Ligand Holds Investor and Analyst Day; Offers Replace on Portfolio Progress and Latest Transactions; Introduces 2024 Steering

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SAN DIEGO — Ligand Prescribed drugs Included (NASDAQ: LGND) hosted an Investor and Analyst Day in New York Metropolis earlier at present. CEO Todd Davis and different members of Ligand’s senior administration staff supplied an outline of the corporate’s enterprise mannequin and funding choice course of, reviewed the progress of the portfolio together with near-term associate milestones, and launched 2024 steering. A duplicate of the presentation and a replay of the webcast can be found at investor.ligand.com.

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Enterprise Mannequin: Administration reviewed Ligand’s differentiated technique, distinctive market place and enterprise mannequin, which is concentrated on investing in late-clinical stage property and sustaining and licensing the corporate’s Captisol® know-how platform to generate royalties and revenues for shareholders.

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Funding Course of: Administration supplied an outline of Ligand’s funding standards and due diligence course of to supply property with superior risk-reward profiles.

Restructuring of Enterprise: Administration highlighted a number of key 2023 developments stemming from the corporate’s choice to give attention to a lean infrastructure and high-margin enterprise:

• Elevated funding exercise with 300+ offers reviewed, and 5 investments closed
• Expanded the senior administration staff with further skilled funding professionals
• Opened a brand new workplace in Boston, MA
• Spun-out the corporate’s Pelican subsidiary
• Decreased money working bills

Late-Stage Property: Administration highlighted a choice of essentially the most superior late-stage property in its portfolio and reviewed seven potential main pipeline occasions anticipated in 2024, together with:

• PDUFA goal date for our berdazimer gel (acquired from Novan), January 2024
• PDUFA goal date for Verona Pharma’s ensifentrine, June 2024
• Section 2b, 52-week biopsy knowledge on Viking Therapeutics’ VK-2809, H1 2024
• Extra Section 3 knowledge on Merck’s V116
• Section 3 knowledge on Takeda’s soticlestat
• Section 3 knowledge on Marinus Pharmaceutical’s ganaxolone-IV, Q2 2024
• Initiation of Section 3 trial for Palvella’s PTX-022

Portfolio Highlights: Administration highlighted the event standing and market alternative for choose business stage and pipeline applications together with Travere Therapeutics’ FILSPARI™, Verona Pharma’s ensifentrine, and our berdazimer gel.

Latest Transactions: Administration mentioned the current soticlestat and TZIELD (teplizumab) royalty acquisitions, which closed in This fall 2023.

Captisol Expertise Platform: Administration shared that Captisol continues to allow product approvals for Ligand companions, with 5 attainable approvals anticipated in 2024.

2024 Funding Outlook: Administration highlighted that Ligand’s This fall 2023 pipeline has over 20 actionable alternatives representing greater than $1 billion in potential investments. The corporate believes it’s nicely positioned and resourced to shut a number of new investments in 2024, relying on the scale and high quality of the alternatives.

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The corporate launched 2024 monetary steering, as follows:

• Complete income of $130 million to $142 million, comprised of $90 million to $95 million from royalties, $25 million to $27 million from gross sales of Captisol and $15 million to $20 million from contract income.
• Adjusted diluted EPS of $4.25 to $4.75.

The corporate supplied an illustrative 5-year outlook, as follows:

• Ligand’s present business applications, pipeline of mid- to late-stage applications and portfolio of over 75 further partnerships (the “Pharm Crew”) are anticipated to drive five-year progress in royalties at a compounded annual progress fee (CAGR) of 16%.
• Layering on the primary wave of potential future investments, the five-year CAGR for royalties may improve to above 20%.
• Complete core income may attain roughly $290 million by 2028.
• EBITDA margin may exceed 80% by 2028.
• Adjusted diluted EPS outlook for 2028 is within the vary of $10.00 to $10.50.

Adjusted Monetary Measures

Ligand stories adjusted web earnings and adjusted web earnings per diluted share along with, and never as an alternative choice to, or superior to, monetary measures calculated in accordance with GAAP. The Firm’s monetary measures below GAAP embrace share-based compensation expense, amortization of debt-related prices, amortization associated to acquisitions and intangible property, modifications in contingent liabilities, mark-to-market changes for quantities referring to its fairness investments in public firms, extra tax profit from share-based compensation, earnings tax impact of adjusted reconciling objects and others which might be listed within the itemized reconciliations between GAAP, and adjusted monetary measures included in its prior earnings releases. Nonetheless, the Firm doesn’t present reconciliations of such forward-looking adjusted measures to GAAP, together with measures reported on this press launch, as a result of inherent issue in forecasting and quantifying sure quantities which might be crucial for such reconciliation, together with changes that may very well be made for modifications in contingent liabilities, modifications out there worth of its investments in public firms, share-based compensation expense, and the results of any discrete earnings tax objects. Administration has excluded the results of these things in its adjusted measures to help traders in analyzing and assessing the Firm’s previous and future core working efficiency. Moreover, adjusted earnings per diluted share is a key element of the monetary metrics utilized by the Firm’s board of administrators to measure, partially, administration’s efficiency and decide important components of administration’s compensation.

