LGND - Earnings call transcript Q1 2022 | Ligand Pharmaceuticals Incorporated

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Operator

Good day, everyone. And welcome to the Ligand Pharmaceuticals First Quarter '22 Earnings Call. At this time, all participants are in a listen-only mode [Operator Instructions]. Please note this call maybe recorded. It is now my pleasure to turn today's program over to Simon Latimer, Head of Investor Relations. ahead. go Please

Simon Latimer

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

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

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

become statements We will measures operations, financial forward-looking, financial pandemic use financial our guidance, those to results of will the and of related COVID-XX and including condition, the a be of some non-GAAP our our of public previously plans the OmniAb completion impact the business a timing, off to II. to Avista and effects pursuant expected with Public standalone Corp to company announced combination spin business Acquisition

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

John Higgins

Ligand's Good Simon, thanks thank conference first afternoon, quarter results for you. financial joining XXXX and call.

to Ligand OmniAb, advanced. success validates business. our in be quarter a to members. public will strong company. Ligand half to financial and believe is addition board continues standalone for towards process split both strong the main There’s regulatory and out and each second has past other completed into OmniAb people from In outlook anticipate recruit of The is OmniAb the performance, made highlight this we strength, up the staffing separating progress we the We year. which interest new this the join

being on towards its and split, or or going will R&D and to split, financial licensing leverage pharmaceutical focus tools the will to a we around built on we enabling overlay others As efficient investor of will economics what we company company broad RemainCo. be an be R&D we heritage forward, commercialized Post Ligand focus Ligand drive partner will the have lean and a the and cost call will an move Ligand transactions developed sharing by portfolio quality, partnerships. of growth, strong of structure. with products programs. The on focus growing remaining

We ago. XX from including a products about KYPROLIS, addition and four acquisition our products good core EVOMELA the months of royalty new Pelican have bearing

growth from core We stage coming have and development. late today strong in other see products assets of drivers major we

talk production scale want with comments Before remdesivir up RemainCo manufacture about answered I the to I more first, to of typical support others the XX about of at Captisol work and times by of treatment production. the our COVID-XX. to We the some about industry's annual call for make stepping Gilead our

in We This are to the serve to chapter help employee extraordinary the a operational like overwhelming an pandemic. pleased the is of. every as in terms of be needs buckled achievements under our world history, proud scientific part is health one and

and company revenue the programs. should COVID core of business. the not to is potential of growth evaluate and a not its focus is along. line on supply or Captisol for on remdesivir the Ligand However, manufacture business be The investors royalty Captisol sales should moving how is and

generated driven strategic support cash the our flow investments. millions by yielded we been no of sales that for of and dollars has Our opportunity to hundreds business in have pandemic, remdesivir doubt substantial support Captisol a significant

factor a the not company is future. in it to value the However,

today of we've we are longer of historical expected use independent cannot our illustrate core RemainCo get needs and will as the more we will on favorable importantly, we we're Ligand this we sales Captisol Thus, generate that and help performance the what pandemic. and forward, companies. no will as investors sales for investors will the have of Captisol business. separate Matt line, and opportunity for along Captisol with is for our And now revenues we between the with of clarity the what a expect the million success. This remdesivir and and Going for forecast financial that and COVID decline we sales sales annual remdesivir contributions growth RemainCo wholly solid excluding $XX On ability trends calling with growth will million, business for soon out will numerous reliably This Captisol on supply the what to will be. should focus flow Captisol and be for And basis provided on cash for drivers waning of beyond give peer our versus the to clearly reports, remdesivir on assets, see of would the year our valuation OmniAb, investors basis, $XXX along business position is other a expect can revenue breaking analyze The and contributions remdesivir. already. core Korenberg that growth in compare with instead in performing of terms good sales, discuss. so how guidance this

contracts discovery companies; will time good a split, proprietary investment investors built leading own But the other, two is business this earnings over in an XX%. by business later XX% the exceed antibody for various longer We Ligand, a that believe one, top-line focused will core our valuable provide a financial will in expect growth grow will about XXXX, and outlook. more we to the year growth have I technologies. that adjusted business; as pharma and and around information term it

