LGND - Earnings call transcript Q4 2021 | Ligand Pharmaceuticals Incorporated

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Operator

Good day and thank you for standing by and welcome to the Ligand Pharmaceuticals Q4 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] Please be advised that this call is being recorded. [Operator Instructions] I would now like to hand the conference over to your host today, Simon Latimer, Head of Investor Relations.

begin. may You

Simon Latimer

Welcome results Justin. fourth of quarter Thank business to update financial and conference XXXX you, Ligand's 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

for will standalone impact will forward-looking, condition, of pandemic statements results the We of operations, public financial our plans related be non-GAAP COVID-XX and including financial some OmniAb use guidance a our to of those company. to financial become measures and and the

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

John Higgins

and XXXX good call. our quarter joining fourth afternoon. for Thanks earnings you and strong XXXX financially finished thank operationally. Simon,

our all are of and our in shareholders pleased the with today separate We and Ligand momentum business our to progress into split very report plans reinforces two companies. to areas public

was in events growth progress our Record today a and substantial for point. of were strong driven million to special a business significant and revenues $XXX best First, number the is we per Captisol of financial cash year by along commercial performance. royalties are and inflection earnings produced XXXX pleased with as The of Revenues top at contract share our and by flow performance, partners. our ever late-stage see line in highlighting terms both sales, payments. robust

under needs the the strength as this how more knowing company into business programs It to the keep than businesses. before, business ever financial that and to We of motivates tremendous and from two position split as development more of to well driving diversity success our partners, momentum. have more is and us

on said has given to growth Ligand our companies. we November increasingly and when of business, better would our as it the clear by partners splitting operating I to As in be independent and that drive value topic our the the the of become call two separate evolution company, success introduced for shareholders positioned

Our built is our core around of licensing, at sharing business Ligand with royalties. in the through coupled technology a success model partners

fuel new where technology has better leader well-earned to in expectations and with in years established now with at that streams far our industry. business the is anticipate substantial investment narrative. same operating with the and beyond significant should line within well and at At manage OmniAb the ago. reputation now results clear exceeded we OmniAb our investors and flow, a cash for royalty by antibody and be top We superior just structure. the lean a time, success existing opportunity a business progress expectations. invest few are point value potential served a bottom to we discovery, performing The and further is line expand realize the our OmniAb and growth platform will level is strong a a as focused

evaluating investors holders in plan paths high-quality with strong exploring and to potentially Now operate existing progress lot Both an other pursuing our we interest the terms a past IPO, of alternatives. companies. that new shown of have process, OmniAb two in the favored made of plans outlined over We initially independent and engaged investors. months those separation several listing dozens also public while Ligand

as the in investors, independent months, over thrive Ligand the soonest decided other positive company's as the in execution down the spin-out that separation we've window remaining result current a direct to to ability past the received possible advisers. publicly OmniAb's occurring by from will in our volatility to in several compared confidence trajectory, we've move feedback path alternatives, traded indicated the well and our as Given markets an company as as

with to Our the Ligand plan time directly now fund is the for at OmniAb million $XX business out. spin the of

are made coming this financial the spinout are along a for confident filing We weeks. with a will The investment for OmniAb provide path direct SEC, capitalization we the OmniAb. anticipate a requires in with will outlook the Form-XX secure be for we which on

be a and SEC But shareholders be There's we XX signed will basic is to The built be fully running. will public know split so soon businesses leader. will he More continue who directors our a of Ligand's getting transition the Directors to two of to about has of and shares any no good out information final have to during Board understanding our smooth years well are how manages out spin picture considerable CEO of shareholders to facilitate is transition I've including for worked as quarter distribute on service is and as complete CEO. OmniAb big goal to process leadership still and suited well XXXX. level full evolving. up executive the the have outlining investment. nearly Matt comprehensive made current review And is be a as and over with the He and Our capably there fantastic the second The CEO new Ligand. to doubt join of OmniAb detail I done agreement Ligand Board. everything work will have as a current make how Matt. you led sees and stockholders also Board the approval. the He board a OmniAb will companies. Foehr separate inspirational will instinct be for and and a the Matt are and run of dynamic by as strategy thinking

of approvals. post-spin positions and these drive and programs a underway. Matt growth. Korenberg our has antibody look equally flow business of a major from never under developments our product two better readouts Phoenix the of financials given and had diverse the pursuing acquisition strength the assets roster, data Ligand companies. and investors been We portfolio. have thrive, it's our a culmination Matt? and will of to over about have out positioned to forward to company OmniAb we financial and a the of for we discussions customers of seen steady call are the spin revenue We a review partner highly more diversity product While remaining path plans position set I to the The well-timed clear serving partners to separate now turn to

