Conference Call Begins at 4:30 p.m. Eastern
Time Today
Ligand Pharmaceuticals Incorporated (NASDAQ: LGND) today
reported financial results for the three months ended March 31,
2021 and provided an operating forecast and program updates. Ligand
management will host a conference call today beginning at 4:30 p.m.
Eastern time to discuss this announcement and answer questions.
“This year has opened strong for Ligand with solid financial
performance and great results from all of our core technology
platforms,” said John Higgins, Chief Executive Officer. “We are
very pleased to report a smooth and efficient integration of the
four acquisitions we closed last year. Our R&D team has
expanded considerably and we are reaping the benefits of these
transactions with more licensing deals and contract revenue.
Working within a highly dynamic and unpredictable COVID-19
landscape, we continue to play a key role supporting the
manufacture of remdesivir through the supply of Captisol® to
numerous partners around the globe. We anticipate 2021 will be the
highest year of total revenues in Ligand’s history, and we look
forward to multiple regulatory approvals later this year of drugs
based on our technologies.”
First Quarter 2021 Financial Results
Total revenues for the first quarter of 2021 were $55.2 million,
compared with $33.2 million for the same period in 2020. Royalties
for the first quarter of 2021 were $7.1 million, compared with $6.6
million for the same period in 2020. Captisol sales were $31.3
million for the first quarter of 2021, compared with $21.1 million
for the same period in 2020, with the increase primarily due to
higher sales of Captisol for use with remdesivir. Contract revenue
was $16.8 million for the first quarter of 2021, compared with $5.5
million for the same period in 2020, with the increase primarily
due to the timing of partner milestone events and the acquisitions
of Icagen in April 2020 and Pfenex in October 2020.
Cost of Captisol was $8.2 million for the first quarter of 2021,
compared with $4.7 million for the same period in 2020, with the
increase primarily due to higher sales of Captisol. Amortization of
intangibles was $11.8 million for the first quarter of 2021,
compared with $3.5 million for the same period in 2020, with the
increase primarily due to amortization of contractual relationships
and technologies acquired from Icagen and Pfenex. Research and
development expense was $17.9 million for the first quarter of
2021, compared with $11.9 million for the same period of 2020, with
the increase primarily due to additional expenses following the
Icagen and Pfenex acquisitions. General and administrative expense
was $12.6 million for the first quarter of 2021, compared with $9.3
million for the same period in 2020, with the increase primarily
due to additional expenses following the Icagen and Pfenex
acquisitions.
Net income for the first quarter of 2021 was $18.1 million, or
$1.05 per diluted share, compared with net loss of $(24.1) million,
or $(1.46) per share, for the same period in 2020. Net income for
the first quarter of 2021 included a $9.1 million net non-cash gain
from the value of Ligand’s short-term investments, while net loss
for the first quarter of 2020 included a $(29.7) million net
non-cash loss from the value of Ligand’s short-term investments.
Adjusted net income for the first quarter of 2021 was $24.3
million, or $1.41 per diluted share, compared with $15.3 million,
or $0.89 per diluted share, for the same period in 2020. Please see
the table below for a reconciliation of net income/(loss) to
adjusted net income.
As of March 31, 2021, Ligand had cash, cash equivalents and
short-term investments of $339.2 million.
2021 Financial Guidance
Ligand today affirms its guidance for 2021 total revenues to be
approximately $291 million and 2021 adjusted earnings per diluted
share to be approximately $6.15. Ligand’s revenue guidance is
subject to unexpected changes in demand for Captisol related to
remdesivir and the timing and amount of contract payments from
milestone events. Ligand may update total revenue guidance at any
time during the year, in particular as the COVID-19 pandemic and
demand for Captisol related to remdesivir continue to evolve.
