LGND - Earnings call transcript Q2 2021 | Ligand Pharmaceuticals Incorporated

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Operator

Good day and thank you for standing by. Welcome to the Ligand Pharmaceuticals Second Quarter Earnings Call. At this time all participants are in a listen-only mode. After the speaker's presentation there will be a question and answer session. [Operator Instructions.] I would now like to hand the conference over to your first speaker today the Head of Investor Relations, Mr. Latimer. Simon sir. ahead go Please

Simon Latimer

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

Our speakers separate in for today's call are locations.

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

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

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

John Higgins

Good for joining are quarter performance our Outstanding second afternoon, and call. call and execution of themes the thanks XXXX financial operating earnings today. our

We strong In Ligand history also one are how the business the and the of in quarterly enjoying top that strong QX line highest earnings revenues performance along posted robust is company with very company's with flows. the pleased doing. and we're cash

number to for to at who call for delighted We're who the story a are as evolution all this lower platforms, the new today. Captisol, very later pleased are beginning next, medical with technology with driven look of landscape. sales to investors to COVID-XX we We've are of business just background. Remdesivir most a demand got new by turnout While quick the flourishing the of revenue and and Ligand is across those and currently our are year see for diminish the Captisol expected the

service, and with ever with our Our company offerings partner are we discovery along than service R&D inventions medical services royalty months. clinical and been significant The in value past the outstanding result on offers high economics our these success of broader technology and few drug and our integrated treatments. revenue provide milestone have achievements and value

two expanded in R&D have our team investments the to our increased past customized and our services partners. laboratories provide our we years, more Over to

Our investments are off. is a the paying Driving in investments our industry. shift

pharma help are those how to and their fashion. end partners industry enjoys needs to a biotech qualified spot are end technology premier Ligand tackle Ligand projects. to We Increasingly, R&D an evolution a well answer fitted in more witnessing partners in looking they the highly in like a licensor. as

and our protein service Now expression business with support. we customer particularly provide technology believe both is and antibody to class also fluorescens our with expert with and access OmniAb what in we platform, expanded best services, partner

we success Our Foehr investments Matt our in more moment, deals. hasten a ever expanded bigger roster are our will through new fueling and deals In of than as before. walk

biology, still principal have to the all of is leverage quarter in examples offices with the our our are you payments. We our services Emeryville with we year, more internal dollar four global as closed robust our forward Area headquarters support now bioengineering to published more build embedded named is to and and excellence and year regulatory intuition our facilities of four our business. woman received patents we're the diversity we San royalty to and we building expanded acquisition close businesses XX where by a Two faculty one are revenue year on phase and location expanded are expand talent investments for Yet trials and for at of offerings, final strong strengthen operations to Jennifer M&A translating delighted to at will the our tremendous Jennifer Ligand license of to call less appointment than Jennifer and in of center addition throughout bioengineering, and compete and billion our the where a the our partners our XX and This a operations of serving and to department that Bay during the research We recently biophysics a including Matt record that the past we is and small fees to ago Last with is ovarian San expanding be the department board. Cochrane. the continue and to access has Jazz now Francisco and entrepreneurial member She Merck impeccable turn we hosting will Ligand in our move our with gained heading. on track XXX past been a been and engineering addition the of cancer. nearly bioengineering to site the look addition with San for We is Bay about xCella of approvals financials. Aa Ligand headquarters quarter, cancer I acumen Diego. Jennifer the to start a royalties Stanford proud In to that soon and is from our we in Jennifer transactions a to you number chemical business. review programs. patents a excellent the our she the acquisition We've third and inclusion topic, administrative has had of organization after the and into invest supported member through corporate drugs, Ligand combined both Emeryville ago. of chair R&D a our to the also in over great her companies relocated industry work. committed met making University, in markets. in we to of of is partnerships years, partner board Both she co-founder, to from our immunology new applications. of than credentials our of Area. where directors faculty Francisco. At the and fantastic deal She further practical molecule of papers when driving products. will earn Korenberg of Phoenix has board medicines X build major diversified to travel research R&D many the generating and second to OmniAb