Matt Korenberg

progress XXXX. and The VAXNEUVANCE, from our publicly management programs we Thanks, look separation value a two a Ligand the strong Ligand. made the reported remaining respectively. the Fourth to distinct was and for quarter and antibody forward two into separate Ligand XXXX is We to with create finish of on integrated product Financially, the revenues by in the core we John. to unlock significant sugemalimab. Rylaze businesses Operationally, in through plans platform value focus meaningful what's multiple with zimberelimab completing allow our advancements year of to contributions separation companies. across very goal And as partners fully saw approvals acquisition teams to separate now of for the traded successful OmniAb pipeline the annual business. branded progress across Technology. with we record Pelican Phoenix XXXX Expression good and We

from $XX.X first million we to and revenue EVOMELA, Turning is many a quarterly XX% our from were a increased revenues noteworthy year KYPROLIS, principal of $XX products Total and the now Royalty for million $XX $XX.X from to financials. quarter ago. million, million revenue year PNEUMOSIL seeing contributions Royalty five are up Teriparatide, programs: Rylaze. ago. comprised

revenue $XX.X with compared Institute Alvogen. QX programs million $XX strong backed Rylaze with Pneumosil for the a a increasing contributions products reduction these our sales with India of reflecting Jazz, quarter in to Teriparatide reflects of by in as year for Captisol Expression million Captisol three were ago. Contract the from Technology, and for from from primarily sales revenue Serum ago, which growth manufacturing XXXX a for Our sales was COVID-XX. royalty $XX lower the treatments Pelican from is $XX.X million million year compared the

quarter $X.XX $X.XX EPS and was adjusted for $X.XX compares and for XXXX diluted GAAP in was of QX with of the a loss Our XXXX. this QX EPS

an For the which of full XX% XXXX. year, is the we increase from $XXX.X revenue million in achieved $XXX.X in million total

in million year cash $X.XX We from for reported of Adjusted the year diluted to with cash, we Within EPS XXXX and an cash are to million company. over increase full the total a $XXX revenue $XX short-term XXXX $XX.X generated was in OmniAb equivalents and million attributable we investments. over XX% of operations for business, unit $X.XX public exited the separate we the approximately XXXX. spin-off or was XXXX into approximately the preparing

$XX a the to sales of the we XXX% of XXXX, working provide we the XXXX XXXX based to more be how XXXX and directly. the John intend earnings dollars and be providing excluding couple and the for forecast million of business million $XX to in discussed, expected allocated. the business OmniAb million million to OmniAb Ligand some royalties separate $XX break to of information flow the business as We current order to business between we're and schedules. for out Material OmniAb. capitalizing $XX two be revenue spin-off combined specifically, to OmniAb separation, time timing, with with with will the At to forecast expenses of equity outlook we're of for on range for OmniAb Ligand Ligand outlook a companies attributable context products. to revenue both views demand stockholders the Today, size forward Looking direct through for the million the production to

contract approximately a All of the forecast following press sales $XX to financials to the issued Ligand on attributable amount to with release review our results. listeners the And business that remain results adjusted financial earnings to today like spin-off. with QX material of GAAP direct financial of million available is with revenue, for Wrapping the to $XX and earlier of we OmniAb. expected million website up I'd reconciliation revenue our two-thirds

our regarding the businesses. strategy, spent time a corporate in we XXXX the on of amount Now of and Ligand significant OmniAb separation

that portfolio complement continue technologies platforms meaningful technology that Ligand, However, to partner bringing throughout year, companies add new technology evaluate transactions we our to our the platforms. programs existing and to and add

plans with the transactions Ligand separation, antibodies the generally on primarily to space. OmniAb this discovery strategic focus continue expected Following to any in effort

provide call remaining Matt turn I additional over I'll provide of key updates a with Before to programs some business our details Ligand. on the Foehr OmniAb the on to strategy, few and portfolio

