Ligand Pharmaceuticals Q3 2024 Update

TL;DR

Ligand Pharma dropped its Q3 2024 10-Q. Check financials.

AI Summary

Ligand Pharmaceuticals Inc. reported its third-quarter 2024 results, ending September 30, 2024. The company's financial statements reflect its ongoing operations and asset management within the pharmaceutical sector. Specific financial figures and operational details for the quarter are available in the full filing.

Why It Matters

This filing provides investors and stakeholders with an update on Ligand Pharmaceuticals' financial performance and operational status for the third quarter of 2024.

Risk Assessment

Risk Level: medium — As a pharmaceutical company, Ligand is subject to regulatory, market, and R&D risks inherent in the industry.

Key Numbers

• 2024-09-30 — Reporting Period End Date (Indicates the end of the fiscal quarter being reported.)
• 2023-12-31 — Previous Fiscal Year End (Provides a comparison point to the prior year's financial standing.)

Key Players & Entities

• LIGAND PHARMACEUTICALS INC (company) — Filer
• 20240930 (date) — Period of Report
• 20241108 (date) — Filing Date
• SAN DIEGO, CA (location) — Business Address

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-20240930.htm (10-Q) — 1420KB
• exhibit102-severanceagreem.htm (EX-10.2) — 53KB
• lgnd_93024exhibit311.htm (EX-31.1) — 15KB
• lgnd_93024exhibit312.htm (EX-31.2) — 15KB
• lgnd_93024exhibit321.htm (EX-32.1) — 11KB
• image_0a.jpg (GRAPHIC) — 0KB
• lgnd-20240930_g1.jpg (GRAPHIC) — 43KB
• 0000886163-24-000078.txt ( ) — 9240KB
• lgnd-20240930.xsd (EX-101.SCH) — 64KB
• lgnd-20240930_cal.xml (EX-101.CAL) — 110KB
• lgnd-20240930_def.xml (EX-101.DEF) — 431KB
• lgnd-20240930_lab.xml (EX-101.LAB) — 859KB
• lgnd-20240930_pre.xml (EX-101.PRE) — 623KB
• lgnd-20240930_htm.xml (XML) — 1248KB

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 9 Notes to Condensed Consolidated Financial Statements 11

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 32

Quantitative and Qualitative Disclosures about Market Risk

ITEM 3. Quantitative and Qualitative Disclosures about Market Risk 39

Controls and Procedures

ITEM 4. Controls and Procedures 39

OTHER INFORMATION

PART II. OTHER INFORMATION

Legal Proceedings

ITEM 1. Legal Proceedings 39

Risk Factors

ITEM 1A. Risk Factors 40

Unregistered Sales of Equity Securities and Use of Proceeds

ITEM 2. Unregistered Sales of Equity Securities and Use of Proceeds 40

Defaults Upon Senior Securities

ITEM 3. Defaults Upon Senior Securities 40

Mine Safety Disclosures

ITEM 4. Mine Safety Disclosures 40

Other Information

ITEM 5. Other Information 40

Exhibits

ITEM 6. Exhibits 42 SIGNATURE 42 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 Ligand Pharmaceuticals Incorporated Employee Stock Purchase Plan, as amended and restated, effective June 6, 2019 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 Q3 2023 The Company's fiscal quarter ended September 30, 2023 Q3 2024 The Company's fiscal quarter ended September 30, 2024 SBC Share-based compensation expense SEC Securities and Exchange Commission Separation Agreement Separation and Dis

- 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) September 30, 2024 December 31, 2023 ASSETS Current assets: Cash and cash equivalents $ 63,619 $ 22,954 Short-term investments 156,024 147,355 Accounts receivable, net 34,318 32,917 Inventory 16,740 23,969 Income taxes receivable 7,813 6,395 Current derivative assets 11,133 — Other current assets 19,741 3,839 Total current assets 309,388 237,429 Intangible assets, net 274,905 299,606 Goodwill 105,250 103,370 Long-term portion of financial royalty assets, net 199,251 62,291 Noncurrent derivative assets 19,246 3,531 Property and equipment, net 15,094 15,607 Operating lease right-of-use assets 7,157 6,062 Finance lease right-of-use assets 2,940 3,393 Equity method investment in Primrose Bio 1,245 12,595 Other investments 11,908 36,726 Deferred income taxes, net 78 214 Other assets 8,404 6,392 Total assets $ 954,866 $ 787,216 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable $ 4,694 $ 2,427 Accrued liabilities 15,600 12,467 Income taxes payable 2,108 — Deferred revenue 1,152 1,222 Current contingent liabilities 128 256 Current operating lease liabilities 1,066 403 Current finance lease liabilities 24 7 Total current liabilities 24,772 16,782 Long-term deferred revenue 2,508 1,444 Long-term contingent liabilities 3,863 2,942 Long-term operating lease liabilities 6,267 5,755 Deferred income taxes, net 46,404 31,622 Other long-term liabilities 29,874 27,758 Total liabilities 113,688 86,303 Commitments and contingencies Stockholders' equity: Preferred stock, $ 0.001 par value; 5,000 shares authorized; zero issued and outstanding at September 30, 2024 and December 31, 2023 — — Common stock, $ 0.001 par value; 60,000 shares authorized; 18,760 and 17,556 shares issued and outstanding at September 30, 2024 and December 31, 2023, respec

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, noncurrent 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 nine months ended September 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-of

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View this 10-Q filing on SEC EDGAR