Ligand Pharmaceuticals Incorporated (LGND): history, ownership, mission, how it works & makes money

A Brief History of Ligand Pharmaceuticals

Ligand Pharmaceuticals Incorporated, founded in 1987, has evolved significantly over the years, transitioning from a biotech startup to a leading biopharmaceutical company focused on developing and acquiring technologies that help pharmaceutical companies effectively commercialize their drugs.

Recent Acquisitions and Financial Developments

In July 2024, Ligand completed the acquisition of Apeiron, a move aimed at enhancing its portfolio of financial royalty assets. As of September 30, 2024, Ligand reported cash, cash equivalents, and short-term investments totaling $219.6 million, marking an increase of $49.3 million from the end of 2023 .

In the first nine months of 2024, Ligand generated a net income of $27.1 million, compared to $33.9 million in the same period of 2023. The company recorded a net loss of $7.2 million for Q3 2024, which was an improvement compared to a loss of $10.3 million in Q3 2023 .

Financial Performance Overview

For the nine months ended September 30, 2024, Ligand's total revenue reached $124.3 million, an increase of 20% from $103.2 million in the prior year . The breakdown of revenue sources included:

Stock Performance and Market Activity

As of September 30, 2024, Ligand's stock performance reflected a dynamic market environment. The company executed an At-The-Market (ATM) equity offering, generating net proceeds of $34.3 million from the sale of 334,325 shares . The approval of the amended stock incentive plan in June 2024 allowed for an increase in shares available for issuance by 1.3 million .

Financial Royalty Assets

Ligand's financial royalty assets have seen significant changes. As of September 30, 2024, the total financial royalty assets net value stood at $205.9 million, reflecting a substantial increase from $62.3 million at the end of 2023 . This growth is attributed to the recent acquisition of additional royalty rights, which are expected to generate future cash flows.

Challenges and Future Outlook

Ligand faces various challenges, including managing operational costs that increased by 52% year-over-year to $137.3 million for the first nine months of 2024, largely due to increased stock compensation and financial royalty asset impairments . However, the strategic acquisitions and the growth in revenue from royalties and contract income provide a positive outlook for the company's future performance.

As of September 30, 2024, Ligand's share price has fluctuated, reflecting broader market trends and investor sentiment. The company continues to explore new partnerships and acquisitions to enhance its product offerings and market presence .

A Who Owns Ligand Pharmaceuticals Incorporated (LGND)

Current Shareholder Composition

As of 2024, Ligand Pharmaceuticals Incorporated (LGND) has a diverse shareholder base comprising institutional investors, mutual funds, and individual shareholders. The following table summarizes the top shareholders by ownership percentage:

Recent Stock Performance

Ligand Pharmaceuticals has experienced fluctuations in stock price, reflecting market conditions and company performance. As of September 30, 2024, the closing stock price was $72.50. The stock has shown a year-to-date performance increase of 15%.

Institutional Ownership Trends

Institutional ownership has seen a steady increase over the past year, with major firms like The Vanguard Group and BlackRock increasing their stakes. The following table illustrates the changes in institutional ownership over the past year:

Recent Financial Overview

For the nine months ended September 30, 2024, Ligand Pharmaceuticals reported total revenue of $124.3 million, an increase from $103.2 million in the same period of 2023. The company's net income for the same period was $27.1 million, compared to $33.9 million in 2023, indicating a shift in profitability metrics.

Dividends and Stock Buybacks

Ligand has implemented a stock repurchase program authorizing the repurchase of up to $50 million of common stock. As of September 30, 2024, $20 million of this authorization remains available for future buybacks.

Future Ownership Outlook

Analysts predict that Ligand's shareholder composition may continue to evolve, with potential increases in institutional ownership as the company expands its pipeline and revenue streams. The anticipated FDA approvals for key products are likely to attract further investment interest.

Ligand Pharmaceuticals Incorporated (LGND) Mission Statement

Overview of Mission Statement

Ligand Pharmaceuticals Incorporated aims to provide innovative solutions and advancements in drug development. The focus remains on leveraging its proprietary technologies and partnerships to deliver high-value medicines to patients globally.

Financial Performance

As of the year-to-date (YTD) 2024, Ligand Pharmaceuticals reported a total revenue of $124.3 million, representing an increase of 20% compared to $103.2 million in YTD 2023. This growth is primarily driven by royalties, which rose by 18% to $74.0 million in YTD 2024 from $62.5 million in YTD 2023.

Research and Development Investments

Research and development expenses for YTD 2024 totaled $17.0 million, a decrease from $19.0 million in YTD 2023. This change reflects strategic shifts following the sale of the Pelican business in September 2023.

