Ligand Pharmaceuticals Incorporated · NASDAQ:LGND
Ligand Pharmaceuticals — Merger or Acquisition (January 2011)
23 slides from Ligand Pharmaceuticals's merger presentation, Jan 26, 2011
Slide 1: CyDex Acquisition Conference Call
Exhibit 99.1 CyDex Acquisition Conference Call January 26, 2011
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
Slide 3: Agenda
Agenda • Acquisition Highlights and Value Drivers • Continued Transformation of Ligand • CyDex – Technology Platform and Select Key Assets • Financial Outlook and Upcoming Events 3
Slide 4: Acquisition Highlights and Value Drivers
Acquisition Highlights and Value Drivers 4
Slide 5: CyDex Corporate Overview
CyDex Corporate Overview CyDex Quick Facts – Private company founded in 1993 and located near Kansas City – A successful, cash-flow positive business based on the Captisol® technology – 5 FDA-approved compounds utilizing Captisol technology – To operate under Ligand as a wholly-owned subsidiary with
Slide 6: Top Three Reasons for the Acquisition
Top Three Reasons for the Acquisition 1. Immediately accelerates the projected financial growth of Ligand • CyDex is a cash-flow positive business with revenues from royalties, material sales and licensing fees • Ligand’s 2011 revenue with CyDex is projected to more than double versus Ligand’s stand
Slide 7: Other Potential Benefits of the Acquisition
Other Potential Benefits of the Acquisition • Integration of a business model that is highly complementary with Ligand’s business model • Possible cross development/reformulation of select internal drug development candidates (e.g., topical JAK 3) • Further leverage strong relationships with existin
Slide 8: Primary Acquisition Terms
Primary Acquisition Terms • Guaranteed payments – $31.2 million upfront acquisition payment – $4.3 million cash payment January 2012 – $800,000 at close for an adjustment for working capital • Contingent payments – $5.5 million of total milestones payable on Onyx carfilzomib NDA filing and approval
Slide 9: Continued Transformation of Ligand
Continued Transformation of Ligand 9
Slide 10: Expanding “Shots on Goal” Portfolio
Expanding “Shots on Goal” Portfolio Pre-Merger: 35 Programs Post-Merger: Over 60 Programs Approved 13% Preclinical 9% Phase III 8% Phase I Phase II 34% 36% • Through 5 acquisitions in past two years, Ligand has amassed a rich trove of partnerships and assets • Post-merger corporate portfolio is comp
Slide 11: CyDex – Technology Platform and Select Key Assets
CyDex – Technology Platform and Select Key Assets 11
Slide 12: What is Captisol?
What is Captisol®? • Captisol is a chemically modified cyclodextrin used to improve solubility, stability and bioavailability of active pharmaceutical ingredients (API) • Mainly used to formulate IV drugs, but can also be used for oral, ocular and topical formulations • Multiple Captisol-enabled pro
Slide 13: The CyDex Captisol Licensing Model
The CyDex Captisol® Licensing Model • CyDex enters Use Agreements with partners to enable pre-clinical/Phase I POC studies with a Captisol-enabled drug – Generates revenue from contract fees and sale of Captisol – CyDex currently has more than 20 of these agreements with partners – If successful, pa
Slide 14: FDA-Approved Captisol Marketed Drugs
FDA-Approved Captisol® Marketed Drugs • Successful regulatory track record of five Captisol enabled drugs being approved and four currently paying royalties Drug Indication Partner Approved Markets Abilify® IM Bipolar Disorder Bristol-Myers Squibb U.S, Europe Nexterone® Ventricular Fibrillation Pris
Slide 15: The CyDex-Onyx Collaboration
The CyDex-Onyx Collaboration • CyDex Relationship: Captisol-enabled IV formulation of carfilzomib for refractory multiple myeloma – Onyx planning to file NDA in 2011 based on Phase IIb data – Two large ongoing Phase III studies expected to be completed in 2012 • Product: Carfilzomib – Proteozome inh
Slide 16: Other Key CyDex Collaborations
Other Key CyDex Collaborations • Prism Collaboration – CyDex developed and licensed to Prism a Captisol-enabled IV formulation of amiodarone (Nexterone) for atrial fibrillation • Prism has recently received FDA approval for Nexterone – New Captisol formulation allows for more convenient premixed pre
Slide 17: Summary of CyDex Internal Pipeline
Summary of CyDex Internal Pipeline • Internal pipeline adds further opportunities for new licensing agreements Program Reformulation Indication/Stage Potential Product Advantages Clopidogrel IV – Plavix® Atherothrombosis • Reach peak blood levels in as Pivotal study pending little as 15 minutes (vs.
Slide 18: Financial Outlook and Upcoming Events
Financial Outlook and Upcoming Events 18
Slide 19: Ligand Preliminary and Unaudited Information
Ligand Preliminary and Unaudited Information • 2010 revenues total approximately $23 million • Cash highlights: ~$30 million – $24 million – 2010 year-end cash – $1.5 million – January cash proceeds from recent deals – $4.5 million – Expected tax refund (January 2011) • Q4 2010 share repurchases tot
Slide 20: 2011 Revenue Outlook
2011 Revenue Outlook • Total 2011 revenue currently projected to be 2011 Revenue Breakdown* $22 - $24 million – $9 - $10 million from original Ligand business ~15% License And Other – $13 - $14 million from CyDex (partial year accounting) • Ligand (pre-CyDex) revenue currently expected to ~35% Royal
Slide 21: 2011 Expense Outlook
2011 Expense Outlook • Operating expenses currently expected to be $16 million to $18 million • Average cost of goods as a percentage of material sales projected to be approximately 35% • CyDex non-cash amortization expense estimates to be determined in the near-term 21
Slide 22: Upcoming Portfolio Events
Upcoming Portfolio Events 2011 Potential Near-Term Catalysts • Conbriza royalties commence Q1 Phase III 8% Approved • Promacta Japan ITP launch Q1 13% • Nexterone launch Q1 • Clopidogrel license deal Q1 Phase II Preclinical • SARM Phase I data Q2 9% 36% • Promacta HepC Phase III data 2H • IL-9 Phase
Slide 23: Upcoming Investor Events
Upcoming Investor Events Event Location Date • Year-End Earnings Call Webcast February -TBD • BIO CEO Investor Conference New York February 15 • Citi 2011 Global Health Care Conference New York March 2 • BIT's 3rd Annual World Congress of BIO-SOFT Beijing, China March 23 • Analyst Day New York Q2 23
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