Earnings call transcript Q1 2023

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Operator

Thank you for standing by. My name is Kyla Baker and I will be your conference operator today. At this time, I would like to welcome everyone to the Ligand’s First Quarter 2023 Earnings Webcast. All lines have been placed on mute to prevent any background noise. After the speaker’s remarks there will be a question and answer session. Instructions] [Operator

like Simon call Latimer. now of to turn Relations Investor to would over the Head I

Simon Latimer

note slides Thanks, link find XXXX be of business the Please our financial on Welcome accessed to results there Kyla. to the calendar where IR and the update Ligand’s by going corporate conference webcast Investors These website, today’s the call. accompanying first to quarter that page. can are section call. can you

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

Please forward-looking X. here review Slide disclosures on statements about our

be periodic Additional release earnings information concerning with factors filings other risk also in and found press and our matters SEC. can the our Ligand concerning

We to statements be the of between our update release discuss measures earlier undertake reflect the issued found earnings revise conference we events the call. obligation no date or measure can after reconciliation GAAP financial A financial this circumstances any on to non-GAAP closest today. or and

Speaking Matt President over COO. today CEO; would Todd be the I turn like Davis. Korenberg, now to to and CFO; Espinoza, Todd for call will Tavo Ligand and Davis,

Todd Davis

Company’s today good all and and and I’m quarter our XXXX share delighted for of afternoon earnings performance Simon, you, you joining some Thank thoughts call. to future opportunity to Thanks everyone. our the on address first prospects. have my the

prospect to stage excited than have I business, more of myself about running have growth. months the in the about five now and been the immersed of of as the I for in CEO Ligand role I’m next advancing ever the

last this high producing with achieving to a and and the portfolio diversified track risk returns. consummated positive objective. significant over XX margin is has adjusted create of a focus has Ligand record Our XX-years, royalties, deals superior been of

portfolio a feed performance. growing balance including of products current are multiple soon As current see includes deals base further into growth. have our commercial also created assets stage asset stage and those can commercial late sheet stage drive the financial the you seven It X, large strong that biopharmaceutical our to key will that in Slide delivering assets,

farm stage team to portfolio our will long-term Things and assets our like that, stage bolsters NASH Matt will these from This during a contribute XX our some our of this earlier cover more specifically pipeline. Beyond Viking of programs came later group. growth. update. FILSPARI

finally, deals Also, of and to and growth to partners. new technologies, And of our focus further differentiated to on deal proven business organizational and changes that with strategy Captisol tape. investment premier a continue a Pelican our contribute new adding stage pipeline. the our This requires is is platform accelerate current license thinking current by late intended execution our scaling

Turning to Slide now X.

excellent and the quarter start portfolio driven We XXXX were revenue. to of Total royalty developments by financial performance first million, growth have in the year. XX% had revenues for XX

quarter the million with cash equivalents. finished and cash We of $XXX

nicely to sold at shares his added this Tavo details on cash substantial portion our in held we our quarter, Viking first gain, more Therapeutics the During balance. a give a will which discussion. of in

debt cash As available will million we May, we invest. that in million at a previously have XXX down to expect pro forma which convertible described, of we pay $XX be point with note to free over

is operating to lean a striving improve to part business structure. very Another as key feature strategy have of our we are

execution to and bring that expanding budget cash expense down reductions and year XX We on scaling of executed was accelerated started the have achieved with while capability. for This million. business growth to XX the operation up million its the expense

momentum Meanwhile, business products. for lean core as from very and as possible, product while deal our look We efficiencies capabilities. positive existing continue among royalty in operating stage our ensure pipeline late retaining of have are to to the will we pipeline experienced we

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only smaller for forms capital royalty We alternative via public of their equity due companies. in companies increasingly finance. on project contracts especially can continuing to true pipeline are This private Biopharma provide is capital companies these and for the to accelerated financing, products looking the for which markets. challenges return is in

is monetization. approach The royalty second

In providing to to existing see companies, a ideally royalties. as capital, universities, which by royalty add opportunities well. purchase Ligand significant owned rights addition to on capitalize further we our to these of is development inventors, or opportunity portfolio positioned would

M&A. is here outlined approach third The

entire business, successful programs. restructuring operations, we acquiring record undervalued, partnered a track with or businesses, companies assets operating we an royalty have of As identify while

