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Sep 30, 2023
Ligand Q3 2023 Earnings Report
Reported strong financial results, executed on investment strategy, and increased 2023 guidance.
Key Takeaways
Ligand Pharmaceuticals reported strong Q3 2023 financial results with total revenues of $32.9 million, and royalties of $23.9 million. The company actively executed its investment strategy, investing over $75 million in Tolerance, Ovid, Novan and Primrose transactions. Ligand is increasing its 2023 revenue guidance to be in the range of $126 million to $129 million and is raising adjusted EPS guidance to $5.25 to $5.40.
Total revenues for Q3 2023 were $32.9 million; revenues for the same period in 2022 excluding COVID-19 sales were $26.9 million.
Royalties for Q3 2023 were $23.9 million, compared to $19.3 million for the same period in 2022.
Core Captisol sales were $8.6 million for Q3 2023, compared to $3.6 million for the same period in 2022.
Adjusted net income from continuing operations for Q3 2023 was $18.0 million, or $1.02 per diluted share, compared to $10.5 million, or $0.60 per diluted share, for the same period in 2022.
Revenue by Segment
Forward Guidance
Ligand is increasing its 2023 revenue guidance to be in the range of $126 million to $129 million (previously $124 million to $126 million) and is raising adjusted EPS guidance. Sales of Captisol are now expected to range from $27 million to $28 million (previously $25 million).
Positive Outlook
- Increased revenue guidance for 2023 to $126 million - $129 million.
- Raised adjusted EPS guidance for 2023 to $5.25 - $5.40.
- Captisol sales are now expected to range from $27 million to $28 million.
- Primrose Bio transaction is expected to reduce ongoing cash expenses and be immediately accretive to Ligand's adjusted EPS.
- Acquisition of Tolerance Therapeutics is expected to be immediately accretive to Ligand's royalty revenue.
Challenges Ahead
- Unpredictable nature of the pandemic and related Captisol sales.
- Potential delays or inability to meet Captisol demands of its partners.
- Risks associated with integrating acquisitions with Ligand’s existing businesses.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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