LGND - Earnings call transcript Q2 2024 | Ligand Pharmaceuticals Incorporated

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Operator

Thank you for standing by. My name is Pam, and I will be your conference operator today. At this time, I would like to welcome everyone to the Ligand Second Quarter 2024 Earnings Webcast. [Operator Instructions] I would now like to turn the conference over to Tavo Espinoza, the Chief Financial Officer of Ligand Pharmaceuticals Inc.

You may begin.

Octavio Espinoza

welcome second and earnings everyone, afternoon, to quarter Ligand's call. Good

our review call close, results on business today, question-and-answer the by the activity, and pipeline followed development we commentary market During session. today's will financial a and after we offer partner released

over that at the that to to call www.sec.gov. With Commission we found Ligand are be will that documents information. are Strategy, the now statements, obligation Business ligand.com. With better Todd discussed release our in and Dr. me to or the harbor of audio events Investors the Paul upon is update call results We related with are matters financial Ligand's make a today's could uncertainties. SEC's you remind materially CEO, forward-looking on Senior filed company's risks or the recorded forward-looking in portion our Senior of and understand and of be and of results will available turn website. Vice Vice Securities no and On and these Investments subject section actual these earnings of website you Investment Please that, safe may on other website to all Karen the actual Exchange the Reeves. This the statements refer today's that risks the Relations call Our can to section those Hadden; call, current statement projected to can and that cause archived and refer at our differ Davis; Todd. President on regarding the webcast and and differ, will Ligand the business. from Clinical Development, link found to or assumes statements results Investor to be statements. To based I website at related President today www.ligand.com to which we uncertainties being Head forward-looking

Todd Davis

in transform several calls, expand fair royalty the we talking strengthen steps last of time royalty On revenue the FDA adults of sales for includes Tavo. approvals you, potential: company about action portfolio amount notable pneumococcal I to product a and with have our XX. products Thank the spent the and Verona treatment CAPVAXIVE, for Pharma's first FDA and over taken the next by team. XX the of products have approved the and several our years. This of am NDA mechanism committed portfolio we added a approved stage our contributors to on second COPD years. was believe the with that quarter, first That blockbuster June regulatory pleased meaningful and X that be inhaled several we report investment our vaccine Merck's new million to commercial the opportunities novel on to a to Ohtuvayre, conjugate $XXX was maintenance during over we will by June X XX specifically that

the our investment-focused marketed corporate of includes portfolio royalty OpEx beginning Our products the team we capabilities at of the in key major and are This now business had companies. marketed our double and stage is of products, the premier that by global many development successful number strategy. portfolio XXXX underscores implementation slight commercial of pharmaceutical XX

additional pipeline development. call. on Paul As than of programs have later Karen pipeline the on a additional that stages and various more XX updates are reminder, we active share our also in our in portfolio will

community, having at business joining technology building May and joined Director, Development our development XX investment a Ruben sciences also us Business the quarter, transfer years Senior bench. team XX in Michael life deepened before university added similar During as and Vigilante we Investments Boston-based members, industry is investment, the brings in second and Business as in which a Flores-Saaib experience. We've April. President, Michael firm, Ligand. Vice development business spent significant inventor added Development. new sector in the leading transaction our company also years served and operational efforts several and Ruben in with role

operations Marge hires this years Head as as [ experience of Sekovec side, ] a Investment has over Dr. key will Baxter, sciences additions Resources. talent Human Marge life and year. we the of also to additional of the Operations; Karen bring SVP to On Reeves play earlier and the hired XX look we Rich HR role of company. These in follow

leave other you through announcing agreed Ligand's pursue serve the the we aware, filed may COO, of has on has to X-K President be the as the to an As of end opportunities. year. Friday and Matt some company consultant Korenberg, decided and Matt a

in the We the me following first half earned of CAPVAXIVE, contributions let over last well years milestone but grew Ohtuvayre in part XXXX, driven highlights. to and revenue we a provide future in financial X deep approvals many will into are for quarter quarter payments Matt's our a XX%, Total endeavors. Tavo the him wish grateful the financials which and the Karen will company and dive by second detail. do second discuss the in few greater for of

growth continued increasing the in revenue second XXXX. trajectory in XX% quarter, period same royalty over Our the

