Ligand Pharmaceuticals Announces Second Quarter Results
Conference call begins at 4:30 p.m. Eastern time today
SAN DIEGO, Aug 08, 2012 (BUSINESS WIRE) -- Ligand Pharmaceuticals Incorporated
(LGND) today announced financial results for the three and six months ended June
30, 2012 and provided an update on key programs.
"The strength of our business model and our product pipeline was demonstrated in
the recent announcements by Onyx Pharmaceuticals of the approval of
Captisol-enabled Kyprolis(TM), and by GlaxoSmithKline regarding the FDA's
priority review of Promacta(R) for the treatment of thrombocytopenia in adult
patients with chronic hepatitis C. We look forward to continued commercial,
regulatory and clinical progress by our partners and our team during the
remainder of the year," said John Higgins, President and Chief Executive Officer
of Ligand. "We are pleased with the financial performance of the business and
believe our strong growth prospects are coming into focus given the significant
positive events over the past few months."
Second Quarter Results
Total revenues for the second quarter of 2012 were $5.7 million, compared with
$7.5 million for the same period in 2011. The decrease in revenues was due
primarily to timing of customer purchases of Captisol this year and recognition
of $1.3 million of non-cash deferred revenue relating to Fablyn in the second
quarter 2011. Royalties for the second quarter of 2012 increased $0.8 million
compared with the second quarter of 2011, primarily due to an increase in
Promacta sales.
Total operating costs and expenses for the second quarter of 2012 were $7.5
million, compared with $8.7 million for the second quarter of 2011. Cost of goods
sold was $0.4 million, compared with $1.6 million for the second quarter of 2011.
Research and development expenses declined by $0.4 million, primarily due to
timing of expenses related to internal research and development projects. General
and administrative expenses were essentially flat and lease exit and termination
expenses increased $0.2 million, all compared with the same quarter a year ago.
The net loss in the second quarter of 2012 was $2.3 million, or ($0.11) per
share, compared with a net loss of $0.9 million, or ($0.05) per share, in the
second quarter of 2011. The loss from continuing operations for the second
quarter of 2012 was $4.1 million, or ($0.20) per share, compared with a loss from
continuing operations of $0.9 million, or ($0.05) per share for the second
quarter of 2011. Income from discontinued operations for the second quarter of
2012 was $1.8 million, or $0.09 per share.
As of June 30, 2012, Ligand had cash, cash equivalents, short-term investments
and restricted investments of $11.7 million.
Year-to-Date Results
Total revenues for the six months ended June 30, 2012 were $11.4 million,
compared with $11.4 million for the first six months of 2011. Cost of goods sold
was $0.6 million for the first six months of 2012, compared with $2.1 million for
the first six months of 2011. Other operating costs and expenses for the first
six months of 2012 were $13.3 million, compared with $12.4 million for the first
six months of 2011.
The net loss for the first six months of 2012 was $0.9 million, or ($0.04) per
share, compared with net income of $9.1 million, or $0.46 per diluted share, for
the first six months of 2011. The net loss from continuing operations for the
first half of 2012 was $4.6 million, or ($0.23) per share, compared with net
income from continuing operations of $9.1 million, or $0.46 per diluted share,
for the comparable 2011 period. Net income and income from continuing operations
for the first half of 2011 include a $13.4 million income tax benefit. Net income
from discontinued operations for the first six months of 2012 was $3.7 million,
or $0.19 per share.
Second Quarter and Recent Partner Highlights
-- Ligand partner GlaxoSmithKline announced that it has been granted priority
review from the U.S. Food and Drug Administration (FDA) for the supplemental new
drug application for Promacta to treat thrombocytopenia in adult patients with
chronic hepatitis C virus (HCV) infection.
-- Captisol licensee Onyx Pharmaceuticals received accelerated approval from the
FDA for Kyprolis (carfilzomib) for injection, a proteasome inhibitor indicated
for the treatment of patients with multiple myeloma who have received at least
two prior therapies, including bortezomib and an immunomodulatory agent, and have
demonstrated disease progression on or within 60 days of completion of the last
therapy.
-- Ligand partner Pfizer announced that the European Medicines Agency (EMA)
accepted for review the Marketing Authorization Application (MAA) for
bazedoxifene/conjugated estrogens, a potential new medicine for postmenopausal
women with a uterus for the treatment of estrogen deficiency symptoms and
treatment of osteoporosis in women at risk of fracture. Pfizer expects a decision
from the EMA in 2013.
-- Ligand entered into a clinical-stage Captisol agreement with Vertex
Pharmaceuticals.
-- Ligand announced positive preclinical data on LGD-6972, a small-molecule
glucagon receptor antagonist for the treatment of type-2 diabetes, at the
American Diabetes Association's 72nd Scientific Sessions in June.
2012 Operating Forecast
Affirming its previous forecast, Ligand expects 2012 total revenues to be
approximately $30 million, with revenue in the third quarter of approximately $8
million and revenue in the fourth quarter of approximately $11 million. Revenue
for the second half of the year may fluctuate significantly between the third and
fourth quarter based on the timing of license payments and customer purchases of
Captisol. The Company continues to expect combined research and development and
general and administrative expenses of approximately $25 million during 2012,
including approximately $6 million of non-cash expense items. Additionally, the
Company continues to expect its operations to be profitable and cash-flow
positive for the year.
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 (877) 407-4019 from the U.S.
or (201) 689-8337 from outside the U.S., using the passcode "Ligand." A replay of
the call will be available until September 8, 2012 at 5:30 p.m. Eastern time by
dialing (877) 660-6853 from the U.S. or (201) 612-7415 from outside the U.S. The
account number is 361 and the passcode is 396983. Individual investors can access
the Webcast through Ligand's web site at ligand.com.
About Ligand Pharmaceuticals
Ligand is a biopharmaceutical company with a business model that is based upon
the concept of developing or acquiring royalty revenue generating assets and
coupling them to a lean corporate cost structure. Ligand's goal is to produce a
bottom line that supports a sustainably profitable business. By diversifying the
portfolio of assets across numerous technology types, therapeutic areas, drug
targets, and industry partners, we offer investors an opportunity to invest in
the increasingly complicated and unpredictable pharmaceutical industry. In
comparison to its peers, we believe Ligand has assembled one of the largest and
most diversified asset portfolios in the industry with the potential to generate
revenue in the future. These therapies address the unmet medical needs of
patients for a broad spectrum of diseases including diabetes, hepatitis, muscle
wasting, thrombocytopenia, dyslipidemia, anemia, multiple myeloma and
osteoporosis. Ligand's Captisol platform technology is a patent protected,
chemically modified cyclodextrin with a structure designed to optimize the
solubility and stability of drugs. Ligand has established multiple alliances with
the world's leading pharmaceutical companies including GlaxoSmithKline, Merck,
Pfizer, Eli Lilly & Company, Baxter International, Bristol-Myers Squibb, Celgene,
Onyx Pharmaceuticals, Lundbeck Inc., The Medicines Company, Curis, Inc. and Rib-X
Pharmaceuticals. Please visit captisol.com for more information on
Captisol. For more information on Ligand, please visit ligand.com.
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