Matthew Korenberg

John. Thanks,

ago. at the by including Captisol increasing four revenues Teriparatide XXXX revenue ago. ago. for India million of programs quarter X.X million The expression the year that to million a vaccine strong backed X.X were was sales from across Total quarter royalties, in the are from our XXX% XX.X from Royalty year is Institute technology, PNEUMOSIL from Pelican this approved X.X quarter, we respect recently up to to and of increased second Kyprolis million were XX.X of principally royalties, million from advanced Serum Ligand from look Jazz, the but from Merck, Rylaze and XX.X Alvogen. business. the With a contribution up from the another from comprised EVOMELA revenues quarter for forward million years royalty and

we use in revenue exceeded demand manufacturing Our for urgent as significant Captisol our QX of from expectations for Remdesivir. Captisol experienced India

ago. XXXX revenue XX.X portfolio compared once strong included all contributions in million QX, X.X The with from a XXXX technologies, revenue products. million was quarter contract of and again with from OmniAb, NCE Pelican, Our our Icagen significant year contract the

great line XXXX to or contract the revenue the earned diversity our with compared robustness Adjusted $X driven start year last $X the upon increase of continue QX, to the Rylaze. with of $X.XX a and of even million launch expect off XX%. of was for by EPS We remainder the year, an for diluted milestone QX

to Accordingly, and have TE financial guidance. our our term XXXX. million QX. million The of and This to one-time of prior from reduced that liability the $XX we earnings approval cash, as cash EPS be Our GAAP quarter million bonds happening to the exceeded right in the We Phoenix we contingent well or bonds gain $XXX equivalents with payment adjusted expected of is one-time during million investments. by Teriparatide value unlikely about with the a gain the have included will XXXX payment $X.XX now related structured the the contingent excluded balance is and from event We and outstanding. cash we December our of face happen as approval We was triggered therefore CVR TE acquisition convertible to repurchase given short now approximately not XX adjusted event. in CVR last believe that regulatory tied of is obligated quarter diluted the EPS approximately associated $XXX to reflects for year. with of pay convertible value $XX

We earnings sales between $X.XX. our the for XXXX lower full expect to XXX total be reduction to the XXXX We're guidance our between share revenues earnings revenue Remdesivir. adjusted guidance. with be guidance The related previous financial of This XXXX out and per associated adjusted to diluted EPS. million Turning now diluted million updating entirely $X.XX and and with per $X.XX. XXX for million and compares in to XXX share and Captisol adjusted of total year revenues revenues

contribution in pre-pandemic a half last foresee in a was component and at for our in significant was revenue proud resulted and The to amazing. expect for overall contract quarterly of heightened as QX. The in current previous at trends and our line reflects believe in QX that business trend a exceed period the logistical return Ligand. combined guidance and to typical the pandemic team of scientific beyond. our levels our with critical both medical Captisol And and we're demand $XX view With combined. role a revenue XXXX the is Captisol's continue and QX pacing of and Remdesivir with critical United revenue globally. States call, to second to is compared million time for royalty the benefit XXXX We also respect We patients for each this were Captisol and expect to of our we of of It levels. Ligand the we substantial outlook our of updated by royalty Captisol pre-pandemic need. over very will something a they increasing discussed undertakings generally

our time, the be mentioned QX. $XX that will approximately in we in $XX we weighted as and to the half coming revenue million balance QX. expect At on currently quarterly demand more Captisol second year heavily QX million of Captisol to For the see of call, QX this

frequently from based we know shift variety that I be do, quarter a lumpy and can on to quarter of Captisol As can factors.

our from is for year due of updated each to Lastly, remainder Rylaze earned and QX the that realized to largely now be was the of in estimates This our milestone contract the QX. QX. in XX% expected about revenue early QX is

The EPS second half to revenue the diluted of earnings of QX. balance components per in for will QX adjusted the coming share in result with $X.XX $X.XX

Regarding strategic deployment continue M&A active maintain we of well M&A opportunities as to as strategy of overall. our capital evaluation an

bolster technology main and assets for acquired in M&A and that technology recently platform Expression on will OmniAb focus our Our platform. anybody is further best class Pelican our

over financial Matt the turn Matt? call QX some release results. our review Matt and of I'll adjusted to over that, call website with for today I the earlier turn programs. on Before to earnings comments our I'll partner Foehr available with results issued GAAP technologies listeners financial for to our on press our and And direct reconciliation our