General and Administrative Expenses

General and administrative expenses increased significantly to $53.0 million in YTD 2024, compared to $36.8 million in YTD 2023, largely due to increased stock compensation expenses associated with executive changes and the acquisition of Novan.

Net Income and Loss Analysis

For the three months ended September 30, 2024, Ligand recorded a net loss of $7.17 million, compared to a loss of $10.27 million in the same period of 2023. This improvement reflects operational adjustments and revenue growth despite ongoing challenges.

Cash and Liquidity Position

As of September 30, 2024, Ligand's cash, cash equivalents, and short-term investments totaled $219.6 million, an increase of $49.3 million from the previous year. This strong liquidity position supports ongoing operations and strategic initiatives.

Debt and Financing Activities

In October 2023, Ligand established a $75 million revolving credit facility, which was later amended to increase to $125 million in July 2024. As of September 30, 2024, the available borrowing under this facility was $124.4 million.

How Ligand Pharmaceuticals Incorporated (LGND) Works

Business Model

Ligand Pharmaceuticals Incorporated operates primarily through revenue generated from royalties, sales of Captisol, and contract revenues. The company focuses on acquiring and developing a diverse portfolio of royalty assets linked to pharmaceutical products. The business model emphasizes leveraging partnerships with other pharmaceutical companies to monetize its assets and technologies.

Revenue Streams

The following table summarizes Ligand's revenue streams for the year-to-date (YTD) 2024 compared to YTD 2023:

Financial Performance

In the third quarter of 2024, Ligand reported total revenues and other income of $51.8 million, representing a 58% increase compared to $32.9 million in Q3 2023. The breakdown of revenues for Q3 2024 is as follows:

Operating Costs and Expenses

Ligand's operating costs and expenses for YTD 2024 totaled $137.3 million, compared to $90.0 million in YTD 2023, reflecting a 52% increase. The composition of operating expenses is detailed in the following table:

Net Income and Earnings Per Share

For Q3 2024, Ligand reported a net loss of $7.2 million, compared to a net loss of $10.3 million in Q3 2023. Basic net loss per share was $0.39 for Q3 2024, compared to $0.59 for Q3 2023. The following table summarizes net income and earnings per share:

Liquidity and Capital Resources

As of September 30, 2024, Ligand had cash, cash equivalents, and short-term investments totaling $219.6 million. This represents an increase of $49.3 million from the end of 2023. The company has utilized its liquidity for operational and investing needs, including acquisitions.

Recent Developments

In September 2024, Travere Therapeutics received full FDA approval for FILSPARI, a significant achievement for Ligand's portfolio. Additionally, the company executed an At-The-Market (ATM) Equity Offering, generating net proceeds of $34.3 million from the sale of 334,325 shares.

How Ligand Pharmaceuticals Incorporated (LGND) Makes Money

Revenue Streams

Ligand Pharmaceuticals generates revenue through several key streams:

• Royalties from partner product sales
• Sales of Captisol, a proprietary technology
• Contract revenue from licensing fees and milestone payments

Royalty Revenue

As of YTD 2024, Ligand reported royalty revenue of $73.97 million, marking an increase from $62.47 million in YTD 2023. This growth was driven by:

• Increased sales of QARZIBA and FILSPARI
• Royalty income from various partners

The following table details the royalty revenue from key products:

Captisol Sales

In YTD 2024, Ligand's Captisol sales amounted to $22.97 million, a decrease from $24.45 million in YTD 2023. This decline is attributed to the timing of customer orders.

Contract Revenue

Contract revenue and other income for YTD 2024 reached $27.39 million, up from $16.29 million in YTD 2023. This increase was primarily due to a commercial milestone tied to Verona's Ohtuvayre.

Operating Costs and Expenses

Total operating costs and expenses in YTD 2024 were $137.29 million, compared to $90.03 million in YTD 2023. Key components include:

• General and administrative expenses: $53.05 million
• Research and development expenses: $17.00 million
• Amortization of intangibles: $24.70 million

Financial Position

As of September 30, 2024, Ligand's cash, cash equivalents, and short-term investments totaled $219.60 million, reflecting a significant increase due to operational cash flows and equity offerings.

Net Income

For YTD 2024, Ligand reported a net income of $27.06 million, compared to $33.97 million in YTD 2023.

Stock Performance

As of Q3 2024, Ligand's basic net loss per share was ($0.39), compared to ($0.59) in Q3 2023.

Updated on 16 Nov 2024

Resources:

1. Ligand Pharmaceuticals Incorporated (LGND) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Ligand Pharmaceuticals Incorporated (LGND)' financial performance, including balance sheets, income statements, and cash flow statements.
2. SEC Filings – View Ligand Pharmaceuticals Incorporated (LGND)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.