Ligand Pharmaceuticals Incorporated · NASDAQ:LGND
Ligand Pharmaceuticals — Investor Day (December 2024)
54 slides from Ligand Pharmaceuticals's investor day presentation, Dec 10, 2024
Slide 1: 2024 Investor Day
DECEMBER 10, 2024 2024 Investor Day
Slide 2: Agenda
Agenda 10:30 am – 12:00 pm ET LIGAND STRATEGY Todd Davis Business Overview, Strategy & 2024 Accomplishments CEO FINANCIAL UPDATE Tavo Espinoza Financial Review & Growth Expectations CFO INVESTMENT ACTIVITY Paul Hadden Recent Transactions & Deal Pipeline SVP, Investments & Business Development PORTFO
Slide 3: Safe Harbor Statement & Disclaimers
Safe Harbor Statement & Disclaimers • This presentation contains forward-looking statements, as defined in Section 21E of the Securities Exchange Act of 1934, by Ligand and its partners that involve risks and uncertainties and reflect Ligand’s and its partners’ judgment as of the date of this presen
Slide 4: Ligand Strategy
Ligand Strategy Business Overview, Strategy & 2024 Accomplishments
Slide 5: Ligand Today
Ligand Today Biopharmaceutical royalty aggregator focused on investing in highly differentiated clinical and commercial stage assets, as well as operating royalty-generating platform technologies 12 major commercial-stage revenue-generating royalty assets Royalty Portfolio Over 75 additional active
Slide 6: Definition & Benefits of Royalty Investing
Definition & Benefits of Royalty Investing What are biopharmaceutical royalties? A royalty is a Royalties are Royalty cash flows can Royalty acquisition percentage of top- non-dilutable be protected in requires minimal line pharmaceutical bankruptcy corporate net revenue infrastructure Royalty inves
Slide 7: Attractive Business Model
Attractive Business Model LIGAND TRADITIONAL BIOTECH COMPANY Small infrastructure × Large infrastructure Broad therapeutic focus × Narrow therapeutic focus Limited exposure to single asset PTRS × High exposure to single asset PTRS 7 PTRS: Probability of technical and regulatory success
Slide 8: Investment Tactics & Methods
Investment Tactics & Methods Ligand utilizes multiple investment approaches 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- contracts attractive royalty t
Slide 9: Leadership Team
Leadership Team Differentiated Relationships & Biopharma Investment Experience Deep network of biopharma relationships enable proprietary deal sourcing and rigorous due diligence CORPORATE MANAGEMENT INVESTMENTS CLINICAL OPERATIONS & TECHNOLOGY Karen Reeves, M.D. Todd Davis Paul Hadden SVP, Investme
Slide 10: Annual Supply of Phase 3 Capital
Ability To Scale Business Model Significant capital is required in late-stage clinical development, and a small fraction of this funding is derived from royalty capital, offering meaningful opportunity for growth ~$20B Commercial-Focused Funds Large Supply of Capital 10 Firms, >$40B Deployed in the
Slide 11: Progress Since 2023 Investor Day
Progress Since 2023 Investor Day What we said a year ago … What we did in 2024 … 2024 Initial revenue guidance: Increased guidance twice during 2024 $130- $142M Latest total revenue guidance: $160-$165M Active management of the current Increased economics around Ohtuvayre and Palvella portfolio Inve
Slide 12: Ligand 2022 To 2024 Comparison
Ligand 2022 To 2024 Comparison 2022 2023 2024 1 Royalty Revenue $73 million $84 million $105 − 108 million Cash OpEx $92 million $40 million $35 million Adjusted EPS $2.44 $4.06 2 $5.50 − 5.70 2 Platforms Captisol, OmniAb, Pelican Captisol Captisol, NITRICIL FTEs 170 35 42 During the last two years,
Slide 13: Updated 5-Year Outlook
Updated 5 -Year Outlook Expected Royalty Receipts CAGR 22% from 2024-2029 Looki Current portfolio of commercial and late-stage programs + new deals drive growth ng • Long–term royalty receipt outlook on Ligand Expected Royalty Receipts ($M) 4% Ahea22% CAGR Future CAGR Investments pace to meet or exc
Slide 14: Financial Update
Financial Update Financial Review & Growth Expectations