Matthew Foehr

Thanks, Matt.

the If quickly Partners cancer. later under advanced track decisions for refractory who quality development Cstone termination classical PD-X China's strategic by of NDA productive with expected antibody partners, filed At as to and in very a and antibodies. it which John with is Pfizer for for the or OmniRat. respected as high with with new come approvals, NDA relapsed team to powerful formed OmniAb CStone this is collaboration Gloria Gloria, has approvals technology and year. determination sugemalimab both be And and discovery small with are Few see a have cell to submitted Korea As first our partners. NMPA and with a QX of we zimberelimab expect a approved, platform our deals sugemalimab scientists valuable Hodgkin's year. by year. by squamous continues also mentioned, a NMPA will for followed platform. was an new these with into monoclonal OmniAb we expanding partner start is believe was technologies have of regulatory OmniAb that discovered discovering and also for provide the of entering tools. non-squamous existing pharmaceuticals a relationships the for partners investigational most and derived commercialization launches, supported our non OmniAb lymphoma combination antibody quarter which applications partners license we recent expected I'll our lung many product this stage using respect was this OmniAb discovered China. anti CStone with stated they review CStone's OmniAb and for using record

recently through commercialize deep including development, In our lab operate our is a OmniAb with invest outside and of are antibody BI announced OmniAb also U.S. our leveraging of and Emeryville zimberelimab formed capabilities, targeted proprietary recently genetic to doing along of in our transgenic team efficient our work allow differentiated platform actively innovate zimberelimab new and And base. cutting with of business multiple technology year addition bolt-on is serving engineering intelligence expansion to Gloria product with our to history on AI acquisitions. here we clinical to Arcus novel BI candidates, and a late The highly and members XXXX intelligence of expanding reinforce increasing regulatory the continue R&D elements model co-develop We've in and Biosciences biological artificial or discovery. us the team or Arcus's animals. our internal and by operations labs, position broad partner platform added in results XX edge The and our the our China. to stage and treatment cancer settings. Arcus Gilead the encouraging partnership in in here

As we stack license development and best OmniAb team see to is our business secure relationships. existing agreements in it technology class enabling new our expand

as . Specifically, as entered GenScript during the well new into second quarter licensing with we ImmuNext OmniAb deals

Pelican of programs look Rylaze space the as that we've robust forward be that's that see or the Pelican Rylaze be in CMC needs. with for referred mentioned, analytical also total been we trend approval from Jazz Rylaze our hypersensitive our VAXNEUVANCE in pediatric describing gene platform partners ideally leverages note the those lymphoblastic a leader it's ALS to to for will identify Lymphoblastic proprietary high our development yet pneumococcal and of and described a to for with that additional upcoming Expression believe our more is a rich treatment the as disease Merck's expansion adults. successful developed at be entered we Expression technology to I'll suited in technology. products. presenting LBL asparaginase additional as the And produced Pelican protein continue and story technology platform. recombinant capabilities technologies, and as Pelican chemotherapeutic protein of Matt patients Expression adult production computer We're for meet assembled Erwinia agent produced screening tech who now plans throughput We made that and the to a a stack It's art is technology the conference, second and of Matt this VAXNEUVANCE received and the or to [indiscernible] also pediatric position results multi our the Rylaze receive formerly using end approvals leukemia the Jazz leverage from development production was ran our efficiently of of for and discovery will of in manufacturing in vaccine a market. investigational a industry and cancer being that toward in as success. approved quarter, technology for recently of period technology regimen partnerships valence approval Ligand a encouraged [indiscernible] using end the we when pharma acute are formally to the track to lymphoma. busy partner and time Merck for we to platform a critical partners. include which as the case VXXX. of global history Merck exciting diphtheria prevention also Pelican vaccine pneumococcal of at to the program Bioprocess proteins. of further FDA positive CRM-XXX September funding component it's platform. our for Pelican technology. announced carrier that's from biotech to JZPXXX candidates, study peer co-authored received eligible PeliCRM We In the Merck highlighted in as carrier its use to continue of of use progress as that agreement that the disease strains to Pelican technical Pelican XX that of Conference for the development and phase with four for FDA blood recently commercialization, an Jazz also out Expression following that our and in announced Expression in small journal, driven Pelican X VXXX. a Expression and our children to market VAXNEUVANCE including example some manuscript the protein and adding E-coli application to clinical in that licensure utilizes the International development speed was vaccine important referred of technology global mutant Jazz We come. to and is production state into have our using they Ligand the segment and supplementary asparaginase players the also VAXNEUVANCE used initial point regulatory an pneumococcal very CRM-XXX for indicated by quarter, I'll to development Merck their toxic second that's a another from is on quickly derived to reviewed trial pediatric Scientists while are may XX automation treatment the vaccine for technology that the on believe medical CRMXXX non is submission that they an in a expand use also which the end year. referred the big toxin before also

