Ligand Pharmaceuticals (LGND) investor relations material

Strategic direction and business model

• Shifted since 2022 to a royalty-focused, operationally light model, emphasizing commercial and development-stage assets and reducing OpEx by ~50%.

• Royalty investing model offers high operating leverage, low infrastructure costs, and mitigates operating and financing risks compared to traditional biotech investments.

• Business development leverages royalty monetization, project finance, special situations, and proprietary technology platforms (Captisol and NITRICIL).

• Partnerships with leading pharmaceutical companies and a rigorous, private equity-style investment process focus on high unmet clinical needs.

• Special situations, such as Pelthos and Apeiron, have delivered significant value and are a core part of the growth strategy.

Financial performance and guidance

• Royalty revenue has doubled and operating expenses halved since 2022, driving a 3x increase in adjusted EPS.

• 2025 guidance: $225M–$235M core revenue, $147M–$157M royalty revenue (~40% YoY growth), adjusted EPS $7.40–$7.65.

• 2026 guidance: $245M–$285M revenue, $200M–$225M royalty revenue (~40% growth), adjusted EPS $8.00–$9.00.

• Five-year outlook raised to 23% CAGR in royalty receipts through 2030, anchored by commercial-stage assets and a robust development pipeline.

• Nearly $1B in deployable capital, targeting $150M–$250M annual investments, supporting durable, compounding value creation.

Portfolio and pipeline developments

• Portfolio includes 12 major commercial royalty drivers and over 80 development-stage programs, diversified across therapeutic areas and partners.

• Key assets: Filspari (potential FSGS approval, 9% royalty), Ohtuvayre (strongest COPD launch, 3% royalty), Qarziba (mid-teen royalty), Capvaxive, and Zelsuvmi (13% royalty).

• Pelthos’s Zelsuvmi launched successfully, achieving $7M in first-quarter sales and a $35M annualized run rate with rapid sales force breakeven.

• Captisol platform remains a core technology, with 17 approved products and ongoing licensing activity, though long-term growth will be royalty-driven.

• Ongoing focus on proactive portfolio management, leveraging AI for efficiency, and expanding partner engagement.