Slide 15: Overview
Overview Review 2024 and Deeper dive into Cash position and introduce 2025 long-term 2029 sources of guidance outlook investable capital 15
Slide 16: Reiterating 2024 Guidance
Reiterating 2024 Guidance 27% Royalty Revenue Growth, 38% Adjusted Core EPS Growth 2023(A) 2024(G) % Change • Royalty revenue growth driven by Royalty Revenue $84M $105 − 108M 27% Kyprolis, Qarziba and Filspari Captisol Sales $28M $27 − 29M - • Contract revenue is event driven/not linear given it’s
Slide 17: Strong Tailwinds Heading Into 2025
Strong Tailwinds Heading Into 2025 New commercial programs and a strong balance sheet sets up well heading into 2025 and beyond Captisol business – Gilead will take shipments in 2025 for Captisol enabled Veklury −Expected to be part of our recurring commercial business going forward Travere’s Fi
Slide 18: 2025 Revenue Guidance – 17% Growth over 2024
2025 Revenue Guidance – 17% Growth over 2024 Forecasting Total Revenue of $180-$200M Royalties (in millions) Qarziba 30% Growth driven by Kyprolis $10-20 Filspari, Qarziba and Filspari Contract Ohtuvayre Rylaze Other $35-40 Captisol Captisol Demand from existing Commercial customers and orders Sales
Slide 19: 2025 Financial Guidance
2025 Financial Guidance 2024 Guidance 2025 Guidance • Royalty revenue and Captisol sales drive revenue growth at 30% and 33%, Total Revenue $160 − 165M $180 − 200M respectively COGS $11M $11 − 15M • Increase in Core cash opex driven by investments made to build the Business Core Cash OpEx $35M $37 −
Slide 20: Updated 5-Year Outlook
Updated 5 -Year Outlook Expected Royalty Receipts CAGR 22% from 2024-2029 Looki Current portfolio of commercial and late-stage programs + new deals drive growth ng • Long–term royalty receipt outlook on Ligand Expected Royalty Receipts ($M) 4% Ahea22% CAGR Future CAGR Investments pace to meet or exc
Slide 21: Significant Financial Capacity
Significant Financial Capacity Cash and cash equivalents • $220 million of cash and cash ($ in millions) equivalents as of September 125 345 30, 2024 131 -63 • $125 million available under credit facility (expandable to $175M) -192 99 220 • Financial capacity of ~$350 million with cash on hand and 1
Slide 22: Investment Activity
Investment Activity Recent Transactions & Deal Pipeline
Slide 23: Ligand Investment Team Progress
Ligand Investment Team Progress Ligand continued to strengthen its investment team and deal activity in 2024 2022 2023 2024 San Diego, Boston, Investment Team Locations San Diego San Diego, Boston Jupiter Investment Team Professionals 3 8 12 Capital Invested − $82M $192M Total Investments − 5 8 23
Slide 24: Origination Strengths
Origination Strengths 01 Seasoned investment team with decades of experience 02 Robust outbound efforts driven by focused investment criteria 03 Relationships with multiple potential royalty sellers 04 Structural flexibility to participate across the capital structure 05 Nimble organization and abil
Slide 25: Investment Criteria
Investment Criteria Clinical Differentiation Structural Alignment Data supports ability to Competent counterparty address high unmet need with structural alignment and strong safety profile to Ligand Time to Cash Flow Exclusivity Risk-Reward No more than a few Favorable market Superior risk- years f
Slide 26: Diligence Process
Diligence Process Ligand’s scientific expertise is supplemented with therapeutic area-specific consultant input on PTRS Clinical & KOLs are interviewed to understand the treatment paradigm, product selection drivers, competitive Regulatory landscape, unmet needs, and asset opportunity Ligand e
Slide 27: 2024 Investment Activity
2024 Investment Activity Leveraged team’s extensive experience across 200+ Investments therapeutic categories and Reviewed technologies to facilitate quick kills and focus on highest value opportunities Initiated in-depth research and engaged 50 CDAs Signed external consultants to rapidly identify a
Slide 28: Ligand 2024 Investments