Finally, we technologies. platform at new will also acquiring look

record platforms, significant and existing We enjoying assets, generating and operating royalty successful economic those benefits technology pipeline and track of partnered royalties new platforms. have acquiring the the a by of

products we significant operating focused as that high offer Our platforms Side In the is of an have an and this area, on X platform example in approach. clinic margins are business. operating this mature

Turning our we cover to will goals at some to executing of are key and progress X. I scale. ensure Slide

our relates and deal for first The scaling to origination systems priority making.

we of our The process institutionalizing investment the originate, increase here in goal and are how deal negotiate, and is to transactions. execute on process We throughput sophistication.

and increase be assets our clinical pipeline allow late quality growth. stage to more should talent mid opportunities in making. ultimately, higher to of in resulting pharmaceutical requires This high premier number larger and selective of a and deal the number Reviewing investing us

team President Hadden, expansion, in important addition Vice of with financing. royalty this Senior of part Development. deal a As Investments the we is an accomplished appointment highly expert recent in Paul Paul to a of our Business made

Healthcare XX-years where in growth. at spent previously was instrumental Royalty was he he Partners As their

our someone want join take experience have him opportunity I to truly to with team formally Paul’s excited to Ligand. this and welcome We are to

Boston. a of in Additionally, will are process raise Ligand hub. we life This help in major in the of awareness a presence sciences Boston, physical establishing

also have compliment excellence scientific our will to the talent. the strong and and Boston will centers be associated a greater academic presence office in of We current The to access community, Kansas. California

assets, To successful summarize, first catalysts. Ligand The a quarter. on based is the growth and rapidly productive of had its multiple products, and pipeline growing existing company royalty

and accelerate growth promising We and creating new through pipeline partners. providing expect to by sustain to stage clinical technology capital assets that late

XXXX increased will the CFO, on guidance. more Now, financial well full results, financial details year Tavo, QX as our as provide our

Matt Following review Tavo. in will progress portfolio our and growth our Korenberg, president, drivers. Tavo, operations

Tavo Espinoza

Thanks, Todd.

As major with Todd with our a mentioned, news royalty strong year-over-year growth, we and first have partners. quarter impressive from flow revenue positive kicked off XXXX continued

from the increase Total and were contributions when million quarter, million excluding increased million, sales a prior to year COVID a for revenues revenue in which $XX represents year-ago. XX% quarter prior Royalty $XX.X the year XX% from XX% Captisol the a over the $XX.X increase period.

as successful driven growth VAXNEUVANCE contributions launches. strength again This from Amgen’s sales products reported continue well Pharmaceuticals’ by Jazz net was in Merck’s record Rylaze, both as KYPROLIS, and once quarterly as which

Captisol sales were sales $XX.X of in with Total last to million last have not Captisol were sales versus of of of difference quarter. with year first $X.X year the that customer We to any the the quarter quarter same this Captisol COVID-XX this due million timing Captisol quarter $XX.X core million did $X.X in related the million orders. related COVID-XX. sales

FILSPARI. by last primarily The the $XX.X in $XX.X earned versus increase is milestone QX XXXX driven of FDA’s million revenue Travere’s Contract year. was upon the $XX.X approval million million accelerated

we Todd compared focused aggregate to XX%, lean are R&D to the structure managing operating maximize and expenses and decreased operating operating In prior QX, year when our maintaining As mentioned, costs a on by margins. quarter. G&A

in of primarily million the of million first headcount XXXX post spin were the to due expenses legal the as in accounting decrease versus is $XX.X related lower XXXX. expenses G&A a out. well quarter The costs OmniAb quarter first as in and $XX.X decrease

in primarily million XXXX loss headcount a compares the share GAAP to $X.X the and first from $X.X quarter income expenses. in decreased million of first of per related expenses operations or first R&D quarter. or were the with of in million $XX.X of year versus $X.XX this $X.XX was attributable in per net quarter operations continuing decrease prior with XXXX XXXX million net the continuing $XX.X quarter GAAP from diluted the share

well The from the income as unrealized to the increase increase for driven GAAP was with gains $X.XX Viking XXXX in our XXXX. stock. first first Adjusted of remaining of as net holdings value quarter in $XX $X.XX, operations, compares a a in by in EPS from the in largely increase gain diluted quarter and is this million the million of relating income Viking in a stock Therapeutic increase million sale of $XX.X $XX.X

million Ligand sheet. which Turning At cash it outstanding totaling million had and approximately repay month. XXXX, to investments the $XX to this convertible $XXX matures we in when intend in cash balance later debt, XX, March and

maturity cash investments Following of invest. and $XXX liquid to our to be the with notes, over million we debt free of expect available

