Yes. The numbers do look good. I think that LGND should now begin
a rise in price. $11 appears to be a bottom.
Good luck,
--Tony
-----------------------------------------------------------
LIGAND PHARMACEUTICALS INC - Increases Revenues By 40% And Ends Year
With Cash Of $86.3M
===========================================================
Ligand Pharmaceuticals Inc. reported revenues increased over 40% to
$51.7 million for the year ended December 31, 1997, compared with revenues
of $36.8 million for the year ended December 31, 1996. For the fourth
quarter ended December 31, 1997, Ligand reported revenues of $21.8 million
compared with $9.5 million in the same quarter in 1996, an increase of over
129%. Net loss before one-time charges for the year ended December 31,
1997 was $35.2 million, compared to a net loss of $37.3 million in 1996.
The increase in revenues for the year ended December 31, 1997 is
primarily due to increased revenue from the initiation of the Company's
collaboration with Eli Lilly and Company described below. The increase in
revenues for the fourth quarter is primarily due to the increased revenue
from the Eli Lilly collaboration, offset by the decrease of revenue due to
the buyback of Allergan Ligand Retinoid Therapeutics, Inc. (ALRT).
"Outstanding progress was made in 1997, which has put Ligand in
position to file our first three New Drug Applications with the U.S. Food
and Drug Administration in 1998 or early 1999. These accomplishments
include the completion of our largest strategic alliance with Eli Lilly and
Company, completion of two pivotal trials with positive results for
Panretin(TM) Gel in Kaposi's sarcoma, and positive interim Phase III
results for Targretin(TM) in cutaneous T-cell lymphoma," according to David
E. Robinson, Ligand Chairman, President and Chief Executive Officer.
"Additionally, we concluded the successful buyout of ALRT and restructured
the product rights between Ligand and Allergan. As a result, Ligand has
gained worldwide rights to the nearest term products from ALRT."
Research and development expenses were $72.4 million for the year ended
December 31, 1997 compared with $59.5 million in the year ended December
31, 1996, an increase of 22%. R&D expenses for the fourth quarter ended
December 31, 1997 were $21.1 million compared with $17.3 in the same period
in 1996. The increases are primarily due to the increase in the number of
clinical trials to 50 in 1997 from 45 in 1996, including pivotal trials for
all four lead retinoid products. Selling, general and administrative
expenses for the year ended December 31, 1997 were $10.1 million compared
with $10.2 million in the same period in 1996, and were $2.7 million in the
fourth quarter ended December 31, 1997 compared with $2.9 million in the
same period in 1996.
Net loss before one-time charges for the year ended December 31, 1997
was $35.2 million or ($1.06) per share, compared to a net loss of $37.3
million or ($1.30) per share in 1996. Total net loss for the year,
including a one-time charge of $65.0 million, was $100.1 million or ($3.02)
per share. The one- time charge of $65.0 million was related to the buyout
of Allergan Ligand Retinoid Therapeutics, Inc. (ALRT).
As of December 31, 1997 Ligand had cash, cash equivalents, short-term
investments and restricted cash of $86.3 million, an increase of $2.1
million from year-end 1996.
"Accomplishments of 1997 which included the Lilly alliance, the ALRT
transaction, and progress with our clinical trials have kept Ligand
financially strong and well positioned to execute our commercialization
strategy this year and to become profitable in the 1999 timeframe,"
according to Paul V. Maier, Ligand Senior Vice President and Chief
Financial Officer.
In November 1997, Ligand initiated an alliance with Eli Lilly and
Company for the discovery and development of products based upon Ligand's
intracellular receptor technology. The collaboration focuses on products
with broad applications across metabolic diseases, including diabetes,
obesity, dislipidemia, insulin resistance and cardiovascular disease
associated with insulin resistance and obesity. The alliance could provide
Ligand with up to $49 million in research funding over five years;
initially included an equity investment and upfront milestone payments
totaling $50 million; and could provide up to $75 million (net of payments
to third parties) in future milestone payments. If only the most advanced
products are successful, Ligand could receive up to two-thirds of the
milestones, or up to $50 million, over the next four or five years.
Since 1989, Ligand Pharmaceuticals Inc. has established a leadership
position in gene transcription technology, particularly intracellular
receptor (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 statement 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 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; (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; or (c) that changes in the existing collaborative research
relationships will not occur, including their early termination. Ligand
undertakes no obligation to update the statements contained in this press
release after the date hereof.
//st
LIGAND PHARMACEUTICALS Inc.
CONSOLIDATED STATEMENTS OF OPERATIONS INFORMATION
(Dollars in Thousands, Except Per Share Data)
Three Months Ended Years Ended
December 31, December 31,
(Unaudited)
1997 1996 1997 1996
Revenues:
Collaborative research
and development $21,706 $9,444 $51,281 $36,635
Other 93 46 418 207
Total revenue 21,799 9,490 51,699 36,842
Costs and expenses:
Research and development 21,073 17,320 72,426 59,494
Selling, general
and administrative 2,729 2,927 10,108 10,205
Total operating expenses 23,802 20,247 82,534 69,699
Loss from operations
before one time charges (2,003) (10,757) (30,835) (32,857)
One time charges:
Write-off of in-process
technology (64,970) -- (64,970) --
Loss from operations (66,973) (10,757) (95,805) (32,857)
Interest
income/(expense) - net (1,060) (1,023) (4,345) (4,456)
Net loss $(68,033) $(11,780) $(100,150) $(37,313)
Net loss per share
before one time charges $ (.09) -- $ (1.06) --
Net loss per share $(1.93) $ (.38) $ (3.02) $(1.30)
Shares used in computing
net loss per share 35,165,802 30,890,991 33,128,372 28,780,914
CONSOLIDATED BALANCE SHEETS INFORMATION
(Dollars in Thousands)
December 31,
1997 1996
Assets
Current assets:
Cash, cash equivalents
and short term investments $83,230 $80,652
Other current assets 864 4,793
Total current assets 84,094 85,445
Restricted short-term investments 3,057 3,527
Property and equipment, net 14,853 11,680
Other assets 5,419 1,488
$ 107,423 $ 102,140
Liabilities and
Stockholders' Equity
Current liabilities $21,695 $13,765
Long-term debt 14,751 19,961
Convertible subordinated debentures 36,628 33,953
Stockholders' equity 34,349 34,461
$ 107,423 $ 102,140
//et
TEL: (619) 550-7500 Paul V. Maier, Senior Vice President and
Chief Financial Officer
Ligand Pharmaceuticals Inc.
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