First Quarter 2021 and Recent Business Highlights
In February, Travere announced that sparsentan achieved its
pre-specified interim focal segmental glomerulosclerosis (FSGS)
partial remission of proteinuria endpoint (FPRE) in the DUPLEX
Phase 3 study after 36 weeks of treatment. Sparsentan demonstrated
a statistically significant response on FPRE compared with the
active control, irbesartan (p=0.0094). Preliminary results from the
interim analysis suggest that sparsentan was generally
well-tolerated and showed a comparable safety profile to
irbesartan. Based on the data from the interim analysis, Travere
intends to pursue submissions for accelerated approval of
sparsentan for FSGS in the second half of 2021. Additionally, in
February the European Commission granted orphan designation to
sparsentan for the treatment of IgA nephropathy (IgAN), a rare
kidney disorder and a leading cause of end-stage kidney disease.
Travere is conducting an ongoing, global pivotal Phase 3 clinical
trial (PROTECT) to evaluate the long-term nephroprotective
potential of sparsentan for the treatment of IgAN. Travere
anticipates topline interim efficacy data in the third quarter of
2021.
OmniAb® Platform Updates
OmniAb is Ligand’s industry-leading, AI- and BI- (Biological
Intelligence™) powered multi-species antibody platform for the
discovery of mono- and bispecific therapeutic human antibodies.
2020 was a year of major investment with the acquisition and
development of multiple technologies that enhance the offering for
OmniAb partners, including the addition of antigen-generation
services as well as deep-sequence analysis of functional antibody
repertoires. As of March 31, 2021, 17 different OmniAb-derived
antibodies have been studied in approximately 73 active or
completed clinical trials. Progress by multiple OmniAb partners
during the first quarter resulted in more than $4 million in
milestone payments being earned by Ligand. Ligand expects the first
regulatory approvals for OmniAb-derived antibodies in 2021.
On January 11, Aptevo Therapeutics provided an update on their
ongoing Phase 1/1b trial of APVO436 in AML/HR-MDS, noting that
patient dosing in cohorts 1 through 9 has completed and enrollment
in cohort 10 is ongoing. APVO436 is an OmniAb-derived bispecific
antibody targeting CD123 and CD3 for the potential treatment of
hematological malignancies.
On February 8, CStone Pharmaceuticals announced that the
OmniAb-derived anti-PD-L1 antibody sugemalimab was granted
Breakthrough Therapy Designation (BTD) in China for the treatment
of patients with relapsed or refractory extranodal natural
killer/T-cell lymphoma (R/R ENKTL). In October 2020, sugemalimab
was granted Orphan Drug Designation in the U.S. for the treatment
of T-cell lymphoma and BTD for the treatment of R/R ENKTL. A New
Drug Application (NDA) for sugemalimab is under review in China for
Stage IV squamous/non-squamous non-small cell lung cancer, and
CStone expects a determination in the second half of 2021.
On January 27, Harbour BioMed announced that Batoclimab
(HBM9161), a novel investigational anti-FcRn antibody, was granted
BTD in China for treatment of adult patients with myasthenia
gravis.
Pelican Platform Updates
The Pelican Expression Technology™ is Ligand's proprietary
Pseudomonas fluorescens protein expression technology that has
major collaborations with Jazz Pharmaceuticals, Merck, Serum
Institute of India and Alvogen, each of which has potential to
contribute meaningfully to Ligand’s royalty revenue.
On January 12, Merck announced that the U.S. Food and Drug
Administration (FDA) accepted for priority review a Biologics
License Application (BLA) for V114, Merck’s investigational
15-valent pneumococcal conjugate vaccine, for the prevention of
invasive pneumococcal disease in adults 18 years of age and older.
The FDA set a Prescription Drug User Fee Act (PDUFA), or target
action date, of July 18, 2021. The European Medicines Agency is
also reviewing an application for licensure of V114 in adults.
On January 18, Alvogen’s partner Thermarex announced the launch
of Livogiva® in the EU. Livogiva is a biosimilar of the reference
medicine Forsteo® (teriparatide) and therapeutic equivalence has
been demonstrated in a Phase 3 clinical study in patients with
severe osteoporosis who were treated for 6 months.