Ligand 2024 Investments Our 2024 investments reflect the diverse strategic approaches we can pursue Investment Approach and Counterparties Royalty Monetization Project Finance M&A Special Situations January 2024 July 2024 July 2024 Ongoing May 2024 Ligand invested ~$200M in capital during 2024 28 No
Slide 29: 2025 Investment Outlook
2025 Investment Outlook INVESTMENT PIPELINE 2025 OUTLOOK Ligand’s Q4 pipeline has over Ligand is well positioned and 30+ actionable opportunities resourced to close multiple representing in excess of $1B investments in 2025, of potential investments depending on the size and quality of the opportuni
Slide 30: Portfolio Update
Portfolio Update Commercial Portfolio, Pipeline Progress, & Operational Updates
Slide 31: Portfolio Management Process
Portfolio Management Process Ligand’s robust process was designed to efficiently manage and identify new opportunities within the company’s portfolio of over 90 therapeutic assets Portfolio Management Objectives Approach: Monitor & Discuss Track Product Sales News Flow & 01 Align assets to four tier
Slide 32: Qarziba Background
Qarziba Background Indication High-risk neuroblastoma Phase of Development Ex-US approval May 2017 Ligand acquired Apeiron Biologics in July 2024 for ~$100M Investment Background and received rights to Qarziba royalties Royalty Rate Tiered mid-teen royalty Recordati reported €176M YTD through Q3 202
Slide 33: Qarziba Updates
Qarziba Updates • Very high unmet need in rare pediatric indication Product Value • Well-established in ex-US treatment paradigm Proposition • Geographically well-diversified across >35 countries • Strong commercial partner in Recordati Rare Disease Recent News Key Upcoming Catalysts • June 2024: Qa
Slide 34: Ohtuvayre Background
Ohtuvayre Background Indication Maintenance treatment of COPD Phase of Development US approval June 2024 Ligand acquired Vernalis in 2018 Investment Background Ligand acquired additional rights from Ohtuvayre inventors during the course of 2024 Royalty Rate ~3% royalty Recent Sales >$11M in first 4
Slide 35: Ohtuvayre Updates
Ohtuvayre Updates • First inhaled product with novel mechanism in over 20 years for COPD • Addresses high unmet need for patients uncontrolled on current therapies Product Value • Blockbuster sales potential with ~8.6M maintenance treated COPD patients, 50% Proposition of whom remain persistently sy
Slide 36: Filspari Background
Filspari Background Primary Immunoglobulin A Nephropathy (IgAN) Indication Focal Segmental Glomerulosclerosis (FSGS) IgAN: Full FDA approval September 2024 Phase of Development / Approval Date FSGS: Type-C meeting scheduled with FDA Investment Background Pharmacopeia acquisition Royalty Rate 9% Rece
Slide 37: Filspari Updates
Filspari Updates • First and only non-immunosuppressive therapy approved for IgAN, a rare kidney disease that leads to diminished kidney filtering, proteinuria, and progressive kidney Product Value function loss Proposition • Potential to be the first FDA approved treatment for FSGS Recent News Key
Slide 38: Capvaxive Background
Capvaxive Background Indication Pneumococcal prophylactic vaccine Phase of Development / Approval Date Approved June 2024 Investment Background Pfenex acquisition (Pelican) Royalty Rate Low single-digit Recent Sales Launching 38
Slide 39: Capvaxive Updates
Capvaxive Updates • Capvaxive protects against strains that cause 84% of invasive pneumococcal Product Value disease vs. just 52% from other pneumococcal conjugate vaccines Proposition • Merck expects Capvaxive will achieve majority market share in the adult setting Recent News Key Upcoming Catalyst
Slide 40: PTX-022 Background
PTX-022 Background PTX-022 QTORIN rapamycin 3.9% Microcystic Lymphatic Malformations (MLM) Indication Venous Malformations (VM) MLM: Phase 3 Phase of Development / Approval Date VM: Phase 2 Project Finance (2018, 2023) Investment Background Convertible Note (2024) Royalty Rate 8 − 9.8% Recent Sales