$X NDA to accelerated of our program turn I that comment Therapeutics FDA we're Matt, want for for year. the are to an to FSGS. segmental before will Ligand Now call for or also IGA their Europe authorization the accelerated for plans submission March, is nephropathy to glomerulosclerosis of the of and to for will earn marketing submit and sparsentan combine sparsentan. FSGS is sparsentan filing focal Travere IGA In milestone NDA announced the that approval excited also And related million the NDA approval course, a partner a nephropathy. this royalty to Travere $X middle announced sales should commercialized. receive I approved X% application become a underway our that on million the milestone good eligible to making filing. the MAA and progress global in Ligand, in and on about file over particularly of

months we're are that last has been the pleased with it reported set, great to We Travere here. advancement pleased see data very made the and several really the progress, a has

over like call to review turn our to to Matt the guidance. Korenberg results financial we'd and Now

Matt Korenberg

John. Thanks

XXXX I'll Our a remarks our our OmniAb brief of provide an partner to million on Total some financials. today Starting the the update Ligand. year was quarter update first for of will cover three ago. topics, the from revenue a a for front, year $X.X process, programs. Royalty quarter strong were first the the I'll and to revenues on million. separation XX% major review million $XX.X on $XX.X start provide financial I'll increased

our and Captisol growth the Teriparatide of growth PNEUMOSIL of $XX.X had our and we're remdesivir a for related quarter, full separate as other royalty Expression XXXX. growth including to that using the this to in a year sales lines, the Teriparatide sales treatment Captisol and refer sales the with Captisol you Rylaze, into we middle in core lines. Rylaze From $XX.X by in Beginning of quarter, our sales compares COVID PNEUMOSIL. major decrease total these second of launched Captisol driven we've sales ago. revenue All million their products Captisol the this was million breaking for Pelican which versus year-over-year customers, was the can to of very commercialization. program the significant Technology, while decline COVID and other sold portion were our see out years related a sales. programs nice XXXX with and two Captisol Total One all in includes result of includes contributed

of $X.X increased Captisol XXXX. million year-over-year to from in QX $X.X million sales in QX XXXX core Our of

know We QX past core sales strong for the Captisol rest give year. quarterly timing orders few run not of I'll more this And was are large that core in as will do minutes. the based periods, sales a XXXX rate lumpy you investors of from Captisol our the by for a a guidance be this customer. on anticipate While sales, quarter on

revenue continue to to reporting ago. for lines broken our $XX.X expect Captisol continue COVID XXXX material compared Contract to million QX $XX.X out part We year was related a in into two Captisol sales line. a revenue long revenue be as of the million to as

Ligand's EPS -- separation and cash. of $X.XX Captisol for for with public for million sales, planned net Our of the $X with notes XXXX. the we traded $XXX.X value QX COVID XXXX. adjusted principle diluted related quarter from GAAP quarter The just changes a net noncash holdings. under company $X.XX. related onetime EPS included first loss expenses two Adjusted $XX.X included of in the companies. the Also to was of million were the loss quarter in publicly of into was EPS $XXX.X in for numbers XXXX $X.XX compares loss repurchased company of for $X.XX QX of In the XXXX we in the be our QX these QX compares If quarter, this would for adjust XXXX in of in our and $X.XX million diluted convertible this million

short-term and of XX, As million. we investments cash, equivalents $XXX cash of XXXX, March had

now be be million line. $XX And numbers be expected sales range above, million be contract the sales the revenue million. million, sales, $XX Turning expect be full to forecast to COVID. the to excluding for to all and excluding of Ligand in to million. approximately to we million We're be earnings this $XX We're to we related in also and and range Captisol earnings sales, royalties our year core Captisol to of in of of the range forecast $XX OmniAb Within XXXX expect We XXXX XXXX attributable $XX to a to outlook introducing these to revenue that rest, business, $XX Captisol. million guidance of for principally of to revenue breakout million COVID and for business, $XX of revenue provided We to $XX guidance remainder, the $XX the OmniAb the $XX to business. combined reaffirming million $XX guidance. the the in million million Captisol material Captisol million $XX contract