On April 6, Arcellx announced FDA clearance of their
Investigational New Drug application for ACLX-001, an engineered
cell therapy for the treatment of multiple myeloma. Arcellx
presented preclinical data supporting Arcellx’s ARC-SparX platform
cell therapy ACLX-001, a novel BCMA-targeted CAR-T, at the AACR
annual meeting in April of 2021.
Captisol® Business Updates
Captisol is utilized in the formulation of Gilead Sciences’
Veklury® (remdesivir). The product has been approved or authorized
for temporary use as a treatment for COVID-19 in approximately 50
countries worldwide and is included in more than 40 ongoing
interventional or observational clinical studies. In addition to
supplying Gilead, Ligand is also supplying Captisol to Gilead’s
voluntary licensing generic partners who are manufacturing
remdesivir for 127 other countries. Gilead announced the decision
to stop its Phase 3 study with intravenous Veklury in high-risk
non-hospitalized patients with COVID-19 due to the evolution of the
COVID-19 landscape. Gilead stated they continue to develop an
investigational inhaled dosage form of remdesivir and expect
results from the ongoing proof-of-concept study later this
year.
On March 31, the FDA approved the addition of the anti-CD38
monoclonal antibody (mAb) Sarclisa (isatuximab) to the combination
of Kyprolis® (carfilzomib) and dexamethasone to treat adult
patients with relapsed or refractory multiple myeloma who have
received one to three prior lines of therapy. Kyprolis is also
approved in combination with the anti-CD38 mAb Darzalex
(daratumumab) plus dexamethasone for the treatment of patients with
relapsed or refractory multiple myeloma who have received a maximum
of three prior lines of therapy.
On April 27, Aldeyra announced positive topline results from the
Phase 3 INVIGORATE trial of 0.25% reproxalap ophthalmic solution
(reproxalap), an investigational, novel small-molecule covalent
inhibitor of RASP (reactive aldehyde species), in patients with
allergic conjunctivitis. The clinical trial achieved statistical
significance (p<0.0001) for the primary endpoint of change from
baseline in subject-reported ocular itching score, and all
secondary endpoints including investigator-assessed ocular redness,
patient-reported ocular tearing score and total ocular severity
score. Aldeyra plans to meet with the FDA in the second half of
2021 to discuss the INVIGORATE results and the potential submission
of an NDA.
Other Business Updates
On April 21, Sermonix Pharmaceuticals announced a preclinical
collaboration with Jay Gertz, Ph.D., a researcher at the Huntsman
Cancer Institute and associate professor of oncological sciences at
the University of Utah, to examine the potential effects of
lasofoxifene on unique models of endometrial cancer that carry ESR1
mutations. Lasofoxifene has shown novel activity in ESR1 mutations,
and Sermonix is currently enrolling patients in two Phase 2
Evaluation of Lasofoxifene in ESR1 Mutations (ELAINE) studies in
metastatic breast cancer.
Ligand provides regular updates on individual partner events
through its Twitter account, @Ligand_LGND.
Adjusted Financial Measures
The Company reports adjusted net income and adjusted net income
per diluted share in addition to, and not as a substitute for, or
superior to, financial measures calculated in accordance with GAAP.
The Company’s financial measures under GAAP include share-based
compensation expense, amortization of debt-related costs,
amortization related to acquisitions and intangible assets, changes
in contingent liabilities, mark-to-market adjustments for amounts
relating to its equity investments in public companies, excess tax
benefit from share-based compensation and others that are listed in
the itemized reconciliations between GAAP and adjusted financial
measures included at the end of this press release. However, other
than with respect to total revenues, the Company only provides
financial guidance on an adjusted basis and does not provide
reconciliations of such forward-looking adjusted measures to GAAP
due to the inherent difficulty in forecasting and quantifying
certain amounts that are necessary for such reconciliation,
including adjustments that could be made for changes in contingent
liabilities, changes in the market value of its investments in
public companies, stock-based compensation expense and effects of
any discrete income tax items. Management has excluded the effects
of these items in its adjusted measures to assist investors in
analyzing and assessing the Company’s past and future core
operating performance. Additionally, adjusted earnings per diluted
share is a key component of the financial metrics utilized by the
Company’s board of directors to measure, in part, management’s
performance and determine significant elements of management’s
compensation.