that a the vaccine that by is patent as well microbial value in partners throughput leaders and a patents are areas high biosimilars, systems. of the robust toxins secretion Pelican XX the promoters Our are technology worldwide supported patents technology of as antigen and number production fact growing screening, portfolio the and issued than XXX more Together, nearly expression, engineering methods applications to for include These marker Pelican itself. related sequences, strain there protein pending. the cover technology

collaboration for in our Now number provide In June, molecule the disorders [indiscernible] commercialization channel will with remarks. bringing funding. neurological development Roche includes to for milestones, potential of research also transaction funding, Roche technology collaboration and Icagen should new a to to the utilizing a of payment and and ion with small precision couple of channel discover novel diseases. entered treatment the be And platform. is of related Roche program, medicines, new technology to later the develop made Ligand total we for This with June, expanded upfront three. commercialized. and product modulators neurological a a one we The final into Icagen cash collaborations therapies log royalties an ion research

as the to questions. collaboration. as development net up I call operator and sales royalties commercial in for should will that, commercialized turn In payments, $XXX And addition, from with to million milestone on over well be Operator? a Ligand research, eligible to the back the drug is receive

Operator

our Securities. of first ahead, we you, Thank CJS have question now Instructions] [Operator sir. And Solow Go Lawrence from Matt.

Lawrence Solow

questions. Good the great. taking Hi, Thanks afternoon. for

Matt. first Just question

be Amgen on is not has You were reported part the there's little guess I'm mentioned like hasn't hasn't going a bit royalty that below It it my mix, And quarter. of changed. I bit two to a feels I'm less the thought Certainly mistaken. if guidance that little I this question way. sounds number curious side yet. the royalties just

So, running? have Kyprolis are the numbers already you have expectations

Matthew Korenberg

Larry. Thanks,

exceeded a guidance. your think combined exceed should the contract question royalty if The that bit is from numbers the I So, their to mix little mentioned previous has But as That's you're the royalty think I side. milestone about much shifted you better correct. just first and numbers. it, both have And XXX% numbers, second Ono question is off all as as correct. Amgen business. margin the Overall, Captisol your part not then and of those we've reported. we're

conservative as to catch some then to with quarters make similar have revenues mixed up the there with And and next we're bit I have or quarter, just that we line take a a we our a say, that then uses we'll of our of algorithm to if a haircut is off, quarters. So, an little numbers last at booked in sure expectations true nature. the should quarter, all in up, from any those

Lawrence Solow

by it I some, assuming year-over-year was to little a your and biggest more some that's So, [indiscernible] And down biggest right? royalty you clarity XX% of know just probably growth on last the trying you sequential far get clue on assuming quarter, that. driver the line,

Matthew Korenberg

the have information numbers Yes. But a That's growth or be is do I hopefully from queue. out you Q the on you'll for bit that so, in our they not as see [indiscernible] is which remind Q. from sequential out. in not you those see correct. of true the be same come will will numbers It's investors the assumptions. based days, the [indiscernible] specific in the few Amgen it next just When pointed

Lawrence Solow

All Okay. right.