Slide 41: PTX-022 Updates
PTX-022 Updates • Novel targeted topical therapy, using the QTORIN platform to deliver rapamycin to deep layers of the skin to locally treat a broad spectrum of rare skin diseases Product Value Proposition • Breakthrough Therapy Designation • No FDA-approved therapies indicated for MLM or VM, both r
Slide 42: Captisol & NITRICIL Platforms
Ligand Strategy Captisol & NITRICILTM Platforms
Slide 43: Ligand Captisol IP-Enabling Platform Technology
allows for tunable dosing, meaning it permits an adjustable drug release profile, which allows proprietary formulations that target specific indications Ligand Captisol IP-Enabling Platform Technology Acquired through CyDex investment in 2011 Solvent-free, all-aqueous processed modified cyclodextrin
Slide 44: Captisol Platform Technology
Captisol Platform Technology Strategic Focus Update 01 Expand team for growth: Karen Reeves, MD & Ben Perrone, PhD 02 IP-enabling vs infrastructure-enabling 03 Leverage and expand upon our partnerships, licenses, & asset management 04 Advance expanded marketing and outreach 05 Pursue science and exp
Slide 45: Captisol Overview
Captisol Overview Ligand owns and operates the Captisol technology platform with a lean and Infrastructure Light experienced scientific and commercial operational team Captisol requires only 6 FTEs and ~$5M of annual operational spend Captisol addresses a consistent and enduring industry need: formu
Slide 46: Captisol Material Sales
Captisol Material Sales Research, Supply & License Agreements Captisol Material Sales New Research Agreements License & Supply Agreements ($ in millions) $120 150 15 $100 $80 Captisol - Covid 100 10 $60 $40 50 5 $20 $0 0 0 2022 2023 2024 est. 2025 est. 2022 2023 2024 2022 2023 2024 46
Slide 47: Cumulative Captisol Demand
Captisol Platform Technology FYCOMPA IV 20 MEKINIST Highly productive technology platform DOCIVYX 16 Approved Cumulative Captisol Demand VEKLURY, • Significant royalty revenue generated across multiple Total Products Approved programs Captisol Products SESQUIENT 15 ZULRESSO • Minimal cash operating
Slide 48: Pelthos & NITRICIL IP-Enabling Platform
allows for tunable dosing, meaning it permits an adjustable drug release profile, which allows proprietary formulations that target specific indications Pelthos & NITRICIL IP-Enabling Platform NITRICIL TM Acquired through Novan investment in 2023 Acquired through Novan investment in 2023 First FDA-a
Slide 49: Zelsuvmi Commercial Positioning & Opportunity
Zelsuvmi Commercial Positioning & Opportunity • Pelthos’ lead product, Zelsuvmi , is an FDA-approved, novel product for Molluscum contagiosum, a highly- infectious viral dermatological infection, indicated for patients >1 year – Molluscum affects 17 million patients with an annual incidence of ~6 mi
Slide 50: Pelthos 2024 Accomplishments
Pelthos 2024 Accomplishments Q1 Q2 Q3 Q4 Validation of 1st FDA Approval of Establishment of Execution of key commercial batches in Zelsuvmi for at-home Pelthos Therapeutics pre-launch process ahead of H1 use in molluscum and Board of Directors commercial activities ‘25 partnering & launch 50
Slide 51: NITRICIL Overview
NITRICILTM Overview Ligand owns the NITRICIL platform, which is operated by Pelthos Therapeutics Infrastructure Light NITRICIL can be leveraged as desired, enabling cost and time efficient product candidate development and manufacturing Nitric oxide platform allows for tunable dosing, permitting an
Slide 52: Closing Remarks
Closing Remarks LIGAND
Slide 53: Ligand's Future Is Bright
Ligand’s Future Is Bright • The New Ligand Business Model: – Diversified Growth: Strong foundation of ~90 partnerships to build upon – Compounding Growth: Our cash flow is reinvested, compounding our growth over time – Uncapped Growth: Unique investment strategy in a very large market where demand f
Slide 54: Investor & Analyst Q&A
Investor & Analyst Q&A LIGAND
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