Tonight, LGND released financials and there is no mention of any delays:
Thursday November 13, 4:30 pm Eastern Time
Company Press Release
SOURCE: Ligand Pharmaceuticals Incorporated
Ligand Reports Results For Third Quarter 1997 Company
Announces Move Into Metabolic Disease Alliance With Eli
Lilly
SAN DIEGO, Nov. 13 /PRNewswire/ -- Ligand Pharmaceuticals Incorporated (Nasdaq: LGND -
news) today reported revenues of $10.2 million in the third quarter ended September 31, 1997,
compared with $10.1 million in third quarter 1996. For the nine month period ended September 30,
1997, revenues increased to $29.9 million in 1997 from $27.4 million in 1996. The increased
revenues are primarily attributed to collaborative research and development revenues from Allergan
Ligand Retinoid Therapeutics, Inc., a company formed by Ligand and Allergan, Inc. to accelerate
development of retinoid products. Revenues were also derived from the research and development
agreements with Abbott Laboratories [NYSE:ABT - news], American Home Products Corporation
[NYSE:AHP - news], Glaxo-Wellcome plc., Sankyo Company Ltd., and SmithKline Beecham
Corporation.
Research and development expenses were $18.0 million in the third quarter ended September 30,
1997, compared with $15.1 million for the same period in 1996, an increase of $2.9 million. For the
nine month period ended September 30, research and development expenses were $51.4 million in
1997 compared to $42.2 million in 1996, an increase of $9.2 million. Increased research and
development expenses are primarily due to planned expansion of the clinical and development
programs.
Selling, general and administrative expenses were $2.5 million in third quarter 1997, compared to
$2.1 million in the third quarter 1996. For the nine month period ended September 30, selling,
general, and administrative expenses were $7.4 million in 1997 compared to $7.3 million in 1996.
The increases reflect personnel additions to support the expanded clinical and development
programs.
Net loss was $11.6 million in the third quarter of 1997 compared to $8.4 million in the third quarter
1996, an increase of $3.2 million. For the nine months ended September 30, 1997, net loss was
$32.1 million compared to $25.5 in 1996. On a per share basis, net loss for third quarter 1997 was
$0.35 per share compared with a net loss of $0.30 per share for the same period in 1996. For the
nine month period, on a per share basis, net loss was $0.99 compared to a net loss of $0.91 per
share for the same period in 1996.
As of September 30, 1997 Ligand had cash, cash equivalents, short-term investments and restricted
cash of $53.6 million, a decrease of $30.6 million from year-end 1996.
In September, Ligand and Allergan announced the exercise of their options to purchase the Callable
Common Stock and assets of Allergan Ligand Retinoid Therapeutics, Inc. The companies also
agreed to restructure the terms and conditions relating to research, development, commercialization
and sublicense rights for the ALRT compounds, effective upon the closing of the options exercise. In
October, Ligand announced the terms of a strategic alliance with Eli Lilly to develop and
commercialize products and technology with broad applications across metabolic diseases, including
diabetes, obesity, dislipidemia, insulin resistance and cardiovascular diseases associated with insulin
resistance and obesity, contingent upon receipt of regulatory approval and closing of the ALRT
options exercise.
''Lilly's proposed financial commitment to our recently announced alliance will strengthen our
finances for the buyout of ALRT and together with our future commitments, Ligand is well
positioned to be financed through to commercialization and profitability in the 1999 timeframe,''
according to Paul V. Maier, Ligand Senior Vice President and Chief Financial Officer. ''This
important collaboration with Eli Lilly will allow Ligand to more fully develop our technology in
metabolic disease.''
In the third quarter Ligand made important progress in all of its leading drugs. The European Phase
III trials for Panretin(TM) Topical Gel demonstrated positive results in Kaposi's sarcoma causing the
trial to be stopped early, permitting Ligand to use this trial as one of two pivotal trials in the New
Drug Application submission in the U.S. scheduled for early next year. Results of the U.S. Phase III
trials are scheduled to be announced next month.
