Ligand Pharmaceuticals Q2 2024 Update

TL;DR

Ligand Pharma Q2 2024 10-Q filed. Check financials.

AI Summary

Ligand Pharmaceuticals Inc. reported its second quarter 2024 results, ending June 30, 2024. The company's filing details its financial performance and operational updates for the period. Specific financial figures and operational highlights are available within the full report.

Why It Matters

This 10-Q filing provides investors with a detailed look at Ligand's financial health and operational progress during the second quarter of 2024, influencing investment decisions.

Risk Assessment

Risk Level: medium — 10-Q filings are standard for public companies but contain detailed financial information that can reveal risks and opportunities.

Key Players & Entities

• LIGAND PHARMACEUTICALS INC (company) — Filer
• 20240630 (date) — Period of Report
• 20240807 (date) — Filed as of Date
• 0000886163 (company) — Central Index Key
• 2834 (industry_code) — Standard Industrial Classification
• DE (state) — State of Incorporation
• 1231 (date) — Fiscal Year End
• 001-33093 (company) — SEC File Number
• SAN DIEGO (city) — Business Address City
• CA (state) — Business Address State

FAQ

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-20240630.htm (10-Q) — 1306KB
• exhibit21apeironbiologicsa.htm (EX-2.1) — 531KB
• exhibit101_ligand-firstame.htm (EX-10.1) — 84KB
• exhibit102_ligand-agenusxp.htm (EX-10.2) — 697KB
• lgnd_63024exhibit311.htm (EX-31.1) — 15KB
• lgnd_63024exhibit312.htm (EX-31.2) — 15KB
• lgnd_63024exhibit321.htm (EX-32.1) — 11KB
• image_0a.jpg (GRAPHIC) — 0KB
• image_2a.jpg (GRAPHIC) — 88KB
• image_6a.jpg (GRAPHIC) — 3KB
• lgnd-20240630_g1.jpg (GRAPHIC) — 43KB
• 0000886163-24-000071.txt ( ) — 10242KB
• lgnd-20240630.xsd (EX-101.SCH) — 62KB
• lgnd-20240630_cal.xml (EX-101.CAL) — 99KB
• lgnd-20240630_def.xml (EX-101.DEF) — 376KB
• lgnd-20240630_lab.xml (EX-101.LAB) — 827KB
• lgnd-20240630_pre.xml (EX-101.PRE) — 597KB
• lgnd-20240630_htm.xml (XML) — 1166KB

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 10

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 28

Quantitative and Qualitative Disclosures about Market Risk

ITEM 3. Quantitative and Qualitative Disclosures about Market Risk 35

Controls and Procedures

ITEM 4. Controls and Procedures 35

OTHER INFORMATION

PART II. OTHER INFORMATION

Legal Proceedings

ITEM 1. Legal Proceedings 35

Risk Factors

ITEM 1A. Risk Factors 36

Unregistered Sales of Equity Securities and Use of Proceeds

ITEM 2. Unregistered Sales of Equity Securities and Use of Proceeds 36

Defaults Upon Senior Securities

ITEM 3. Defaults Upon Senior Securities 36

Mine Safety Disclosures

ITEM 4. Mine Safety Disclosures 36

Other Information

ITEM 5. Other Information 36

Exhibits

ITEM 6. Exhibits 38 SIGNATURE 38 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 Q2 2023 The Company's fiscal quarter ended June 30, 2023 Q2 2024 The Company's fiscal quarter ended June 30, 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 and

- 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) June 30, 2024 December 31, 2023 ASSETS Current assets: Cash and cash equivalents $ 18,139 $ 22,954 Short-term investments 208,793 147,355 Accounts receivable, net 37,481 32,917 Inventory 18,672 23,969 Income taxes receivable — 6,395 Prepaid expenses 1,911 1,182 Current derivative assets 20,141 — Other current assets 7,122 2,657 Total current assets 312,259 237,429 Intangible assets, net 283,162 299,606 Goodwill 105,250 103,370 Long-term portion of financial royalty assets, net 80,481 62,291 Noncurrent derivative assets 34,505 3,531 Property and equipment, net 14,970 15,607 Operating lease right-of-use assets 7,403 6,062 Finance lease right-of-use assets 3,085 3,393 Equity method investment in Primrose Bio 2,437 12,595 Other investments 10,741 36,726 Deferred income taxes, net 190 214 Other assets 11,922 6,392 Total assets $ 866,405 $ 787,216 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable $ 1,793 $ 2,427 Accrued liabilities 12,171 12,467 Income taxes payable 2,091 — Deferred revenue 1,196 1,222 Current contingent liabilities 146 256 Current operating lease liabilities 1,156 403 Current finance lease liabilities 12 7 Total current liabilities 18,565 16,782 Long-term deferred revenue 2,696 1,444 Long-term contingent liabilities 4,052 2,942 Long-term operating lease liabilities 6,415 5,755 Deferred income taxes, net 30,128 31,622 Other long-term liabilities 29,351 27,758 Total liabilities 91,207 86,303 Commitments and contingencies Stockholders' equity: Preferred stock, $ 0.001 par value; 5,000 shares authorized; zero issued and outstanding at June 30, 2024 and December 31, 2023 — — Common stock, $ 0.001 par value; 60,000 shares authorized; 18,103 and 17,556 shares issued and outstanding at June 30, 2024 and December 31, 2

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. Moreover, long-term derivative assets as of December 31, 2023, have been reclassified from other assets. In addition, within the unaudited condensed consolidated statement of operations for the three and six months ended June 30, 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 th

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