- Earnings call transcript Q3 2022

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Operator

Good afternoon. My name is Vinesin, and I will be your conference actor today. At this time, I would like to welcome everyone to the Ligand Pharmaceuticals Third Quarter 2022 Earnings Conference Call. [Operator Instructions] I would now like to turn the conference over to Simon Latimer, Head of Investor Relations. Please go ahead.

Simon Latimer

you. Thank Third Results Ligand's Conference Business XXXX Call. Quarter to and Financial Update Welcome

Ligand Higgins, financial impact We'll pandemic. be President today those and our will Speaking for the forward-looking, be John of measures, some and including operations, Tavo statements guidance will financial to and Octavio COVID-XX CEO; results Espinoza, of non-GAAP CFO. our the use related and of condition, COO; Korenberg, Matt financial

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

John Higgins

for closed radio, is Ligand different billion on valuation. open still one But ago, $X major Good XXXX Call. things ago LGND. company of Conference Simon, the same Compared and is symbol a price station. thank some Results Financial streamlined spin putting OmniAb week stock parlance you transaction. Thank the into a with Pharmaceuticals have are I'll ticker just Quarter This Third joining call is financial We and and about our Ligand a with a afternoon. our Ligand's strategic remarks November with recent In Xst, the out the you. week you today. changed.

employees team Board. and and reconstituted have a half before We as the of about number management

is core unchanged. our However, model business

cash We is and flow very promising. are outlook profitable our and positive,

have are in on the determinations. a growth to of we fueled interest assets form major ever. our major assets are royalties late-stage for is Our tools royalty-bearing on to or sharing our economic regulatory revenue as product the drug research investors by potential of growing offer products. large primarily as what in has The Global pharmaceutical compelling in that provide promise potential of readouts financial an cusp and and and business is sales of is portfolio data Ligand

as OmniAb, was discovery business antibody for of last As wholly owned this our month, unit. drug

and spend Now its the it post a the of due is have achieved positioned additional a company we public the based separated see investor strategic is company the capital industry company payments dedicated investors, management Ligand, time talked out, receive to the called to being functioning, in R&D come. of A shares past Ligand expertise The Ligand proud player comment major a at the at about past And stock in best XX% the well-capitalized domain we is also with spin in coming deep anticipated cash we what with exact focus Avista an new about grow and OmniAb expectations split. to spinout owning teclistamab pleased partner The separate $XX of the programs. projected of and with completed. operating Board X about in of $XX fully the and the company. from upon revenue well position months. new launch major the OmniAb be of million on with The of The on business number the Ligand with royalty-backed objectives efficiently milestone over as retained has build very a years team manner. antibody that Ligand a spinout into for to but drug months, I'm portfolio the discovery. importantly, is Annual time company. approved for shareholders driving resulted existing shares recently new at in partners the quick reconfigured All split completely is OmniAb. million years OmniAb administrative spinout successfully on the to for same Healthcare, achieved of the business, are and its company. spin-out the the very Directors XX

your in for shareholders, Specifically, seem as but to brokerage of company. them thanks X.X Ligand, to core a the I all they now especially Berkman, have along shares you of Foehr transition, helping look X over new at along team This of in every moment way of smaller longer, your out this In into fine made whole about Charles is new the past Ligand is to OmniAb, and shares. the leadership want at decade that to continued share shareholders shareholders, and might the pointing Matt my success with wish to all contributions Ligand it OmniAb. today. Ligand it particular, basic, company and the shares colleagues, worth to received for very They build running at company former go extraordinary I are executive statement express the

be has for has new and this tremendous seasoned assumed shares CFO, joined of Officer. future my and professionals up to it years be President Andrew working COO. X Of the enthusiasm Tavo I course, delighted him a as group leadership over Legal Espinoza of with I pleasure Reardon also with what and Chief new recently to serve been Ligand. our at want know, team working as for each has role them is for of with Corberg, I'm holds to us all team you know to Ligand. our say the the who and stepped has Matt here

out transition, update with to them are person Now the reconfigured in with to to business. shareholders this meet we get eager on newly

joining be if our information over City over that to event for or middle for addition turn and York review hosting person announced within the specific possible, the X us In a is will will event performance. December. are be an to the the next for Tavo? in attending financial analyst now encourage we Tavo not December New I that, targeting With weeks, that in next XX, of and to investor Currently, investor virtually. we investors in in of two weeks. log the consider We will call conferences

Octavio Espinoza

Thanks, John. my of you role today as be all with to speaking Ligand's in pleased I'm new CFO.