Conference Call
Ligand management will host a conference call today beginning at
4:30 p.m. Eastern time (1:30 p.m. Pacific time) to discuss this
announcement and answer questions. To participate via telephone,
please dial (833) 540-1167 from the U.S. or (929) 517-0358 from
outside the U.S., using the conference ID 7398698. To participate
via live or replay webcast, a link is available at
www.ligand.com.
About OmniAb®
The OmniAb antibody discovery platform provides Ligand’s
biopharmaceutical industry partners access to the world’s most
advanced antibody repertoires and screening technologies to enable
unparalleled discovery of next-generation therapeutics. At the
heart of the OmniAb platform is the Biological Intelligence™ (BI)
of our proprietary transgenic animals, including OmniRat,
OmniChicken and OmniMouse, each capable of generating high quality
fully human antibodies that have been optimized naturally through
in vivo affinity maturation. OmniFlic (transgenic rat) and OmniClic
(transgenic chicken) address industry needs for bispecific antibody
applications though a common light chain approach, and OmniTaur
features unique structural attributes of cow antibodies for complex
targets. OmniAb animals comprise the most diverse host systems
available in the industry and they are optimally leveraged through
AI-enhanced antigen design and immunization methods, paired with
high-throughput microfluidic-based single B cell screening and deep
computational analysis of next-generation sequencing datasets to
identify fully human antibodies with superior performance and
developability characteristics. The OmniAb suite of technologies
and differentiating AI and BI features are combined to offer a
highly efficient and customizable end-to-end solution for the
growing antibody discovery needs of the global biopharmaceutical
industry.
About the Pelican Expression Technology™
Pelican is a robust, validated, cost-effective and scalable
platform for recombinant protein production, and is especially
well-suited for complex, large-scale protein production where
traditional systems are not suitable. Multiple global manufacturers
have demonstrated consistent success with the platform and the
technology is currently out-licensed for numerous commercial and
development-stage programs. The versatility of the platform has
been demonstrated in the production of enzymes, peptides, antibody
derivatives and engineered non-natural proteins. Partners seek the
platform as it can contribute significant value to
biopharmaceutical development programs by reducing development
timelines and costs for manufacturing therapeutics and vaccines.
Given pharmaceutical industry trends toward large molecules with
increasing structural complexities, Pelican is well positioned to
meet these growing needs as the most comprehensive broadly
available protein production platform in the industry.
About Captisol®
Captisol is a patent-protected, chemically modified cyclodextrin
with a structure designed to optimize the solubility and stability
of drugs. Captisol was invented and initially developed by
scientists in the laboratories of Dr. Valentino Stella, University
Distinguished Professor at the University of Kansas’ Higuchi
Biosciences Center for specific use in drug development and
formulation. This unique technology has enabled several
FDA-approved products, including Gilead’s VEKLURY®, Amgen’s
KYPROLIS®, Baxter International’s NEXTERONE®,
Acrotech Biopharma L.L.C.’s and CASI Pharmaceuticals’
EVOMELA®, Melinta Therapeutics’ BAXDELA™ and Sage
Therapeutics’ ZULRESSO™. There are many Captisol-enabled products
currently in various stages of development. Ligand maintains a
broad global patent portfolio for Captisol with more than 400
issued patents worldwide relating to the technology (including over
40 in the U.S.) and with the latest expiration date in 2033. Other
patent applications covering methods of making Captisol, if issued,
extend to 2040.
About Ligand Pharmaceuticals
Ligand is a revenue-generating biopharmaceutical company focused
on developing or acquiring technologies that help pharmaceutical
companies discover and develop medicines. Our business model
creates value for stockholders by providing a diversified portfolio
of biotech and pharmaceutical product revenue streams that are
supported by an efficient and low corporate cost structure. Our
goal is to offer investors an opportunity to participate in the
promise of the biotech industry in a profitable, diversified and
lower-risk business than a typical biotech company. Our business
model is based on doing what we do best: drug discovery,
early-stage drug development, product reformulation and partnering.
