pelican and the screening therapeutic substantial Pelican into and significant We be the development. understood express manufacturing successful capabilities profiles, which platform space to improved to our as CMC high product they complex complex identify history rich lower Technology proprietary development prowess biopharmaceutical our strains for of We're a complex and clinical is of proprietary greater delivers and some engineered computer driven advantages these It's industry, in Expression Technology, Expression technology a state-of-the-art time protein automation in quality with known quickly. specificity, our competitive throughput with leveraging to have believe partners, production and increase cost ultimately for technologies the strains differentiated an position which to drugs and other including analytical to And enter the very goods. well of a

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

more XX. to deeper VXXX of worldwide to technology, year pleased in understanding get new a the you the pelicanexpression.com Merck's our that to issued Pelican pending and a biosimilars, and of approvals encourage which patent to is last vaccine which technology. by week on robust the illustrates anyone I'd supported Pelican in portfolio for microbial visit utilizing For beautifully Pfizer's website. antigen the looking recombinant toxins more containing XXX areas number than there program well CRMXXX the leader promoters, technology throughput of the of cover Prevnar Jazz that nearly as production, strain as expect Together, growing VXXX expression, marker is methods two protein Pelican excited Pelican are updates itself, technology. asparaginase, applications see is Pharmaceuticals were and patents We're also a systems. for vaccine, XX the program. related than Erwinia We engineering, screening, sequences, including patents high the secretion value about and this serotypes, next-generation pneumococcal XX

those Erwinia, shortages part patients of an the been of regimen For space, not which know important is of may treatment ALL. with history the there's a who for

that focal a Jazz facilitated forward treatment. in X significant remission with I a asset from after analysis of from year, statistically in and late-stage with to of this profile sparsentan endpoint suggested look that potential to from reliable compared promising Jazz recombinant on partners sought the active a later of December, want showed And Pelican and approval weeks accelerated intends launch of the with other Based that. FPRE demonstrated to high FSGS one Phase indicated a first XX Erwinia the of and quality also safety pre-specified BLA in asparaginase highlight them. interim this pursue portfolio, in proteinuria Travere submitted year. generally or provide FDA sparsentan supply. X.XXXX. technology half study updates we FPRE second preliminary segmental partial also was further at interim and the well quarter, and announced sparsentan control its exactly develop sparsentan that's for the the to Travere. tolerated comparable P Our Travere DUPLEX irbesartan In to to a to results interim our on Sparsentan irbesartan. for analysis, achieved that response value submissions approval glomerulosclerosis the Travere data with the the

this end Commission pivotal Captisol with inbound efficacy IgA rare nephropathy, the our the Additionally, update in off of Travere Travere I'll PROTECT the efficacy top for and stated fairly of pause nephropathy. Phase and on internal IgA clinical is up assessed evaluate plan ongoing X data it the had run treatment has this this partnering And sparsentan global Iohexol we've called an interest program. trial enabled granted safety conducting finish that treatment to soon this a an line trial the recently stage interest, clinical the that leading year. which trial to on third take the disease. in that And to kidney first European as a the interim quarter disorder and orphan we of of We've sparsentan in we coming a program, of quarter anticipates designation is for kidney afternoon start of the decided to year. of cause

partner development. to As elements stage have to views We time, partner trial the at in plan questions. downstream more and potential as any and this don't might to Operator? of the assess update enabling work, partnering plan specific we that, the of components future later form the for turn or operator their other plans trial involvement potential of design And this will clinical as product the with own back as realized we I initiate the over the label call we'll to asset. around

Operator

you. Pantginis of from [Operator from first question line line Sir, comes H.C. Instructions] Thank Wainwright. Our open. the Joe your is Sure.