to the revenue and Biologics $XXX expect $XXX of announced now increase in in also to XXXX share. to total the million $X.XX of be range financial with EPS acquisition. We an adjusted our be $X per guidance and in the to range Apeiron core million conjunction We

we will Slide differentiation. strategic Ligand's X, discuss to Turning

growth. company to that seeks We a are compounding offer and profitable biopharmaceutical

capital industry. as selectively diversified provide. consistent profile. There demand revenues. predictable where allows solutions Our traditional that life This cannot we investors invest assets of late-stage for superior target sizable science risk-reward and us generates assets is the development capital offer differentiated to portfolio We in royalty is there

diligence investment executed is create originated, that employ tactics negotiate strategy and team Our novel investment experienced by our to new we on investment investments. proprietary can Once customized highly structures can and opportunities. source,

our in and offers the percentage is is model of today small total Apeiron this. Royalty potential investing for that believe acquisition scalable of growth capital come. Our a invested example of is We immense years to sciences. a prime is life

Turning for our X Slide revenue to outlook. royalty

goals term December we of growth made exceed have our to We in at longer that progress substantial XXXX. Day the outlined or Analyst meet

an During quarter, products, we of the saw Wall on increase estimates several in Travere's including partnered our Street second consensus FILSPARI.

commercial exceed The we several portfolio and lean that also upside is the in which We expected are growth royalty major portfolio, later shared XXXX. outlook. from per add in adjusted share to is including of at Future greater supports top cost alone added to expected CAPVAXIVE products of new should growth least with believe than in to to of launch annual Ohtuvayre, a The revenue corporate current our year. We EPS compound on CAGR December. structure this existing pace XX%. rate the previously result XX% this revenue leverage gain potential our on the investments X% $XX operating to

Before on I update Pelthos. turn provide it an over to I wanted Paul, to

over quarter our we of which in be the for assets and and value funding accomplished new highly this launch of our significant done combining 'XX, formal the will FDA are earnings is is and/or a consistent first we update. teams took Pelthos by strategic commercial formed entities. In to differentiated provider about that created to with with the a in first we pharmaceutical in approach the this contagiosum. molluscum which premier the Paul to and partner, team company and royalty XXXX. optimistic As a half We last anticipate that all Paul? was in newly called return equity I of partnership call, prospects. I is turn we've reposition year in approved maximize Bio. This for conclusion, Therapeutics it we Pelthos same by of business in promising Viking of for mentioned our standalone a strategy Hadden future on capital are with ZELSUVMI Therapeutics now the preparing and proud very sources development the will The and January earlier Primrose commercialize management third-party ZELSUVMI, for rights

Paul Hadden

very M&A proactive those inventor developed we have we I we outbound you, reflect Moreover, Today, milestones fruits number on achieved capability. On cross-border exciting like professionals. the such over of some say a and the proud sourcing Thank investment to of of to to XX have of Todd. outreach. a assembled past showcasing call, I'm this we've a team months. efforts as are a strong would take robust moment

Our a sector. structural with has pursue of able are of we robust tools ability, decades sourcing areas proprietary of biopharma exciting therapeutic number investing to across number experience the With multiple in team global opportunities our a toolkit. investment within

that Turning investment and is headquartered now have office life the one team in the globe. science hubs Boston, most X. across prolific of to Slide We an

excited more XX time the such past very proud what we've $XXX the period, I'm new across committed investments. in million over have in our short a future. team I'm of and XX even accomplished we Over months, for

past highlight key Now investments our let over me several the months. of few

X. that had Slide X, July privately investment On $XXX million been works forms Apeiron company the we the in entrenched QARZIBA, for approved months. that countries biotechnology in cancer, neuroblastoma. was an of product is held oncology in guidelines. acquisition XX common receives Turning a was Apeiron in in and the Austrian-based monoclonal worldwide treatment Europe on royalties an announced in now Biologics, pediatric to most is of pediatric one antibody well It for approved The XXXX. marketed over of

accretive XX months XX% Royalties royalty net the XX% XX Importantly, past healthy is was of excess the highly the and of profitability. XXX% to Ligand million, near given EUR sales. acquisition to the a rate over in were

oncology will and accretive long-dated competitive Finally, lack not an This acquisition is selecting on although decade. was a immediately shareholders sales the well their to is Ligand its Recordati case our IP acquisition Ligand's royalties $X week threats, effort, into or projections basis. partner. QARZIBA, base Apeiron a near-term evaluating as include did which closed carry of path team and U.S. next U.S. per true market, thank approvals. The for the later annualized we share a by with

access forward marketer, to partner of support welcome and continued to to to their families with We excited working and are them Ligand cancer QARZIBA's Recordati, globally. look as patients QARZIBA's young a

