Ligand Pharmaceuticals Incorporated · NASDAQ:LGND
Ligand Pharmaceuticals — BIO CEO and Investor Conference 2011
29 slides from Ligand Pharmaceuticals's conference presentation, Feb 15, 2011
Slide 1: John Higgins, President and CEO, BIO CEO and Investor Conference
Exhibit 99.1 John Higgins, President and CEO BIO CEO and Investor Conference February 15, 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: Ligand Corporate Summary
Ligand Corporate Summary Location La Jolla, CA Recent Stock Price $9.02 Shares Outstanding 19.6 million Market Cap ~$170 million Main Assets • Numerous royalties • Over 50 fully funded partnerships • Fully owned development programs • Substantial tax assets 3
Slide 4: Ligand's Main Value Drivers
Ligand’s Main Value Drivers 1. Blockbuster Program 2. Unique Asset Acquisition Focus 3. Large Asset Portfolio 4. Development and Licensing Platform 4
Slide 5: Blockbuster Drug Potential - Promacta
Blockbuster Drug Potential - Promacta ® • Marketed drug for thrombocytopenia: serious and chronic blood disorder • Opportunity for significant label expansion 18 ongoing studies conducted by GSK and investigators Large market focus: Hepatitis C and cancer-related Thrombocytopenia • Major Upcoming Ca
Slide 6: Business Model: Unique Asset Acquisition Focus
Business Model: Unique Asset Acquisition Focus • The market environment and Ligand’s team have produced a unique opportunity for acquiring quality biotech assets • Five acquisitions in two years * • Result: Over past few years, substantially expanded portfolio (partnered and unpartnered assets) that
Slide 7: Large Asset Portfolio
Large Asset Portfolio Current Asset Portfolio Approved 13% • 7 marketed drugs Preclinical Phase III 9% • More than 60 total programs 8% • More than 50 fully funded partner programs Phase I Phase II 34% 36% Through 5 acquisitions in past two years, Ligand has amassed a rich trove of partnerships and
Slide 8: Development and Licensing Engine
Development and Licensing Engine • In our history, we have done over 20 deals and discovered/co-discovered 5 approved drugs • Ligand has the platform, assets and credentials to keep doing more deals • Past 6 months track record CombiChem deal • Combinatorial chemical library and screening technology
Slide 9: Promacta
Promacta 9
Slide 10: Promacta: A Projected Growth Driver for Ligand
Promacta®: A Projected Growth Driver for Ligand Promacta is a first-in-class therapy for raising platelet levels in patients experiencing thrombocytopenia • What does Promacta do? Promacta is a once daily oral medicine that activates the thrombopoietin (TPO) receptor Activation of the TPO receptor c
Slide 11: Promacta and HepC-Related Thrombocytopenia
Promacta and HepC-Related Thrombocytopenia The ongoing Phase III studies for Hep C-related thrombocytopenia are the basis for a potentially large expansion of the Promacta value • GSK is currently running two large Phase III studies in Hep C patients Study 1 (PEGASYS/Ribavirin) Study 2 (PEGINTRON/Ri
Slide 12: Promacta: Reasons for Excitement
Promacta: Reasons for Excitement Ligand shareholders have many reasons to be optimistic about Promacta • The platelet segment is expected to be the next frontier in the multi-billion dollar hematology market • Promacta and its backup compound will, we believe, build a long- term platelet franchise f
Slide 13: SARM Selective Androgen Receptor Modulator
SARM Selective Androgen Receptor Modulator 13
Slide 14: The Staggering Cost of Disability and Aging
The Staggering Cost of Disability and Aging • Aging baby boomers: 65+ is expected to grow from 35 million in 2000 to over 70 million in 2030 – Recent rate of disability —40% (ACS, 2004) • The elderly: the fastest growing segment – Grow from 3.0 to 6.2 million in the next decade • Social Security Dis
Slide 15: The Need for a SARM
The Need for a SARM • 80 years of empiric, clinical, epidemiological, and clinical trials data provide unequivocal evidence that androgens increase skeletal muscle mass and strength • Testosterone is not the answer – Concern about potential adverse effects on prostate – Many older men have microscop
Slide 16: SARM Overview
SARM Overview LGD-4033 retains the beneficial properties of natural androgens, while mitigating the toxic actions and side effects of steroidal androgens • Phase I data – safety and potential efficacy • LGD-4033 has desirable tissue-selective properties - A potent, full agonist on bone with anabolic
Slide 17: CyDex – Technology Platform and Select Key Assets
CyDex – Technology Platform and Select Key Assets 17
Slide 18: 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 – Now operates under Ligand as a wholly-owned subsidiary w
Slide 19: 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 CyDexis projected to more than double versus Ligand’sstand-
Slide 20: 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 21: 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 22: Key CyDex Collaborations
Key CyDex Collaborations • Onyx Collaboration – Captisol-enabled IV formulation of carfilzomib for refractory multiple myeloma – CyDex receives milestones, royalties, and revenue from Captisol material sales • Prism Collaboration – CyDex developed and licensed to Prism a Captisol-enabled IV formulat
Slide 23: Financial Outlook and Upcoming Events
Financial Outlook and Upcoming Events 23
Slide 24: 2010 Year-end Financial Information
2010 Year-end Financial Information • 2010 revenues total $23.5 million – $7.3 million in royalties – $16.2 million in collaborative R&D and other revenues • Total operating expenses total $54.5 million – $16.9 million in lease exit and termination costs – $22.1 million in R&D – $12.8 million in G&A
Slide 25: 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 – $13 - $14 million from CyDex (partial year ~15% License And Other accounting) • Ligand (pre-CyDex) revenue currently expected to ~35% Royal
Slide 26: 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 26
Slide 27: Business built for financial growth
Business built for financial growth • Number of products expected to pay royalties to Ligand is growing: - In 2008, 1 product (Avinza) paid royalties - Now in 2011, 7 products are expected to pay us royalties • Once quarterly royalty revenue exceeds our low cost structure, Ligand expects to be susta
Slide 28: 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% • Clopidogrel license deal Q1 • SARM Phase I data Q2 Phase II Preclinical • Nexterone launch Q2 9% 36% • Promacta HepC Phase III data 2H • IL-9 Phase
Slide 29: Upcoming Investor Events
Upcoming Investor Events Event Location Date • 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 29
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