Ligand Pharmaceuticals Inc. Files 10-Q for Q1 2024

TL;DR

<b>Ligand Pharmaceuticals Inc. filed its Q1 2024 10-Q report detailing financial performance and business operations.</b>

AI Summary

LIGAND PHARMACEUTICALS INC (LGNZZ) filed a Quarterly Report (10-Q) with the SEC on May 8, 2024. Ligand Pharmaceuticals Inc. reported its Q1 2024 financial results on May 8, 2024. The filing covers the period ending March 31, 2024. The company's principal business address is in San Diego, CA. Ligand Pharmaceuticals operates in the Pharmaceutical Preparations industry (SIC 2834). The filing includes data related to various royalty and contract revenue segments.

Why It Matters

For investors and stakeholders tracking LIGAND PHARMACEUTICALS INC, this filing contains several important signals. This 10-Q filing provides investors with the latest quarterly financial data, including revenue, assets, and debt levels, crucial for assessing the company's current financial health and operational performance. Understanding the segment-specific revenue and royalty data allows for a deeper analysis of which product lines or partnerships are driving growth and contributing to Ligand's overall financial strategy.

Risk Assessment

Risk Level: medium — LIGAND PHARMACEUTICALS INC shows moderate risk based on this filing. The company's financial performance is subject to the success of its partners' drug development and commercialization efforts, as well as potential litigation or regulatory changes impacting its royalty streams.

Analyst Insight

Investors should review the detailed segment revenues and royalty income to understand the drivers of Ligand's financial results and assess the sustainability of its revenue streams.

Revenue Breakdown

Key Numbers

• 2024-03-31 — Report Period End Date (Quarterly report)
• 2024-05-08 — Filing Date (10-Q filing)
• 2834 — SIC Code (Pharmaceutical Preparations)

Key Players & Entities

• LIGAND PHARMACEUTICALS INC (company) — Filer name
• 0000886163 (company) — Central Index Key
• 2834 (company) — Standard Industrial Classification (Pharmaceutical Preparations)
• 2024-05-08 (date) — Filing date
• 2024-03-31 (date) — Period of report
• SAN DIEGO (location) — Business address city
• 858-550-7500 (phone) — Business phone number

FAQ

Risk Factors

• Contingent Value Rights [medium — financial]: Changes in the estimated fair value of contingent value rights can impact financial results.

Key Dates

• 2024-03-31: Quarter End — End of the reporting period for the 10-Q filing.
• 2024-05-08: Filing Date — Date the 10-Q was officially submitted to the SEC.

Glossary

Contingent Value Rights (CVR)

A financial instrument that provides the holder with a payment or other benefit if certain future events occur. (Changes in the fair value of CVRs can affect Ligand's reported earnings.)

Key Financial Figures

• $0.001 — ch registered: Common Stock, par value $0.001 per share LGND The Nasdaq Global Marke
• $750.0 million — he SEC on February 29, 2024 2023 Notes $750.0 million aggregate principal amount of convertib

Filing Documents

• lgnd-20240331.htm (10-Q) — 1012KB
• lgnd_33124exhibit311.htm (EX-31.1) — 15KB
• lgnd_33124exhibit312.htm (EX-31.2) — 15KB
• lgnd_33124exhibit321.htm (EX-32.1) — 11KB
• lgnd-20240331_g1.jpg (GRAPHIC) — 43KB
• 0000886163-24-000032.txt (&nbsp;) — 7364KB
• lgnd-20240331.xsd (EX-101.SCH) — 58KB
• lgnd-20240331_cal.xml (EX-101.CAL) — 95KB
• lgnd-20240331_def.xml (EX-101.DEF) — 341KB
• lgnd-20240331_lab.xml (EX-101.LAB) — 746KB
• lgnd-20240331_pre.xml (EX-101.PRE) — 520KB
• lgnd-20240331_htm.xml (XML) — 965KB

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION

Condensed Consolidated Financial Statements (unaudited)

ITEM 1. Condensed Consolidated Financial Statements (unaudited) 4 Condensed Consolidated Balance Sheets 4 Condensed Consolidated Statements of Operations 5 Condensed Consolidated Statements of Comprehensive Income (Loss) 6 Condensed Consolidated Statements of Stockholders' Equity 7 Condensed Consolidated Statements of Cash Flows 8 Notes to Condensed Consolidated Financial Statements 9

Management's Discussion and Analysis of Financial Condition and Results of Operations

