Conference Call Begins at 4:30 p.m. Eastern
Time Today
Ligand Pharmaceuticals Incorporated (NASDAQ: LGND) today
reported financial results for the three months ended March 31,
2022 and provided an operating forecast and program updates. Ligand
management will host a conference call today beginning at 4:30 p.m.
Eastern time to discuss this announcement and answer questions.
“2022 is off to a strong start with solid financial performance
from our growing roster of royalty-bearing products and great
execution from all our core technology platforms,” said John
Higgins, CEO of Ligand. “We are excited about the potential growth
of our business in the years to come as several recently approved
products are launched and our portfolio of late-stage programs
continue to advance. In addition to our financial performance, the
announced separation of our OmniAb antibody discovery business is
well underway with the merger with the Avista SPAC expected to
close this year."
First Quarter 2022 Financial Results
Revenue for the first quarter of 2022 was $45.7 million,
compared with $55.2 million in the prior period. First quarter
revenue grew across all categories with the exception of COVID-19
related Captisol sales. Core Captisol sales in the first quarter
2022 were $6.2 million compared to $1.3 million in the prior year.
The difference in sales is due to timing of customer orders.
Captisol sales related to COVID-19 were $5.9 million for the first
quarter of 2022, compared with $30.0 million for the same period in
2021. The lower sales are due to reduced demand for the
pandemic-related treatment. Royalty revenue grew 93% to $13.7
million due primarily to contribution of sales from products using
the Pelican platform. Contract revenue grew 19% to $19.9 million.
Revenue attributable to the OmniAb business for the first quarter
of 2022 was $9.2 million, compared with $8.6 million for the prior
year period.
Cost of Captisol was $4.7 million for the first quarter of 2022,
compared with $8.2 million for the same period in 2021, with the
decrease primarily due to lower total sales of Captisol.
Amortization of intangibles was $11.8 million for the first quarter
of both 2022 and 2021. Research and development expense was $20.3
million for the first quarter of 2022, compared with $17.9 million
for the same period of 2021. General and administrative expense was
$18.2 million for the first quarter of 2022, compared with $12.6
million for the same period in 2021, with the increase primarily
due to $4.8 million in transaction costs incurred during the first
quarter of 2022 in connection with the planned spin-off of
OmniAb.
Net loss for the first quarter of 2022 was $(15.4) million, or
$(0.91) per share, compared with net income of $18.1 million, or
$1.05 per diluted share, for the same period in 2021. Net loss for
the first quarter of 2022 included a $(12.6) million net non-cash
loss from the value of Ligand’s short-term investments, while net
income for the first quarter of 2021 included a $9.1 million net
non-cash gain from the value of Ligand’s short-term investments.
Adjusted net income for the first quarter of 2022 was $13.1
million, or $0.76 per diluted share, compared with $24.3 million,
or $1.41 per diluted share, for the same period in 2021. Excluding
the impact of gross profit, net of tax, for Captisol sales related
to COVID-19, adjusted net income for the first quarter of 2022 was
$10.0 million, or $0.58 per diluted share, compared with $2.9
million, or $0.14 per diluted share, for the same period in 2021.
Please see the table below for a reconciliation of net
income/(loss) to adjusted net income.
Ligand repurchased $165.8 million in principal of its 2023 Notes
for $163.7 million in cash. As of March 31, 2022, Ligand had cash,
cash equivalents and short-term investments of $204.0 million.
2022 Financial Guidance
Ligand is reaffirming 2022 revenue guidance for the combined
business and providing revenue estimated to be attributable to the
OmniAb business anticipating the spin-off later this year. Ligand
expects 2022 royalties of $55 million to $60 million, Captisol
sales of $40 million to $50 million and contract revenue of $52
million to $62 million. These revenue components result in total
revenue of $147 million to $172 million for the combined business.
Ligand expects that $35 million to $45 million of revenue will be
attributable to OmniAb, principally in the contract revenue
line.