Verona's total showcased fully add-on are royalties also X. COPD that already needs our risk of exposure the wealth Ohtuvayre in X very executed I from treatment novel over months, investments like the Slide our X% low individual to of XX charitable last diligence they to This seeking team's and sales. These Turning portfolio. single net are acquisitions that royalty royalty would $XX for inventors just endeavors. approved for note products as are on approximately strengthen sharing in during first These further These away of that from we inhaled meet are to are to to our inventors planning discuss purchased million. Ohtuvayre part to investments recently program, diversify the approved but ability who our additional will we brings asset under years. friction Karen today

President Takeda's XX, Lennox-Gastaut. following soticlestat, R&D in investment our call earnings stated benefit their to failed to respect on the quote: of and July soticlestat With As XX. Slide I demonstrate to in Turning on communicated, previously clinical

primary trial, Soticlestat in also syndrome endpoint Dravet with missing failed narrowly a X.XX. the Phase to X p-value its of meet

However, highly significant the the study of Dravet on from clinical with when and clear results key study Phase for from secondary endpoints patients the a with X soticlestat differentiated totality suggest a data meaningful benefits large and profile. combined had effect the safety

in we need Ligand's potential these drive unmet while patients data continued path announcement, limited epilepsy rare encouraged options. regulatory top investigating Takeda's for large Dravet, forward standpoint, have the stronger potential secure path a a forward. From we to we a are line who are by expected Given

more, accordingly. we As learn will we update

Turning to Slide XX.

on clinical had $XX X with the and Having stage dose, difficulty] pipeline Phase X we meeting million royalty investment important lead of an second end quarter, oncology FDA, achievement. in internal several the royalties their synthetic [Technical Agenus assets completed with across BOT/BAL. program their the one Phase clarity Agenus. is which has For

Our an will be team potential colorectal maturing indications. strength as invested significant for in important and on based data, of monitoring study. existing of as This metastatic on addition therapy be other focusing cancer program patients the has the well we lines later expansion to potential

ambitions, partner consistent their and and messaging. team development that to Agenus achieve global likely Finally, has plan need will been their in to

and data the We are partnering process. this monitoring on the focused development of

revisit programs may recently mature. are data relicense will We approval these Additionally, that our an returned to select to learned more economics. Agenus obligation has programs accelerated maintain seek being Agenus. once Ligand and Agenus is the partner to

leading lead substantial agreement definitive institutional Turning of Pieris their to in capitalize derisking a with fresh announced On will Therapeutics from July Slide significant million partner, our and Nasdaq-listed Palvella new in nearly a alongside the merger asset. into XX. a company for raise $XX our company This Pharmaceuticals, XXXX, the equity and XX, strengthening and interest achievement investors. capital

breakthrough continued its XX. designation MLM. and to We success. [Technical Palvella of their QTORIN program and therapy continue progress be Fast supportive and We difficulty] forward status in look Track to

strategy. origination are foundational Our to capabilities our

multiple that is replicated through cannot populated investment be markets. proprietary with and strong the or pipeline Our accessed opportunities public

therapeutic nearly so reviewed our team's we opportunities performance. with year far unique this We our have areas. In continued pleased XXX progress investment strategy the across closing, are of multiple and

continues to forward to coming over strengthen portfolio updating and Our and you quarters. I'll now it the Karen. to look in mature, we turn

Karen Reeves

like Paul. products to in our highlight key portfolio. Today, we'd Thank commercial you, some