Before I into into I'll give a get myself. the financial quick review, background

company's the John with of a I companies, years over and As finance for company six update years review leader. leading PricewaterhouseCoopers team of I'm commitment joining including discipline about financial QuickBooks California. and excited licensed and the XX here mentioned, tools Intuit, experience sequencing of our with Illumina, TurboTax and years six to with in as to certified overseeing X public genetic forward Ligand, I've have functions transparency and number and be my been guidance. accountant career the for most a financial Today, continuing results started exemplified and quarterly accounting financial the at I'm look to I'll by our and recently maker years. with Korenberg. the long-standing I XXXX Matt executive

$XX.X of impressive quarter third once posted XX% This ago. which revenue and contributed The growth revenues $XX.X revenue. million a also revenue. Teriparatide Kyprolis, Total quarterly $XX.X the royalty increased of quarter record in quarter particularly in strong the year was significantly a for line. Rylaze by again from growth financially to Amgen's strength driven million royalty were revenue million, performance XXXX royalty the was with to

recorded quarter, royalty both $X.X the and exceeding During revenue in million our $X.X we from teriparatide million from expectations. Rylaze,

That launch when. it's of come impact will We hard exactly forward. teriparatide within expect going branded six months, the for to additional predict but competitors to the next revenue

the is product Captisol $X.X year COVID-XX sales However, partner versus to of million sales result, $XX.X the timing the last the is were Core net better of a had was prior additional million and year quarter were diluted third $X.XX liability. quarter $XX.X not we diluted related related timing net compared last in $XX.X was the of in this Total yet income contract million this customer orders. This remaining million the ago. a to for quarter. payments. income for in competition $X.X there QX GAAP and adjustment was EPS and in $XX.X materialized, has quarter the this with anticipated. in compares as a XXXX. generally during million compares the the performing in was $X.X quarter, OmniAb due prior to due scaled million of valuation XXXX Also quarter million third $X.X quarter, year million. share operating or to and of the income described. preparation and year, compares million Captisol or just than that Adjusted difference This revenue lower were $XX.X income The million. driven the events year's share as third with diluted $X.XX ago. versus Phoenix to CVR million other $X.XX a revenue the by per Captisol net $XX.X with quarter for to noncash sales difference positive largely milestone Contract eliminating business year quarter GAAP XXXX related $XX.X the up per $X.XX John is of for spinoff the expenses

$X.XX QX Excluding $X.XX our compared diluted XXXX. XXXX EPS COVID-related was in for adjusted with Captisol sales, QX

debt principal we we of a the When at During outstanding, $XX May repay will million them XXXX have discount $XX.X bonds and XXXX. quarter, mature, in of matures repurchased approximately to in cash. our convertible par, remaining million we notes the X.X convertible which in in

of million. XX, As and XXXX, of Ligand had cash equivalents short-term $XXX.X September cash, investments

raising guidance. continuing to operations. our XXXX outlook we earnings and are now from Turning Today, revenue

of be from range increase forward, to We which the driven royalties $XX OmniAb $XX revenue the continuing be up by Given mostly OmniAb, we'll now outlook spin-off our operations, guidance Ligand of million. from million upside to here million Kyprolis. This to previous million, for XXXX forecast providing and in is $XX and teriparatide from excludes of from $XX expenses.