Turning now to guidance.

in sales Captisol $XX $X $XXX to expect $XX to be in million million, million. million million contract range guidance and raising to of the XXXX expect of and million we by $XX now the revenue be today are of XXXX, For million royalty total to our revenue revenue we range therefore $XX of $XXX

the in XXXX of our attributable revenue common earnings today to earnings range royalty is stock. per increase is guidance $X.XX, share Additionally, the from gain guidance Viking realized and an $X.X The increasing and sales strength in of revenue Therapeutics now be the of we which to increase in $X.X. are to

results our to available reconciliation website earnings talked today. As first to about the earlier press is on like financial to of a GAAP today, our reminder, a issued adjusted for I our I would listeners quarter results direct which

Matt business. the I an to update will to on call turn over provide the

Matthew Korenberg

details long-term impressive Ligand. the Thanks, quarter key of to highlights viewing that also and way more Today to growth the for the results, on our prospects of going drivers led we some the revenue review for Tavo. investors exciting are provide first I’m current

XX-years, has programs, some while of regulatory development in of hundred of or approved commercialized, Over which last the course a stages the are a of portfolio Ligand in others aggregated partnered are various over review.

we Phase a pipeline traditional format. slide list in products X in that or currently development On approved XX, XX are

XX these We lot dialogue a XX-months have over to past on the programs. focused the with of investors

and look way growth the of thinking we categories total comments. that at XX frame is long-term will Todd a will way I the for his Ligand. portfolio about it Slide are growth the in drivers how Today, important outlined drive to

We see ways value. principle will Ligand these shareholder drive that as the

over near-term. significant is enough XX portfolio that programs, of in but should them investors focus commercial seven current on those Our the are

of six key one expansion approvals. the and over is of seven growth programs which drivers of already new term, are potential see are an medium as which pipeline approved There an that we of program

farm The portfolio We highlight our for team programs specific as advance a them programs from to comprised this partners more is continue to as it portfolio over existing is and will of prominent Ligand. of ahead. XX remainder or near-term that become they move plan

the portfolio new as a the Our Todd more. new detail, platform add stage they have project And to and in strategies, for of continue to technologies programs continue years. through covered of look including early as will M&A, to portfolio financing number to we different deals doing across portion will add to the been

key Turning growth. first now from of quarter. few will to I commercial This the a about slide details highlights our on driving the programs XX. key currently the touch Slide provides

quarter news the first from I February. the As the FILSPARI was first, approval the on biggest the mentioned in call, last

royalties. the a this long-term Travere significant sales We X% driver nephropathy and of IGA growth royalty we received approval marketing be immediately drug. and that on began will our a for expect of FILSPARI learn

in the FILSPARI U.S. approval. under and XX,XXX treatment U.S. similar patients approved IgA is first estimated via of indication the patients and number are to Europe, XX,XXX the be non-immunosuppressive this the nephropathy effects the approved in for expected XXX,XXX approximately a to indication. addressable accelerated

IgA - estimates Consensus make sales FILSPARI if exceed that which nephropathy is Cell would side is significant Ligand’s analyst achieved, XXXX, generator. most X peak if for in royalty FILSPARI by billion

the consensus expected community a initial the existing the is has ramp and of sales. full of management indicated in Travere’s that the year, IgA in protect about nephropathy and that point the should continued the which a be XX change Travere this a ramp for catalyst to gradual from estimates million. QX in research will be label trial to ForXXXX, data

X Just million got a the release new for before their and look received. they had reported and at - we patient disclosed this sales started, XXX forms six weeks, Travere call press in been first

So launch. a good

missed the from pivotal Also in announced earlier related the duplex week, to FSGS Sparsentan, study data EGFFR endpoint. Travere phase that this three the

Secondary week treatment. was of XXX and weeks reduction trended top line exploratory favorably through and through endpoints urea of a all sustained protein

Travere plans the path treatment as we investors indication. becomes forward will and for available a for in potential and as engage Sparsentan keep to explore for information with more Europe, that to both a US regulators FSGS updated

