Ligand Pharmaceuticals Inc. (Nasdaq: LGND) announced its financial results for the third quarter of 2023, revealing a net loss from continuing operations of $12.8 million. Despite this, the company has raised its full-year 2023 revenue guidance, demonstrating confidence in its financial trajectory.
Financial Performance Overview
Ligand reported total revenues of $32.9 million for Q3 2023, representing a notable increase from the same period last year, excluding COVID-19 related sales. The company’s royalties reached $23.9 million, driven by the growth of key products such as Amgen’s Kyprolis and Jazz Pharmaceuticals’ RYLAZE. The sales of Core Captisol also experienced a significant rise, reaching $8.6 million, attributed to the timing of customer orders.
Income Statement Highlights
The cost of Captisol decreased to $3.5 million in Q3 2023 from $14.2 million in the previous year, reflecting a decline in total Captisol sales. Research and development expenses also saw a reduction to $5.5 million, down from $9.2 million in Q3 2022, due to lower stock-based compensation and other related expenses. General and administrative expenses remained relatively stable at $14.7 million.
Balance Sheet and Cash Flow Insights
Ligand maintained a strong liquidity position as of September 30, 2023, with a total of $190.5 million in cash, cash equivalents, and short-term investments. The company further enhanced its financial flexibility by entering into a credit agreement for a $75 million revolving credit facility.
Strategic Investments and Business Highlights
In line with its investment strategy, Ligand has made key investments in various transactions, totaling over $75 million. These investments, including partnerships with Tolerance, Ovid, Novan, and Primrose, are expected to drive future revenue growth. As a result, Ligand has raised its 2023 revenue guidance to a range of $126 million to $129 million, along with an increase in its adjusted earnings per share (EPS) guidance to $5.25 to $5.40.
Year-to-Date Financial Results
For the nine months ended September 30, 2023, Ligand reported total revenues of $103.2 million, with royalties contributing $61.4 million. The adjusted net income from continuing operations for this period was a robust $83.0 million, or $4.71 per diluted share, representing a significant increase from the same period in 2022.
Outlook
Looking ahead, Ligand Pharmaceuticals Inc. is optimistic about its future performance. The company plans to share its long-term financial forecast at an upcoming Investor and Analyst Day on December 12th in New York City. With its strategic investments and diversified portfolio of assets, Ligand is well-positioned for sustained revenue growth and the creation of shareholder value.
FAQ:
1. What was Ligand Pharmaceuticals Inc.’s net loss in Q3 2023?
Ligand Pharmaceuticals Inc. reported a net loss from continuing operations of $12.8 million in Q3 2023.
2. How did Ligand raise its 2023 revenue guidance?
Despite the net loss, Ligand Pharmaceuticals Inc. raised its 2023 revenue guidance due to confidence in its financial trajectory and strategic investments.
3. Which products contributed to Ligand’s royalties in Q3 2023?
Key products like Amgen’s Kyprolis and Jazz Pharmaceuticals’ RYLAZE drove Ligand’s royalty revenues in Q3 2023.
4. What is Ligand’s adjusted EPS guidance for 2023?
Ligand Pharmaceuticals Inc. has raised its adjusted earnings per share (EPS) guidance to a range of $5.25 to $5.40 for 2023.
5. How does Ligand plan to further strengthen its financial position?
Ligand has entered into a credit agreement for a $75 million revolving credit facility, enhancing its financial flexibility.