case, anticipate than not XXXX. will to next outlook other in and is all-time million. our We're material well We be that revenue. previous Captisol sales Kyprolis $XX early As million mentioned, strong trends now the XXXX. Should yet doing will very up enter be about for writing market commercial from highs additional the teriparatide because Teriparatide we has the quarterly $XXX be the market. I sales for lower expect now to is million, hitting competition competition assuming entered is year $XX of

the be balance sales of COVID. We for to core million sales and Captisol expect Captisol $XX

contract line expect be $XX of These million. spinoff. $XXX revenue most revenue the million this continuing million is components by revenue to We OmniAb the total to new impacted operations $XXX and $XX of the in in million to result range from revenue

$XXX to we diluted adjusted and up $XX EPS from the Captisol operations continuing updated be to from $X.XX For COVID-related $X.XX $X.XX per excluding to for from $X.XX, now year, EPS share. estimate to the about previously. business, adjusted be be We reporting to million million to COVID-related diluted consolidated for expect for is $XX $X.XX. to continuing diluted previously, from $XXX revenue XXXX earnings up million, Therefore, of Captisol, million $X.XX to our $X.XX guidance

release to over to our on a available and talked As to Matt to like provide today. to an I'd results website for update business. adjusted GAAP of quarter direct about our the I'll on issued our reminder, turn results financial earlier today third the reconciliation I call earnings listeners press a the

Matthew Korenberg

significant clinical our programs. commercial many for complete, be our Kyprolis Thanks, a Today, success of with comments and to that independent on brief also a programs OmniAb revenue. an commercial company. as I'll on two good the to that tracking forward spin-off on of portion colleagues, and Tavo. market I providing XXXX I'll comments and driving begin remaining I'm have have look few some and been royalty and John's earlier both years echo very our side I'll say public are the the have excited runway. key both EVOMELA former

for We royalty revenue Japan, drive and billion and the and Kyprolis by Ono the that's in majority the in $XX Beijing particular, world in in Amgen about to $X.XX for track XXXX the China. on This on for five myeloma sales million years. Ligand. to drug expect of growth the is exceed treating in generate multiple marketed by line is Kyprolis royalty a around in countries in key next

for to who recombinant addition regimen teriparatide, Rylaze used ALL EVOMELA, In this which contributors reports Rylaze commercialization. year. products of treatment XXXX, Rylaze are of and Jazz chemotherapeutic multi-agent lymphoma. QX adults $XX on reached is top quickly markets sales. later as derived mid-XXXX, to from launching commercial and an asparaginase million acute Rylaze LBL Ligand's in E.coli. significant to component After Erwinia to the look regulatory this to the line on expand lymphoblastic and in treatment already a seek Jazz label of Tavo as for commented efforts Rylaze ramped of Jazz In in a Kyprolis QX lymphoblastic up been approvals U.S. week, as asparaginase their and a for children markets. we and in report other the forward with the or their hypersensitive or Rylaze well have leukemia update

programs. for Turning is now like Ligand. pipeline and touch program I'd lasofoxafine. to and some sparsentan on key Sparsentan pipeline a key ensifentrine to

line study We XX, November Travere months date for reduce PDUFA its drug be decision for IgA recently XXXX. Subpart of on approval target Europe should III secondary with had H should sales and the results lung ensifentrine the significantly that placebo. risk and nephropathy under laserboxafene Corona the NDA or in breast fluvestrant. an subsequently was Objective for advanced locally EMA for approved survival extended with for endpoints new date accepted treatment metastatic the announced rate half analysis, marketing IgA subsequently COPD additional XXXX, estrogen Median Bronto sparsentan and our versus HERX-negative top ESRX tolerated by rate in single-digit a well low is and of be Javier accelerated in new the the approved ENHANCE trial the sparsentan growth drug PDUFA to its of be positive II Ligand from the its in primary for across many will of that commercialized, exacerbation women only receptor partial versus responses February earn a no lasofoxifene lasofoxifene XXXX. years. reduced review category, ensifentrine positive a the treatment multibillion-dollar Phase royalty of the significant should safety for and arm. response The progression-free With review X [Ph] fulvestrant II is three COPD. of versus announced of announced for for royalty driver months evaluating first to months the and is for with for for and successfully the nephropathy postmenopausal in now trial authorization partial rates lasofoxifene demonstrating subgroups ensifentrine results commercialized. response fluvestrant. in mutation. X responses XX, was announced earns complete similar the second and conditional sales trial. X was cancer on Elan this a X% all results its COPD a recently and response arm, of and complete Sermonix previously expected action of X.XX exacerbations. Ensifentrine met assigned and Phase and be royalties. function X announced XX.X% in evaluating X.X% fulvestrant was X.XX expected entrant