I Phoenix of Rylaze you give discuss a in going vaccine you much or idea the of can you down market what maybe pneumococcal just or Thanks. Could have at you guess, idea questions. that Pelican obviously, is size guess Okay, this can do? guys only know, market for it. that briefly few but maybes the opportunity, first, this arbitrage market? that going replacing us what larger, potentially I as approval and or potential is VAXNEUVANCE sizes? could top guess against slice going Rylaze just renamed maybe then give recent and from and we'll Merck of to is U.S. like And market I be an [indiscernible] you too. that Can I the seems highlighted you an

Matthew Korenberg

Yes. Thanks, Larry.

product Jazz $XXX on will Rylaze million in market. done had that first prior Erwinia that with product supply had constrained marketing a a Jazz been So, yes just replace to under correct. that new The product

have So, access launch and as be or the etc. much the They've end quarters has the we be that announced they've about Pfizer. and they royalty the XXX and line to of obviously launched as then to that in a potential to market initial of of expect product the will this we already U.S. they've needed and go the as full or ACFE contributing so Merck the talking as and couple it be you split about possible. they'll it October. here end with plus $X that quarters, a talked global in year. plus but fact as now from launch and to with Merck this VAXNEUVANCE But ramp the to adult first suggested, start that billion do to expect pediatric that year a year towards been conversations launch following as principally of between On [indiscernible] market minus competes There's quickly

Lawrence Solow

then Iohexol? And question, update on just last any Okay.

Matthew Foehr

comment is enabled this Foehr. was I Obviously, on a program Larry, that. of Iohexol Matthew asset. great a can Yes capsule

study interest balancing design. late As we earlier stage partner we're inbound and said

starting And took so more trial and will on in update the a we the future. pause

Matthew Korenberg

a January there? that a trial think that's that says, I read in do mistake I it you maybe Thank wrong? that Or have Is XX? the beginning a clinical.gov. a guys just I if placeholder [indiscernible] plan at in Website, you looked

Matthew Foehr

just that Yeah, we earlier. the there. But on reasons timing the on got clinical.gov the a we is that's, described put that just that's wrong trial, protocol pause for out

Lawrence Solow

Thanks enough. a Okay, it guys. fair Appreciate lot.

Operator

from question is H.C. our Joseph Pantginis of And next Wainwright.

Unidentified Analyst

Hi, asking this it Oohexol previously the program at actually is the mentioned, program, primary just I working this point, if you Joe. on really was focus as at BD around moment. for Sarah is your on the also regarding

Matthew Foehr

Yes. Matt Foehr. Again, this is

study the I we've with we're around As stage the late program balancing design. interest that inbound said and received

that's yes general the in So, thought.

Unidentified Analyst

Thank you.

Operator

our from Capital. Craig-Hallum question And is next of Hewitt Matt

Matt Hewitt

Good on afternoon. you all strong the Congratulations that and color quarter the for provided.

maybe a questions landing some me, few that incremental provide color color little partnership, up bit morning, as opportunities your relationship far expectations would Om be AI helpful? relationship? regarding could news your regarding any What drove that the can for are as this how what a first Just he maybe if maybe on drive OmniAb

Matthew Foehr

Matt. Yes. Thanks,

doing who specifically on the even OmniAb, antibody opportunity world kind cutting around year. been It landing very have. our the and remain the even This the really want remain into partners As things the incorporate even further further, in. that the blends tools to centric to that we're unique is of have high a we've through related we well to that AI want with allows collaborate last part really have the because obviously we enhance acquisition is in software that's to that edge renowned the and always exploration the of us pieces approach world we That platform that an AI gained xCella is support selected increase our discovery one that to everything in thought capabilities built they of accessing relationship throughput and in a folks world can some already lab. platform end better of with that are we've to also around exploration, and and of we data

of another the just, example But platform. remaining with on So, really it's think, our software I OmniAb edge relationship. it's cutting

Matt Hewitt

customers? from for to that orders? samples back sent side? proceeding? to from what into That's that was great. able new of know humanitarian that were Captisol and How incremental some on Have with you the I that Remdesivir out heard And lot it little you are that of commented shifting provide previously, customers trial. regarding can provide a gears those a interest, you of Are a standpoint, emergence lot translating of Anything Thank you. bit those a then those drove