Turning Slide XX. to

at look global FILSPARI. rights Let's royalty X% Travere for to and net Therapeutics' worldwide are licensed milestones Travere a product FILSPARI entitled We sales. to on and

determine IgA FILSPARI nephropathy, FILSPARI dual achieved of the in progressive an endothelin-X approval a angiotensin and underscoring milestones, population a addressable accelerated double has full this September FDA progressive requested kidney efficacy convert a met kidney is February months, positive they not see affects filtering, U.S. advisory that second authorization reported half primary launch could for receptor that major label. the has filed endpoint, people Travere basis date leads of of to XX is approval expected sNDA the announced and PROTECT the the past the inform of IgAN treatment label, as to in expected indicates in regulators received a that significant in several committee EU prespecified and FILSPARI information X disease the the accelerated Travere Travere NDA nearly markets with Vifor safety to Travere IgAN track. In and PDUFA first to FILSPARI U.S. February that estimated proteinuria. the FILSPARI XXX,XXX is kidney which hampered patient CSL marketing potential from XXXX of became and for antagonist. In supplemental We late primary current April II an March will primary XXXX, Europe, conditional was of approval interim X. The additional XXXX. the in Over has PDUFA function level. accelerated for in the to Travere's FDA European its to the from full commercially loss. The XXXX. Commission Study, proteinuria that available receive the approval the approval if to mean it FILSPARI provide Phase on the IgAN. FDA which reduction the product. is granted in broader date an

believe for the guidelines guidelines importance new in of new the kidney may outcome. treating IgAN early global potentially the being In outcomes, Proteinuria improving addition, and disease proteinuria predictor of underscore KDIGO, are anticipated We is XXXX. the aggressively. as accepted clinical

better combination understand As pathogenesis and doctors important of therapy scientists course for future treatment. and complementary the and IgAN, be may

progress, prior million the strong net Regarding quarter. of sales quarter, represented are $XXX $XX.X reported million of global peak FILSPARI Analysts during product million. the the growth sales which Travere launch projecting to second $XXX XX% over of

Turning to Slide XX.

can lung COPD COPD primary is visits death ENHANCE-X X, year and to breathe trials, function. COPD for diagnosis. other with no maintenance product via nearly means inhibitor It the COPD the endpoints nebulized activities emergency both broad maintenance XX bronchodilator is the administered be The the to effects ENHANCE action first a U.S. or in previously COPD in and leading treatment underway. can monotherapy for standalone pulmonary disease, is known a were blood of the for and in COPD treatment is with our cause most of for Patients June XXX,XXX indication accounts primary years. use are wins, is treatment indicated look used struggle than Ohtuvayre. in significant novel as Ohtuvayre, statistically on is inhalation. launch adults daily received There obstructive improving FDA it sixth daunting. approval with broad combination eosinophilia. Verona's preparations in COPD. Ohtuvayre of phosphodiesterase Let's maintenance more in the and XX of for drugs. also where even with daily with be mode allowing dual approved of at one the X Ohtuvayre's the Pharma's that as ordinary novel recent is inhaled of Phase Verona well anti-inflammatory consider pipeline ensifentrine, chronic need twice room

field Verona approval, U.S. has hired the With XXX personnel.

care COPD As a to late approximately appointments reports WAC be $X,XXX months to estimates expect and Analysts million price had living vast to update forward Ohtuvayre's will that symptomatic and these of June, fourth a Ohtuvayre the the launch. In despite coverage representatives during the be to reports as look from X.X Ohtuvayre. estimated the of monthly already Ohtuvayre provider launch focus and there with U.S. benefit. Verona health nebulized occur during under product, X half medical today, premium the Verona a also for other June, people we quarters. launch. This treatment of of their third are of X,XXX scheduled first announced an Verona Verona remain COPD treatments. of will represents the progresses receive Verona whom majority in that patients blockbuster persistently