Ligand is introducing full-year 2022 earnings guidance and a
breakout of revenue and earnings guidance for the Ligand business
excluding OmniAb and COVID-related Captisol. Of the $40 million to
$50 million of expected Captisol sales, Ligand expects
approximately $17 million to $19 million to be attributable to core
Captisol sales, and the balance to be attributable to treatments
for COVID-19. Excluding OmniAb and COVID-related Captisol, Ligand
expects revenue to be $90 million to $100 million and adjusted
earnings per diluted share to be $1.50 to $1.80. Ligand expects the
contribution from COVID-related Captisol and the OmniAb business to
be between $0.20 and $0.40 per diluted share, resulting in adjusted
earnings per diluted share for the full company of $1.70 to
$2.20.
Update on the OmniAb Separation Process
On March 23, 2022, Ligand announced the signing of a definitive
merger agreement with Avista Public Acquisition Corp. II (APAC)
(NASDAQ: AHPA), a publicly traded special purpose acquisition
company (SPAC), providing for the spin-off and merger of OmniAb.
The combination of OmniAb and APAC is structured to provide a
minimum of $130 million in gross cash to the combined company at
the time of closing, and up to $266 million in the event of no
redemptions by APAC shareholders.
OmniAb will have an initial pre-money equity valuation of $850
million. Ligand intends to distribute 100% of its ownership in
OmniAb to Ligand shareholders immediately prior to the business
combination with APAC. The transaction is expected to be tax-free
to Ligand and its shareholders for U.S. federal income tax
purposes. This transaction is expected to close in the second half
of 2022.
See “Important Information and Where to Find It” and
“Participants in the Solicitation” below for additional information
regarding the transaction.
First Quarter 2022 and Recent Business Highlights
OmniAb® Platform and Partner Updates
The OmniAb discovery platform provides Ligand’s pharmaceutical
industry partners with access to diverse antibody repertoires and
high-throughput screening technologies to enable discovery of
next-generation therapeutics. At the heart of the OmniAb platform
is the Biological Intelligence™ (BI) of our proprietary transgenic
animals, including OmniRat, OmniChicken and OmniMouse that have
been genetically modified to generate antibodies with human
sequences to facilitate development of human therapeutic
candidates. Over 55 partners have access to OmniAb-derived
antibodies and more than 250 programs are being actively developed
or commercialized. As of March 31, 2022, there were 25 active
clinical- or commercial- stage OmniAb-derived antibodies.
In March, Immunovant held an R&D day, where they highlighted
Batoclimab (IMVT-1401), an OmniAb-derived monoclonal antibody
targeting the neonatal Fc receptor. Immunovant announced plans to
initiate a Phase 3 trial in myasthenia gravis in the first half of
2022 with top-line results expected in 2024. Immunovant further
outlined plans to initiate clinical trials in four additional
indications in 2022, with two of the indications expected to enter
directly into pivotal trials. Batoclimab is also being developed by
Harbour BioMed in China and is currently in an ongoing pivotal
Phase 3 trial in patients with myasthenia gravis.
Aptevo Therapeutics announced that a patient with
relapsed/refractory acute myeloid leukemia in an on-going Phase 1b
trial received an allogeneic stem cell transplant after receiving
APVO436 and experiencing significant reduction in bone marrow
blasts. This follows Aptevo's previous announcement that a patient
receiving combination therapy is also moving to transplant after
one cycle of therapy.
In Q1 and recently, OmniAb entered into new platform licensing
agreements with LTZ Therapeutics, Seismic Therapeutics, LifeArc and
an undisclosed venture-backed Bay Area immuno-oncology company.
Other Portfolio Updates
In March, Travere Therapeutics announced the submission of an
NDA to the FDA for accelerated approval of sparsentan for IgA
nephropathy (IgAN). Travere announced that plans are underway to
submit an NDA for accelerated approval to the FDA for focal
segmental glomerulosclerosis (FSGS) and a combined IgAN and FSGS
Marketing Authorisation Application in Europe in mid-2022.