is OmniAb Ligand, and be track we to way is diluted related We excluding best the significantly This investors the the develop be for of how $X.XX. to for forward. this performance this baseline eventually track our provide start to be likely million to the and decrease focusing continue also expect investors as spinoff the and completely, away and to the management with now Captisol disclosure we’ll useful to $XX to on consistent business go we It business, Anticipating allows and COVID of analyzes COVID $X.XX related are $XXX will these outlook OmniAb on basis. million remaining to to plans revenue Ligand believe knowing business. metrics adjusted sales going that and EPS Captisol,

combined today to earnings other Listeners the earlier year, for the Captisol to brief will press Therefore, the our update reconciliation followed traded COVID consolidated $X.XX OmniAb As reporting -- adjusted to that March a we Ligand, of On the looks with outlook Acquisition now can per results $X.XX GAAP in about $X.XX Ligand of May antibody earnings estimate on components results. a to to $X.XX spinoff I'll for diluted turn Web OmniAb issued be for immediately by Avista Public be discovery the share. both XXXX with independent the process financial release on EPS. business we QX for site adjusted a our into for related our to XX, Corp. two look plans and our about and merger announced for publicly companies. to financial separate available

filed SPAC These the the and OmniAb the spin-off by and vote and have shareholders The effective, culminate Form close and companies the associated of the declared second two review SEC, the filed shareholder after merger statements XXXX. in of with OmniAb the Avista SPAC. the S-X registration kick XX with half week, filings remains to transaction. process this then initial last outlook the the merger woll and are on independent timing public off which Just SPAC initial the with spinoff

as early our well around vaccine produced programs. this Travere’s carrier I'll Expression tracking progress few next details the for business a to we updates John In that, just look protein, vaccine MAA, details under strategy. commercialization Merck to their royalty launch X Merck previously key XXXX compete million announced in of a breakthrough program VXXX million and under VAXNEUVANCE, to driver to us provide Pelican on pneumococcal timely is additional designation FDA be $X VXXX, which turn component most just the mentioned FDA I'll and XX And vaccine with revenue, for portfolio show that billion trials and multibillion major clinical revenue this of franchise sparsentan, $X could Technology revenue. forward million Merck this utilizing add Technology progress. Expression expect Ligand's Pelican if but successful. PNEUMOSIL VXXX the with I'll Phase a of for quarter, build plans Rylaze OmniAb’s the our dollar in that Teriparatide in commercial growth the is Pfizer XXXX. to approximately year. just launch sparsentan in efforts. call We the as Matt to using initiate along our CRM-XXX April, of on utilizing booked platform. Foehr In granted is to continues and first products a we finally, royalty And great over that provide With pneumococcal market. key with And Matt? of continue primarily royalty $X.X Lastly,

Matt Foehr

present for BI comments publicly is technologies I'm high my therapeutics. OmniAb to of next indications as independent of later platform, platform what afternoon going antibody prepare the or approved our of enter many access months, a trials. believe These drugs, for our an growth one Over poised antibodies human with XX with discovery and length diverse FDA is illustrates OmniAb drug and transgenic our programs antibodies of enable over discovery modalities, Matt. preparing the focus OmniAb to technology. throughput oncology The than generation of biological rate partners OmniAb to has formats access added growing this substantial and we derived have given potentially programs inflammation, the company business in recent expect cutting immunology. are call multiple genetically and and partners OmniAb to metabolic under new to trials year recently review We the We've generate more heart others repertoires past, roster and year. now of even partners this continued have adding spanned being than currently higher edge in the of at animals being on an multiple to clinic. business sequences to diseases new annual the include or intelligence full the including screening the value and the become we the therapeutic used development be platform or platform clinical diverse our partners meeting provides and over traded that At Over this and We're with Thanks, validated the it of is new time our partners discussions. been next IGGs, forward data. These clinical ongoing proprietary new our animals. human modified become various We've increasingly biospecifics, our our OmniAb antibody XXX to development others. XX ASCO are where have looking developed. now conjugates early with conducting month the added to completed candidates. programs more partners actively number and will two past XXX believe facilitate to in