Joseph Pantginis

questions. afternoon. Hey, for guys. A the of Thanks Good couple question. taking

thanks on and First, that. clarity Captisol with that's for Matt, and on the the going everything

said, just to to that business, seeing the you've been as let's with significant I before So, -- growth back core opportunity. remdesivir the the aspect wanted even of go

and describe development in continue it's you that of able the seen? types to ongoing of that be So, can your the you sort bring how business might to deals new growth

Matthew Foehr

sites visibility who role playing in scientific like And the drives a the interests, from a in Veklury interested higher. of master it over I enhanced in only we speaking been by Captisol from sample partners lot property but a impact has not drug database reach, been that the terms a manufacturing. the manufacturing Veklury And had, manufacturing which validation also community. a of reaching of Captisol see scientific it's U.S. last a are its visibility science, from up we things product the really disability approximately the for many million globe, reproducibility, -- from one a substantially files, requests, step clearly create interest the global perspective, of all to intellectual driven the Captisol X built safety right? largely in of number we around out quality, We've of those four platform. that a of including have as Yeah. a that now new licensing the the Joe, mean, for that year, lot that -- inbound treated final the about sort it. One a the critical over new it's here of and from is perspective, in have interest spread standard-of-care, you're important, years, the extremely candidly, continue year, course Captisol never of us scale, a perspective to portfolio really patients

Joseph Pantginis

just their starting visibility too But here. That's much Got And getting not Hopefully with with one with to then. I'll it. into and really you partners helpful. another -- that's Matt, stay then of gain it the your I'm is weeds Sermonix. programs

seen brief give just if on was obviously you cancer be has on setting. for just different but two you status was which now originally, could the a I I something because So, curious update and just maybe curious a if lasofoxifene seconds a was could efficacy program. by cancer developed update an on that the in mechanism give could

Matthew Foehr

Joe. Yeah. Thanks, Yeah.

just fantastic through years. partnership with the And a it's progressing largely to rich It's is very trials and and heritage a it. -- They well. been potent rich with been back that You're generated licensing Sermonix because a had that program really We a and large early the a data SERM. breast Sermonix also our it background, nice quickly Lily database deal in has announced selective they're days, a right progress, receptor of team so with partnered at has of as or estrogen a behind discovery progressing over at that some the modulator making cancer. it. metastatic many as heritage trials data Lily, has Lasofoxifene to Ligand, highlight

on pending is our it and and it's up So, potential bring a about, excited team them it right science to and on eye promising cheering forward an keep very to you're that the data. a of program we're because and sees that actually continuing lot looks to

Joseph Pantginis

guys. Appreciate the updates

Operator

you. Thank

CJS line the from Larry question Sir, your next open. line of is from comes Securities. Solow Our

Lawrence Solow

you just the up -- and afternoon, Can sounds sounds Clearly to of just Captisol little different are narrative everybody. and maybe it bit, moving maybe the on parts. outlook is Thanks a But moving in like there does directions like just still a seem Great. down. -- reading or over and bunch overall, so, or just good you lower million. the or that no -- like just of run. number It Is like sort we're at could in $XXX it confident fair that hitting volatility seems the maybe range $XXX that $XXX or million be there's short much more around million to clarify, say?

John Higgins

Yeah. enormous add is then so Matt a comment Summary Korenberg and Yeah. of some last his of efficacy rollout, with can Yeah. weeks really on has The double period vaccine rate. the I'll a Larry, partly remarks. the back been success six correct. or

if we rates the the abundance treating. skyrocketing. demand That's of is other by Now outlook of under availability. a markets And control, U.S. India, offset pickup is while right a high, frankly, for impacting seeing more incidence the an and and are It's at -- meaningful are very, very really some now. on a from We've the where vaccine, our consortium it's is abundance are we say this partners. this of positive impacting is pandemic experts, vaccine other the talking major least what we around -- we're in focus markets, seeing in seen on I'll getting strategy. lower And for any decisions to cases other deployed treatment the stockpiling What it's decisions. stockpiling stockpiling here, that absolutely is it hearing, -- virals there's is efficacy that through

are quarter or these -- at and since are time, it. bit offset. the the same They're happening of we so, into just the an So, processing six end a literally weeks last of last April

guidance now. we outlook think rolling meaningfully said, need our for going little see our revenue time feel QX continuing that Again, is As to come think exactly partnering is We what that unchanged. but on a QX, royalties we up higher the business. back, more and about this expectation. is and Matt We good below Captisol. to square really right trend year, I it's we're