Turning Slide XX. to

for streptococcus conjugate pneumococcal Now is let's criteria pneumococcal licensed pneumococcal justification as state quote: and a prevention provides that prevent pneumococcal previously Merck's that conditions, qualifying the approval June the a granted win. covered their In or other drug approved majority currently Merck highlight thing want adult is CDC's today. treats Immunization and CAPVAXIVE IPD vaccines that on latest the Committee XX over June XX, not by in recommended we serious conjugated Practices, pneumonia CAPVAXIVE share aged market the as effectiveness Given setting. The X clinical that stated: call, with and history years broadening that as XX adults of significant designed have or for received could who will recent serotype XX older I a known in situations. review action VXXX, and its meets improvement December double specifically ACIP, whose pneumococcal pneumococcal among believe a pipeline compelling market not is earnings CAPVAXIVE pneumonia, conjugate on vaccine. CAPVAXIVE known on basis to will other all update. currently vaccine CAPVAXIVE vaccine regulatory the years October adults includes on call aged achieve for over on a CAPVAXIVE, adults is old disease the in received this also expect vaccine Tavo turn profile, FDA for to and invasive XXXX, the pneumonia Advisory XX with last previously ACIP the to XX, medical XX. that, the Analysts to that XX for adults to valent I another At underlying I of financial conditions consider for CAPVAXIVE, FDA this and all FDA's unknown, size opportunity. With turn certain adults. The priority the to potentially meeting, commercial its now summary XX may

Octavio Espinoza

Karen. Thanks,

Let's move Slide please. XX, to

impairment First, from non-GAAP business, of the share and our amongst investments, results Bio financial of unrealized including the incubate amortization to assets, under Pelthos' I Primrose highlight I compensation, be will want discussing which certain expenses losses to short-term assets, of in others. equity accounting investment or from our losses and/or for gains exclude that amortization method, items, incurred stock-based intangible absorbed

total compared results reconciliation We In just driver. to of deployable and and of the for strong increased our of future $XX.X in revenue our past key can approvals regulatory core Ohtuvayre total addition, of over when of Citibank. Slide to $XX.X we XX under can available capital $XX.X $XXX measures is found quarter cash assist adjusted today's from quarter with revenue and our from Viking the these investors when further GAAP core million the financial year include XXXX. Royalty CAPVAXIVE. Royalty prior milestones the Travere's sale financial prior you to $XX.X earned with core adjusted million non-GAAP in measures, due detail. year encourage FILSPARI million second to believe to and reported release we results assessing in million, Verona's growing to I grew available we in revenue stock. focus analyzing that we FILSPARI, million which Merck's the adjust reported website. million primarily of is million our review quarter in investors above the XX% ended the from which EPS QX or in have growth $XX.X the $XXX an under million be results, on million we quarter. the which sales FILSPARI, frames on $X.XX another more you versus 'XX $XX.X quarter business $XXX We year gains total the increase with growing in realized million XX% Therapeutics operating Travere's by driven performance. We investments, the revenue to revenue of a being the with XXX% prior XX% quarter and to of in quarter. in Travere's the prior increase $X.X quarter and reported by the million year $XX.X the quarter, mentioned, with second reported facility this credit up Like in over I The sales the

million earn million. assets, $X.X $X.X approvals versus quarter $XXX will As earned the sales $XX.X $X.X orders. on second with from as Contract earned believe RYLAZE approval $XXX.X with and approved a reported a year the of namely due $X the and approval was due approval $X.X well million CAPVAXIVE. the increase to this X% of we prior Ohtuvayre the with million royalty quarter, royalty FILSPARI, from sales revenue product the the QX European the revenue million quarter, recently is customer continue of XXXX royalty earned quarter timing sales VAXNEUVANCE million of X and of of primarily reported payment to reminder, from products in of drive the this the revenue milestone FILSPARI. Other the to the Jazz's include along to these Merck's future. Captisol quarter were million in growth this contributors sales We with in major million of QARZIBA royalty as

increase increased team from the million primarily in quarter driven business in the 'XX. QX from the by Moving the decreased development on $XX.X with made $X.X driven to to million prior $X.X to in QX in $XX.X incubate the investment as expenses in decrease year's made operating resulting quarter last quarter Pelthos headcount-related Boston. our well expenses. million The build expenses year up and to R&D expenses investment spinout. G&A $X.X this by million investments from 'XX, primarily Pelican million to year as $X.X business prior is business million lower

with previous calls, the on mentioned to incremental we've Pelthos we incubating associated incur costs business. expect As operating

