Ligand Pharmaceuticals Incorporated · NASDAQ:LGND
Ligand Pharmaceuticals — Q3 2023 Earnings Presentation
22 slides from Ligand Pharmaceuticals's earnings presentation, Nov 8, 2023
Slide 1: Third Quarter 2023 Performance & Outlook
THIRD QUARTER 2023 PERFORMANCE & OUTLOOK November 8, 2023 1 Nasdaq: LGND
Slide 2: Safe Harbor Statement and Disclaimers
SAFE HARBOR STATEMENT AND DISCLAIMERS The following presentation contains forward-looking statements by Ligand and its partners that involve risks and uncertainties and reflect Ligand’s and it’s partners’ judgment as of the date of this presentation. Words such as “plans,” “believes,” “expects,” “pr
Slide 3: Execution in 2023
EXECUTION IN 2023 Commercial Products 8 major commercial-stage royalty streams (25 total) Major Partner Catalysts Continued advancement across development portfolio Scaled our business development and investment capabilities Executing at Scale Rapidly increasing level of investment activity with pro
Slide 4: Business Development & Investments Team Scale Up
BUSINESS DEVELOPMENT & INVESTMENTS TEAM SCALE UP Proprietary origination is generating results Paul Hadden, SVP Investments and Business Development, and 3 new associates Investment Team Lauren Hay, VP Strategic Planning and Investment Analytics Keith Marschke, SVP Biology and Scientific Affairs App
Slide 5: Significant Opportunity in the Current Environment
SIGNIFICANT OPPORTUNITY IN THE CURRENT ENVIRONMENT Multiple ways to add late-stage programs to the portfolio Royalty Monetization M&A Project Finance Platforms Acquire existing royalty Identify companies with Fund late-stage clinical Focus on infrastructure-light contracts attractive royalty contrac
Slide 6: Business Development Process
BUSINESS DEVELOPMENT PROCESS Creating a global business development pipeline and execution capability Ovid royalty monetization $30M Acquisition of Tolerance Therapeutics $20M Invested $77M on four recent transactions Spin-out and merger of Pelican Subsidiary and Primrose Bio project finance $15M Ac
Slide 7: Business Development Process
BUSINESS DEVELOPMENT PROCESS Proactive, outbound, deal sourcing process Building the right team Asset selection criteria M&A level due diligence • Capable of identifying attractive • Strong clinical differentiation • Clinical trial design risk-reward investment • Addresses unmet need • Pipeline oppo
Slide 8: Executing on Our Strategy – $30M Invested
Increased level of investment activity in Q3 and early Q4 EXECUTING ON OUR STRATEGY – $30M INVESTED OVID Royalty Monetization – October 2023 Ligand purchased 13% of Ovid Therapeutics’ interest in royalties and milestones on the soticlestat program for $30M. The product is being developed by Takeda i
Slide 9: Executing on Our Strategy – $20M Invested
Increased level of investment activity in Q3 and early Q4 EXECUTING ON OUR STRATEGY – $20M INVESTED Tolerance Acquisition / Royalty Monetization – October 2023 Ligand acquires Tolerance Therapeutics for $20M. The sole asset at Tolerance is a less than 1% royalty bearing license on worldwide net sale
Slide 10: Executing on Our Strategy – $15M Invested
Increased level of investment activity in Q3 and early Q4 EXECUTING ON OUR STRATEGY – $15M INVESTED Spin-out and Merger of Pelican Subsidiary and Primrose Bio Project Finance – September 2023 Ligand spun-out the Pelican subsidiary through a merger with Primordial Genetics, to form Primrose Bio. Prim
Slide 11: Portfolio Management & Updates
PORTFOLIO MANAGEMENT & UPDATES 11
Slide 12: Partnered Pipeline Snapshot
PARTNERED PIPELINE SNAPSHOT Over 75 additional active programs with economic rights Partner Program Therapy Area Phase 1 Phase 2 Phase 3 NDA Approved Kyprolis® Oncology FILSPARI™ Kidney Disease / EVOMELA® Oncology Teriparatide Endocrinology Rylaze™ Oncology Vaxneuvance™ Infectious Disease Pneumosil®
Slide 13: Review of 2023 Key Program Progress
REVIEW OF 2023 KEY PROGRAM PROGRESS 2023 has produced many successful advancements for key portfolio programs Partner Program Indication Event Date Royalty * Berdazimer Gel Molluscum NDA Submission January 6, 2023 NA Filspari IgAN US Approval February 17, 2023 9% Microcystic Lymphatic PTX-022 Phase
Slide 14: Licensing and Broader Portfolio Progress
LICENSING AND BROADER PORTFOLIO PROGRESS The broader portfolio has also seen significant advancements in 2023 and the Captisol licensing business continues to thrive Partner Program Indication Event Date Royalty (Xintong) Pradefovir Hepatitis B China NDA Acceptance May 16, 2023 9% ANEB-001 Acute Can
Slide 15: Follow On Investment – $12M Invested
FOLLOW ON INVESTMENT – $12M INVESTED Acquisition of Novan Assets – September 2023 Ligand acquired certain assets of Novan for $12.2M • Ligand previously funded portions of the Phase 3 program for NDA-stage berdazimer gel in exchange for royalty economics • Berdazimer gel remains on track for a PDUFA
Slide 16: Key Upcoming Pipeline Catalysts
KEY UPCOMING PIPELINE CATALYSTS Beyond the existing approved royalty streams, a number of late-stage partnered products with anticipated catalysts in 2024 Partner Program Indication Event Expected Timing Royalty Filspari IgAN EMA Approval H1 2024 9% January 5, 2024 * Berdazimer Gel Molluscum FDA App
Slide 17: Financial Review and 2023 Guidance
FINANCIAL REVIEW AND 2023 GUIDANCE 17
Slide 18: Q3 2023 Financial Performance
Q3 2023 FINANCIAL PERFORMANCE Three Months Ended September 30, $ in millions, except for per share amounts (unaudited) 2023 2022 Revenues: Royalties $23.9 $19.3 Captisol - Core 8.6 3.6 • Royalty revenue grows 24% Captisol - COVID - 32.4 Contract revenue 0.4 4.0 • Total revenue grows 22% Total Revenu
Slide 19: Revenue & EPS – Q3 2023 Results & Updated Guidance
REVENUE & EPS – Q3 2023 RESULTS & UPDATED GUIDANCE Captisol Sales Exceeding Internal Forecasts Prior Updated • YoY royalty revenue Q3 2023 Actuals FY 2023 Guidance FY 2023 Guidance grows 24% due to strong sales of Kyprolis, Royalty $23.9M $82M - $84M $82M - $84M launch of Filspari and Revenue contin
Slide 20: Closing Comments / Analyst Day
CLOSING COMMENTS / ANALYST DAY 20
Slide 21: Twelve Months of Change
TWELVE MONTHS OF CHANGE Fall 2022 Fall 2023 Run Rate Headcount 170 35 Captisol Platforms OmniAb Captisol Pelican 8 Key Commercial Royalties Focus Platform Technologies Captisol Annual Royalty Revenue $73 million Growing from mid $80 millions Annual Cash Operating Expenses ~$92 million In the mid $30
Slide 22: Ligand
Ligand
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