Another was KYPROLIS. is a the as highlight Beijing countries by from the by as of well Ono first majority around and KYPROLIS in in quarter Japan marketed the China. Amgen and world, by

for an XXXX, treating XXX global the Amgen in billion reported multiple on realized In exceed record easily to revenue quarterly and important X.X drug This QX is XXXX. million, product - of myeloma. is track the sales recognized of

extremely level QX of for Riley’s with by well marketed a XX in to recombinant is million Jazz’s ALL also chemotherapeutic Asparaginase used record later that of children LBL. product sales. In We multi-agent jazz this treatment market and a constrained as or This QX report Orwin XXXX, in component do a historically quarter. continues a reached adults regiment look Riley’s a to the by commercial forward supply with issues. of was

VAXNEUVANCE population XX pneumococcal now is in vaccine adult population. pediatric marketing the the vaccine pelican a and Merck protein produced the utilizing using VAXNEUVANCE carrier expression Ligand’s is platform. technology valent both CRMXXX

XXX Merck their is We the expectations. million see QX VAXNEUVANCE strong a in first sales and XXXX their that that the consensus product agree the of commented in XXXX as indication we tracking exceed ongoing to estimates with announced launch sales pediatric XXX results tracking and quarter with million. about strong

our on major sales product separate this revenue, The royalty for our largest KYPROLIS. at equate from KYPROLIS XXXX report profit revenue. another about million a than just million, XX growth be mention line while royalties, our our with current our of and Lastly, would of should we on of that level line we will internally from line captive current think I in XX guidance of which other slide, gross this to as profitability, drivers

that pipeline will way programs seven the the we currently growth key drive lists view programs. approved as in currently our XX Slide revenue programs that following

expansion in As XXXX, in a an we to Riley of for would program. of currently mentioned, approval one decision May see of Europe from the approved of is and a expect Pharmaceuticals the later filed XXXX. programs therefore in Jazz EMA

first a trials. of company new product X developing very Phase and terms and NDA of positive X its million of entry announced is SF range in billion This to their Verona’s the from expects in to of In estimates large XXXX. products annually. and COPD approvals, program the line enhanced both market top The submit half the for are in XXX

think Marinus, has their Novan PDUFA Berdazimer programs and and date all of validating expecting for at this drugs. a Gel XXXX. that for Palvella, January submitted The - of are X, and probability received data already date their Viking, year be programs sermons PDUFA we will NDA and approved becoming the the

will drivers term cover at XX longer on Slide Finally, the Ligand. organic growth of

our Investors the we XX generally, programs team. disclosed we a but farm highlight group programs day. that Day these programs This them. have of are portfolio Many are don’t in plus the are that don’t our about calling we already in XX-K, talk for that we much First, to of is

any biopharma to point, Like programs discuss. we key highlight that they and many is do our portfolio, that of will programs expectation join pipeline company where regularly advance the these the

are pipeline add we that Group charts identify programs will this becoming As to them our from key we more discussions. promising, and

new driver is and new The license pelican and partners Company’s deals. growth technologies. are long-term expression of the technology constantly platform other the Captisol platform organic attracting signing

these into programs contributors several important for programs, programs earlier stage will Ligand to near-term years quickly deals that of growth story. mature pipeline could take transition While of to the most some be key into these

platforms, license join of portfolio will announce will We part further. deals team new the that them the happen and farm from to continue the these then the as we highlight before but programs broader mature

on to the healthcare We on are of prospects growth and updating future conferences. drivers overall all excited the growth earnings investors calls about look the forward and portfolio the for progress these at across of

call for I back the Operator. turn questions. operator will now the to over

Operator

line comes Larry the question Instructions] Solow CJS of with Securities. [Operator from you. Our Thank first

Your line open. is

Unidentified Analyst

Hi, (Ph) good actually Larry evening. Godo] this [Liji is afternoon. for It

to you sales then Just can the rest of how that Viking those you with of the think your behind intentions should sold and talk starting the stock the quarter, the timing for rationale there? holdings about during we your

Todd Davis

hard Sure. sorry. are Todd, A this that, little I of regarding Viking off by this Viking in start we But saying shareholding. would believers big to a hear, was I just but the is significant we think retain sale and stock.

enables but partners, the an agreement we the that for The important support within as For creation to and of tool milestones, did investment, Viking. us, contained like form key and are an equity original and deals it which the in us longer-term royalties with economics of us is is license investment also enable we strategic view assets.

will a our pretty for is drive And equity have to is of further historically. therefore, to own enables growth. us in we key This strategy consistent continue and hold So And cash, sell programs we reinvestment from time-to-time we source to it. like key when on what it we NASH. done royalties the with this