Takeda's the spinout intent million non-GAAP the Pelthos the soticlestat reporting to result to are our by as results Primrose the therefore, in purposes is previously asset in decrease was recorded carrying recently out-license Paul. The financial expenses of investment in a to royalty million is by that out business, and of and/or Our these the Bio we primarily related Takeda Phase other earnings. The primarily $XX.X carrying announced adjusted attributable the X reduction is adjusting value to discussed of for investment. recorded impairment to value $XX of noncash our expense

at adjustments second is to of Primrose net investment $X.XX in in or year valuation per Our equity in income soticlestat the below XX.X% share per of value we fair decreased change our in at or prior in interest value to net round the a reduction of was and GAAP Primrose The GAAP due versus largely investment. GAAP spun in XXXX million $X.X carrying quarter. business the ownership Pelican was EPS value share arrived September round. connection has out million of from in a value $X.XX which the recent in in financing carrying financing our Bio. resulted Bio with the reduction XX.X% of in the diluted when in the The the loss XXXX, quarter asset the $XX.X

impact $X.XX the per the of quarter. non-GAAP share XXXX $XX.X earlier, or these share prior as diluted adjusted adjustments described the other million versus $X.XX second per year quarter was well Excluding million income $XX.X of core in the or as net in diluted

Turning to the balance sheet.

As of of of Viking million short-term had million, which stock. XXXX, $XX investments holdings our includes June common $XXX we in XX, and cash

not shares cash plus quarter. We anticipate future. Viking generation of will foreseeable We our investment stock any expect activity sell the fund did that current over flow annual be to this sufficient cash the we

fluctuation QX a However, the we hedge in with assets. $XX.X of stock the unrealized and agreement did classified against a associated value option derivative a caller into in price other agreement that recorded collar gain enter option Viking million current to risk. We asset is 'XX,

million quarter addition, available by facility credit In with under us we that credit this now $XX to and $XXX our Citibank expanded million have facility.

guidance under Slide to now XX. Turning

reaffirming guidance with we XXXX As gave X Apeiron acquisition the conjunction July on we mentioned in financial earlier, are the announcement. updated

XXXX XXXX and expect guidance result or financial be exceed to $XXX $X.XX. the $X $XX $XXX of of million sales in will adjusted million $XX of to million million of total earnings guidance. on revenue $XX share core confident $XXX in of meet and per we've range million total our We These updated diluted EPS components revenue track to $XX the million. adjusted and $XX the range royalty revenue of Year-to-date, range to $XXX $X.XX. feel revenue recorded of of million, we're to million We million, in Captisol contract to in revenue that

above and XX%. growth compound spills shared, calls continue even a also XX% outlook growing EPS core term compound at which longer faster royalty to We above revenue growing at rate of and growth a rate adjusted confident out we've XXXX the feel annual about to for annual

our like earnings I'd the to to now to Finally, website. I'll issued for listeners press on Todd our today, to of call direct results the available is results, reconciliation turn closing quarter adjusted GAAP over financial second release which including comments. earlier a

Todd Davis

portfolio of Ligand grow at assets. has I a and progress our the of generating everyone Ligand tremendous Thank half low-cost an to scalable royalty XXXX. thank joining first efficient made in continue We've for today. you, model Tavo. us to business want infrastructure to

our accelerate. investment the are of and stage our steadily We pace increasing continues major products commercial to activity

We positioned long-term shareholders. believe and growth to are set for value ambitious targets create have further yet for our we realistic well

up will We now for the open questions. call

Operator

comes the Craig-Hallum. Matt first your line [Operator of question Hewitt Instructions] from And of

Matthew Hewitt

you've an Pelthos you do active these on spun putting been first with opportunity, And are once of since is that the asset? the you off, upfront discussions quarter. anticipate congratulations on up, kind asset recovering acquired starting update Well, here Maybe costs the business that an those going. into partnership how

Todd Davis

several parallel, but what tangible witnessed have spinout, similar and Primrose be will straight we licensing capital strategic our financing potentially ongoing options, raising to what by with from additional Viking discussions Therapeutics that also in did a this we with we or opportunities. ranging into strategic which merger Yes, company, effectively quarter

but So and this asset. We you efforts them say believe commercialize this it, spin an investment well. the as we're is we those will our and optimal the rush to incubating progress know, out. things we process way in And very not this And commit to thesis. ongoing. going as these confident have pretty out success I And is that are spinning we'll would the to

Matthew Hewitt

one then But regarding -- good I'll growth thinking be what should about for stream. hop one and me fast that And queue. and those maybe back would QARZIBA, I of for sense have for that how the how don't we We and asset? a the are growing revenues in mean then don't royalty your more have

Paul Hadden

Yes.

