LGND - Earnings call transcript Q2 2022 | Ligand Pharmaceuticals Incorporated

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Operator

Welcome to the Ligand Pharmaceuticals Second Quarter Earnings Conference Call. My name is Vanessa, and I will be your operator for today's call. [Operator Instructions]. Please note that this conference is being recorded. I will now turn the call over to your host, Simon Latimer.

begin. may You

Simon Latimer

to and Welcome Quarter XXXX of Thank Update Ligand's Conference Results Business call. Financial you. Second

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

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

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

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

John Higgins

Good Call. afternoon. XXXX Quarter Thanks Conference for joining Financial Results Ligand's Second

our quarter, toward executing of plan are progress ahead strong by highlighted royalty business this spin-out. to well and are growth, of success good the We across partner or our the pleased organization All are financially. share on major news aspects and OmniAb

guidance royalty low royalties momentum. initial due into, $XX in outlook the go we for our Couple will million XXXX, raising revenue ago are year Korenberg range. Matt XXXX our full As of within years to

our will million has deals, of for for are a and is OmniAb. of appears the recently, than emerge late-stage major industry any more $XXX indicates and updates significant confident number about we With be million excited ultimately increasingly annual generating the our on financial forecasting seen to we more been of we we assets, outlook. and our spinout by royalties, completed, current strength framework size which After with are improving there the regulatory We're developments capital some an announced, more to contribution what The environment detailed XXXX. positive on our very surpass are from portfolio M&A the in industry. both trend excluding provide approvals deals durability of royalty a has the we markets. in business and of equity backdrop partners, in have Now $XX

We are the environment are we discovery. believe increasingly of by strengthening their players out highly a excited for advance market are of work discovery in debut we spin-out and tools company. OmniAb is has the special industry to sought antibody major for this help that what OmniAb, best-in-class believe direct

string valuable company, and discovery. of very expertise stand-alone will The a of a and underscore field antibody recent the for the of in partners capital drive team a have is this to dedicated and the and positive exciting OmniAb company. caliber events deep domain senior in strategy drug developments platform regulatory high As investments leadership the how with structure Board

Strategically, merger shareholder companies, proceed review to second from SPAC spin-out and actual statements we the the and is continuing through independent on late-stage SPAC. Ligand outlook After amendment public vote rights will then our are RemainCo Avista Ligand has and X Avista focused the OmniAb X of consistent markets SEC. and SPAC is shareholders for following the years; royalty OmniAb Avista, to response done review comments the spin-off for to assets, OmniAb into the the one, X XX to and primary acquiring by declared completed and effective, strike QX to Ligand refocusing registration spin-off fully with partnerships independent capital the the have for activity to close in our traded process for last our XXXX. the what areas: the SX the the merger As messaging technologies; to spin-out. Captisol the spinout RemainCo X SEC in we've two, and on and the split publicly advanced currently to three, timing The process companies Pelican partner we've with filed is

to be our goal technology good looking or have the through royalty our invest attractive partner market acquire with It's to in. assets We continue to for expand of or number is momentum and acquisition licensing. portfolio, to assets an

separately We are to for RemainCo operate ready from OmniAb.

we As model and create optimistic with RemainCo's analysts existing for opportunities a new and shareholders for growth highly are will both engage that and business company, to stand-alone prospects Ligand.

to Korenberg and I'd like call over turn results in to detail. review to Now more financial the Matt guidance our

Matthew Korenberg

partner review results, financial a of major Today, and Thanks, I'll brief programs. John. some our update our guidance on update give

with of Royalties $XX strong impressive performance $X.X products major grew our revenue million financially, were of line. the on The from revenues revenue Royalty all million year a royalty XXX% particularly was increased the second a to XXXX quarter million. Total year-over-year. quarter quarter for in $XX.X ago.

and quarter, not teriparatide year, and result, In million and expectations. compares this we its were growth revenue of XXXX, significant realized based of In generic the for yet royalty by particular, than million partner. and million exceeding quarter-over-quarter for $X.X we on input year $XX.X in $X driven less commercial this addition is a as $XX.X expectations for the the versus on middle year-over-year realized with teriparatide. growth. additional to significant QX At portion the Captisol a beginning which a sales royalty Total competition our from of our our the posted original was largest million. the Teriparatide, drug XXXX, competitors ago. of product materialized, expected quarterly ever, Kyprolis, Rylaze total by That has

the our year. but mostly track contract to Core million, as year quarter Captisol revenue As expectations last $X.X with last with COVID-related sales investors, million. expectations versus due payments. much fluctuation expected quarter, This to partner this and know, on year. is lower our in as year's than events million of we've are lower timing XXXX of investors were Contract and sales $X.X $XX.X meet milestone discussed QX in line was for is Captisol related and second revenue this