Unidentified Analyst

on helpful. more very in capital is That requirements general. just One

the mentioned, had M&A. you about various pay the $XXX net you deploy spoken cash. you ways to convert, million of have once capital And will a think I have also that you lot down including about

all goals liquidity all are cash fund of your eliminating financing is you and generate available beyond the other you to whatever $XXX you the and additional million got needing do of here? What convert to after to foresee going

Todd Davis

should capital plus that I But believe significant we to still, more for to the which relative than we in $XXX We to XX we have if debt have over be think access access market will the this markets, environment, the think invest to capital very point million I strong position. next good adequate the have at we given our it. XX-months, even reassess. financial strategy need our

Unidentified Analyst

back will let I and some hop great. in questions. Okay, others ask

Operator

next from the our of question comes Capital. with Scott ROTH And line Henry

Scott Henry

ways picture Thank CEO with up main there. a is get of will making, into a Todd, you, around the midterm big to want you your out I start are have on Todd, but know are how have any you other put deal near-term one processes board I that. somewhere you laid couple business? for then know I differently? your out, been to on to good of on have, Can going the you stamp to about you XXX-days, do afternoon. talk scale you you want question initiatives kind that any drivers that you looking and specifics. before, at now

Todd Davis

Yes.

I created with an significant have and well company that historically think, orientation. had They that the M&A very done returns.

the talking you about scaling team the business hires really, of development a up so, capable. very handful of are is are new that And

ranks, We and business handful have on. open of clean that a we science have rig folks evaluation done we senior and the positions most that of at have analytic, are,

we And in are the medium I expanding. think term,

of the networks, be clinical focused senior going to is development that capital. a do not to so we what have deals products team done is historically, high I execution, scale partners. that is on takes very on. capable them And we all really is want novel clinical formats these have development and think can almost And value we with relationships, objective done side that consistently. and originate investment Although, what this that we consistently the of business That

that strategy. executing already are We on

way pipeline. XXX about working are in its on million asset opportunities at et have we assessing, late-stage it is pipeline We And that our through cetera. looking

are. we So that where is

looking process. that of it stage lot ways but been we front at the We at several a deals on executing achieved of are kind go deal deal the are mid the organization, have a the and to now, on of is

Scott Henry

you Okay. Great. for that Thank color.

a Just specific questions. couple

Could royalty about million. First, expected? about, went came the little I than guidance you better what in up think X talk a

Tavo Espinoza

Yes. the the at reported sales, how key is as year. look driver KYPROLIS, Amgen’s we The and was key over driver record again there that the extrapolates that

Scott Henry

not is it smart pretty your the Sparsentan, know you are I product, are guys. but And guys partner, you Okay.

how specialty, curious things. way three does does that The it to impacts, Two, the be I that you what really indication? impact is, second FSGS of So hear of think approval mean, of it I data how impact the think how I would one, and any it off-label recognize if points on not be you impact but curious it does if And would have to your would the three, I I is approved topic not like share prescribing? what are it indication, on [Indiscernible] it them. is bullet the your

Matthew Korenberg

me of really have giving that you what being will appreciate some on we from the all or remind I only, we facing on but I’m give public view have our to not doing confidential a Travere I, our We we but it just able don’t are is Scott. is only comments this, information best, confidential. is everybody for credibility Thanks, any make about to information. that get information. public that We

that releases, listening that their to own said, press call scientists. then on with views our just based and have we disclosing So, reading all their talking do on call data et the cetera with - and earnings

at I a sure XX nephropathy them, but than a patients the order XX,XXX little mean, approximately answer FSGS, not first I without for prepared asked the roughly I’m guess off, to opportunity, its I mentioned I $XXX,XXX that comments a billion own IG my in you bit as more on is these in will less.