Lawrence Solow

It of just touching side that sounds it I some don't is seems that And a clearly of maybe pace. know guide Right. revenue like and what flip to but know the hard, little sounds of the on -- like, the that. contract -- your on I you that's quarter, ahead like timing,

John Higgins

Yeah. you that? Matt, do on comment want to

Matthew Korenberg

we generally that That's events at these any Larry. Yeah. to and always We calls that and -- payments portfolio there's contract one give of and are right, as a on you said more happening than time, a we're think is and on into early had averages we've going of that. what adjusted window in investors year, this say. this a probability happen year we And view to lot success the trying would

And quarter on higher little in looks still and it a the of came so, the year, first it's track. rest like the

that John about business, setting bit some of So, at comments right a upside made moment looks like the offsetting it's other of business, overall, now, quite the look the it does there's nice the strong. the other still some from but but parts contract payments, package little

Lawrence Solow

medical like starts, their just unfortunately you're I for down and not to in most sake the I royalties, think missing these I sound most coming the either back of back strange of ones have XX%, are is you patients patients patients you things driver [Indiscernible] go coming for right? I main don't hopefully patients less eventually, back. Did haircut. think obviously think the mean, to multiple would a the that it one So, guess. so myeloma get away, back where find But up, especially -- would of any lot of there? that be to start would piece important thoughts doctors. ramp fast, other a would -- -- with kind get

John Higgins

has days five last The comments. good No, Yeah. very been helpful.

by from for expected. appears announced analysts partly it -- I patient and low the a report, U.S. really drugs closely, the us. call -- but uniformly other surprised the of products say, the and than think days worst they last major royalty January and and the of street this performance big oncology but for explained were these lower report is lot when we our of analysts Amgen, obviously was earnings pharma, got I'd to it week We're big It monitoring observation, called, for Again, they The in pandemic the February. considerably markets. off investors. the visits be major just

were there's other other was so that saying lot read of in and are on consistency And soft. the might these QX analogs a companies following markets Amgen

-- to those nature therapies. but and do cancer point and the markets the your are why, markets are restrictions patients need that disease these being are The the recovering, persists lifted, Here's of back. their coming life-threatening

bit back all a a kind surprise, nicely. at the know is Those last very processing. what reaction, be this realize, market and people a while are seems of we week, stocks what that's The really we're a disappointment blip to you monitoring. recovered of -- least coming was So, it now were

we the So, trends of that growth partly bit about. good have products accordingly, the in launch revenue brands of we but our all year- feel back QX, the potential see given up core we do a while may new again end also coming even [indiscernible], and by of

Lawrence Solow

and partners. something some hear Forteo. one for about I or may just if two slip XXXX? more the the and Pfenex during your update question. Merck update on Is that on Pelican Any we Thanks to might Teriparatide And the news biosimilar large Gotcha. on Jazz,

Matthew Foehr

it's complete at very for progress, has that review Alvogen remaining contact the with confirmed the in they will in manner". are Yeah. generated collaborative the no The so is under run, so, this, And to Again, data that in was a and review that FDA. January. date factors but them. there's that Teriparatide PDUFA FDA timely to in we with actively last and be FDA Alvogen, the review human a the submitted close have to Larry, regard relationship positive obviously needed "endeavor to for with trial

Lawrence Solow

appreciate it. I guys. enough. it. Great. Got Fair Thanks

Operator

Thank you.

line Our Stephens next question Johnson from comes line from your the Incorporated. Jacob of Sir, open. is

