LIGAND PHARMACEUTICALS INC Q3 FY2024 earnings call

• Strong business momentum: Total revenue grew 58% y/y, and guidance was revised upward. Well-capitalized with over $300 million in capital. • Portfolio updates: Travere’s FILSPARI received full FDA approval; CAPVAXIVE and Ohtuvayre had strong commercial launches; APEIRON Biologics was acquired in July. • Strategic differentiation: Focus on late-stage and commercial assets with high risk-reward, low operating expenses. • Pipeline: Over 20 investment opportunities with over $800 million investment potential, including reviewing products with high unmet clinical need.

Total revenues for the third quarter reached $51.8 million, a 58% increase over Q3 2023. Royalty revenue grew 33% to $31.7 million (up from $23.9 million in Q3 2023). Captisol sales were $6.3 million in Q3 2024, down from $8.6 million in Q3 2023 due to timing of customer orders. Contract revenue for the quarter was $13.5 million, driven by a milestone payment from Verona following the commercial launch of Ohtuvayre. Royalty revenue drivers included QARZIBA, Amgen Kyprolis, and Travere's FILSPARI. For example, Travere's FILSPARI had $35.6 million in sales with 31% sequential growth.

• 2024 total revenue revised to $100 million to $165 million, with adjusted EPS expected $5.50 to $5.70. • 2024 royalty revenue expected $105 million to $108 million (up from prior $100 million to $105 million). • Long-term outlook: Royalty revenue CAGR above 20%, adjusted core EPS CAGR above 25%.

• Market volatility: Royalty revenues may be affected by capital markets volatility. • Regulatory and development risks: Uncertainties in drug development timelines and regulatory approvals for pipeline products.

Q: What's the mix of royalties, structured deals, and acquisitions in the pipeline?

A: Todd Davis said about half is project finance (synthetic royalties), a chunk is M&A, and another third is passive royalties.

Q: How is FILSPARI positioned in the competitive environment?

A: Karen Reeves discussed FILSPARI's role in IgAN as a primary and combination therapy, and its potential in FSGS with unmet need.

Q: Status of the buyback program?

A: Todd Davis said no immediate plans to use it, but it's in place for corporate hygiene.