people a market, see fully that expects But dollar to that even no own. market, where still on is them as billion to Obviously, of billion as one but billion $X.X that opportunity I approved. they $X its think penetrate a penetrate currently kind that opportunity fully

approval but In Travere when was terms both still they’re European path potential the to U.S. discuss a it, planning and and of FSGS downstream, announced as forward they pretty regulators. with clear a

us and Europe. there they trends data positive a in efficacy of top in, strong both the all also that and the other saw the forward is in in in the other in data other and that to need the EGFR hopefully line medical expect but U.S. in even data, in unmet path significant points the Given that means signals we’d

just fully was terms at remind read FSGS lastly, data nephropathy mature where fully interim EGFR in through an got FSGS And data. an IGA they run reported both look mature then, then, data in was to the recently. of the of data, data to UIA investors, and and at were EGFR interim protein And trials of the essentially kind look what

a than talking the did FSGS are as relapsing saw that endpoint. might remember diseases IgA is you which remitting done you nephropathy progressive in different. specifically the to FSGS reason a about important you expect in So EGFR, the study a disease IgA characterized the is IgA is it from were it When the other different Travere, FSGS designs nephropathy results nephropathy when the the trial. different in versus period was are talking around is EGFR washout disease. are in trial, about you wasn’t one medications Also, that by done continuously

arms And the in much the in studies then, they better both active lastly, expecting. were FSGS control the particularly in performed than study,

trial FSGS statistical made they the expected. in it higher even significance the hurdle for than So

together that all confident IgA seems the rout very are just will So confident fine. that nephropathy we taking the equally company and be

Scott Henry

it Viking regards was a one that that and appreciate great. is color question, quick Okay, that Final topic. with on gain. to I the

and want rate. about get should it congratulations, pull if going kind works comparable a that question First, backward? of out How I the when I a forward looking think quarter, I assume have to is tax number a nice out to is The want it way. if it that I to of

Tavo Espinoza

we Viking been rate bit rate income. little non-GAAP applying The have the a the Yes. higher to than be gains going on to is tax operating

to XX% You can that, apply Scott.

Scott Henry

Thank questions. great. taking you for Okay, the

Operator

question Craig from And line our Hallum. comes of Matt Hewitt with next the

open. line Your is

Matt Hewitt

the quarter. you one, correctly, some the us Good afternoon. hearing the Thank to you taking strong than hang. the little to first had Very in I’m anticipated all a strong year. maybe sounds for was you it there came Maybe and for kept earlier that start questions year. like If congratulations orders

be $XX call Is should elected about guess leave how cadence million? that million, the of $XX that case you And is, for then that to year. the to the year the is remainder the thinking $XX.X the for the why million for number we other and follow-up have a it I

Todd Davis

question. Yes. for the exactly right. Hey, Matt. Thanks Yes,

you compared first quite guidance the was And nail head. strong quarter year. the hit The to on for the the

the larger their a of One of the orders our first expected ordered year quarter. for in significant amount customers

think As these say order orders in for do this. quarter. there is same later for that lumpy. the their Customers are we every the always on some around frequently almost quarter, year, strengths pattern move some orders accelerated potential like We reason but this will folks

year. don’t guidance before are than to demand rest the we off with raise to want certain We for that expected of going pretty folks the stronger finish are the

strength, So we to is there leave current the it may be some guidance. now, but for think it most at appropriate

Matt Hewitt

deal And data a concerned, look gave then it. you the couple Got as far us ways points as is or to pipeline at that.

only of signing you about year. to trial that opportunities should of company you are okay, how opportunities how pharma through the finding well then that in one drying this your you year, environment have couple those projects the Not team, the agreements, but small of the will lot next and far quarters? into and size over X at structuring the some new Given agreements will with these a funding and Is the a we essentially are one opportunities dig looking creating a be to as of seeing particularly Phase of this this next as, up. is be cadence now, have signing right Phase or going biotech themselves trial given we

side? will, if staggering are the you on goalposts, kind of other the So you

Todd Davis

Matt. right. capital strong emphasize But this market Yes. a That And a is I the think is a environment. is strategy I question, would Todd. that This good works just in pipeline, terms of you in are

there In then - have it with issues fewer capital the that people the industry challenging you and in at higher having for access capital and significantly where rates have a with debt is market need to refinance available. biopharmaceutical normal SVB, environment, having alternatives debt equity

especially is can that void pretty right is there big now. and fill time opportune an It for and we us, robust a

result a of have like capable the right So it fire we a in you now. as we I although here, people are position that. I that, of building bit and several team, the mentioned, tell can a that are as still is hose we

be So the means, what screen on is to very selective key high you on, quality upfront. work which

really four-years So at Phase can of significant we at the things have can we that that we that where our of basis. value, efficacy, within cost very are safety buying creating evidence high to we about we price with that think a not typically so looking there least or are obviously beyond. we in of of approval these own X-ish capital, significant that is assets clinical alpha and And risk but where price only product product are above them on excess is are

a cadence some several wouldn’t not over because a you commit anything, I lot great fruition to for plates this you right investing, it is the fast, this on of right, start want do when our the So want inevitably to to is are and come now, months. this, is next to but in environment there will to

looking other really good of in a is team high on need there. lot out assets But good the terms you very side. what we pretty at, there and volume a are The of importantly,

is we are partner assessing That development We when in to cetera. their the business, are also execute, we clinical important. with et not team, ability the so somebody, really