FDA sales for Jazz's ALL of to to progress for a broadening and three intramuscular and in the FDA XXXX, treatment royalty our Monday, Pharmaceuticals' significant seeking approval of Friday goal for are toward drug Pelican and As In LBL. or the for lymphoblastic Jazz that launched mentioned becoming regimen launch. for Rylaze population $XXX Rylaze the patient of dosing $XX schedule see as revenue of treatment pleased million approved in earlier, for exceed drivers are sBLA middle million the In lymphoma this generated of Expectations admission lymphoblastic of continued the a leukemia multi-agent annually and and this key first chemotherapeutic Jazz patients. programs acute component July, important of line. or quarter we're of the drug. the the a LBL around Jazz the ALL over a certain to data of sales announced a recently supplemental Wednesday, Rylaze through

US Beyond conjugate Combined a Pneumosil numbers is vaccine over Lilly's these neighboring million drugs billion progress. FORTEO Rylaze marketed quarterly to contributed revenue India and commercial $X marketed teriparatide both two QX showing a and XXXX. to in SII and by pneumococcal countries. is in by our biosimilar reported Eli the XX is Pneumosil in Alvogen. in Teriparatide are

combined Travere net years carrier drivers of are also underway XX and future on older. the announced NDA VAXNEUVANCE authorization our Commission billion In addition on of in royalties XXXX, a to vaccine entitled sparsentan Europe. rights adults European wanted marketing in I are for of XXXX to July recently using for in also marketing touch that mid-XXXX approval Pelican and Sparsentan of the In FSGS to programs, application plans VAXNEUVANCE submit pneumococcal briefly. middle for for a XX or three protein Ligand’s submit Technology Travere produced age there X% is to accelerated Travere those to marketed product Expression announced two approval sales. an CRMXXX quarter authorization of Therapeutics the FDA nephropathy a Vifor utilizing the IgA XXXX. FSGS approval and IgA for announced Pharma received Ligand marketing the that in to licensed for platform. is Europe vaccine and in to first royalty plans for nephropathy Merck to key conditional worldwide has

sBLA announced Merck infants FDA that in priority for accepted the children. and for Additionally, review the VAXNEUVANCE

earlier that $X market into single-digit pneumococcal I'll earnings and call the royalty billion they OmniAb sales forward vaccines. the the With update Merck I for and the recently inroads this entitled had to the Ligand that this is our of On launched Matt US. in a call we product making type month, turn over technology low look for to on Foehr, on programs. Matt? mentioned think Merck net VAXNEUVANCE to

Matt Foehr

which later-stage fact a animals, number active and than around call connect flexibly the what Today, demonstrate to Over to business intelligence and BI are run now programs human XX. the there transgenic XXX are or maintaining partners to momentum generate partners in enable value of That's roughly antibodies. or have partners are to more discovery currently clinical to up OmniAb-derived the Partners stage XX% including run actively the to to technology over now and sequences. meet platform, are repertoires grow to technologies focus our today from clinical of commercial proprietary developed increased our access our been their by see globe platform the illustrates our Matt. overall each workflows, as The that access providing while the into strategic us platform. to technology going Thanks, I'm efficiently proposition in, program diverse programs OmniAb of the comments antibody the technology platform programs. increase built and genetically especially have substantial momentum a flexibility therapeutics. next-generation going team efficient OmniAb our the of been to the has modified scientific we is biological now our over variety our been and ago high continues At with have XX development and investing That allows the heart and that antibodies from of goals. a OmniAb OmniAb-derived place who value portfolio of needs. we by what my its can and platform of that's OmniAb-derived or best-in-class on a that or trials being pursuing XX And year commercialized. being their by of antibodies antibodies XXX screening on

an to partners expanding more secure scientifically Our new a in and continues development using ZIMBERELIMAB now ways. platform our BD in and regulatory process managing business and our new team, We're our in given license interest are given are our in are for interesting we of platform growing base Two increasing partner the the demand Those ever antibodies inbound more received during XXXX. platform. and with patients CDX. team Teclistamab of agreements OmniAb-derived that receive first approval multiple than of with $XX million refractory targeting myeloma. China, a is announced submission late seeking partnered teclistamab, to who with US. the FDA BCMA OmniAb-derived in commercially in and bispecific a We're the of December entitled and Biosciences or Gloria treatment the Janssen sale the also relapsed BLA to milestone antibody, sugemalimab in teclistamab Pfizer. payment commercial Also of for CStone approval upon with is

