Ligand Pharmaceuticals (LGND) Q3 2024 earnings summary

Executive summary

• Achieved 58% year-over-year revenue growth in Q3 2024, driven by strong royalty revenue, milestone payments, and new commercial launches including Ohtuvayre, Capvaxive, and Qarziba.

• Raised 2024 revenue and adjusted EPS guidance for the second time, reflecting robust portfolio performance and commercial execution.

• Portfolio expanded to 12 major commercial-stage royalty assets, with significant additions from the Apeiron and Agenus transactions.

• FDA approvals and successful launches for key partnered products, including Travere Filspari, Verona Pharma's Ohtuvayre, and Merck's Capvaxive.

• Over $300 million invested in the last 12 months, supporting ongoing acquisition of high-value, royalty-generating assets.

Financial highlights

• Q3 2024 total revenue reached $51.8 million, a 58% increase over Q3 2023, with royalty revenue up 33% to $31.7 million.

• Adjusted/core EPS was $1.84, up 80% from Q3 2023; core adjusted net income was $35.3 million.

• GAAP net loss for Q3 2024 was $7.2 million, improved from a $10.3 million loss in Q3 2023, mainly due to non-cash items.

• Cash, cash equivalents, and short-term investments totaled $219.6 million as of September 30, 2024.

• YTD 2024 gain from short-term investments was $98.9 million, mainly from Viking shares.

Outlook and guidance

• 2024 total revenue guidance raised to $160–$165 million; adjusted/core EPS expected between $5.50 and $5.70.

• Royalty revenue guidance increased to $105–$108 million for 2024.

• Long-term outlook targets royalty revenue CAGR above 20% and adjusted EPS CAGR above 25% through 2028, with EPS projected above $10 per share by 2028.

• Management to provide 2025 guidance at the December 2024 investor day.

• Guidance excludes $60 million realized gain from Viking Therapeutics stock sales.