I'll head This question. is great Paul. take that So on.

growth is Recordati, for asset. this a So

see it to with regions. SYLVANT, asset. market to It's the that territories was we rate franchise continue XXX X of by the was million, another XX.X%. go I a on. But have most royalty to the growth also is earnings, said mainly for this revenue new oncology announcement, QARZIBA growth penetrate years, continued their recent on of put don't up obvious, which product net earnings if and you they think their growing EUR And that been but at a driven of

this bring in secured last for fact, Ligand Korea. month, why which we approval see it eager the they the we portfolio. In to South future, were an is into foreseeable growing just And

Octavio Espinoza

we add, view Slide And a that our to term to longer take want you then that outlook, if sense have for if at stream. royalty look want do layered get X, into would a I you just on our

Operator

Your the comes next from RBC Markets. Douglas question Capital line of of Miehm

Douglas Miehm

A couple of questions.

to million of $XXX one, spend about potential wondering of talk investments. HX outlook First if 'XX the contemplating. you're just year end the these that for if maybe to sizing to through And I thinking and maybe like million, the I'm you you'd deals XX XXXX. things about believe in $XXX and range we're a could the XX maybe

Todd Davis

looking we to variation a $XXX what at pretty commitment Yes, have And which a that. a speaking. it's at general, although sure. -- have able to diversified to that But have pace believe course. asset. are invest And functionally some typically about on. I make diversification of new more offsets per of team one investment immediately, been $XXX going million, can by be we're be year. the around investments, operating to asset And we to commitments $XX fairly not cash trying to pipeline portfolio, per at we a And active we're When more planning and of recent making a build a kind is was this large significantly. But are we built million now. $XX that's we're size. typically in generative course, million There million than Todd

But go. on So the how I we some might done good get a year be this depending good would base a expectation. more could but discussions that's variation deals a case, there think be couple

Douglas Miehm

set then new its And the the curious, Ohtuvayre in launch, obviously be should milestone, for at know already shortly, meetings, be QX, in come that product company. potential million going you the royalty, pricing or guess, up that look $XX.X would I I'm now, to they've we fair? an product exciting as and

Octavio Espinoza

And into likely they that not Yes. to has contract, We've the revenue QX. Verona, got in in for it's said that the year. forecast do if And company, factored launch. plan QX, our probably forecast

Douglas Miehm

although like the the doesn't line, up with under available increased I'll you wrap line wrap there. to just And would that draw expect to And me is it you then circumstances on use to you? it. look let up you But have what it -- need

Todd Davis

Yes.

If to are kind of we you try significantly, should we in could give of Tavo But flow to -- second million reasonable cash to accelerates generate the year, next maintain be But close half pace million of $XX investment over new may our $XXX year. cash some balances. think the draw balance. of of going estimates. we the to we'll that generation, I start down

the I looking I that the not be don't imminent an activities our that current to like pace, feel with we're activity. And current it's So imminent. at at, expect pipeline, would

from runway right of now. plenty where are have We we

Octavio Espinoza

run for operating this And including interest Doug, the tell our rate rate I'm run guidance can in not the above any -- expense cash $XXX I on XXXX. year cash point. a at you, is million

Operator

Joe from line of comes the Wainwright next Company. Your Pantginis H.C. of and question

Unknown Analyst

is Joe. This ] Josh [ on for

and wondering provide I Captisol you as was for BD how currently an to continues research stream guys, revenue describe the So and going, are mix important guys efforts could outbound. if both you the versus inbound commercial your

Octavio Espinoza

on inverse. then actual use. the XX% it's it's maybe say of Yes. customers, XX% commercial leans research versus of very mix side. would the and research the commercial terms in say quantity commercial would heavily probably perhaps I But I No, the

a in question of We have their volumes a significant larger of significantly then take take in for didn't commercial of research large address? portion second that amount customers customers lower there that amount needs. Was Captisol product, a but that of I that

Unknown Analyst

and the about BD outbound. Just effort, inbound

Todd Davis

Yes.