Matthew Foehr

Matt. Yes,

and I health itself, treated vast the master as really the increase, quite invested for the X certainly it's that had of obviously the to role has always that Captisol for, and over and able what, enabled been data, same got But but But safety human or drugs in. differentiating globally course, There the globally. our that. and then are Captisol teams of that's We've over already the million created several value anytime marketed The intellectual in which the have been so. files, the scale months quality been portfolio. they've been approximately think substantial, on our visibility patients drug big Captisol built impact and XX proud factors is we new approved and really a drug they've global play are manufacturing reach. property a our a years

are we partners those require trials that yes, to have of do new support efforts. amounts scientific that our And So, progress. partners new of on forms form, and clinical proud continues those but we're value. those into entering the depending Captisol things And team the different

Matt Hewitt

bit great. that had you've month incremental And That's successes Pelican so technology? platform, commented recent And you. with or pipeline you past what last then one, I the for given over look are does little but Thank the think that a the you've even seeing here like? interest

John Higgins

Matt. Yes,

Pelican no at to As started technology looking that first when the been platform. we or had at prior approved utilizing time leveraging products the acquisition there Phoenix

a substantial development four. comes that's Now there it partnering when important. very to discussions becomes And were

flow nice a see there. partnerships do we so potential And of

our that validates As the are of success technology I that having existing something with working with always That's that mentioned, are we've some it. expanded partnerships.

as vaccine their another is and technology pharma expand partners today use we leveraging well. additional PeliCRM candidate our global are VXXX big disclose which small biotech we and Mercks seeing As of

validation the we nice see the our yes lot and So, of comes a of from partners. interest regulatory validation, success it current there do and the a

Matt Hewitt

that pretty quick. of That's some Thank we you. [indiscernible] Hopefully get from great.

Operator

And Balaji Barclays. of our question is Prasad next from

Balaji Prasad

Hi. questions. taking thanks the Good for afternoon, Matt John,

to Firstly come now. around full seem Last have year contract we your capital lowering royalties guidance on and revenues. the a guidance, time this and itself, raising around circle change you

comfortable Is for sales, term, was expected And disintegration especially So, signaling for is the how the from deceleration we revenues of on you going guidance year business of year. period one. the now at least XXXX understand half contract outlook, I side? to next discussions near in on that time for to the just much back some based second enrollment are view while and That's on the not secondly, pace a peak want what Captisol doubt and COVID point faster there Thanks. XXXX? and a all royalties your revision both was and with a

Matthew Foehr

Thanks Balaji. Yes.

generally place crack. by think my And was I'll pretty was in would generally current and Well just that for idea had Vaccines have But of and when stockpiling time bit be I in or picture. a as John color. of year. ago need think very calls different changes so. would plan on rolled around the in know we successfully and course, ways, the ultimately, take And the where in We could in unexpected if in today would things something it, little confident at we a of roll the happen generally, manufacturing Captisol. lot has understanding And generally. a Today, our remainder how place. anticipated idea of now I the more for There very vaccines a based said So, the up numbers virus quarter. expected There or out. pandemic first on year the thankfully a a comments therefore last up Matt we're think, be some the outlook pandemic humans out. governments. the our there no all of of where lot with was had Captisol the speaking, versus said demand A caught to new how a for Remdesivir, still play we this anticipated if Remdesivir uncertainty variants ago, would clearer or efficacy year and we like I any feel we're want for don't add can vaccines no or have folks I

were permanently doctor had trial actual that On world visits, royalties visits, the regularly that. the etc. to have doctor to that's normal in patient normal payments. now whether of last we that Similarly it's flip where of things out people starts figured and things folks visits, people contract and visits when certainty do the more are has world side the to And to on how or exists Coronavirus trial and all putting a think how even would some off, back of I kind year those return understanding more little

more our significantly think business that to you're certainly royalties and So, I returning exceeding contract seeing our in normalized levels our expectations.