on favored While entitled the a significance, numerically of powered not Ligand's to study statistical was tiered all for endpoints royalty to X% XX% of laserboxafene. lasofoxifene. sales

business December, the operator with in upcoming on I'll as look And a Ligand's as that, over our to at following call strategic forward. with profile among I investors additional Day dive other providing deep Analyst separation to Operator? moving turn well back agenda for the forward questions. our Finally, updates, the

Operator

line first from [Operator is Instructions] with ahead. your And Please Joe of question HC Wainwright. go Pantginis the

Joseph Pantginis

Hey guys path” though taking question. continuing for good the good Thanks And luck afternoon. as the you're “new usual. on even

of luck. best So

the to check first. I So wanted just in to with bonds I regard guess

about to said and was with it paid pay heard correctly, you I $XX it if -- have cash. you for the So intention you million cash left for

strategy your wanted how cash lot. well a everything you and and overall it you shares you your have option list. else, shopping from view as flow, curious that to pay because while the Thanks So to current impacting business see have I just still increasing to confirm with royalties

John Higgins

them to repay The we to Hey times. Joe, in when the good we you. cash principal originally from bonds, hear put place, all in pledged at

could in bonds the the now then negotiate shares, plan cash. would if have but the the was the theory, right still change in principal the cash. to So money, is money that, been in part principal the We in would in be were to repay but that always,

Joseph Pantginis

strategy with regard as overall there's the even segue the of markets question some so the the company, say, was pressure, impact part my business the balance like to I biotech which next guess continue to be though cash the on And under of rebound. to

to through at you're generating impact as cash are making looking opportunities Pelican, over So months potential XX you how in what for would to the say, resources? that addition next, you're decisions etcetera, any X

John Higgins

makes it sense. Yes, Yes.

it's which of But strategic going to Of it Day in dive course, more our yes, forward, into lot to question your well a agenda been doing historically. December. we've alluded said, you that more alluded the in a you as at we'll what Analyst lot

think to bonds our and million of spectrum. a So some least low look up from balance balance but We'll million $XX perspective Phoenix from agenda at clean million million have hundred being cash standpoint the repaid, the the the ranged other a at M&A I acquisitions that made and sheet, it's on for equity. of ability acquisitions use the at And time. $XX has to on of debt with several have say we'll we've $XX to that strategic across fair that time sheet acquisitions to to the and end, over continue we'll

to or equity, think execute the balance finance on on more things bit we little debt do to a other, we'd equity either going one still cash focus something debt the sheet, the being that the near-term or obtainable with or across size way spectrum we between be So I were larger. until if whole able obviously,

Joseph Pantginis

Got good guys know. good and a very to lot Thanks it. Thanks luck.

Operator

CJS with Securities. line Your from of go next Please Solow is ahead. Larry question the

Unidentified Analyst

for Pete Larry. [ph] Lucas It's

a on a more could the in on Rylaze. Pelican you But little. Just give know progress little if wondering, the color it at you I prepared remarks touched us

think expanding mentioned into moving I countries. the other then in U.S. the you and label

that think from global be on I compete billion in million scale U.S. talk Pfizer a run think can VAXNEUVANCE it $XXX eventually? annual of and still rate $X about the you $XXX Merck, million head-to-head a reached the with vaccine? being with Do could that And this