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About Ligand Prescribed drugs

Ligand is a biopharmaceutical firm enabling scientific development by means of supporting the scientific improvement of high-value medicines. Ligand does this by offering financing, licensing our applied sciences or each. Our enterprise mannequin generates worth for stockholders by making a diversified portfolio of biotech and pharmaceutical product income streams which might be supported by an environment friendly and low company value construction. Our purpose is to supply traders a possibility to take part within the promise of the biotech trade in a worthwhile and diversified method. Our enterprise mannequin is predicated on funding applications in mid- to late-stage drug improvement in return for financial rights and licensing our know-how to assist companions uncover and develop medicines. We associate with different pharmaceutical firms to leverage what they do greatest (late-stage improvement, regulatory administration and commercialization) to be able to generate our income. Our Captisol^® platform know-how is a chemically modified cyclodextrin with a construction designed to optimize the solubility and stability of medicine. Now we have established a number of alliances, licenses and different enterprise relationships with the world’s main pharmaceutical firms together with Amgen, Merck, Pfizer, Jazz, Takeda, Gilead Sciences and Baxter Worldwide. For extra info, please go to at www.ligand.com. Comply with Ligand on X; (f/ok/a Twitter) @Ligand_LGND.

We use X and our investor relations web site as a way of revealing materials private info and for complying with our disclosure obligations below Regulation FD. Buyers ought to monitor our X account and our web site, along with following our press releases, SEC filings, public convention calls and webcasts.

Ahead-Wanting Statements

This information launch accommodates forward-looking statements by Ligand that contain dangers and uncertainties and replicate Ligand’s judgment as of the date of this launch. Phrases corresponding to “plans,” “believes,” “expects,” “anticipates,” and “will,” and comparable expressions, are supposed to determine forward-looking statements. These forward-looking statements embrace, with out limitation, statements relating to the outlook or steering relating to the ultimate 2023 monetary outcomes and expectations for near-term and future income and bills, and the breakdown of such income, progress in income and adjusted earnings; outlooks or steering relating to the monetary outcomes and steering for fiscal 2024 in addition to potential progress over the following 5 years; statements relating to market place and competitors for royalty transactions; expectations relating to inside and companions’ analysis and improvement applications, together with the timing of the initiation or completion of scientific trials, the potential for and timing of regulatory approval and product launch by Ligand and its companions; expectations relating to future gross sales of merchandise by Ligand’s companions and the sturdiness of Ligand’s royalties; the power for present and future know-how platforms to generate license offers and royalties; Ligand’s technique to deploy capital together with the scale of the potential pipeline of transactions; and anticipated near-term milestones. Precise occasions or outcomes might differ from Ligand’s expectations as a consequence of dangers and uncertainties inherent in Ligand’s enterprise, together with, with out limitation: the inherent dangers of scientific improvement and regulatory approval of product candidates, together with that the full addressable marketplace for our associate’s merchandise could also be smaller than estimated; Ligand faces competitors together with with respect to royalty acquisition transactions, which can end in fewer transactions projected or might improve the price of buying new applications, and our know-how platforms, which can display larger market acceptance or superiority; partnered business merchandise might not carry out as anticipated; Ligand depends on collaborative companions for milestone funds, royalties, supplies income, contract funds and different income projections; the likelihood that Ligand’s and its companions’ drug candidates won’t be proved to be protected and efficacious and FDA might not agree with our or our companions’ conclusions relating to the outcomes of scientific trials; uncertainty relating to the business efficiency of Ligand’s and/or its companions’ merchandise; Ligand might not obtain its steering for 2023, 2024 or past; disruption to Ligand’s and its companions’ enterprise, together with delaying manufacturing, preclinical research and scientific trials and product gross sales, and impairing world financial exercise, all of which may materially and adversely affect Ligand’s outcomes of operations and monetary situation; modifications generally financial circumstances, together with because of geopolitical occasions; there will not be a marketplace for the product(s) even when efficiently developed and accepted; Ligand is presently depending on a sole provider for Captisol and failures by such provider might end in delays or lack of ability to fulfill the Captisol calls for of its companions; Ligand’s companions might terminate their agreements in sure circumstances or discontinue improvement or commercialization of any of their merchandise; Ligand or its companions might not be capable to shield their mental property and patents overlaying sure merchandise and applied sciences could also be challenged or invalidated; and ongoing or future litigation may expose Ligand to important liabilities and have a fabric opposed impact on the corporate; and different dangers and uncertainties described in its public filings with the Securities and Change Fee, obtainable at www.sec.gov. The failure to fulfill expectations with respect to any of the foregoing issues might scale back Ligand’s inventory worth. Ligand disclaims any intent or obligation to replace these forward-looking statements past the date of this launch, together with the potential of further license charges and milestone revenues we might obtain. This warning is made below the protected harbor provisions of the Personal Securities Litigation Reform Act of 1995.

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Data relating to partnered merchandise and applications comes from info publicly launched by our companions. Our logos, commerce names and repair marks referenced herein embrace Ligand and Captisol. One another trademark, commerce title or service mark showing on this press launch belongs to its proprietor.

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Contacts

Ligand Prescribed drugs Included
Tavo Espinoza
traders@ligand.com
(858) 550-7766

LifeSci Advisors
Bob Yedid
bob@lifesciadvisors.com
(516) 428-8577

#distro

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