time OmniChicken-derived Ingelheim. So antibody the we'll progresses. Phase Boehringer that be and is And sponsored now first by that's clinic entered trials are as X something monitoring recently, in our

diseases. channel have around our multiple and Ion difficult for as for technology formats deal to see were our across were opportunities from We capabilities collaboration. best-in-class years. million, over the $XX expand within Ion molecules viable leverage that these arena, and many established developed from and on target originally with for capabilities modalities. existing have added in leverage an as tiered neurological potential our small on extensive targets. platform high-value capabilities lead and are biological for eligible These QX, milestones of clear expanded any further Ion this many We to and of even and and channels over In Ion drug focus GSK more modalities others. the antibodies targeting With in received including and in Icagen upfront We channel transporter delivery of transporters we payment capabilities the sales of net $XXX channel see well as, million an broadly ADCs and to GlaxoSmithKline, we the science area royalties and

programs patents monitors claim sight our into This is as closely now line a an filed now stands by the novel our partners, antibody commercial by matriculation track OmniAb-derived which as that XXX metric active team mentioned are XX interesting we of is that And I pursued there programs, and partners. XX invention. over at provides by I being filed also the of antibody now assays discovery In programs. key plans currently these differentiated by an growth in have and of and metrics partners. also access being, a pleased accessed the partners track. that clinical we our which our track lastly science think patents Ion And active support reagent all targets in of can capabilities of and broad than active addition, can We of programs see in more channels program, the to be proprietary a highly silico to can novel with approaches. partner transporter at when OmniAb in and areas XX, capabilities core business, pursuing provide track that number Those variety and we generation, the OmniAb also closely number an of over the been number number the now program and and partners,

initiatives scientific transgenic animals a well expand continued North also property a lengthy to technology team in we as public tail operational OmniChicken major on as this elements be are; progress of overall company. the split become our updating patents And also and as royalties questions. Once development on OmniAb partners. potential and and our significantly and of are look our vivarian from XXXX there our for these leading more framing to wet giving public, they lastly, Carolina as expanding business and investment in that talking as our initiatives the creates as expansion can based prepare with I team call the and we months. completing that, of for and facilities expansion about main completion position including partnered leadership for upon. intellectual the strategic upon well in base the prepare continued increasing California our And great landscape. platform reach building of Our enhancement; demands successful potentially pipeline back operator first, and Emeryville expanding and will potential the progress of business forward which made We've in new workflow number back to standalone these diverse turn operational goals advancement; And the five future to over here of I areas in will the out a and OmniAb separate to royalties focused of the year a our strategic link progresses. as the upon versatility we labs and the element coming be in the

Justin?

Operator

comes And with Instructions] Thank our Pantginis Joe from you. question [Operator Wainwright. first H.C.

Your now open. line is

Joe Pantginis

with and the the And for for Matt Thanks And taking guys. progress. in great your there new on very final running good Hey it's answer plan, nice the so to the that. afternoon. endeavor get luck OmniAb nice company. question Good

any secondly the outlined you might spinout. structure do the just just when first what maybe view the guess first at you five look and appreciate you So, OmniAb really have I the on And points business preliminary look I importantly guess like? questions underlying I more capital on Matt. two that

as envision model keep or be or products derived sort Over timeframe looking that same long are -- that to you three of one with keep would five internally in years, the XX-year the as you to you partners? some business even could the there you might regard altogether? to Do to keep the one

Matt Foehr

our Yes other we Joe. I'll of the But platform. on as Matthew process and only of grow but technology the not edge on to and Thanks out, we lot as other on opportunities assembled expansion we've the the expand to Yes. of remain coined strategy OmniAb really continue and kind innovative see each reach of intelligent We a comment of to really see elements invest things. I elements also elements of in mapped on cutting continue to the internally around piece, to of may platform. comment what the Korenberg that piece strategy have want