John Higgins

Thanks, Pete. thanks Good questions. and questions, for the

we markets that disclose have have our should non-public I do doesn't information and Rylaze, partner, not Jazz, on not public say, any otherwise. information we Jazz First, any obviously, Riley, do

estimates $XX current we're Obviously, same year. quarter, this we my that million estimates there. the quarter research The million, and but third-party that like we'll to we'll But for see quarter Riley this you're in it So this analyst I last analyst mentioned remarks, track see to QX. of the $XXX referring was off just number, million out working -- in sales to close research QX over do where that third-party see. and year prepared they're seems on like $XXX showed hits

the million. to predecessor global You pre on I alluded over basis, is about Rylaze, some think, which to, $XXX to $XXX million in year In years, doing was worldwide a before $XXX closer product was a switch about most the the a touch million. it on basis, recent

exceeded approval. U.S. has current Jazz so And that their with just already

call vaccine we're far. where But obviously, this the done with They Merck's estimates and different any really they're far are knows, they've the a the progress VAXNEUVANCE, into research Broadly to and everyone get billion nice billion. whether vaccine and VAXNEUVANCE even and a product think Merck's as in million market was their happy pneumococcal product. that other Pfizer's of a over continuing So success populations, is geographies. label -- of in regimens $X marketing launching just And the Merck with and next the billion, $X super so. far. other dosing year, the $XXX is or seen so so think broaden to approval is XX% what of defined up I around excess globally, last And on hard pediatric market that really third-party also in try towards to $X generation But to market. what or these Prevnar, a that with a touch we'll haven't pursuing market billion patient it's been specifically has number. And are U.S. they About is pneumococcal year so that I tell the now. then market market. based I and the in globally new On label for $X.X XXXX entrant get in terms launch. first participant just earlier vaccines. that the of this pneumococcal was a global pediatric pediatric

Jazz So excited progress look analysts third-party see billion what at towards in excess no we're as are number and looking to with are. research in Merck their on from of we a sales sales or there, that there or have indication that doing research expectations looking $X that goal. we population are of non-public and where significant information But are how to they again, well. VAXNEUVANCE, Rylaze, their for still analysts to forward progress Like

Unidentified Analyst

that just Pelican of anything comment Very last of pipeline over Pelican, helpful. on can with you that And couple that compounds and we how the should sticking earlier-stage with has or years? the to know at regard progressed

John Higgins

acquired obviously question. the We XXXX. business in Good late Yes.

be we're X so -- been the X-year the that up about past or bifurcate approved just or just the indication X coming Serum And Pneumosil programs anniversary. those making X, four fantastic. products plus market on products has -- to Pneumosil. the Institute of into you those we're then revenue. X on -- a from the business driving and doing great are performing are or Institute the VAXNEUVANCE on progress are late-stage if our or teriparatide, the fantastic. about business India's Obviously, great a All and That's second India help progress second of obviously Serum making of Rylaze And

the done that several at are on the still other progress The of both time ones since year of was of team existed stage as then. good that pipeline. license and partnered the in work earlier ones new earlier programs making A that. half they've the this business lot the the deals has as The the partner stage transaction those well

those, but group a earlier-stage to forward from programs growth And there. longer-term of little addition and so looking bit we're the

Unidentified Analyst

back Very queue. in the helpful, I’ll jump thanks.

John Higgins

Pete. Thanks,

Operator

Craig-Hallum Group. Your line of with Matt is ahead. from next question go Hewitt the Please Capital

Matthew Hewitt

with and detailed update. first that roles for afternoon. think, Good questions spin-off. of the half the today filled? roughly feel key kind Maybe year? Or And you've Thank John, post you the is you headcount the of those I in Have Ligand, the RemainCo, do have you place you been do that the need? with like mentioned I taking the for exiting see got all one, where headcount, team guess, you

John Higgins

Yes. senior about half All by the the total OmniAb been completely balance and the Day, filled or and we'll team, and while half about half OmniAb out at management -- at executive about with positions employees our unit. discuss have remains was headcount half. filled a Analyst growing and about more the other In at was Ligand. XXX business so business operationally had the month We

like. efficiently design. but model a can the is drug and and And early company, economical a have that by and low, to from were headcount flows. that to drive leaner, costs is ago. deals. of couple is we focus drive the a a structure perspective research, our We keep licensing a and But We this it's certainly revenues the And earnings very technology very still lean drive platforms week cash model, new cost than in

Matthew Hewitt

you. a then That's balance more And helpful. item. Thank sheet just

be as using million math piece Is base. roughly OmniAb. number because our kind I if hold of right, $XXX you've with that we today, the went my cash that should got So the

Octavio Espinoza

The million net of commitment No. $XX Yes. was expenses.

to closer actually was million. $X it So

you higher just what out there. cash a bit just the figures than So

Matthew Hewitt

it. Thank Got That’s great. you.