to on our team partners, platform. our while to program’s potential into grow on dozens meeting programs me clear to We this workflows are expand driven programs, workflows technology carefully Cell in of here different with very allows technology, Being PEGS, leverage Engineering Conference at fact that continue high a elements Boston current industry partner investing to flexibility biologically to flexibly Protein their needs. to scientists Therapy discovery feed that depending our that value place it's that the have invest and of can and meet its week portfolio our and efficiently here needs. paired and improve then of and That in scientific technology each and developed utility us our our of with our comprehensive further various the antibody variety

value Our platform extensive business lead that capabilities given before. were over we inbound process increasing and ever seem targets. platform Ion high channel believe multiple we delivery managing small interest difficult have that expanding modalities. view to and development and developed these in Icagen demand years. and license formats team have capabilities given the in be target for Within viable new also for to we're many to deals established of the clear We more or best-in-class a around that team, and secure These continues the molecules than we for potential capabilities were channels in OmniAb as and Ion for transporters

these used a that partner core capabilities addition, provide strategic channel and differentiated public discovery progress in In silico approaches. when good on goals assays of a in competencies and reagent Ion variety proprietary our and as to and standalone can We're generation, also programs can support making targets transporter company. novel operational prepare very be we can pursuing become

our the call back our and in partners. to a key continues areas with significant our facilities, the of I is expansion now highly OmniAb channel completion And expansion focused partner team utility finalizing Operator? increasing team of facilities include Ion a questions. for major turn on of expanding given transgenic pipeline over that development will platform. labs be wet our the R&D demands Our of Operator that, our vivarium to from and And the

Operator

[Operator from Instructions] Larry Securities. question We'll CJS from take our Solow first

Larry Solow

schedule. moving Sounds everything's on ahead like

So couple glad of KYPROLIS. of on just a that. questions to sort Maybe hear

like -- full sounds pretty I on and think the in Amgen good year. put number pretty they out optimistic It QX. seem a

bit the that potentially trying the approval, around question big color and and how on just get a just opportunity BeiGene recent KYPROLIS? to a China little Captisol for in could be more So more

John Higgins

jump thought I'll Larry, there, question. thanks the for in I But might. Matt

approved early sold now market. yes, the Beijing, Japanese it launched through first is in So to only Amgen US quarter in the KYPROLIS big partner it break down, Europe. they and a you Ono's China, just XXXX in US, reference

yet, office the it given out. have picking quarter, $XXX, We good stalled you're reported pandemic estimate it's half $XXX last least So sales we believe our was quarters forward a quarters, million. oncology two broken tell over $X.X strong. rate China, treatments. growth partial be sales profit We know not ago, can… early guidance a million quarter a quarter. the annual, to that for and is bit. a is billion related The first a $XXX few largely could little annualizing up. Amgen, to year it's But and looks too do or million not they and Japan right, getting a run to looking Beijing's be would at it we're before But visits

Larry Solow

a like looking but And kind potential to little get number, like John, does of I what what or -- that year of is seems it size TAM five kind without mean this three at? to holding relative a I'm a, like really the to to the potential like just

John Higgins

I we're trend Yes, to line more of for Beijing mean watch a maybe fair first question. a the Again, signaling. and get going and quarter

there they're vocal a on public or financial As company, fairly out performance. their

factor good cash good But is royalty And hard going a it very messaging. to way early, to forward. Ligand some say, have now it’s But flow definitely long for to and we a still growing. it they'll asset, that hopefully, it’s great in. it's drive So it's so expect

Larry Solow

potential you then just I on given similar some size. numbers And think have maybe on sparsentan. just question, And market guys

will the maybe indication probably come actually I then together, both be then FSGS initially, we might potential I seems think may they thought the the first, like IGA of it but first. is be markets. bigger eventually two the and market And processes think, approved be the

year even QX anything just that? do what be, again, not of what potential maybe size or that five So to low we're like at of in or 'XX, the end could going Again, outlook, eventually a expectations? plus

John Higgins

company to this, the And reports planning as that partner those right Nobody I'll a $X I pricing research give ago, Several he that. potential a range. certainly well. as broad are now, is we We've low Korenberg, questions supported describe as needs and those the get market. the numbers comment million. $XXX much It's billion out would that a the and public seen as there. Matt early. patient and say as US billion $X.X it's too because years studies that

is So range. a where broad But so clinical at are really now the we a gone has that's point well.