Matt Hewitt

is helpful. I one, really and then That queue. hop into back Maybe minor will

another would the that As year? this does milestone trigger opportunity, as the EMA far later Riley’s approval,

Todd Davis

the is But that. milestone there a on U.S. have disclosed EMA or this not milestones whether triggered around around low don’t very typically that be may I is specifically program outside for contract. the that think there we

Matt Hewitt

Alright, thank you.

Operator

of next Balaji our from Barclays. Prasad question And line comes the with

open. is line Your

Unidentified Analyst

(Ph) [Michelle] is for on our taking Thanks for question. This Balaji.

in currently, modelled revenue like billion XXXX, you to translate X.X quick which billion of your revenue Do range a to million is the you KYPROLIS, and will X.X royalty street for you. have of XX one around on the for Just Thank within think annual this estimate? Ligand. ballpark around

Matthew Korenberg

to question. Yes. level. that contained for Thanks Matt. I revenues agree is XX KYPROLIS the in consensus for see XX we the is the This that

sales China. both I prepared Amgen aggregate should as reminder, then well, sales, a in folks the comments Just in Ono and my but the Beijing sales, mentioned

but royalty royalties know Ks the Qs the I a across on we present. the aggregate and disclosed it contribute, don’t that. math, three sales is in we all the number, exact the, paid And So in are terms and get exact of

XXX and over X% million, XXX, million. X.X it So for the X.X% XXX, on X% then it everything is the and next next then is XXX for

they about sounds things math what that. there a but pretty close. Your like math what purposes, changes actually it from right, currency and is adjustments for like estimation and your we few are sounds get paid through report on But to

Unidentified Analyst

so it. Got is helpful. That Thank you much.

Todd Davis

you. Thank

Operator

next question the line Joe with Wright. comes Pantginis from our Wayne HC of And

open. is line Your

Joseph Pantginis

for Thanks wanted for Todd, strategy especially afternoon. the around evolution of of question good while. you company over, about the the guys your course with ask here I you have taking been a to Hey but thinking took since

initial the upon things nice Your thinking are comments from this about it, and Q&A had way. some I you want of has approach how guess I touched breakout but to it

think Login deals looking what some previously to that going to obviously regard curious history, and long you to do how of with the fundamentals, are forward? what science, those new have the based of the you or deals you different done learnings performing has deals apply on you the have have structure, the been so a best all kinds

Todd Davis

deal on have historically format that finance, company acquisition, acquisition. executed I has been predominantly have on. every M&A, executed But project mentioned platform almost and it has The M&A royalty they

M&A very majority Company’s our The at created this. has returns. of good the So

value. I deals, we would drive say in through the it that But M&A that the is that just really the is even look lens products

in the products are really situations. right So these you selecting

We focused. are team very product and

platforms is tool. course, of We a structure look at opportunistically, but

approach one is approach cetera. as is is really acquisition, finance, M&A one project so et and as royalty structural And

opportunities And and get quality more more high get which to assets, have high have will the will means you to high greater teams more you growth. quality done have, you the deals tools quality and

that and at it. it So we looking the is way are approaching

Joseph Pantginis

Thanks it. appreciate a I lot.

Todd Davis

you. Thank

Operator

call there questions Davis, at no will further Todd this you. turn I And to are time. the back

Todd Davis

offering high Thank binary investors of the you. a volatility development mitigates first biopharmaceutical that with the risk is growth in call. and we typical portfolio are quarter that thank I in broad portfolios. joining earnings inherent to want drug nature narrower everyone our but is segment, What for conference

the our asset confidential where This our of drug determines these shared single a in aggregation gives product the portfolio of information no cash flows decisions of Instead, advantage significant development with making by fate. investment information from a we broad benefit are partners. us royalty product

for that, back and And Thank thank turn you. the with everybody it today. I to will us operator joining

Operator

concludes And today’s call. conference this

now may You disconnect.

Ligand Pharmaceuticals (LGND) 4 May 232023 Q1 Earnings call transcript