Operator

the ahead. go line Your of question Balaji next with from Barclays. Prasad is Please

Unidentified Analyst

This our is Vishal for questions. Thanks taking for [ph] Balaji.

drive off additionally, some trajectory on add could post on line XXXX? of provide growth very Firstly, COVID-related positive your revenue the you top growth you any you spin could also revenue which color will and segment capital insights your business that much. Thank

John Higgins

The The the royalty business are Yes. based. of revenue, is there revenue. components -- component main three Sure.

The Captisol to and is license contract second payments relates on. and related revenue, component to so fees third milestones and the

now contract. It's performance that the with is those evolving about revenue Captisol, other sharing this Obviously, XXX% expectation, majority is described So of we margin. remains the revenue royalty, it generally, XX% XX% bit. is true revenue tied our royalty-based. gross with a year, This our XX% proportions it products. pharmaceutical But above are

is As as about along outlook COVID next we We'll it's the and discovering but question a have royalty generator royalty at basis that Analyst our our today the our and the then more by of couple growth is drugs as a in partnership Rylaze. of assets, with partner’s lead with diverse teriparatide about really portfolio. far month, Kyprolis our Day royalties. followed for EVOMELA sharing largest discuss revenue segment, coming drug. business, But The Gilead our

we million, they Just at fall a when agent brief that our million. massive Obviously, $XX -- we're to Ligand. promising the the doing requires generated for nearly revenue required came, wane remark. the the $XX And It pandemic had do hundreds and would quantities looking additional of would off therapeutic. Gilead, pandemic, a we This with year, know utilize we they demand waning the thought sell really antiviral. millions now of

of we coming go to driver that for So product. But X that quarters that down. it continues product to service are essentially as the in to be cash demand a we winds really as expecting significant flow

Unidentified Analyst

helpful. Thank you. That’s very

Operator

question from of Please is Your the Capital. ROTH next Henry line Scott go with ahead.

Scott Henry

Thank apologize. late afternoon. first, you. to Good And join to I have want I today.

on XX, give they not, have guess, want but you I at touched expect everyone the the my to important on Day on may first, do me, hopefully apples-to-apples kind similarly, guidance? comparison, them. And December I imagine want to to questions you XXXX did if ask some you Investor I and presentation is, were or of as an those this so So sounds point be you. assessment? and we of the obviously probably OmniAb the well, It future? the like have at ex-COVID in would will as historicals ex is all filed some same the for back near And probably The fair going that you'll give page. a quarters be question do well. of Thank

Octavio Espinoza

Yes.

So Tavo. is Scott, this

historicals, recently in information terms X-K. of of filed that you can get In the some those

information. And that a prepare for that believe up. our Analyst I basis, for anticipated yearly provide that's sure, coming Day to Although we can on Investor happy

John Higgins

We've Yes. in The We world up. back. turn out ideally. investors is person hope in-person meetings coming significant coming got

Of terms course, clarity at ago. XXXX. in meeting, expect We we virtually information few a that need we're in XXXX little to financial Chicago start more Milwaukee a to of some new on But approvals we revenue get outlook. weeks just the frame in our product in will

into So structure in on we're we the flow. or will think then cash new it case our of a is earnings and but get of anticipated fairness, caveat have to and some going definitely what around our the ultimately, outlook bracket to expense base I revenue, revenue, for guidance components

now We where more point on investors and to are simplified bottom growth at and business, while and P&L the focused going performance. changed line much Ligand, margin be has dramatically. metrics, the top It's it's know a

certain will around So so on and that earnings investors that can is I'm expect. models that event. something updating And analysts be their