In April, Merck announced the FDA granted Breakthrough
Designation for V116, a 21-valent pneumococcal vaccine utilizing
Ligand’s CRM197 vaccine carrier protein produced using the Pelican
Expression Technology platform. Merck plans to initiate Phase 3
clinical trials for V116 in 2022.
On February 2, 2022 Jazz Pharmaceuticals announced the
submission of a supplemental BLA to the FDA seeking approval for a
M/W/F intramuscular dosing schedule for Rylaze™ as a component of a
multi-agent chemotherapeutic regimen for the treatment of acute
lymphoblastic leukemia. Jazz announced on their Q4 earnings call
plans to submit regulatory filings for Rylaze in Europe in mid-2022
with potential approval in 2023.
In February, BeiGene, Ltd. announced the launch of KYPROLIS®
(carfilzomib) for injection in China for patients with
relapsed/refractory (R/R) multiple myeloma. KYPROLIS is licensed to
BeiGene in China under a strategic collaboration with Amgen, and
was approved in July 2021 by the China National Medical Products
Administration (NMPA) in combination with dexamethasone for the
treatment of adult patients with R/R multiple myeloma who have
received at least two prior therapies, including a proteasome
inhibitor and an immunomodulatory agent.
Outlook Therapeutics announced it submitted a BLA to the FDA for
ONS-5010, an investigational ophthalmic formulation of bevacizumab
for the treatment of wet age-related macular degeneration that, if
approved, will be branded as LYTENAVA™ (bevacizumab-vikg).
Ligand provides regular updates on partner events through its
Twitter account, @Ligand_LGND.
Adjusted Financial Measures
The Company reports adjusted net income and adjusted net income
per diluted share in addition to, and not as a substitute for, or
superior to, financial measures calculated in accordance with GAAP.
The Company’s financial measures under GAAP include share-based
compensation expense, non-cash interest expense, amortization
related to acquisitions and intangible assets, changes in
contingent liabilities, mark-to-market adjustments for amounts
relating to its equity investments in public companies, excess tax
benefit from share-based compensation, gross profit for Captisol
sales related to COVID-19, net of tax, transaction costs, and
others that are listed in the itemized reconciliations between GAAP
and adjusted financial measures included at the end of this press
release. However, the Company does not provide reconciliations of
such forward-looking adjusted measures to GAAP due to the inherent
difficulty in forecasting and quantifying certain amounts that are
necessary for such reconciliation, including adjustments that could
be made for changes in contingent liabilities, changes in the
market value of its investments in public companies, share-based
compensation expense and the effects of any discrete income tax
items. Management has excluded the effects of these items in its
adjusted measures to assist investors in analyzing and assessing
the Company’s past and future core operating performance.
Additionally, adjusted earnings per diluted share is a key
component of the financial metrics utilized by the Company’s board
of directors to measure, in part, management’s performance and
determine significant elements of management’s compensation.
Conference Call
Ligand management will host a conference call today beginning at
4:30 p.m. Eastern time (1:30 p.m. Pacific time) to discuss this
announcement and answer questions. To participate via telephone,
please dial (866) 518-6930 from the U.S. or (203) 518-9797 from
outside the U.S. and use conference ID LP1Q22. To participate via
live or replay webcast, a link is available at www.ligand.com.