So, I confidence our driven really meet new think the that we what's that's guidance, exceed we or and current high have guidance. will

core we be don't think in principal factor than expected forward next guidance we message think is decline the of is the or for our swift than the On from XXXX see to here. and any for core the the reflected demand other the But business. I side. and Captisol more year I kind Captisol

possible to trends see So, on to it guidance there. back point Remdesivir some talk to from may it related plan sales? of It'll but guide be Yes, Is we this Captisol or from forward. it. upside tail we our simply don't a that we're to

Balaji Prasad

property or Rylaze to the it revenues of liability Maybe quick linked clarification Thank follow adjustment overall just a U.S. your secondly, in now sales, it? XXXX just the you. a revenues. expectation not up change Was not as that couple event on and just and and helpful. [indiscernible] is your That's that based sales on there's on or [indiscernible] a global royalty itself that the

John Higgins

assessment partner, work from and FDA address feedback to a can partner related innate Balaji. elements committed to submit results covered from to give our potential strong the team doing immunogenicity. got just great I a more color. know the elements Yes an I'll on Matt based then is will Alvogen accounting related I perform little Teriparatide. the and Alvogen say recent they've

them and the that want really elements they're that. Matthew there I may that are doing Korenberg, of it timing accounting drove work simply So, that. don't And doing to submitting was if other you change. just know it the comment other to

Matthew Korenberg

the in happening It's issue. It's XXXX. There's it the Now probability probability of that a point. accounting it about some a purely that's nothing purely of timing happening at reflects it.

Balaji Prasad

Understood.

Matthew Korenberg

the Jazz on and Okay program, yes, it is royalty. global a

Balaji Prasad

you. Thank

Operator

next our Stephens. Johnson is of Jacob question And from

Jacob Johnson

first for XXXX. approval Hey, sparsentan thanks. Matt of it looks just guidance. instead XXXX On in Maybe push that'll be afternoon. maybe like question on Kornberg for Good

think we from milestone XXXX is think that us tied as remind $X contemplated to? that. you milestone a in a million that what XXXX just about you have should I guidance? And event? Can Or that is

Matthew Korenberg

Hey million, will that it Jacob increased that the that XXXX. you to in now event X an XXXX approval. milestone talk a happen Yes million. guidance good in you. referring filing to and X.XX just reason to And originally is it is we is And to was tied for under

So, still despite line. our of out moving well we're that of payment ahead guidance, our tracking contract

Jacob Johnson

well. the and just Got on added helpful. for this he deals like it. as you AI it that, recent efforts? Does Matt. of Super Matt development increase to broadly? Is this that's How something business that sell? has easy cross helped were OmniAb it for? kind customers on Thanks capabilities via xCella OmniAb to for And morning added this pretty the is funnel something And then Foehr more seems asking the for

Matthew Foehr

development not and related own technology Yes. but over and Look multiple we them quite what OmniAb just what OmniAb quite every they're the speak when and one acquisitions around through they're announced, generally single few years continue internal through we've we've proud I'll of say of our we've in acquired build what done only technical. to last built we're to

little So, stack, great been the little And a real our our it had expanded the immediately. etc. a new of It's as understand a existing the board investors partners, get relationship success partners additional more more with programs. naturally adding our programs. background, about technology, technology source expanding partners, we've bit of Across want our we've

now wanted partners these are these have quality had For never they've think go these that high and added for other programs be in technologies of tried can we can seen xCella ideas great example throughput targets our that multiple thought I would married the under have we but types we previously of increasing success we've said we to look conversations instance, one with when we of OmniAb after antibodies where never partners. these but that's also and speed finding actually possible

causes across our answer technologies. yes the really and the to partners board them the it the understand and leveraging increase with that that is So, breadth they're value which depth

Jacob Johnson

just Matt probably and that Matt Thanks I due on sales lower They margins one for then impacted. Kornberg just a Captisol quarter if think are sneak this dynamics that bit I to bit maybe vaccinatory a just gross it. Got little little more in given for around sales.

how those. for think us could the gross about about just back to help think half any margins we you of As terms give in

Matthew Korenberg

question. Yes. Thanks. Good

really so obviously and and our the the you where comes payments are more corporate goods As that's margin XXX% as margins down. pointed sales business cost of overall our out gross material capsule and sales it portion contract a are drives our all specifically royalty and of significant

talked to the of some sales bit in our which significant those One about is were given of with than just India and that of our are contracts the where parties. the selling related some things logistics we've a they're those past nature in to of the that consortium typical margin the and sales QX lower

be the driven of of make a between to corporate be will it the will course themselves compares by continue as shift and should So, second and overall a then bit the contract Captisol lower margins half royalty Captisol. over bit to year this quarter rebound just and margins the

Jacob Johnson

Matt helpful. Super Got Thanks it. and Matt.