Our GAAP second value changes the repurchased was EPS public for in the million QX the With for Captisol largely XXXX XXXX adjusted the of quarter remove In second quarter as sales, for that EPS $X.XX XXXX quarter, is revenue in of the was at in nearly COVID-related by from cash. diluted EPS for we a this $X.XX, our convertible If compares $X.XX in OmniAb equivalent $XX included for business diluted diluted and the adjusted million million in to compared the principal loss of Adjusted with quarter $X.XX $X.X we spin-off. loss holdings. QX was the QX a additional expenses of QX XXXX, our $XX XXXX. scales a in notes in with and $X.XX. X.X% Ligand's and in driven discount loss XXXX. second quarter our up preparation decrease core par for of company EPS Net XXXX net noncash of

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

to from XXXX royalties million range to to XX% to year This full by VAXNEUVANCE. by previous million up of from driven now $XX from the the of Kyprolis, slightly be offset raising teriparatide full for XXXX year increase outlook million. mostly contribution revenue business. $XX of $XX our forecast We're outlook in million, upside $XX our for guidance. now the Turning is combined and about We lower

for We're assuming and that lower will well revenue. hitting entered than in quarterly would Kyprolis yet. enter other Teriparatide generics commercial next teriparatide As anticipate year turn XXXX. additional trends be all-time market doing early have mentioned not because highs XXXX. riding earlier, the we case, If will strong be out the is is to for does generics the now sales

As represents population we year of We of help for the now royalties in will they a Merck that, the to next the for few market. will expect in million, It's expect to VAXNEUVANCE, billion future. previous now impressive that is $X the to market Captisol million data material group produce population range outlook million. or XX% Merck's up promising a of The compete by and very drive our Pfizer, positioned that over than to in our launch age year. more pediatric Pfizer months. pediatric and the vaccine partner, $XX of past announced $XX approval vaccine in against new with $XX $XX be it's ahead this early -- coming sales million from

for total contract be up sales from COVID. to revenue continue Captisol is our to million range components previous to the expect $XX million. $XXX for These million million. be to which We approximately guidance sales balance in and our be to for of in of affirm forecast We Ligand the million to to million $XX Captisol core Captisol million of sales $XX $XXX revenue $XXX result of to million, $XXX total our $XX

COVID-related just numbers year-to-date to attributable completed our principally guidance expected the already be well million provided, million $XX the QX. or as sales, are to expect OmniAb the we the reflects sales I to And the $XX respect revenue line. Captisol contract updated with be in as completed Within completed to that business to in revenue sales

Captisol. the OmniAb for guidance COVID-related excluding our raising also are We Ligand business and

about $X.XX $XX be $XXX upon portion we've the that we $X.XX for to XXXX payments One all per milestone in Captisol for early has for diluted has the range business, million from our from to estimate to that XXXX. $X.XX is hit owned reporting note For to $X.XX $X.XX to of increased the commercial previously. the be numbers now final of million share. sale COVID-related million, million XXXX to both $XX up outlook diluted or guidance to from EPS adjusted expect our year, I from the earnings $X.XX previously; late in teclistamab. We first upon revenue has $XXX Therefore, just and $X.XX excluded previous owed million $XX Ligand to sparsentan, to for $X.XX. consolidated approval may provided, OmniAb combined OmniAb of X of $XX and and that the $X adjusted EPS, large these million up to on up $X.XX,

excluded their them confidence exactly such, Given when simply these impossible of payments from we guidance and know the do be a achievement, around as it's high we've will with size since those range not achieved. to payments, build

press I'd our a earnings our to GAAP and reminder, our website like for of I talked today as our second today. financial reconciliation the to adjusted direct listeners results to quarter release about issued results a earlier Just on available

sparsentan of a this updates the with We're IgA remaining OmniAb the Now are few that as nephropathy. to date programs XX I'll approach monitor following portfolio the we spin-off. on PDUFA Ligand for key the turn progress providing to some of -- continuing November

We as royalties decision Pharma expect review application of earlier unanimously CDC's Ligand's study, second XXXX. authorization platform. to their infants early pneumococcal approval is a Travere to weeks and Europe, VAXNEUVANCE in provided Merck announced years of infants now In launch voted with to through the expected the FSGS option a protein year, in nephropathy growth week Travere sparsentan in to plans completion a XX-valent CRMXXX Pelican provisionally XX they marketing a Vifor driver last that's conditional of of expression utilizing is in to of conclude for for be for technology also next which us. carrier submit for plans of vaccine DUPLEX VAXNEUVANCE regulatory update produced when vaccine the the major partner, the X expect sparsentan ACIP using first year pursue traditional expected FDA VAXNEUVANCE children. and use with their IgA next announced Phase for III pneumococcal approval to pending recommend XXXX. of half children and an age. vaccination half a the of Subsequently, June,