ITEM 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 25

Quantitative and Qualitative Disclosures about Market Risk

ITEM 3. Quantitative and Qualitative Disclosures about Market Risk 30

Controls and Procedures

ITEM 4. Controls and Procedures 30

OTHER INFORMATION

PART II. OTHER INFORMATION

Legal Proceedings

ITEM 1. Legal Proceedings 30

Risk Factors

ITEM 1A. Risk Factors 30

Unregistered Sales of Equity Securities and Use of Proceeds

ITEM 2. Unregistered Sales of Equity Securities and Use of Proceeds 31

Defaults Upon Senior Securities

ITEM 3. Defaults Upon Senior Securities 31

Mine Safety Disclosures

ITEM 4. Mine Safety Disclosures 31

Other Information

ITEM 5. Other Information 31

Exhibits

ITEM 6. Exhibits 33 SIGNATURE 33 2 GLOSSARY OF TERMS AND ABBREVIATIONS Abbreviation Definition 2023 Annual Report Annual Report on Form 10-K for the year ended December 31, 2023, filed with the SEC on February 29, 2024 2023 Notes $750.0 million aggregate principal amount of convertible senior unsecured notes due 2023 APAC Avista Public Acquisition Corp. II (prior to its domestication in Delaware and change of name to OmniAb, Inc.) ASC Accounting Standards Codification ASU Accounting Standards Update Company Ligand Pharmaceuticals Incorporated, including subsidiaries CVR Contingent value right CyDex CyDex Pharmaceuticals, Inc. Distribution The separation of OmniAb Business through a spin-off of OmniAb to Ligand's shareholders of record as of October 26, 2022 on a pro rata basis ESPP Employee Stock Purchase Plan, as amended and restated FASB Financial Accounting Standards Board FDA Food and Drug Administration GAAP Generally accepted accounting principles in the United States Ligand Ligand Pharmaceuticals Incorporated, including subsidiaries Merger Agreement Agreement and Plan of Merger, dated as of March 23, 2022, among APAC, Ligand, OmniAb and Merger Sub Merger Sub Orwell Merger Sub, Inc., a wholly owned subsidiary of APAC Metabasis Metabasis Therapeutics, Inc. NDA New Drug Application New OmniAb OmniAb, Inc. (formerly known as Avista Public Acquisition Corp. II and after it domestication in Delaware) OmniAb OmniAb Operations, Inc. (formerly known as OmniAb, Inc. and prior to being spun off by the Company) OmniAb Business Ligand's antibody discovery business (prior to being spun off by the Company) PDUFA Prescription Drug User Fee Act Q1 2023 The Company's fiscal quarter ended March 31, 2023 Q1 2024 The Company's fiscal quarter ended March 31, 2024 SBC Share-based compensation expense SEC Securities and Exchange Commission Separation Agreement Separation and Distribution Agreement, dated as of March 23, 2022, among APAC, Ligand a

- FINANCIAL INFORMATION

PART I - FINANCIAL INFORMATION

Condensed Consolidated Financial Statements

Item 1. Condensed Consolidated Financial Statements LIGAND PHARMACEUTICALS INCORPORATED CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (in thousands, except par value) March 31, 2024 December 31, 2023 ASSETS Current assets: Cash and cash equivalents $ 50,093 $ 22,954 Short-term investments 260,500 147,355 Accounts receivable, net 28,435 32,917 Inventory 21,337 23,969 Income taxes receivable — 6,395 Prepaid expenses 1,237 1,182 Other current assets 7,311 2,657 Total current assets 368,913 237,429 Deferred income taxes, net — 214 Intangible assets, net 291,420 299,606 Goodwill 105,250 103,370 Long-term portion of financial royalty assets, net 65,710 62,291 Property and equipment, net 15,135 15,607 Operating lease right-of-use assets 6,028 6,062 Finance lease right-of-use assets 3,219 3,393 Equity method investment in Primrose Bio 10,469 12,595 Other investments 36,500 36,726 Other assets 11,225 9,923 Total assets $ 913,869 $ 787,216 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable $ 1,893 $ 2,427 Accrued liabilities 12,430 12,467 Income taxes payable 1,138 — Deferred revenue 1,227 1,222 Current contingent liabilities 127 256 Current operating lease liabilities 1,000 403 Current finance lease liabilities 3 7 Total current liabilities 17,818 16,782 Long-term deferred revenue 3,065 1,444 Long-term contingent liabilities 2,888 2,942 Deferred income taxes, net 50,606 31,622 Long-term operating lease liabilities 5,191 5,755 Other long-term liabilities 27,780 27,758 Total liabilities 107,348 86,303 Commitments and contingencies Stockholders' equity: Preferred stock, $ 0.001 par value; 5,000 shares authorized; zero issued and outstanding at March 31, 2024 and December 31, 2023 — — Common stock, $ 0.001 par value; 60,000 shares authorized; 17,924 and 17,556 shares issued and outstanding at March 31, 2024 and December 31, 2023, respectively 18 18 Additional paid-in capital 218,258 198,696 Accumulate

Business

Business We are a biopharmaceutical company enabling scientific advancement through supporting the clinical development of high-value medicines. We do this by providing financing, licensing our technologies or both. We operate in one reportable segment: development and licensing of biopharmaceutical assets. Basis of Presentation Our unaudited condensed consolidated financial statements include the financial statements of Ligand and its wholly-owned subsidiaries. All significant intercompany accounts and transactions have been eliminated in consolidation. We have included all adjustments, consisting only of normal recurring adjustments, which we considered necessary for a fair presentation of our financial results. These unaudited condensed consolidated financial statements and accompanying notes should be read together with the audited consolidated financial statements included in our 2023 Annual Report. Interim financial results are not necessarily indicative of the results that may be expected for the full year. Reclassification Certain reclassifications have been made to the previously issued audited consolidated financial statements to conform with the current period presentation. Specifically, within the consolidated balance sheet as of December 31, 2023, our commercial license and other economic rights line has been reclassified to long-term portion of financial royalty assets, net, and to other assets, and a portion of other investments has been reclassified from other assets. In addition, within the unaudited condensed consolidated statement of operations for the three months ended March 31, 2023, royalties have been reclassified to revenue from intangible royalty assets, and a portion of the contract revenue has been reclassified to income from financial royalty assets. Discontinued Operations The Company determined that the spin-off of the OmniAb Business in November 2022 met the criteria for classification as a discontinued operation in accordance

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