Unidentified Analyst

guys. Jacob. Hey on Mason This is for

one Just quick me or ones two here. from

at looking come million Pfenex, in now we're that for was XXXX. platform revenue $XX from this First, the to expected Pelican in

most had to color of there was the could four you any give down rank on -- to if top top -- terms you the which going you color If call in amount. four their products, smallest could maybe products to order these contribute is us

Matthew Korenberg

Hey Mason, thanks for the question.

both think to didn't numbers vaccine We continue contributor Serum you be speaking, can a we already that, But going breakdown and in The India long-term. that those think launched. is business Institute generally that, year, Pelican to has of specifically. this give the significant the

to we're revenue already royalty Jazz already, that so that that but call about coming through program. talked program the year. program in Both launch the from Matt And Merck from gets and Jazz The in this some Foehr vaccine And and generating approvals we've programs, they BLA successful have on intend and also when milestones both said then, if filing, the to it approved. companies similar addition this try got -- year on the Merck program.

approval Alvogen And tied continue contribution there. to approval, there's their sales without the on then pace approval there. royalty some the the a lastly, get ramp to also they'll some we'll and both So, the prescriptions on revenue there. side, Teriparatide milestones with TE TE a but program, of would But royalty accelerate

revenue done a those So, being contract lot behalf Other four the well, us. generating But are there's as big for those of than partners. of work four that's on contributors.

a kind mix of of all of it's the So, above.

Unidentified Analyst

Got it. Matt. for Thanks that,

front. XXXX more. the on year guys that one for you pretty Just active Understanding M&A was a

and forward capital about would As pipeline for we And an shift to we drug of think continue deployment? biologic. to area we'd as is look towards more see of biologics continues the allocation, capital focus long-term think you

Matthew Korenberg

Yeah.

to But OmniAb platform. I the will we're business referenced generally Matt of technologies on of Ligand be enhancing think go kind think way comments to leading tech and industry the as we as for it. that's important think Foehr the technology good But I as a already summarize I forward. his the I stack well, focused across adding speaking, in said

on that there's certainly focus so, And and space. bolstering directly area a obviously antibody that's the

speaking, generally of a thinking think, kind So, of right I in focus. your you're

Unidentified Analyst

right. Got guys. it. All Thanks

Matthew Korenberg

Thanks.

Operator

Thank you.

is from question next of comes Sir, the from line your Our Prasad Barclays. Balaji line open.

Balaji Prasad

thanks Good questions. for afternoon everyone and the

just So, from a couple pending me.

XXXX to to this its of of to partners want potential Ligand the program the economics anywhere there us Phase for a licensing sparsentan. lot $XX And just now to currently. in guided what's understand of Gilead light could crop million of it about after for reaffirm asking long-term royalties to is understand I million the happening you variations Firstly, the color, help on upside whether Thanks. you on try or data, potential a And which based in sell Can to Veklury. X million, $XXX which I'm $XX year you a reason and based on if think stockpiles, Secondly, potential up are is on value between still on came like one? any but anticipating out? Captisol, of the

Matthew Korenberg

Balaji. Thanks, Yeah.

the $XX communities then billion that's approved, I our on changed royalty million of and we million it of nothing's research then million to So, billion $X product guidance both $XXX between or of XXXX, which look approval, sales, XXXX of or potentially million upwards million some in program. of at time to surveyed gave we've million having and $X sparsentan, number $XXX us. are And calls from that's indications and of an $XX of on that translates on folks indication. -- user to to $XX a the last really Post over so and think peaking And million royalty $XXX they the million end to potential the couple nephropathy Ultimately, $XXX does Ligand. for closer somewhere on exceeding FSGS royalty IgA X% guidance. of the one if and $XX sparsentan royalty like still views see

very a obviously, the we're So, excited and there. product continued see progress to important

for to remdesivir. any Captisol universe partners. are average, Ligand across Generally the Captisol. haven't economics the that for same use the But to speaking, I economics buying disclosed think on of we've is are the with about of Turning remdesivir said partners we that -- what specific