We partner with other pharmaceutical companies to leverage what
they do best (late-stage development, regulatory management and
commercialization) to ultimately generate our revenue. Ligand’s
OmniAb® technology platform is a patent-protected transgenic animal
platform used in the discovery of fully human mono- and bispecific
therapeutic antibodies. The Captisol platform technology is a
patent-protected, chemically modified cyclodextrin with a structure
designed to optimize the solubility and stability of drugs.
Ligand’s Protein Expression Technology is a robust, validated,
cost-effective and scalable platform for recombinant protein
production, and is especially well-suited for complex, large-scale
protein production where traditional systems are not suitable. Ab
Initio™ technology and services for the design and preparation of
customized antigens enable the successful discovery of therapeutic
antibodies against difficult-to-access cellular targets. Ligand has
established multiple alliances, licenses and other business
relationships with the world’s leading pharmaceutical companies
including Amgen, Merck, Pfizer, Sanofi, Janssen, Takeda, Servier,
Gilead Sciences and Baxter International. For more information,
please visit www.ligand.com.
Forward-Looking Statements
This news release contains forward-looking statements by Ligand
that involve risks and uncertainties and reflect Ligand's judgment
as of the date of this release. Words such as “plans,” “believes,”
“expects,” “anticipates,” and “will,” and similar expressions, are
intended to identify forward-looking statements. These
forward-looking statements include, without limitation, statements
regarding: Ligand’s ability to supply Captisol to Gilead and other
partners; the potential opportunities for Ligand and its partners
related to development of COVID-19 treatments; the timing of
product launches by Ligand or its partners; the potential for
regulatory approvals of our partners’ product candidates including
the first potential approvals for an OmniAb-derived antibody; and
guidance regarding 2021 financial results. Actual events or results
may differ from Ligand's expectations due to risks and
uncertainties inherent in Ligand’s business, including, without
limitation: Ligand may not receive expected revenue from royalties,
Captisol sales or contract revenue; the COVID-19 pandemic has
disrupted and may continue to disrupt Ligand’s and its partners’
business, including delaying manufacturing, preclinical studies and
clinical trials and product sales, and impairing global economic
activity, all of which could materially and adversely impact
Ligand’s results of operations and financial condition; Ligand may
not achieve its guidance for 2021; the FDA may revise or revoke
approval for remdesivir for the treatment of patients with COVID-19
requiring hospitalization based on later information regarding the
safety or efficacy of remdesivir; the commercial opportunity for
remdesivir could be materially and adversely affected as a result
of approved vaccines and alternative approved and investigational
therapies; Gilead may develop an alternative formulation of
remdesivir that does not incorporate Captisol or uses less Captisol
in such formulation; there may not be a market for the product(s)
even if successfully developed and approved; Ligand is currently
dependent on single source sole supplier for Captisol and failures
by such supplier may result in delays or inability to meet the
Captisol demands of its partners; Amgen, Acrotech Biopharma or
other Ligand partners, may not execute on their sales and marketing
plans for marketed products for which Ligand has an economic
interest; Ligand or its partners may not be able to protect their
intellectual property and patents covering certain products and
technologies may be challenged or invalidated; Ligand's partners
may terminate any of its agreements or development or
commercialization of any of its products; Ligand may not generate
expected revenues under its existing license agreements and may
experience significant costs as the result of potential delays
under its supply agreements; Ligand and its partners may experience
delays in the commencement, enrollment, completion or analysis of
clinical testing for its product candidates, or significant issues
regarding the adequacy of its clinical trial designs or the
execution of its clinical trials, which could result in increased
costs and delays, or limit Ligand's ability to obtain regulatory
approval; unexpected adverse side effects or inadequate therapeutic
efficacy of Ligand's product(s) could delay or prevent regulatory
approval or commercialization; challenges, costs and charges
associated with integrating recently completed acquisitions with
Ligand’s existing businesses; and ongoing or future litigation
could expose Ligand to significant liabilities and have a material
adverse effect on the company. The failure to meet expectations
with respect to any of the foregoing matters may reduce Ligand's
stock price. Additional information concerning these and other risk
factors affecting Ligand can be found in prior press releases
available at www.ligand.com as well as in Ligand's public periodic
filings with the Securities and Exchange Commission available at
www.sec.gov. Ligand disclaims any intent or obligation to update
these forward-looking statements beyond the date of this release,
including the possibility of additional contract revenue we may
receive. This caution is made under the safe harbor provisions of
the Private Securities Litigation Reform Act of 1995.