Matthew Korenberg

you. Thank

Operator

from Henry And question ahead for ROTH is our of it Go Capital. Scott last sir.

Scott Henry

follow you quarters want blend I I'm very kind it up From good think When QX and way [indiscernible] because question in between Thank it the for it'll on going me revert do or ties I back way into and and was it forward the up incrementally. it it but prior briefly should If probably Captisol of rates? prior that went you make not just XQ a all think to of [indiscernible]. the that afternoon. sure Captisol quarter you just to answered I think of interpreting just could prior I looks to I Matt correctly.

Matthew Foehr

exactly that happened tell the to will majority be we've that of the of where to QX. sales sold and Hard it the in majority consortium India vast demand but the

of expect continued expect already. over but sales the we've based balance we India probably So, of our we on expectations here what to there to sell course sold current the most

speaking generally should there previous quarter. closer in past couple we'll this next margins the but have be it to than some quarters So,

Scott Henry

gathered tale run would normal I from a When the upside. of Okay. the Remdesivir always we Is Thank a to steady then million fair expecting attention saw probably that a normal back than you. be assume we after what be not think into back range use earlier to isn't Remdesivir you really about but it's will new a state the rate And is there that year because about this. in talked would that back XXXX? huge going going normal XX some higher a assumption

Matthew Korenberg

increased say sales $XX years to of versus but need talked Remdesivir partnerships to $XX shifting had for through about upside any numbers. year range for pre-pandemic the here then Remdesivir new and demand I and the generally upside sort some where or the from we speaking of demand of all from of XX into would impact be think urgent of to $XX but and the sort speaking I probably business just million demand lingering four those into factors generally sales five we trickles were capsule think that Yes. of the sort the pandemic eventually million starting hard ticked capsule from that's per we are of to million some and It's sales or to any that million

Scott Henry

It's it disclose you low questions. on Okay and that did disclosed digit is product? Matthew then Ligand a single just not to receives mid - royalty. A the Rylaze a Korenberg couple royalty small but

Scott Henry

obviously vaccine. a vaccine anything VXXX about it's and disclosed then Okay a Have for? you what it's

John Higgins

has vaccine that's about it on the what far. said end innovative its thus data to the they've talked part going morning before Merck phase the some They of No X this said actually disclosed have their They've of their call but of extent they're year. just portfolio.

Scott Henry

Obviously after of you long bit of perhaps out forward. a to Okay. core and program Alright. sparsentan a delay royalty that's really little pushed a amount last it same do the quarter just revenue like in with for Great. line question run yeah? for driver going a regards feels that year the enthusiasm the but Final just confidence have growth and

John Higgins

we earlier question. back obviously the Yes. the think do product Scott announcement the We to presentation regulatory, clinical brought data, this the and saw good I that the forefront. really year

develop market for on it path registration faster that duration while qualifies protection path the little of engagement expecting actually still regulatory questions need. bit a would the the answering but in potential there and out product Europe public approved. is tremendous with and of they're is medical narrative and hearing forward path may market and in having be us of orphan what and is that high all the that the Travere be All investors were There There a we're a disclosure FDA. is of faster since it's that of really terms in for can they the the does actually designation not registration terms until medical start a

you're So, right.

good of partnership milestones excited got the delay for think into literally months product. launch. think or that about bit or do approval now quarter same the next out new franchise. the few time a we're the it's last overall looking of and three approvals We're but a the two and a we've right at Pelican got I two we At probability

looking are drugs. OmniAb potential We for approvals at some

going that assets that growth there's bearing royalty growing base believe new enter the are nice start elevate and So, to and story royalty a line our forward. we of going support

Scott Henry

the thank questions. taking you Thank the Great. for Okay. and you for color

John Higgins

Thank you Scott.

Operator

conference participation. this your concludes And today's call. everyone Thank for you

now all You may disconnect.

Ligand Pharmaceuticals (LGND) 30 Jul 212021 Q2 Earnings call transcript