a it demand demand So, already, two we've direction. and question more going as last weeks, it's three seen really we is of need. to the the out of or come U.S. in other in and And over the India the demand the of increase significant

incredibly offsetting even it's week to and So, dynamic. it's week,

updated. and very everybody monitoring actively are we'll it we keep So,

Balaji Prasad

patent Thanks, I are Matt. of to If And aware Lupin see I from Evomela. could perspective. settled just there. squeeze to if of any in there just one think Ligand's more need that challenges question. implications I patent And saw that trying we major and other be recently suit on a that Ligand

Matthew Korenberg

ahead, Matt. Go

Matthew Foehr

over Yes, undisclosed. Lupin that's Evomela. further and we'll Balaji, that disclose well. generally, Terms items the the update those pretty of provide that as And update case the when But much we Ligand are on Qs The terms settlement. given you're of correct. the we court documents settled patent file our

Balaji Prasad

Great. Thank you.

Operator

Thank you.

open. from Sir, Capital. line the comes Hewitt of question next Craig-Hallum is your from Our line Matt

Matt Hewitt

the into conversations Good record I'm for questions. are and best this just afternoon, taking or how of that one, turning for samples. The some the gentlemen. year, year last having Last those discussions Captisol you curious, trials Maybe first Thanks update might Matt year trials a for Foehr. be was there? inquiries those an And maybe or started going? samples seeing are initial you clinical and

Matthew Foehr

requests Yes, development translate new a different Yes, no sample can the thanks right? been Captisol that's describing that into folks as of while forms, they've program. to take compounds Sometimes, take have through lot Matt. us around got a I solubility stability to issues, potential a earlier, to they progressing who continues or and The technology, visibility know created doubt. was bring partners

what can exactly Sometimes, into jump and right need clinical trials. folks know they

forms, database partners and that overall, pursuing, in testament to of just programs work of lot is But, database a injectable not shipping built the up the Increased lot texture a that continue they're time. been caps, which really that to also variety technical and but are there. of we of interest, topical only to. there's whole very gel we're drugs, So drugs over in partners inhaled forms safety the pursuing, and types inbound variety diversity a our scientific that's a teams strong intranasal see diversity put of in

Matt Hewitt

Captisol-enabled much you update you on get regarding to expectation be these so And for you I'm the decision? didn't that. time long maybe partners give But signed, if the Phase Thanks. program I meaningful them that that That's curious Thank great. dialogue and or anticipate a partners, how yourself. if get run that then just long partnership have giving II would the the how Obviously, Thanks. a make curious, some could you obviously, think the might Iohexol. do with time. I'm that to be. one hope you're and potentially going you launch through

Matthew Korenberg

for figure thanks to little would and speaking, trial, move or is Deals at I a Matt, forward to the or if different the move it with deal Yes. are least, think every generally dynamic anticipate out couple a designed at are to we going to where to different. But always question. how partners want want to similar And go. they're all. going we months, forward

on short speaking, out, a drag date, it on the I on it's but months. couple I think could months end the it's So generally think long several end, the

Matt Hewitt

Understood. Thank you.

Matthew Korenberg

Thanks.

Operator

Thank you.

Sir, question comes your ROTH the Our open. Scott from line next is from line of Henry Capital.

Scott Henry

good Thank you. And afternoon.

Just a couple questions.

if certainly expect you First, an normal you second on quarter way be expect second just to already? the the would you royalty half to quarter be curious rates. about But that. think second quarter back I improving your to how line, at would normal have or comments all on any

Matthew Korenberg

that, exactly, to some of also partners that and for tied commentary seeing that half seems marketing it's are QX large products that the demand back pharma us getting it patient of are that the are not deliver to tied Scott. hard is early royalties, in QX trying we're patient Are Look, but made many that and the or out and Yes, back say be visits back our necessarily should to in thanks, that royalties to missed expect year. up the messages is are the that of they

guidance in missed expect a increasing of a bit could be made why comments of for on QX, will to is So the the changing perhaps we'd some missing the year, back a certainly you've year. the to up minimum, numbers. lot I larger of quarterly think not half a companies, But trend anything which be seen pharma interpreted at but these

at that's the our that's, So, moment, expectation. and hope

Scott Henry

That's -- me person this thank is remind percent could then this Okay, you And what in of helpful. amount milestone QX? what you.