or on ahead So far, the regulatory schedule. is of

going those around see for perspective the numbers. we on of in jump have Matt, and the get that we listen before other provides really we're gun front guidance any Before what to now watch asset? Travere commercial, street might right to

Matt Korenberg

patient for the can you captured you approximately John, patient population IGA But XX,XXX or is closer think it Larry, and XX,XXX. mentioned. nephropathy for and to I FSGS is population XXX,XXX the

expected, as John the But high the a -- billion is what the IGA is look range, the at on are in like certainly, range seems opportunity And to, wide third-party the we year. of the as least terms end bigger is million numbers several expecting in they low next that to, a terms and launches, look the So and in XXX nephropathy research mentioned, XXX hopefully consensus mentioned, research, potential. patients we end. of everyone there the we then something that on

Larry Solow

I I growth that 'XX. a to want was That confirm, the to last John know for RemainCo, sort question, potential you I wasn't think said just of right… then a XX% it's I And you guidance, earnings just was just top-line, just the that growth. mid-teens -- for think target, in referenced

John Higgins

of we've month positioned did the as very three We'll one royalty a more research company the happen. a royalty approvals generating cetera. inline, but clear years, We're and But can't et everything, and the will backed this going investors business, years, expect excited it's everything sure, have know this assets you by that conferences, prepared in or we of spin, calendar spin have here next of high and I'm to the XX detail the to we exact growth. now look the currently business in company. predict I've the when it's is it, of been potential We're portfolio we about building terms quality worked well is We date at for move then we toward remaining remarks. the by

the And we give components. and numbers we're line one, to early give have on, as specifically, that. quarters so growth. And move we’re, do business but some very around clarity top specificity And today trying more bottom in more it's around the days, confident we'll

Operator

Hewitt Craig question from Hallum Next comes Matt from Capital.

Matt Hewitt

A portfolio in, investment One standpoint, opportunities your guess of pretty of the I on some these questions one well the And mentioned provide and that very for capital, step some the regarding current given if the stable you an from I've I you the of been you on you but And this other your are end, and getting biotech, are a smaller a of from funded. companies, or them dynamics. of platform platforms? number wide you've type fair I'm smaller large and a I have partners look those where in funding? amount side, add your create your of small got particular, market partners companies of incremental to earlier, And recently hearing could lot mean, Merck, swath more regarding for that of What biotech opportunities funding, pharma maybe companies. does these curious, you've got obviously market. are at

Matt Korenberg

below looking see struggling are seen sector, Ligand science in at for that certainly levels companies rocket to a biopharma are coming cash companies on and/or are partner we trading to out for there. you're that of hundreds generally, looking not that's commenting the private lot off, fundraising right finance. first guess to are now. companies or of or what Markets I And difficult we've And And financing. those

a partners the for -- exactly our opportunity whatever this we own that economics. do so program's wide cases. in market well And for program. next science value in there set is base, some set insight at providing funding. subset, Within event not see large either we us. set really know funded are are But to driving something the as is we if or companies think a our you competitive partner opportunity through in a are or suggested, get use just most our is, that fully a the certainly And advantage the certainly a point, key of invest the using created as business most exchange We onto a is the that they're program to that and opportunity. opportunities well. We technology good is more And can where have

it for least from us, excited next we to we're for at do that that, additional opportunity. provide And so And about think sort out. months the standpoint, markets does six itself the XX as

Operator

Instructions] [Operator

Simon Latimer

we'll you. and of well, updates. sounds have like in Okay, It questions. far, the thank appreciate dialing We the end listen story. people and a to that's our It's been some busy year so

we'll live time. [indiscernible], the Thank we'll Craig-Hallum two then presentation you, We everyone. at this Conference a June later month. and conferences be have Xst. HCW, your We’re at appreciate

Operator

This Thank today's does program. you for participation. conclude your

a at great day. disconnect time. may this Have You

Ligand Pharmaceuticals (LGND) 4 May 222022 Q1 Earnings call transcript