VXXX VXXX, Merck CRMXXX in from Merck July protein. stated a pneumococcal Ligand's study sorry, XXXX. Phase program is vaccine III Additionally, vaccine which positive broad -- announced Phase results their I/II conjugate utilizing a for started carrier XX-valent evaluating investigational

program additional SBXXX the Phase B-SIMPLEX patients results in complete pivotal Novan the Lastly, study of XX molluscum. At NDA Novan for XX.X% III their program, for With file lesions overview, for that end weeks, of XX.X% of the to with in an OmniAb provide over front, Matt? clearance of group. details vehicle this strategy. with and the the announced achieved group the call to turn on from this I'll later in compared positive patients year. on SBXXX SBXXX, to Matt patients plans business

Matthew Foehr

continue in path plans. this momentum spin. good we platform and a his prepare to comments is strategic growth building operational own to remarks, expansion and as post on to public to company. become its and traded my said drive And afternoon become making company company into we the goals independent on Thanks, quarter. the partners opening focus OmniAb as in We're Matt. progress John stand-alone on our I'm of fourth from an is OmniAb for going prepare we to exciting, our the our business separate publicly to company input are and validate events Recent further our the as

Our gaining partnerships utility platform. and to new value-creating the be expanding on team areas continues of include highly the focused existing partners, supporting OmniAb that

animals with and OmniAb, lead Within candidates. cutting-edge as the as transporters. modalities. heart screening human around formats capabilities and we that the provides enabling goal We our have might not extensive discovery our the target capabilities also potential BI OmniAb delivery These have genetically Just human on targets. next-generation centered the who Multiple familiar discovery is particularly diverse with built repertoires antibodies ion the differentiated we generate efficient of been high-throughput small therapeutics. animals. multiple it, and to clear and and and view around of development facilitate as ion these to or in call for platform some channel molecules of partners difficult background designed access therapeutic be technologies operated channels sequences proprietary to with OmniAb for what the call of platform were those capabilities species have At of for and biological established the with of transgenic the high-value intelligence viable antibody modified and

in ion variety transporter support partner a In in programs capabilities can and addition, approaches. these and silico novel provide pursuing differentiated channels core generation, when assays capabilities discovery can that be reagent and proprietary of targets accessed

of to achieve high-quality companies. frontiers to of and innovative OmniAb the pharma and of by pushing for this candidates therapeutic partner within biotech by discovery by the enabling mission therapeutics is development enable drug Our rapid of the We work technologies. the being discovery choice

further flexibility significant We are of health. industry to play grow that our partners we of and technology a contribution easily very programs us to what access we Currently, make allows actively meet are human more improving platform that being as programs differentiator needs. investing in portfolio see we than ways. technology proud biologically number existing A of value improve therapeutics to and in into more for can is we OmniAb and team to each a and new that the as continues and new add best-in-class partners the the to driver the have within leverage developed, for OmniAb-derived role partners this discovery while driven exciting platform. of variety discovery efficiently be more XXX programs XX antibodies workflows than to our inserted and and our program's as scientific grow That

new a using shares Ligand are for drug conjugate, was next the spin call with to few OmniAb another deliver new NMPA that coming drugs action EMEA, the I'll the questions. derived the back from the partner approved we weeks. the one expect Today, our And shareholders with their that, recently discovered of and that at our of were note, Operator? as a under the added OmniAb very quarter, there we to stand-alone both in second and review with or in that and completion FDA X pleased expected operator platform excited over the the partners. antibody Also turn first X months. the platform. progress with the entered ADC, clinic in is We're During company are

Operator

[Operator Instructions].

from question first CJS our Solow have Larry with Securities. We

Peter Lukas

Lukas for Larry. Pete It's

Kyprolis grew of very in nicely quarter. terms the sales In

wondering driven Just of is this much how with being combo second-line DARZALEX? growth by therapy in

John Higgins

quarter, nice for China of was we're And with No, Thanks estimating quarter Amgen in growth. a record territories. sales, sales, the second in quite question. out region. but that of Yes. good kind Japan record Ono the their Yes. quarter with line very the really nice for obviously, not in Kyprolis. sales sales had

don't of details we're hearing exactly what line increased that putting broader and some Amgen use that revenue and been come We around. out So good have get that driving what's sales on all is but data where the DARZALEX you're from, what with or of therapy sales anecdotally, the exactly others sort driving obviously set hearing is growth. of

Peter Lukas

get VKXXXX us waned Very provide. me, for on there if helpful. to you on Can bit just And give with one is gears the know stand we an one here. around where would the progress enthusiasm more just has for this to love quick liver one fatty disease? a an one, I switching but therapy update update

John Higgins

talking then Viking's sure. Obviously, their progressing delays program with and Obviously, next so endpoint. towards Yes, get be about that, otherwise. have trial which COVID been following run to to our TR is trial to and likely through they pivotal signs, the track the Beta expect a working data program far, well. obviously, has you're data on that is All year. significantly solid. had trial the some the should NASH enrollment they'll We're And