About OmniAb®
The OmniAb discovery platform provides Ligand’s pharmaceutical
industry partners access to the diverse antibody repertoires and
high-throughput screening technologies to enable discovery of
next-generation therapeutics. At the heart of the OmniAb platform
is the Biological Intelligence (BI) of our proprietary transgenic
animals, including OmniRat, OmniChicken and OmniMouse that have
been genetically modified to generate antibodies with human
sequences to facilitate development of human therapeutic
candidates. OmniFlic (transgenic rat) and OmniClic (transgenic
chicken) address industry needs for bispecific antibody
applications though a common light chain approach, and OmniTaur
features unique structural attributes of cow antibodies for complex
targets. We believe OmniAb animals comprise the most diverse host
systems available in the industry and they are optimally leveraged
through computational antigen design and immunization methods,
paired with high-throughput single B cell screening and deep
computational analysis of next-generation sequencing datasets to
identify fully human antibodies with superior performance and
developability characteristics. An established core competency
focused on ion channels and transporters further differentiates our
technology and creates opportunities to further leverage across
modalities, including antibody-drug conjugates and others. The
OmniAb suite of technologies and differentiating computational
capabilities and BI features are combined to offer a highly
efficient and customizable end-to-end solution for the growing
discovery needs of the global pharmaceutical industry.
About Ligand Pharmaceuticals
Ligand is a revenue-generating biopharmaceutical company focused
on developing or acquiring technologies that help pharmaceutical
companies discover and develop medicines. Our business model
creates value for stockholders by providing a diversified portfolio
of biotech and pharmaceutical product revenue streams that are
supported by an efficient and low corporate cost structure. Our
goal is to offer investors an opportunity to participate in the
promise of the biotech industry in a profitable, diversified and
lower-risk business than a typical biotech company. Our business
model is based on doing what we do best: drug discovery,
early-stage drug development, product reformulation and partnering.
We partner with other pharmaceutical companies to leverage what
they do best (late-stage development, regulatory management and
commercialization) ultimately to generate our revenue. Ligand’s
OmniAb® technology platform is a patent-protected transgenic animal
platform used in the discovery of fully human monoclonal and
bispecific therapeutic antibodies. The Captisol platform technology
is a patent-protected, chemically modified cyclodextrin with a
structure designed to optimize the solubility and stability of
drugs. Ligand’s Pelican Expression Technology is a robust,
validated, cost-effective and scalable platform for recombinant
protein production that is especially well-suited for complex,
large-scale protein production where traditional systems are not.
Ligand has established multiple alliances, licenses and other
business relationships with the world’s leading pharmaceutical
companies including Amgen, Merck, Pfizer, Sanofi, Janssen, Takeda,
Gilead Sciences and Baxter International. For more information,
please visit www.ligand.com.
Important Information and Where to Find It
In connection with the Business Combination and the
Distribution, OmniAb has filed with the SEC a registration
statement on Form 10 (the “Form 10”) registering shares of OmniAb
Common Stock and APAC has filed with the SEC a registration
statement on Form S-4 (the “Form S-4”) registering shares of APAC
Common Stock, warrants and certain equity awards. The Form S-4 to
be filed by APAC will include a proxy statement/prospectus in
connection with the APAC shareholder vote required in connection
with the Business Combination. The Form 10 filed by OmniAb included
portions of the Form S-4 filed by APAC, which will serve as an
information statement/prospectus in connection with the spin-off of
OmniAb. This communication does not contain all the information
that should be considered concerning the Business Combination. This
communication is not a substitute for the registration statements
that OmniAb and APAC filed with the SEC or any other documents that
APAC or OmniAb may file with the SEC, or that APAC, Ligand or
OmniAb may send to stockholders in connection with the Business
Combination. It is not intended to form the basis of any investment
decision or any other decision in respect to the Business
Combination. APAC’s shareholders and Ligand’s stockholders and
other interested persons are advised to read the preliminary and.
When available, the definitive registration statements, and
documents incorporated by reference therein, as these materials
will contain important information about APAC, OmniAb and the
Business Combination. The proxy statement/prospectus/information
statement contained in APAC’s registration statement will be mailed
to APAC’s shareholders as of a record date to be established for
voting on the Business Combination.
The registration statements, proxy
statement/prospectus/information statement and other documents
(when they are available) will also be available free of charge, at
the SEC’s website at www.sec.gov, or by directing a request to:
Avista Public Acquisition Corp. II, 65 East 55th Street, 18th
Floor, New York, NY 10022.