XXXX $XXX clearly expected pharmaceutical greenfield Now, of discovery years. is over $XXX to that's largest the grow to over revenue antibodies the in think few industry one to knows billion antibody I in attributed well next billion just the as everyone in in

what So tools. the that's partners and doing is causing our cutting-edge quantifying to industry really

So, expansion focus foundational of our to one intelligent other which be investment That is why opportunities for also existing the doing partnerships. primary going of split. we're is technology creates itself that informed the that's the partnerships the elements expanding our of that's expanding number

as the the opportunities technology. next as look other in of we kind chapter so on we'll technology our well for of embark expanding continue investment And to at

Matt Korenberg

on be that of Joe is Ligand $XX have with company contributing. then the capital capitalized And OmniAb will it structure, the million the And debt. no or will cash spin

convertible positive, notes is remaining cash and So it will business stay and the business, cash Ligand. cash debt-free at debt-free and

generally that's the So expecting. split we're

Joe Pantginis

the put gears I bit, then switching Got needs. especially guys it. Kyprolis you effort obviously remdesivir little lot your of it. at franchise into when based Got the just, building manufacturing on look you a a And capacity guess, briefly

little my a So I question is mixed. guess

expanding have with with the has you that combination Kyprolis DARZALEX. indications So

remdesivir to dramatically at drop see because to looking might we're So as see have expecting we're et We're thought, not cetera. people patients, -- as looking maybe non-hospitalized increases off there. hospitalized

are that then chain needs. potential the age, how to big in day curious off checking just and address problem of on you're front. currently in to sort the just be had sort a this And pass And issues problems you've I'm to guess supply I all able of any looked on still. So particular manufacturing at

Matt Foehr

Joe, comment know and as want color may to Yes, I can some Korenberg as add well. well, Matt I

lot of supply And I'll the us That's flexibly very a years. lot in couple have flexibility gives of for a added last that Captisol, We chain built a in drying additional of sites we and the are redundancy supply intelligent done something of, say, many we in course investing the in and of spread years. through over well advance the pandemic chain. had

-- made and over that enables in the some time developed as So a and other the I I our supply medicine it. Matt that's got have what valued make and care into our medicine overall is supply and When to the you're built something that's comments be really think something chain builds efficiency may And Captisol your chain. partners time, we've of that partners well. really want for investment Captisol an flexibility developing think important valued a IV is lot over to that right? have Korenberg

Matt Korenberg

thanks potential Joe think is, VEKLURY others? I we are is to meet the yes. no, answer how Yes, Matt. question and of the demands the of able And flexibly maybe part

We be as and anticipate fine. the we'll on the whichever needed able things and front pandemic down to dial up way are goes production

what said you're helpful So combined I with think in probably that's Matt that's answering thinking. what --

Joe Pantginis

guys. Certainly, Thanks Yes. a yes. lot

Operator

And And Solow comes from thank our Larry Securities. from question you. next CJS

Your now line is open.

Larry Solow

Great. good afternoon and guys. Thank you

spin. the on follow-up a Just

it I just on Ligand you the revenues. be me kind or get be level about think core $XX that will high tell dilutive a Can the million spin Ligand? -- of to accretive in we itself? from Just Will

Matt Korenberg

of the speaking ran Ligand close working still what within We're expense Generally exactly businesses. through Larry. profile Thanks look Yes. business both the breakeven. though to like will

one of impact otherwise. those terms materially into get the the be won't it Form breakouts other the or we So when and XX in to financials historical direction reported

Larry Solow

That's very helpful. it. Got

or it's way minimal move other. a So probably the one

earnings just line the bottom on should about fourth stay And same. Ligand the core So then or quarter numbers. Great.

serious bit think than -- you as or VEKLURY that's and you much -- bit, sales expected in of hospitalizations. little little figure Is are numbers your for reduction a like remdesivir I'm COVID a remdesivir still were thought because just expected how I less some hospitalizations for the So were -- XXXX, out guidance keeping material it little trying any to in sales release there in material and looks the of a or I originally right? -- mentioned

Matt Korenberg

Thanks Yes. Larry.

quarterly ago. said they this $X expect of so, where that the sold of talked that call variable as the calls, majority sales year has guidance one long their think would week QX in demand remdesivir selling ago pretty you're relates to knows it of Captisol the Veklury for a has over that on this as I and year. about where or QX we're pandemic. of number really course a been given And long, they the But but this given billion we've about user Gilead that end no on headed. for the in Anything that of we year Captisol them

but think the moment. sales you'd see as at And up the least Captisol some it Veklury-related amount so expect for numbers, I in for we significant guidance reflective at and that we gave a not generally, lines what is just of our

Larry Solow

Okay.