American Home Products announced they will file an Investigational New Drug (IND) in the first
quarter of 1998 for the compound TSE424, an estrogen receptor partial agonist for osteoporosis
developed in its collaboration with Ligand. Pfizer moved droloxifene forward in the clinic for
osteoporosis and breast cancer and CP336,156, an estrogen partial agonist, completed a Phase I
trial in Europe for osteoporosis. If trials are successful, royalty revenues from sales of droloxifene for
breast cancer could begin for Ligand as early as 1999. Pfizer recently announced they plan to file a
New Drug Application with the U.S. Food and Drug Administration for droloxifene in the fourth
quarter of 1998.
Since 1989, Ligand Pharmaceuticals Incorporated has established a leadership position in gene
transcription technology, particularly intracellular receptors (IR) technology and Signal Transducers
and Activators of Transcription (STATs). Ligand has applied IR and STATs technology to the
discovery and development of small molecule drugs to enhance therapeutic and safety profiles and
to address major unmet patient needs in cancer, women's and men's health and skin diseases, as
well as osteoporosis, metabolic, cardiovascular and inflammatory disease.
This press release may contain certain forward looking statements by Ligand and actual results could
differ materially from those described as a result of factors, including, but not limited to, the
following. There can be no assurance: (a) that projected revenues will be available in a timely
manner; (b) that if a need for additional financing occurs, such financing will be available to the
Company when required or that such financing would be available under favorable terms; (c) that
any product will be successfully developed, that regulatory approvals will be granted, that patient
and physician acceptance of these products will be achieved or that final results of human clinical
trials will be consistent with any interim results, or that results will be supportive of regulatory
approvals required to market products; (d) that changes in the existing collaborative research
relationships will not occur, including their early termination; or (e) that regulatory approvals when
required for a transaction will be obtained. Ligand undertakes no obligation to update the statements
contained in this press release after the date hereof.
Note: If you would prefer to receive Ligand's press releases via e-mail please inform us at
investors@ligand.com and request to be placed on our priority e-mail list.
LIGAND PHARMACEUTICALS INCORPORATED
CONSOLIDATED STATEMENTS OF OPERATIONS INFORMATION
(Dollars in Thousands, Except Per Share Data)
(Unaudited)
Three Months Ended Nine Months Ended
September 30, September 30,
1997 1996 1997 1996
Revenues:
Collaborative research and
development $10,073 $10,051 $29,575 $27,191
Other 99 43 325 161
Total revenue 10,172 10,094 29,900 27,352
Costs and expenses:
Research and
development 18,038 15,093 51,353 42,174
Selling, general and
administrative 2,501 2,106 7,379 7,278
Total operating
expenses 20,539 17,199 58,732 49,452
Loss from operations(10,367) (7,105) (28,832) (22,100)
Interest income/
(expense) -- net (1,197) (1,309) (3,285) (3,433)
Net loss $(11,564) $(8,414) $(32,117) $(25,533)
Net loss per share $(.35) $(.30) $(.99) $(.91)
Shares used in computing net
loss per share 32,800 28,237 32,484 28,073
CONSOLIDATED BALANCE SHEETS INFORMATION
(Dollars in Thousands)
September 30, December 31,
1997 1996
Assets (Unaudited)
Current assets:
Cash, cash equivalents and
short term investments $50,558 $80,652
Other current assets 4,248 4,793
Total current assets 54,806 85,445
Restricted short-term
investments 3,056 3,527
Property and equipment, net 14,991 11,680
Other assets 5,086 1,488
$77,939 $102,140
Liabilities and Stockholders' Equity
Current liabilities $12,159 $13,765
Long-term debt 13,711 19,961
Convertible subordinated
debentures 35,959 33,953
Stockholders' equity 16,110 34,461
$77,939 $102,140
SOURCE: Ligand Pharmaceuticals Incorporated
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