Participants in the Solicitation
Ligand, APAC and OmniAb, and each of their respective directors,
executive officers and other members of their management and
employees may be deemed to be participants in the solicitation of
proxies from APAC’s shareholders in connection with the Business
Combination. Shareholders are urged to carefully read the
preliminary proxy statement/prospectus/information statement
regarding the Business Combination and the final proxy
statement/prospectus/information statement when it becomes
available, because it will contain important information.
Information regarding the persons who may, under the rules of the
SEC, be deemed participants in the solicitation of APAC’s
shareholders in connection with the Business Combination is set
forth in the registration statement filed with the SEC. Information
about APAC’s executive officers and directors and OmniAb’s
management and directors also is set forth in the preliminary
registration statements relating to the Business Combination.
No Solicitation or Offer
This communication shall neither constitute an offer to sell nor
the solicitation of an offer to buy any securities, or the
solicitation of any proxy, vote, consent or approval in any
jurisdiction in connection with the Business Combination, nor shall
there be any sale of securities in any jurisdiction in which the
offer, solicitation or sale would be unlawful prior to any
registration or qualification under the securities laws of any such
jurisdictions. This communication is restricted by law; it is not
intended for distribution to, or use by any person in, any
jurisdiction where such distribution or use would be contrary to
local law or regulation.
Forward-Looking Statements
This news release contains forward-looking statements by Ligand
that involve risks and uncertainties and reflect Ligand's judgment
as of the date of this release. Words such as “plans,” “believes,”
“expects,” “anticipates,” and “will,” and similar expressions, are
intended to identify forward-looking statements. These
forward-looking statements include, without limitation, statements
regarding: the expected timing and structure of the Business
Combination; the ability of the parties to complete the Business
Combination, the expected benefits of the Business Combination; the
tax consequences of the Business Combination; the amount of gross
proceeds expected to be available to OmniAb after the closing and
giving effect to any redemptions by APAC shareholders; OmniAb’s
future results of operations and financial position, business
strategy and its expectations regarding the application of, and the
rate and degree of market acceptance of, the OmniAb technology
platform and other technologies; OmniAb’s expectations regarding
the addressable markets for our technologies, including the growth
rate of the markets in which it operates; the potential for and
timing of receipt of milestones and royalties under OmniAb’s
license agreements with partners; the timing of product launches by
Ligand or its partners; the potential for regulatory approvals of
our partners’ product candidates; the timing of the initiation or
completion of preclinical studies and clinical trials by Ligand and
its partners; and guidance regarding 2022 financial results,
including amounts attributable to the OmniAb business, and
expectations for near-term and future royalty revenue. Actual
events or results may differ from Ligand's expectations due to
risks and uncertainties inherent in Ligand’s business, including,
without limitation: Ligand may not receive expected revenue from
royalties, Captisol sales or contract revenue; the COVID-19
pandemic has disrupted and may continue to disrupt Ligand’s and its
partners’ business, including delaying manufacturing, preclinical
studies and clinical trials and product sales, and impairing global
economic activity, all of which could materially and adversely
impact Ligand’s results of operations and financial condition;
changes in general economic conditions, including as a result of
the conflict between Russia and Ukraine; Ligand may not achieve its
guidance for 2022; the commercial opportunity for remdesivir could
be materially and adversely affected as a result of approved
vaccines and alternative approved and investigational therapies, or
