On November 8, 2023, Ligand Pharmaceuticals Inc (LGND, Financial) released its financial results for the third quarter of 2023. Despite a net loss from continuing operations of $12.8 million, or $0.74 per share, the company has raised its full-year 2023 revenue and adjusted EPS guidance, reflecting confidence in its financial trajectory and strategic investments.
Financial Performance Overview
Ligand Pharmaceuticals Inc (LGND, Financial) reported total revenues of $32.9 million for Q3 2023, a notable increase from $26.9 million in the same period last year when excluding COVID-19 related sales. The company's royalties were $23.9 million for the quarter, driven by growth in key products such as Amgen’s Kyprolis and Jazz Pharmaceuticals' RYLAZE. Core Captisol sales also saw a significant rise to $8.6 million, up from $3.6 million in Q3 2022, attributed to the timing of customer orders.
Income Statement Highlights
The cost of Captisol decreased to $3.5 million in Q3 2023 from $14.2 million in the previous year, reflecting lower total Captisol sales. Research and development expenses also saw a reduction to $5.5 million, down from $9.2 million in Q3 2022, due to lower stock-based compensation and other related expenses. General and administrative expenses remained relatively stable at $14.7 million.
Balance Sheet and Cash Flow Insights
As of September 30, 2023, Ligand had a strong liquidity position with cash, cash equivalents, and short-term investments totaling $190.5 million. The company also entered into a credit agreement for a $75 million revolving credit facility, further bolstering its financial flexibility.
Strategic Investments and Business Highlights
Ligand Pharmaceuticals Inc (LGND, Financial) has been actively executing on its investment strategy, investing over $75 million in various transactions, including those with Tolerance, Ovid, Novan, and Primrose. These strategic moves are expected to drive future revenue growth and have led to the company increasing its 2023 revenue guidance to a range of $126 million to $129 million and raising its adjusted EPS guidance to $5.25 to $5.40.
Year-to-Date Financial Results
For the nine months ended September 30, 2023, total revenues were $103.2 million, with royalties contributing $61.4 million. The adjusted net income from continuing operations for the nine-month period was a robust $83.0 million, or $4.71 per diluted share, a substantial increase from $28.9 million, or $1.69 per diluted share, in the same period of 2022.
Forward Outlook
Ligand Pharmaceuticals Inc (LGND, Financial) is optimistic about its future performance, with plans to share its long-term financial forecast at the upcoming Investor and Analyst Day on December 12th in New York City. The company's strategic investments and diversified portfolio of assets are poised to contribute to sustained revenue growth and shareholder value.
For more detailed information, investors are encouraged to review the full earnings release and financial statements available on Ligand's website and to join the conference call hosted by Ligand management to discuss these results and answer questions.
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Explore the complete 8-K earnings release (here) from Ligand Pharmaceuticals Inc for further details.