Other Disclaimers and Trademarks
The information in this press release regarding certain
third-party products and programs, including Kyprolis, an Amgen
product and EVOMELA, an Acrotech Biopharma product, comes from
information publicly released by the owners of such products and
programs. Ligand is not responsible for, and has no role in, the
development of such products or programs.
Ligand owns or has rights to trademarks and copyrights that it
uses in connection with the operation of its business including its
corporate name, logos and websites. Other trademarks and copyrights
appearing in this press release are the property of their
respective owners. The trademarks Ligand owns include Ligand®,
Pelican®, Captisol® and OmniAb®. Solely for convenience, some of
the trademarks and copyrights referred to in this press release are
listed without the ®, © and ™ symbols, but Ligand will assert, to
the fullest extent under applicable law, its rights to its
trademarks and copyrights.
LIGAND PHARMACEUTICALS
INCORPORATED
CONDENSED CONSOLIDATED
STATEMENTS OF OPERATIONS
(Unaudited, in thousands, except
per share amounts)
Three Months Ended March
31,
2021
2020 (1)
Revenues:
Royalties
$
7,112
$
6,565
Captisol
31,272
21,109
Contract
16,766
5,487
Total revenues
55,150
33,161
Operating costs and expenses:
Cost of Captisol
8,153
4,683
Amortization of intangibles
11,786
3,535
Research and development
17,879
11,891
General and administrative
12,617
9,264
Total operating costs and expenses
50,435
29,373
Income from operations
4,715
3,788
Gain (loss) from short-term
investments
13,061
(30,741
)
Interest expense, net
(5,535
)
(3,818
)
Other income (expense), net
(6,477
)
356
Total other income (loss), net
1,049
(34,203
)
Income (loss) before income taxes
5,764
(30,415
)
Income tax benefit
12,342
6,284
Net income (loss):
$
18,106
$
(24,131
)
Basic net income (loss) per share
$
1.10
$
(1.46
)
Shares used in basic per share
calculation
16,435
16,529
Diluted net income (loss) per share
$
1.05
$
(1.46
)
Shares used in diluted per share
calculations
17,248
16,529
(1) Certain reclassifications
have been made to the prior period data to conform with the current
period presentation.