So be you loaded it's in be but would front-end – it and it number modest and your there's loaded residual front-end sounds like even most maybe material number? on guys sounds satisfied some it's the hand of essentially for that stock sales a even like, with QX, to the will sales

Matt Korenberg

on as Yes. that We'll more we go. give color

Larry Solow

expectation. decent at And like my was a to compared – the bit royalty number looks pretty it was least little a number

and two like products mentioned million You to the Rylaze Phoenix contributed the other sounds $X it then that.

Just I'm trying to get a better picture.

to ahead because think the last into know bit quarter Just a little they I for of you I I after built that of guidance on number than reported they were have after you running quarter. the Kyprolis, what guys guess, expectations sort relative

like looks yet they it reported this So time. haven't again

– building flat do how of just an in view of have of trying quarter, expectation kind a just you're a you sequentially – to So that? I'm sense or do you

Matt Korenberg

up from quarter and quarter Kyprolis Yeah. fine. where been. Agreed. quarter But wasn't step they Yes was was a Larry. real from had it this huge Thanks, strong last a

keep things not any because mentioned are One expectations of China we mind to quarter. we have booking quarters. is book though specifically, should I on we don't for that this but the to our actuals And I when last people information think in done in has Kyprolis these what

anything So the be there, the and do they're in will of for which their the China. another more so we areas year. team rest And information that in China. think BeiGene we've growth included They that's some is and area significant one week to is of a to not going launching or Kyprolis carry get over of Kyprolis report we for should

Larry Solow

Rylaze sticking And mentioned Okay. longer that, target the prior already side, the I on of just been they've believe no I $XXX million. inevitable products. think Phoenix you selling

that So potentially million perhaps than that XXXX, I pretty but come sooner I that target? target in statement? $XXX know later don't should near-term a type a Is guess number fair

Matt Korenberg

reported has question. yet. Jazz Good Yeah. numbers their not

could all So teriparatide fully million with we're year. publicly we just through three and other that $XXX on expect product that to one. exactly, last can't compared just comment nice looking last towards product just and almost trending comments were But we what should Pneumosil at they though, QX And their for and year. of two see contributors new script that and progress trends the this own script referring Rylaze, this royalty replaced book the And with one product the the QX in were prior the But this now to year quarter previous reading between where, did predecessor product. to. they're on to its yeah, nice trends even that some we of you which be

Larry Solow

know sounds just – guess its on pretty bioequivalency. it the pushed bioequivalency teriparatide And okay and on own been now is quick that's out like I the without target just it's still a doing update I the

bioequivalence So there. guess hasn't a filed guys that, marketed it's hasn't is I being okay there expect But when or been yet, potential target early? or for – you maybe maybe

Matt Korenberg

Yeah, that's correct.

they're just think and waiting FDA's Alvogen the with this they that the was dealing month additional And by They've decision. requested for directly – FDA that agency. FDA. partner data they work Our that, did with and recently is submitted on the to I earlier actually the continue

was response, no Just for a line reminder to mandated but the one efficient. their folks, time relatively last there's

we hear next we're months. in the So hopeful few that something

Larry Solow

all Thanks. Appreciate the Thanks. Great. color. Appreciate.

Operator

from And comes next you. Hewitt Craig-Hallum. from our thank Matt question And

now Your line is open.

Matt Hewitt

to from you front? importantly that do funding some question here. standpoint you last really two-pronged create could type with it assets? seeing Thank in a it's could I create in afternoon. been smaller some Maybe you that impact in funding from but you pharma And because softness are for they Commentary Good are that and questions. investment And on over have has is care in seeing of of for and positions more where that guess or opportunities the exposure that? for And that weakness does one of ownership an me Number couple obtain and two-pronged I biotech. any actually one taking attractive step the what weeks stocks some anyway Thank question. the guess health for specifically some -- you. biotech you pharma

Matt Korenberg

Go ahead John.