Operator

Hewitt from our next question have Craig-Hallum. We Matt with

Matthew Hewitt

any just of curious so priorities given weathered the year, business? had far environment I'm an of And look this for acquisition to portion standpoint we've bolster kind the rates royalty you here you John, RemainCo. interesting I'm curious, X as that opportunities if given that's us the from created just your

John Higgins

in to significant there's a and companies drugs necessary technologies, contraction capitalization talked capital We're of XX% over royalty there's seen X.X markets than last thriving tremendous companies to more license dedicated years. decade in has of -- but coming support, the in our business finding certainly also develop technologies and tremendous to excel been we've access flows. doing acquisitions, last diligence less biotechs pretty it cash. about X need we're Well, in in. model, that the but to Yes. our We our interest discover, when year We've public inbound fund reading obviously, and

is on desperate price in Quality side the need so creating stock are And companies an cash. wrong opportunity. their of this of

So some market data. perspective. got from acquired our bucket assets and sort have IP a track investment what record We biotechs, know good values. We're high-quality it's we securing issue. selective history, call, of, good in are we attractive we've great more We're much From about overtures engaged. of creating late-stage really an handful for want from on you demonstrated cost really inbound doing terms we they more with we're acquisition, comment of at again, how I'll to timing a make is companies But those partner stuck final an be on. bringing of and overhead a highly But it. disciplined acquisitions. assets very One being to infrastructure

we We are towards completing very little throttling believe an do our activity with eye the we're spin And a out. close. bit

lost There's we've shareholders. this transaction opportunities, to might haven't We interfere with our very a issues practically all public clean that for closing make we no that want sure important but of got speaking, other story. proxy

Matthew Hewitt

for complete details sense. Maybe there. thank And the makes That you one more question.

X as just really what program. of obviously, Pelican be would far that success next As or opportunities But concerned, the the curious, I'm some initially had out Pelican good platform is the coming opportunity? out X you've of

Matthew Korenberg

additional Rylaze, the teriparatide VXXX program, yes, and talk India, Serum And the disclosures Alvogen about mentioned on with working are Pelican Pneumosil then programs there's in major program, for well. the been the we on Matt. meningococcal that X there. platform Institute vaccine. Thanks, from And our calls from and that Merck, obviously, additional JAZZ, follow-ons Merck. performing Jazz the program they're VAXNEUVANCE of Obviously, publicly programs has extremely in from Institute of India. Serum that today, There's I programs one

kind growth the that, since the All the behind business team of growth that next handful had owned before existing drivers will over come. there's the the as those done be the deals to expect a for time well we've of should as has the we we business owned of new fuel crop that of years license for course of the And portfolio. and

Operator

Morgan Our is Stanley. question next with Bruce from Feldman

Unidentified Analyst

question we heard give on post came anything is Can an to depression. simple. as ago, how that, A update out My that couple for of progressing. years please? calls a is product you I've never partum in with your us

John Higgins

a well. actually had couple revenue are portfolio. Therapeutics called approved Thanks, program programs Bruce. as that commercialization is Yes, the a quarter delivery. program limited has limited the was is IV Sage Marinus called that to in $X.X the now has and depression in-hospital called still last IV about called or there been It's second for being but partner company but ZULRESSO. has approved that years of which development, studied in in-institution for ganaxolone A the postpartum a done ganaxolone, or formulation in an One recently orally was several programs commercial from disease in is success a million the as

are So progressing. and in both the those portfolio of

Operator

We no Higgins have remarks. now further closing turn the call questions. for I John Mr. to over will

John Higgins

the appreciate questions. I of you. Thank turnout the

a X We are now markets. it's X equity watching time our year. -- effectively I with our It's who've running shareholders the companies. lost know more we're performance public delighted this superb. We're been has maybe on meetings us, spent but our companies execution in And but environment, largest challenging not with

built the are independently. very teams far really companies out the management run infrastructure, and both to have We be along

obviously, spin-out, continue our events. we the deal to we feel But about. on we have partner the really reporting making, but the have company, execute momentum new overall momentum with on We into good really, the licensing, specifically

aspects our thanks long the So conferences worked had our journey excited communicated. our coming so right are call, and we of we've we we feel as But now. joining the back. Thanks for in-person close, up about public, been It's or process and are all business for patience. your year a really are planning last

September. the events the live be about weeks, coming X some middle at of is one up in this We next but fall, HCW Conference will the in

sign you for we'll up you that, Bye-bye. Thanks, if everyone. there. see So

Operator

you for participating. conference. gentlemen, and Ladies you. this Thank concludes our Thank

You now may disconnect.

Ligand Pharmaceuticals (LGND) 9 Aug 222022 Q2 Earnings call transcript