LIGAND PHARMACEUTICALS
INCORPORATED
CONDENSED CONSOLIDATED BALANCE
SHEETS
(Unaudited, in thousands)
March 31, 2021
December 31, 2020
ASSETS
Current assets:
Cash, cash equivalents and short-term
investments
$
339,207
$
411,186
Accounts receivable, net
54,436
56,847
Inventory
36,932
26,487
Income taxes receivable
1,145
2,217
Other current assets
5,708
3,822
Total current assets
437,428
500,559
Deferred income taxes, net
27,432
24,320
Goodwill and other identifiable intangible
assets, net
774,300
784,992
Commercial license and other economic
rights, net
10,451
10,979
Operating lease right-of-use assets
7,611
6,892
Finance lease right-of-use assets
17,950
15,842
Other assets
19,949
18,701
Total assets
$
1,295,121
$
1,362,285
LIABILITIES AND STOCKHOLDERS'
EQUITY
Current liabilities:
Accounts payable and accrued
liabilities
$
21,579
$
22,314
Current contingent liabilities
41,509
39,884
Current operating lease liabilities
2,173
1,885
Current finance lease liabilities
5,437
6,593
Deferred revenue
25,107
29,435
Total current liabilities
95,805
100,111
2023 convertible senior notes, net
352,313
442,293
Long-term contingent liabilities
9,548
9,249
Deferred income taxes, net
56,812
64,598
Other long-term liabilities
34,803
36,509
Total liabilities
549,281
652,760
Total stockholders' equity
745,840
709,525
Total liabilities and stockholders'
equity
$
1,295,121
$
1,362,285
LIGAND PHARMACEUTICALS
INCORPORATED
ADJUSTED FINANCIAL
MEASURES
(Unaudited, in thousands, except
per share amounts)
Three months ended March
31,
2021
2020(7)
Net income (loss)
$
18,106
$
(24,131
)
Share-based compensation expense
8,405
5,653
Non-cash interest expense(1)
4,916
7,203
Amortization related to acquisitions and
intangible assets
11,786
3,535
Amortization of commercial license and
other economic rights(2)
528
3,730
Change in contingent liabilities(3)
1,684
(367
)
Acquisition and integration costs(4)
422
—
Loss (gain) from short-term
investments
(13,061
)
30,741
Realized gain (loss) from short-term
investments
3,912
(1,055
)
Other(5)
6,089
263
Income tax effect of adjusted reconciling
items above
(6,357
)
(9,411
)
Excess tax benefit from share-based
compensation(6)
(12,120
)
(886
)
Adjusted net income
24,310
15,275
Diluted per-share amounts attributable
to common shareholders:
Net income (loss)
$
1.05
$
(1.46
)
Share-based compensation expense
0.49
0.34
Non-cash interest expense(1)
0.29
0.44
Amortization related to acquisitions and
intangible assets
0.68
0.21
Amortization of commercial license and
other economic rights(2)
0.03
0.23
Change in contingent liabilities(3)
0.10
(0.02
)
Acquisition and integration costs(4)
0.02
—
Loss from short-term investments
(0.76
)
1.85
Realized gain from short-term
investments
0.23
(0.06
)
Other(5)
0.35
0.01
Income tax effect of adjusted reconciling
items above
(0.37
)
(0.57
)
Excess tax benefit from share-based
compensation(6)
(0.70
)
(0.05
)
Adjustment for shares excluded due to
anti-dilution effect on GAAP net loss
—
(0.04
)
Adjusted net income
1.41
0.89
GAAP - Weighted average number of common
shares-diluted
17,248
16,529
Add: Shares excluded due to anti-dilutive
effect on GAAP net loss
—
611
Adjusted weighted average number of common
shares-diluted
17,248
17,140
(1) Amounts represent non-cash debt related costs that are
calculated in accordance with the authoritative accounting guidance
for convertible debt instruments that may be settled in cash.
(2) For the three months ended March 31, 2021, the amount
represents the amortization of commercial license and other
economic rights to revenue. For the three months ended March 31,
2020, the amounts represent the amortization of commercial license
and other economic rights to revenue and research and development
expenses in the amounts of $1,222 and $2,508, respectively.
(3) Amounts represent changes in fair value of contingent
consideration related to Icagen, Pfenex, Crystal, CyDex, and
Metabasis transactions.
(4) Amounts represent severance costs, legal fees and certain
contract termination costs in connection with the acquisitions.
(5) Amounts primarily relate to loss on debt extinguishment.
(6) Excess tax benefits from share-based compensation are
recorded as a discrete item within the provision for income taxes
on the consolidated statement of operations as a result of the
adoption of an accounting pronouncement (ASU 2016-09) on January 1,
2017. Prior to the adoption, the amount was recognized in
additional paid-in capital on the consolidated statement of
stockholders' equity.
(7) Certain reclassifications have been made to the prior period
data to conform with the current period presentation.
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version on businesswire.com: https://www.businesswire.com/news/home/20210503005699/en/
LHA Investor Relations Bruce Voss Email: bvoss@lhai.com Phone:
(310) 691-7100 Twitter: @Ligand_LGND
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