Ligand Pharmaceuticals Incorporated · NASDAQ:LGND
Ligand Pharmaceuticals — Investor Presentation (August 2013)
26 slides from Ligand Pharmaceuticals's investor presentation, Aug 26, 2013
Slide 1: August 26, 2013 NASDAQ: LGND
® August 26, 2013 NASDAQ: LGND
Slide 2: Safe Harbor Statement
Safe Harbor Statement The following presentation contains forward-looking statements regarding Ligand’s prospects, plans and strategies, drug development programs and collaborations. Forward-looking statements include financial projections, expectations regarding research and development programs, a
Slide 3: Ligand: The Right Place at the Right Time
Ligand: The Right Place at the Right Time We are leveraging our research, technology and business development expertise to amass a large portfolio of pharmaceutical royalties 3
Slide 4: Pharmaceutical Royalties
Ligand: The Right Place at the Right Time Pharmaceutical Royalties 4
Slide 5: The Market for Royalties has Never Been Stronger
The Market for Royalties has Never Been Stronger • Over the past five years, there has been an awakening that royalties are a highly lucrative part of the pharma business • Investors enjoy enduring cash flows, reduce traditional risks of R&D • There is increased liquidity in the pharma royalty marke
Slide 6: Pharmaceutical Royalties: Highest Quality Revenue
Pharmaceutical Royalties: Highest Quality Revenue 1. Stable market demand for therapeutics • Human disease and need for medical treatment will always exist 2. Established payor system • Government and private payors in virtually all markets 3. Good credit for licensees • Well capitalized and willing
Slide 7: Bold Expansion of Partnered Portfolio
Bold Expansion of Partnered Portfolio 100 85 + 80 Six years ago, Ligand had 9 programs 60 Today, Ligand has over 85 40 In 2007, 1 product was paying a royalty 20 Today, there are 5 9 0 2007 2013 Partnered Programs 7
Slide 8: Ligand Business Model
Ligand Business Model Designed to drive cash flow, create long-term shareholder value Illustrative Deals Hematology (GSK) Alzheimer’s (Merck) Discovery Deals Oncology (Merck) Osteoporosis (Pfizer) Kyprolis™ (Onyx) Delafloxacin (Rib-X) Captisol Deals ® Nexterone® (Baxter) MET Kinase (Sanofi) Pharmaco
Slide 9: Ligand's Leverage
Ligand’s Leverage Fully-funded partnerships driving future growth • We estimate that our partners are spending over a half- billion dollars annually to advance our programs • Early development through post-commercialization trials • Leveraging partner therapy-area expertise • No Ligand investment in
Slide 10: Ligand's Portfolio: Stage of Development
Ligand’s Portfolio: Stage of Development Marketed Preclinical NDA + Phase 3/Pivotal 9% 20% 11% Phase 2 17% 43% Phase 1 • Over 85 programs or “Shots-on-Goal” • 80% of programs in clinical development or commercial 10
Slide 11: Ligand's Portfolio: Types of Programs
Ligand’s Portfolio: Types of Programs Other Cardiology 4% 10% Anti-Viral 4% Anti-Microbial 6% 43% Oncology Blood Disorders 7% 7% Metabolic Disorders 8% 11% CNS Inflammation 11
Slide 12: Significant Growth Potential from New Products
Significant Growth Potential from New Products • Realistically, not all 85+ programs will make it to market considering standard pharma success rates • But, given current program status, here is how new products could enter the market through 2020 Year 2014 2015 2016 2017 2018 2019 2020 Potential Ne
Slide 13: Ligand . . . 2013 and Beyond
Ligand . . . 2013 and Beyond Ligand is uniquely positioned to generate significant cash flow per share High-quality revenue: Strong customers; recurring High gross margins: ~90% Low operating costs: Flat Significant tax assets: ~2% tax for 7 years Low share count: 20 million *Estimates for margins,
Slide 14: Ligand's Leverage