Matthew Korenberg

to filing the then like, specifically it's -- so us, million. smidge under It years just very dollar. also ago a it's -- there disclosed it's out both couple was $X by Retrophin Yes, then and $X.XX in a million a

Scott Henry

great. of these. for half approvals I is there's for The believe the half any And second not also the given any of But final, CStone target Is China, -- Have then sort I 'XX. that clarification. you in expectation? in this expected 'XX a Okay, approvals? two just this, date one Gloria PDUFA realize second

Matthew Foehr

It Scott. Yes, half in XXth on second CStone the year. was NDA is you're of was XXXX. Yes, to February accepted be anticipated correct -- Gloria's

NDA. when that's So of the acceptance NMPA an confirmed

the half exactly the generally but of say when the I second anticipating will to folks difficult are be, year. timing So think

Scott Henry

great. question. Okay, Thank the you for taking

Operator

Thank you.

of next line Ma'am, line Flanders Dana is Guggenheim. Our question so from your comes from the

Dana Flanders

a just biosimilar questions. in My on on potential just for Great. exclusive Europe, opportunity Forsteo competitive some know the the was for to for you market in how of the first U.S., I for wondering one is be guys Thank the you have time. you that?

and your cases is that to used seeing is you spike remind potential tied relative other just Captisol trying Remdesivir me markets versus then for generic if contribution my that? and emerging to a consortium, being of kind just wondering Forsteo, we're us question, in x know, they're is how the And of the and us think India Europe. where of kind you or can of So second in versus the

Matthew Foehr

Yes, may and on the consortium and to Forsteo. K. Matt the the comment want I comment on on the, will Europe

most low the of income only India, So the but members which includes and XXX as consortium only middle obviously actually of countries, supply that countries India. other consortium the it's well, -- not not are

other well addition supplying to countries they're in obviously So as in addition India.

Matthew Korenberg

Pelican on rights. worldwide Yes, Teriparatide, and the through thanks, point good actually opportunity. are now It's Dana, others question or Alvogen out that Matt. we Forsteo, product rights hold that to biosimilar a And important and

So around the world. we to sharing do generate profit the have royalty or potential

I'd be partnered region a in opportunity positive and territories. general the territories largest most States as the the towards and more the There's those the our environment product the know, that approved And Probably products probably moving is Europe for to smaller. probably dynamic. a United the outside and is is our will the in largest is us specifically, lot biosimilars actually Asia. say already for outside of U.S. approval. U.S. opportunity obviously probably make in to second country U.S., But have there's of of China, I the three launching. country there many lots approvals that's region, then In already the folks regions competition us markets between Europe, think, where the different the partners are

Dana Flanders

Thank you. it. Got

Operator

There you. questions no continue. Thank at are this further time. please Presenters

John Higgins

expanding turnout look going our Excited fortifying you, XXXX. forward it. the pleased today foundational be technology that in Appreciate integrations about OmniAb to our appreciate well. people Thank business, in to and year. We see talked we're operator, questions. were the acquisitions offering. to updates really We the And throughout

June up. at be We then are coming few and virtual July, we'll conferences at and Conference. we'll the Early be at Jefferies Craig-Hallum in CJS

So thank you very much. We appreciate turn up. you

Operator

This for conference concludes call. participating. you Thank today's

disconnect. You may now

Ligand Pharmaceuticals (LGND) 4 May 212021 Q1 Earnings call transcript