the FDA revising or revoking its approval; Gilead may develop an
alternative formulation of remdesivir that does not incorporate
Captisol or uses less Captisol in such formulation; there may not
be a market for the product(s) even if successfully developed and
approved; Ligand is currently dependent on sole supplier for
Captisol and failures by such supplier may result in delays or
inability to meet the Captisol demands of its partners; Amgen,
Acrotech Biopharma or other Ligand partners, may not execute on
their sales and marketing plans for marketed products for which
Ligand has an economic interest; Ligand or its partners may not be
able to protect their intellectual property and patents covering
certain products and technologies may be challenged or invalidated;
Ligand's partners may terminate any of its agreements or
development or commercialization of any of its products; Ligand may
not generate expected revenues under its existing license
agreements and may experience significant costs as the result of
potential delays under its supply agreements; Ligand and its
partners may experience delays in the commencement, enrollment,
completion or analysis of clinical testing for its product
candidates, or significant issues regarding the adequacy of its
clinical trial designs or the execution of its clinical trials,
which could result in increased costs and delays, or limit Ligand's
or partners' ability to obtain regulatory approval; unexpected
adverse side effects or inadequate therapeutic efficacy of Ligand's
or partnered product(s) could delay or prevent regulatory approval
or commercialization; challenges, costs and charges associated with
integrating recently completed acquisitions with Ligand’s existing
businesses; and ongoing or future litigation could expose Ligand to
significant liabilities and have a material adverse effect on the
company. In addition, there are significant risks and uncertainties
relating to the potential separation of the OmniAb business,
including, among others: the Distribution and Business Combination
may not be completed in accordance with the expected plans or
anticipated timeline or at all, and may not achieve the intended
strategic, operational and financial benefits, and will involve
significant time, expense and management attention, any of which
could negatively impact Ligand’s business, financial condition and
results of operations; the Distribution and Business Combination
are subject to market, tax and legal considerations, approval by
APAC's shareholders and other customary requirements; and the
announcement or pendency of the separation may have negative
effects on relationships with Ligand’s employees, partners,
suppliers, and other third parties or otherwise disrupt Ligand’s or
the OmniAb business. The failure to meet expectations with respect
to any of the foregoing matters may reduce Ligand's stock price.
Additional information concerning these and other risk factors
affecting Ligand can be found in prior press releases available at
www.ligand.com as well as in Ligand's public periodic filings with
the Securities and Exchange Commission available at www.sec.gov.
Ligand disclaims any intent or obligation to update these
forward-looking statements beyond the date of this release,
including the possibility of additional contract revenue we may
receive. This caution is made under the safe harbor provisions of
the Private Securities Litigation Reform Act of 1995.
Other Disclaimers and Trademarks
The information in this press release regarding certain
third-party products and programs comes from information publicly
released by the owners of such products and programs. Ligand is not
responsible for, and has no role in, the development of such
products or programs.
Ligand owns or has rights to trademarks and copyrights that it
uses in connection with the operation of its business including its
corporate name, logos and websites. Other trademarks and copyrights
appearing in this press release are the property of their
respective owners. The trademarks Ligand owns include Ligand®,
Pelican®, Captisol® and OmniAb®. Solely for convenience, some of
the trademarks and copyrights referred to in this press release are
listed without the ®, © and ™ symbols, but Ligand will assert, to
the fullest extent under applicable law, its rights to its
trademarks and copyrights.