John Higgins

of thoughtful Certainly be the question. majority Thank are company. It's a or seeing. the very, well-capitalized assets just partnered address business to we our as our might with you impact very to Overall secure what Matt.

contribution are probably it's a from just assets but so important most also today the well-capitalized companies. again And backed financial by a numbers

but about capital as quick markets any So financial are model we're or the to in business environment it change answer at looking pullback obviously I relates our think outlook. not the our or the markets we concerned

investors, our positioned of have really explain less in with five if a They've been change don't see years last we're licensing. thrive. our there down a the we but is abundant lot believe been to a tools companies tremendous. a an the formation over the well where of second partners. to slow we new capital bit. that our cycle and particular economic well And any very or technology does we've the this technology question may a Often we And done are The funding We very, markets fewer about opportunity? with realistically lot company We that really model business company. provide when create meet and

this we is when capital participate We distressed a as by acquire is to market are can or fund can sources creative distressed companies participate market more can capital alluding we royalties. projects come purchased can in in. companies very into able in maybe stage science pullback, to companies in which a but that financially or looking for environment good you're retrenchment Ligand public for research backed and great However, buy what in other companies We been there private maybe more otherwise have that been those really financially integrate we've and ours.

advance right Ligand business. and at And this. we're with pleased seen been every really to seen and in we've cycle able few cycles. very been positioned years we've XX we a create our have I've We're how over opportunities now now. So

Matt Hewitt

very helpful. That’s you. Thank

Operator

from you. thank Stephens. And Jacob question Johnson from our And comes next

is open. line Your now

Jacob Johnson

Maybe to John on answer following-up thanks. question. last Matt's Hey your

talked your some little technologies investment post for another spin. the the Foehr interest and maybe Matt bit OmniAb Ligand, point in platform after plan adding the But talk to the to a leg stool legacy about about -- at adding occurs? can talked for You you spin

John Higgins

Yes.

post-spin, we what business be model focus out remaining for colleagues to respect investments, the going of our fundamentally business unlikely will on and unchanged. -- company. remain call we're the Our antibody color, It's new Ligand

what We expect and meet looking discovery. the really focus. whole their range of insights we've of a decade, technology what objectives for drug But we last sizes industry in that needs. XX to industry domain are needs be lot a acquisitions for the seen the their the got for would We've tools

have need and invest, where partners they we invest. to a XXX over have sense to they of want where We

do acquisitions. a environment private bit that public want for where treasure to for opportunities, both creating So gives other and market see the And of acquisitions. map a look we us we

on going a So, redirect our focus and large we out recapitalize had we business. we to we're other October but will remaining XXXX. our in of as as can We assets, the spin targets. know OmniAb, then M&A investors Certainly acquisition

months and and later now But in of was we is other the now and that capacity the price. Phoenix, and to to that in call the magnitude interest the the Pelican bolt history business, our assets and got platforms purchase XX ago months on. we've assets in in about people largest find company's So, well integrated XX

Jacob Johnson

Matt it. not I'll guiding there's to so question certainly Got it. and you're And understand expenses it, ask moving I a pieces for Korenberg. Thanks, still but that then John. a about means question around

terms in of think kind of of vacay mix any directional how of about given revenues? should line we gross that kind shift those the in Just margin indication product about 'XX XXXX the probably versus

Matt Korenberg

Yes. go And just of historically below somewhat the as costs continue past well spent will result some the had It's been the that of good forward. a larger to the in Jacob. we flow-through to that continue as volumes as be where the answer margins the is we've they question manufacture of that

versions of those are costs noncash costs. are -- on of there the Some

be good So would where the than I last those sales. proxy you'll see margins should those think, on But year probably flow might cash better be. for margins indicate is a

Jacob Johnson

And it. more Got could helpful. for Foehr. Matt just That's if one sneak I in

assets of of lot Icogen synergies about out, talk kind just a and being OmniAb spun Icogen? but Just that. discovery me of the between OmniAb you is part remind Can the

