Ligand Pharmaceuticals’ Earnings Call Highlights Strong Growth

Ligand Pharmaceuticals Inc ((LGND)) has held its Q3 earnings call. Read on for the main highlights of the call.

Ligand Pharmaceuticals Inc. recently held its earnings call, revealing a strong financial performance and a positive outlook for the future. The general sentiment during the call was optimistic, with significant growth in core revenue and earnings per share (EPS), alongside an increase in full-year guidance. However, there were some concerns about rising operating expenses and limited details on the ZELSUVMI launch.

Strong Financial Performance

Ligand Pharmaceuticals reported impressive financial results, with core revenue growing 68% year-over-year to $86.9 million. The adjusted EPS also saw a 68% increase, reaching $3.09. Additionally, royalty revenue rose by 47% year-over-year, amounting to $46.6 million, highlighting the company’s robust financial health.

Increased Full-Year Guidance

In light of its strong performance, Ligand raised its full-year 2025 guidance. The company now expects core revenue to be between $225 million and $235 million, with adjusted EPS projected to be between $7.40 and $7.65, reflecting their confidence in sustained growth.

Successful Convertible Debt Financing

Ligand successfully completed a $460 million convertible note financing, featuring a favorable 75 basis point coupon rate and a 32.5% conversion premium. This strategic financial move strengthens the company’s capital position and supports future growth initiatives.

Ohtuvayre and FILSPARI Performance

The sales of Ohtuvayre and FILSPARI showed remarkable growth, with Ohtuvayre sales increasing by 32% sequentially and FILSPARI sales rising by 26% over the previous quarter. FILSPARI has become Ligand’s largest royalty-generating asset on an annualized basis, underscoring its importance to the company’s portfolio.

Positive Developments in Key Assets

Ligand’s key assets are showing promising developments, with Merck’s CAPVAXIVE sales increasing significantly. Additionally, Palvella’s QTORIN rapamycin program is demonstrating potential, with upcoming Phase III results anticipated to further validate its efficacy.

Increased Operating Expenses

Despite the positive financial results, Ligand faced increased operating expenses, with general and administrative expenses rising to $28.4 million. Research and development expenses also surged due to a one-time $17.8 million charge related to an investment in Orchestra BioMed.

Limited Information on ZELSUVMI Launch

While early launch data for ZELSUVMI is encouraging, detailed information remains limited. More comprehensive insights are expected when Pelthos reports on November 13, which will provide a clearer picture of the launch’s success.

Forward-Looking Guidance

Ligand’s forward-looking guidance is optimistic, with an increase in full-year guidance driven by strong performance in their commercial royalty portfolio. The company expects long-term royalty growth to achieve or exceed a compound annual growth rate of 22% by 2029, supported by a strong balance sheet with approximately $1 billion in deployable capital.

In conclusion, Ligand Pharmaceuticals Inc.’s earnings call highlighted a robust financial performance with significant growth across various metrics. The company is poised for continued success, with increased guidance and strategic financial maneuvers supporting its future endeavors. Despite some concerns over rising expenses and limited launch details, the overall sentiment remains positive, reflecting confidence in Ligand’s growth trajectory.