pace around I So of say Captisol the deal there's business. that flow would steady a

to conducting at that, are review accelerate We cetera. different a business, looking ways et strategic and the there expand

of we part the half now. on in focus there's we best terms spent -- the using till really deal half and out our 'XX really in So the that's generation we around technologies a the commencing first through building practices of team significant that of investment operational second existing terms new platform execution terms And platforms. assets of right are of have our now monetizing our in

assets we're But acquisition. are that very potential For that there ZELSUVMI high the that example, out other platform launch. on oxide nitric came focused number of purchased, clinical the a of we

we that better. practices, what of now, there and our us management So right think a and can I that's do fact, we in and year do are this a reviewing do focus on can asking we job optimizing ourselves better that,

but to So yield we some those give on us activities frankly, forward. time, going have, greater hope

Operator

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

Unknown Analyst

guys from million This around CAPVAXIVE. sales a XXXX annual with seems XXXX about Balaji. And on Shaon on uptake in for rapid the $XXX is relatively based Slide XX, expecting question like chart are to ] [ you it The is year XXXX.

you a to of And could consider? benchmark royalty us So give X with VAXNEUVANCE growth your that, revenue this how on years? the ballpark good a asset would range for next much could drive

Octavio Espinoza

referenced first a that those want to going out I X. Yes, if are you that then the sense for revenue on guess out to want refer is think get you I we And that that say analyst consensus there top plays would chart the would to that XXXX, just how how numbers. to stream you Slide I line royalty

Operator

from Your Solow question comes CJS. of Larry line with next the

Lawrence Solow

first for timing the active congrats acquisition, clarify, the question, to I the Essentially and back, an quarter. of mean royalties, right? I remainder. on the there's not then -- good guidance weeks change, which just essentially timing. There's and million that I milestone the that's a the so is guess payments did echo you few $XX Apeiron from

Octavio Espinoza

That's right.

right, that got Yes. Larry. You

Lawrence Solow

And curious then sourcing. I'm just just on

acquired it's doesn't Xx So about it's it looks -- U.S., asset like accelerate there's and growing like basically this sounds which for include royalty. And potentially you not the -- it some could growth.

could there's but on Just share. curious if it just came whatnot sourcing how divulging curious you without about sauce, anything and of this secret any asset

Todd Davis

Paul into There's Yes. he actually I'll our since answer originated a deal. that but that of origination effort let that goes lot efforts,

Paul Hadden

them question. opportunity. involved great the is There secure reason some was perspective. guess And significant it benefits why that were because we a back selling in to proprietary it's a shareholders. There were shares acquire from short, Yes, to go able the it the we're years. relationships were many tax to a able I for

of our really these obviously, it play. complex so of types transaction. cross-border of in both on the a transactions underwriting made diligence experience came team's into And lot sense And and sides

are a that in some it referenced lot the release. made were So press sense. just earnouts And future of there

And the Apeiron. we're so really, owners be happy to of proud

Lawrence Solow

in. switch and gears could just I If squeeze one more

follow-up then adult is market slide is just but based is than it I this in not standard on and a in science, pneumococcal exact an question Is today looks this as vaccine VAXNEUVANCE as the general, care -- guess it's looking I or big like And -- CAPVAXIVE, ACIP the a even the my knowledge at the limited Again, and of that. what question right on or on another is market recommendation market, Just on pediatric? from the today has today? bigger side. B, this A. pediatric is historical change guess what adult is the

Octavio Espinoza

Yes. give formerly VXXX. mean I VAXNEUVANCE, as on perspective can known my you I

think with program We're sure out And the there with billion existing trending how there. product. Pfizer's clearly market is not so billion quite towards PREVNAR, the $X Merck's CAPVAXIVE. the a to I status dynamics market blockbuster that leader, play $X will

as CAPVAXIVE show $X expect well. to chart we eclipse on to, analysts as mark so billion the And there, the

but So it's coming we're the still royalty that stream future, about excited early. in

Operator

[Operator Instructions]

Todd Davis

are I'll more questions, there no If wrap up.

for Thank call the forward everyone, on you today's to call. in look We in joining our Okay. November. progress company you, Good next quarterly updating day.

Ligand Pharmaceuticals (LGND) 6 Aug 242024 Q2 Earnings call transcript