Scott Henry

other the it expected. on it, the of a perhaps speaking have the Thank Great. it how just about higher way of just being for I'm XX-XX of question. for thoughts And spin change thought mean, Ligand valued. If Okay. your valued curious the obviously, for there's at you. it level is just it of noise just could out you does you going market sort of would question, of than picture OABI, would OmniAb, think side way would one just hand, view proposition do out, all you as split obviously I because lot Ligand value? the each, Or lower a second a be turn noise, the kind higher value lot color. a Ligand, higher a on didn't there. probably all that of the the is, LGND at But for which big I was Thank guess. what is The we noise. strategy forward

John Higgins

Yes.

Gilead we But So substance delivered business, superior the and we'll certainly about focused it's leave And is to XX quality, to that of enjoyed insights became the last more and of because it because was us years our some performance. much of and so financial the became has and disciplined what more is who revenue our OmniAb, have the that results. think a few reporting financial we high thoughts the on, business selling I structure have years, how business Investors the the complicated. has outsized trades complicated. reality last is expanded generally, the because COVID, ultimately cost The Ligand that always Ligand, P&L but generated value P&L the XX, been business -- know at that, around investors. of

actually very at expected we does maybe stronger think back are a that to stepping a [ph] surprise investors realized me street is business simplified trading strong than all. or Ligand that I not very, candicard the has some much

the terms off of my difficult. be offerings, focused It of our But sooner. it in market strength OmniAb, perspective the window a six It flow for months came market, nine and momentum. was to like to of most Board, equity, was in off planning. news, equity We'd years execute company well-capitalized and is what investors, our journey. Having beautifully. that, vision was a longer financial business was them hope objectives management said intended well spinning for a realities news for strategic we new As to The out. thought two done

objectives those squarely met. of were All

not reset just those -- a we're dynamics; own for potential trading positive high can't can't of future a quality shareholders, Now reality. lost a a we know business, completely It's a offer the as they General where it's for spinout or short microcap sheet, partners the momentum the believe underlying is quality it's in expected whether the the or to volume stock. some small-cap six term, or burn smaller Ligand shareholders to can't Electric rallied revenue own the after well. trading of unusual But value. of And It's least this very know Post At and corporation. we've volatile, unchanged. to often existing of substantial who rebase. now capitalized. the stock Motors recent they we valuation the a the to spend events, dynamic judgment royalty news the spin-outs It's boy, or established, they Viking, kind a We the -- is of truly But share be on Still are that we a weak. trading biotech company. the very fundamentally, the highly stock approvals, did team, balance the trades days. well of cash But our years reality be did the investors the the companies, seen the IPO, that there, General for to six one are season is events spin-out capital, and trading two bullish in with share unfolds, value take are well or the base we exceptionally the ago. But months was company, OmniAb. some year partner

even So it's there dynamics, trading some fundamentals. Ligand it's trading, are more precedents to for case tied but not unusual at

Scott Henry

great Thank both color Okay, on questions. taking topics. for appreciate I the the you

John Higgins

Thanks, Scott.

Operator

the concludes Pharmaceuticals call for question-and-answer remarks. Higgins, now closing This turn back I Ligand CEO, the to John session. will

John Higgins

I be appreciate we Suisse for person, It's momentous tomorrow turn Stifel out to at a forward today. a a you. the it's be in been Credit sure. going period conference busy Again, to at for the Ligand. look period, and that. Thank We'll later. We're week

course, shows a analyst non-deal hosting We of and in be investor the have of December. we'll road number event and

we you. engaging to forward look So with

XXXX. will out turning XXXX everyone, QX welcome you, and earnings We our for finish Thank call. for

Operator

Ladies Conference and for XXXX Earnings Thank Quarter your Third the this you gentlemen, Ligand Pharmaceuticals participation. include does Call.

disconnect. You now may

Ligand Pharmaceuticals (LGND) 8 Nov 222022 Q3 Earnings call transcript