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Sep 30, 2020
Ligand Q3 2020 Earnings Report
Ligand reported strong financial results driven by Captisol sales and strategic acquisitions.
Key Takeaways
Ligand Pharmaceuticals reported a strong third quarter with total revenues of $41.8 million, driven by increased Captisol sales and contributions from recent acquisitions. Adjusted diluted EPS was $1.04, significantly higher than initial expectations. The company closed three acquisitions, including Pfenex, which is expected to contribute significantly to future financial performance.
Total revenues increased to $41.8 million compared to $24.8 million in the same period last year.
Captisol sales surged to $23.4 million, primarily due to increased demand for use with remdesivir.
Adjusted net income rose to $17.5 million, or $1.04 per diluted share, compared to $9.5 million, or $0.49 per diluted share, in the prior year.
Ligand closed three acquisitions, including Pfenex, expanding its technology platform and partnership opportunities.
Revenue by Segment
Forward Guidance
Ligand reiterates its 2020 financial guidance and 2021 financial guidance newly introduced at its Analyst Day event on October 20, 2020.
Positive Outlook
- Ligand expects total revenue to be approximately $170 million for 2020.
- Ligand expects adjusted diluted EPS to be $3.95 for 2020.
- Ligand anticipates Captisol sales of $92 million in 2020.
- Ligand expects total revenue to be approximately $285 million for 2021.
- Ligand expects adjusted diluted EPS to be $6.00 for 2021.
Challenges Ahead
- The COVID-19 pandemic has disrupted Ligand’s and its partners’ business, including delaying manufacturing, preclinical studies and clinical trials and product sales.
- Ligand may not achieve its guidance for 2020 or 2021.
- The FDA may revise or revoke approval for remdesivir for the treatment of patients with COVID-19 requiring hospitalization based on later information regarding the safety or efficacy of remdesivir.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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