Matt Foehr

a that -- rapid of transporters in capabilities biological channel capabilities the space, approaches are centered antibody really generally wide really many components Jacob. partners question ion years antibody-drug channels around areas big that processes built Icogen, biological an for molecule number increasing channels as really which not have And the up changes and key involve well conjugate only are the pursuing ion but ion cells. a over in Yes. variety small space No the in And as targets. great it's been at number of of

in smooth activation. nutrient muscle important So they're and common cell tissue cardiac transport in T

applicability pain, infectious the And so, and years. broad team Icogen metabolic diseases those therapeutic over many at disease, built real diseases cancer neurological across or up capabilities

what we around biological of in centered invested value very I combining deals also fit do that acquired and value but biological and channel channel. these pairing see capabilities, are intelligence right? So that driver, the nicely in transgenic been lot mean, our around best-in-class those and a only technologies big to they screening best-in-class continue also are new elements animals a also capabilities with in, have but ion of

area. a So exciting real

I are lot the think teams excited science about see going very forward. of and I potential that for it a

Jacob Johnson

the taking questions. for Thanks Awesome.

Operator

Capital. Scott from comes question next our And Henry ROTH from you. Thank

Your line is open. now

Scott Henry

Matt. Thank you all afternoon and and good congratulations first of to

kind it you're a got acquisition, in been the but like that kind it From back of past, ahead have of really going at or acquisition seems been at seems products. to want a it's of over started you've answered, big to like expectations or picked you line just I most little three When of a now job. I think there, I look do I Riley look curious, slower? these those to Phoenix big was maybe slow, strongest of my the of but did we're back great get year your And wanted but what's the to questions tracking three, certainly time up. just thoughts. have your It seems

John Higgins

Scott answer one. Yes, maybe I'll that

out actually I us. Pelican performing think of products incredibly the for transaction the are well of all

we them of So to in their about quarter. of contributions three royalty this spoke terms

launch QX. would for at be the from counting TE Rylaze approval a delayed of report for the earnings the from quarter fantastic them I think we year. first Alvogen weeks we a we or never had approval, or expected The the during in we value to time. the where was the be But why deal. teriparatide from bought look were to hoped asset actual That's we happening at and why time we forward couple may the at TE the earnout the bought company. contingent right tied the payment that that on That's

of not And well. in product launched for on or of great and PNEUMOSIL yet up their feel ahead India, great. performing progress they're or look not is TE to achieved has so which approvals ramping region. schedule came their as rating we them the but on making VAXNEUVANCE forward ahead like Serum And having the same we expectations on from the for it's Institute of

all So across think board doing four are I products the well.

Scott Henry

may the the Okay. rapid the launch color. US a vaccines be about as obviously How we mean think but think curve as I I a Rylaze when the And Great. is pretty be tend you outside know to steep there. switch far about bit launch we little curve? PNEUMOSIL should pretty different. for launch Thank with curves that

get wanted Just your to expectations?

John Higgins

and is to tends add group that place. when annual they're repeating these one is other be putting little That a announce a purchasing government tend dosage. contracts difficult contracts Serum annual is to to for predict. that in good they of news Institute which Yes. lot of the contracts The contracts, more It

as that so them for – And we to look that the so reporting see And XXXX next filed quite look those continues for they've QX strong the here we're well. you'll numbers quarter week along done far forward XX-K this gets trends. and

Scott Henry

Okay. you Great. for Thank questions. taking the

John Higgins

Thanks, Scott.

Operator

the And no would CEO to Higgins, now John am turn I to showing I over further closing remarks. for you. back questions. thank call like Everyone,

John Higgins

feedback we Yes, and we're thank forward is people's feel be look the to touch for The our to us trying I a months time about going with that attention now say present appreciate good really We're into individual be they'll plans behalf as companies. exciting be to getting I questions. And And possible in very want to with both opportunity. two, run, our today are the investors busy about assets transparent the we all as going an the running you. spinout and three staying excited public the separating to two management just everyone. well and business next and plans business but good really on planning confident Board, to companies. we that's and the of investment the of period

will to you. before call, we be talk share then. not if speak fourth that. our So at an really, we're touch financially earnings operationally Thanks. really see to themselves. pleased And this able year-end for you you extraordinary or XXXX. numbers of for the The we're business performance end time be our with pleased it in with and quarter Goodbye. the pleased next and We're on with But was with

Operator

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

now You disconnect. may

Ligand Pharmaceuticals (LGND) 18 Feb 222021 Q4 Earnings call transcript