LIGAND PHARMACEUTICALS
INCORPORATED
CONDENSED CONSOLIDATED
STATEMENTS OF OPERATIONS
(Unaudited, in thousands, except
per share amounts)
Three Months Ended March
31,
2022
2021
Revenues:
Royalties
$
13,695
$
7,112
Captisol - Core
6,226
1,253
Captisol - COVID
5,896
30,019
Contract
19,876
16,766
Total revenues
45,693
55,150
Operating costs and expenses:
Cost of Captisol
4,699
8,153
Amortization of intangibles
11,813
11,786
Research and development
20,307
17,879
General and administrative
18,180
12,617
Total operating costs and expenses
54,999
50,435
Income (loss) from operations
(9,306
)
4,715
Gain (loss) from short-term
investments
(12,877
)
13,061
Interest expense, net
(655
)
(5,535
)
Other income (expense), net
2,698
(6,477
)
Total other income (loss), net
(10,834
)
1,049
Income (loss) before income taxes
(20,140
)
5,764
Income tax benefit
4,755
12,342
Net income (loss):
$
(15,385
)
$
18,106
Basic net income (loss) per share
$
(0.91
)
$
1.10
Shares used in basic per share
calculation
16,824
16,435
Diluted net income (loss) per share
$
(0.91
)
$
1.05
Shares used in diluted per share
calculations
16,824
17,248
LIGAND PHARMACEUTICALS
INCORPORATED
CONDENSED CONSOLIDATED BALANCE
SHEETS
(Unaudited, in thousands)
March 31, 2022
December 31, 2021
ASSETS
Current assets:
Cash, cash equivalents and short-term
investments
$
203,999
$
341,108
Accounts receivable, net
41,797
85,453
Inventory
25,614
27,326
Income taxes receivable
—
6,193
Other current assets
4,656
4,671
Total current assets
276,066
464,751
Deferred income taxes, net
35,655
34,482
Goodwill and other identifiable intangible
assets, net
720,913
732,246
Commercial license rights, net
10,121
10,110
Operating lease right-of-use assets
15,783
16,542
Finance lease right-of-use assets
15,620
16,207
Other assets
31,026
23,252
Total assets
$
1,105,184
$
1,297,590
LIABILITIES AND STOCKHOLDERS'
EQUITY
Current liabilities:
Accounts payable and accrued
liabilities
$
22,849
$
25,982
Income taxes payable
5,800
—
Current contingent liabilities
1,524
2,588
Current operating lease liabilities
1,850
2,053
Current finance lease liabilities
52
46
Deferred revenue
10,503
10,996
Total current liabilities
42,578
41,665
2023 convertible senior notes, net
176,540
320,717
Long-term contingent liabilities
7,448
8,483
Deferred income taxes, net
39,480
59,095
Other long-term liabilities
45,946
46,471
Total liabilities
311,992
476,431
Total stockholders' equity
793,192
821,159
Total liabilities and stockholders'
equity
$
1,105,184
$
1,297,590
LIGAND PHARMACEUTICALS
INCORPORATED
SUPPLEMENTAL SEGMENT FINANCIAL
RESULTS
(Unaudited, in thousands)
Three Months Ended March
31,
2022
2021
OmniAb business revenue
Royalties
$
263
$
—
Contract
8,915
8,559
Total OmniAb business revenue
9,178
8,559
Ligand core business revenue
Royalties
13,432
7,112
Captisol - Core
6,226
1,253
Captisol - COVID
5,896
30,019
Contract
10,961
8,207
Total Ligand core business revenue
36,515
46,591
Total revenue
$
45,693
$
55,150
Segment operating income (loss)
OmniAb business
$
(6,189
)
$
(4,604
)
Ligand core business
9,991
18,446
Total segment operating income
3,802
13,842
Unallocated corporate items
Shared-based compensation
5,657
4,870
Other corporate expenses
7,451
4,257
Total unallocated corporate items
13,108
9,127
Income (loss) from operations
$
(9,306
)
$
4,715
LIGAND PHARMACEUTICALS
INCORPORATED
ADJUSTED FINANCIAL
MEASURES
(Unaudited, in thousands, except
per share amounts)
Three months ended March
31,
2022
2021(8)
Net income (loss)
$
(15,385
)
$
18,106
Share-based compensation expense
9,044
8,405
Non-cash interest expense(1)
326
4,916
Amortization related to acquisitions and
intangible assets
11,813
11,786
Amortization of commercial license
rights(2)
(90
)
528
Change in contingent liabilities(3)
(1,034
)
1,684
Transaction costs(4)
4,773
—
Acquisition and integration costs(5)
—
422
Loss (gain) from short-term
investments
12,877
(13,061
)
Realized gain from short-term