Ligand’s Leverage We are approaching a tipping point for the business Earnings Per Share • Accelerating royalty revenue • High gross margins • Low operating costs • Low tax rate • Low share count 1Non-GAAP EPS, excludes discontinued ops and non-cash CVR changes 14 2013 Guidance: $0.47-$0.51 2014 Out
Slide 15: Accelerating Royalty Revenue
Accelerating Royalty Revenue Recent performance of Ligand’s royalty-bearing assets Therapy Total # Q2 2012 Q2 2013 % Product Areas of Markets Sales Sales Increase ITP 95 $47 m $70 m 49% Hepatitis C 4 Multiple Pre- 1 commercial $61 m NA Myeloma Emergency Medicine 1 Pain 1 $37 m $40 m 8% Women’s Healt
Slide 16: Promacta
Promacta • Oral medicine that boosts platelets to treat thrombocytopenia • Marketed by GSK for ITP and chronic hepatitis C • Long patent protection through 2027 • Potential for major label expansion — Over 25 active clinical trials — Recent data presented in MDS, AML and Aplastic Anemia 6.6% • Signi
Slide 17: Promacta: Potential Label Expansion
Promacta: Potential Label Expansion Oncology-Related Thrombocytopenias • MDS • AML • CIT Aplastic Anemia Chronic hepatitis C ITP Launched 2009 Launched 2013 Future 17
Slide 18: Kyprolis
Kyprolis • Solidly established leading agent in 3rd Line+ multiple myeloma • Expected continued quarterly growth in 2013 • Significant R&D investment by Onyx Pharmaceuticals — Front-Line: Phase 3 (CLARION) — Relapsed: Phase 3 (ASPIRE)/Phase 3 (ENDEAVOR) — Relapsed/Refractory: Phase 3 (FOCUS) • Globa
Slide 19: Promacta Projections: GSK Sell-Side Analysts
Promacta Projections: GSK Sell-Side Analysts Annual Revenue Projections $1,000 $900 $800 $700 $600 $ millions High Low $500 Average $400 $300 $200 $100 $0 2014 2015 2016 2017 2018 2019 2020 Sales figures converted from GBP to USD 19 Conversion rate : £1 = $1.53 9 GSK covering analysts reporting as o
Slide 20: Kyprolis Projections: Onyx Sell-Side Analysts
Kyprolis Projections: Onyx Sell-Side Analysts Annual Revenue Projections $3,500 $3,000 $2,500 $ millions $2,000 High Low Average $1,500 $1,000 $500 $0 2014 2015 2016 2017 2018 2019 2020 20 18 Onyx covering analysts reporting as of 8/20/13
Slide 21: Ligand Annual Royalties: Sell-Side Projections
Ligand Annual Royalties: Sell-Side Projections 5 Current Products ONLY, No New Royalties or Captisol Included $200 $180 $160 $140 $120 $ millions High $100 Low Average $80 $60 $40 $20 $0 2014 2015 2016 2017 2018 2019 2020 Royalties for Promacta and Kyprolis derived from sell-side analysts covering G
Slide 22: Cumulative Royalty Revenue: Sell-Side Projections
Cumulative Royalty Revenue: Sell-Side Projections 5 Current Products ONLY, No New Royalties or Captisol Included $900 $800 $700 $600 $ millions High $500 Low $400 Average $300 $200 $100 $0 2014 2015 2016 2017 2018 2019 2020 Royalties for Promacta and Kyprolis derived from sell-side analysts covering
Slide 23: Ripening of the Late-stage Portfolio
Ripening of the Late-stage Portfolio Strong partners - investing and creating forward momentum Therapy Estimated Launch Partner Asset Area 2014 2015 Women’s Conjugated Estrogens/ Bazedoxifene Health √ IV Posaconazole Antifungal √ IV Carbamazepine Neurology √ Undisclosed Undisclosed √ CE-Melphalan On
Slide 24: Potential 2013-2014 News and Catalysts
Potential 2013-2014 News and Catalysts LGND Est. Milestone Partner Timing Promacta EU HCV approval GSK Q3 ‘13 Conjugated Estrogens/Bazedoxifene PDUFA Pfizer October ‘13 CE-Carbamazapine NDA filing Lundbeck Q4 ‘13 RE-021 FONT-3 Phase 2 initiation Retrophin Q4 ‘13 Promacta data in Oncology GSK Q4 ‘13
Slide 25: Ligand Summary
Ligand Summary • A strong business driven by excellent research and deal execution • Amassing lucrative portfolio of pharmaceutical royalties — Over 85 programs today — 5 products paying royalties now, up from 1 several years ago — 10 new revenue-generating programs for Ligand could be approved by 2
Slide 26: August 26, 2013 NASDAQ: LGND
® August 26, 2013 NASDAQ: LGND
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