investments
(240
)
3,912
Other(6)
(1,666
)
6,089
Income tax effect of adjusted reconciling
items above
(7,306
)
(6,357
)
Excess tax benefit (windfall) from
share-based compensation(7)
17
(12,120
)
Adjusted net income
13,129
24,310
Captisol - COVID gross profit, net of
tax(8)
(3,094
)
(21,396
)
Adjusted net income excluding Captisol
- COVID
$
10,035
$
2,914
Diluted per-share amounts attributable
to common shareholders:
Net income (loss)
$
(0.91
)
$
1.05
Share-based compensation expense
0.53
0.49
Non-cash interest expense(1)
0.02
0.29
Amortization related to acquisitions and
intangible assets
0.69
0.68
Amortization of commercial license
rights(2)
(0.01
)
0.03
Change in contingent liabilities(3)
(0.06
)
0.10
Transaction costs(4)
0.28
—
Acquisition and integration costs(5)
—
0.02
Loss (gain) from short-term
investments
0.75
(0.76
)
Realized gain from short-term
investments
(0.01
)
0.23
Other(6)
(0.10
)
0.35
Income tax effect of adjusted reconciling
items above
(0.42
)
(0.36
)
Excess tax benefit (windfall) from
share-based compensation(7)
—
(0.70
)
Adjusted diluted net income per
share
$
0.76
$
1.41
Captisol - COVID gross profit, net of
tax(8)
(0.18
)
(1.27
)
Adjusted diluted net income per share
excluding Captisol - COVID
$
0.58
$
0.14
GAAP - Weighted average number of common
shares-diluted
16,824
17,248
Add: Shares excluded due to anti-dilutive
effect on GAAP net loss(9)
369
—
Adjusted weighted average number of common
shares-diluted
17,193
17,248
(1) Amounts represent non-cash debt related costs that are
calculated in accordance with the authoritative accounting guidance
for convertible debt instruments that may be settled in cash.
(2) Amounts represent the amortization of commercial license
rights to revenue.
(3) Amounts represent changes in fair value of contingent
consideration related to Pfenex, Icagen, Crystal, CyDex, and
Metabasis transactions.
(4) Amounts represent incremental costs including primarily
legal fees, accounting fees, and advisory fees incurred by Ligand
to spin off OmniAb into a standalone, publicly traded company.
(5) Amounts represent severance costs, legal fees and certain
contract termination costs in connection with the acquisitions.
(6) Amounts primarily relate to loss on debt extinguishment.
(7) Excess tax benefits from share-based compensation are
recorded as a discrete item within the provision for income taxes
on the consolidated statement of operations as a result of the
adoption of an accounting pronouncement (ASU 2016-09) on January 1,
2017. Prior to the adoption, the amount was recognized in
additional paid-in capital on the consolidated statement of
stockholders' equity.
(8) Captisol - COVID gross profit, net of tax, represents gross
profit, net of tax, for Captisol supplied for use in formulation
with remdesivir, an antiviral treatment for COVID-19. Prior period
adjusted net income and adjusted net income per diluted share
amount have been adjusted to exclude the impact of COVID-related
Captisol gross profit, net of tax, to conform to the current period
presentation.
(9) Excluding the impact from the adoption of accounting
pronouncement (ASU 2020-06) on January 1, 2022 as the Company
intends to settle the principal balance in cash. Under the new
standard, the Company is required to reflect the dilutive effect of
the 2023 Notes by application of the if-converted method, which
resulted an additional 1,796,071 potentially dilutive shares.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20220504006080/en/
Ligand Pharmaceuticals Incorporated Simon Latimer Email:
investors@ligand.com Phone: (858) 550-7766 Twitter:
@Ligand_LGND
LHA Investor Relations Bruce Voss Email: bvoss@lhai.com Phone:
(310) 691-7100
Avista Public Acquisitio... (NASDAQ:AHPA)
Graphique Historique de l'Action
De Juin 2024 à Juil 2024
Avista Public Acquisitio... (NASDAQ:AHPA)
Graphique Historique de l'Action
De Juil 2023 à Juil 2024