[February 21, 2018] |
|
Ligand Reports Fourth Quarter and Full Year 2017 Financial Results
Ligand Pharmaceuticals Incorporated (NASDAQ: LGND) today reported
financial results for the three and 12 months ended December 31, 2017,
and provided an operating forecast and program updates. Ligand
management will host a conference call today beginning at 4:30 p.m.
Eastern time to discuss this announcement and answer questions.
"Coming off a strong fourth quarter for our top two royalty assets,
Ligand entered 2018 with economic rights to two drugs each on a run rate
to exceed $1 billion in sales this year," said John Higgins, Chief
Executive Officer of Ligand. "Of particular importance for our investors
is that the strong financial momentum of these programs parallels
all-time-high demand for our two leading technology platforms, OmniAb®
and Captisol®. The integration of Crystal
Bioscience, the company we acquired at the end of 2017, is going
extremely well and there is strong interest by our antibody partners for
the new OmniChicken™ platform. In addition to our robust fundamental
performance, the new tax law meaningfully increases our long-term
outlook for profits and cash flow as our projected tax rate has been
reduced by more than a third from what we had been projecting."
Fourth Quarter 2017 Financial Results
Total revenues for the fourth quarter of 2017 were $50.5 million,
compared with $38.2 million for the same period in 2016. Royalties were
$28.3 million, compared with $19.6 million for the same period in 2016,
an increase of 45% primarily due to higher royalties from Promacta®,
Kyprolis® and EVOMELA®. Material sales were $7.7
million, compared with $9.1 million for the same period in 2016 due to
the timing of Captisol purchases for use in clinical trials and
commercial products. License fees, milestones and other revenues were
$14.4 million, compared with $9.5 million for the same period in 2016.
Cost of goods sold was $1.7 million for the fourth quarter of 2017,
compared with $2.9 million for the same period in 2016. Amortization of
intangibles was $4.0 million, compared with $2.7 million for the same
period in 2016. Research and development expense was $8.6 million,
compared with $6.4 million for the same period of 2016 due to non-cash
stock-based compensation expense. General and administrative expense was
$7.7 million, compared with $6.8 million for the same period in 2016.
GAAP net loss for the fourth quarter of 2017 was $7.0 million, or $0.33
per diluted share, compared with a GAAP net loss of $3.1 million, or
$0.15 per diluted share, for the same period in 2016. GAAP net loss for
the fourth quarter of 2017 includes a one-time non-cash charge of $32.8
million due to a reduction in Ligand's tax assets, which primarily
comprise accumulated net operating losses, driven by the lower tax rates
of the Tax Cuts and Jobs Act. Adjusted net income for the fourth quarter
of 2017 was $29.6 million, or $1.31 per diluted share, compared with
adjusted net income of $16.1 million, or $0.74 per diluted share, for
the same period in 2016.
As of December 31, 2017, Ligand had cash, cash equivalents and
short-term investments of $201.7 million. Cash generated from operations
was $31.3 million for the fourth quarter of 2017.
Full Year 2017 Financial Results
Total revenues for 2017 were $141.1 million, compared with $109.0
million for 2016. Royalties were $88.7 million, compared with $59.4
million for 2016, an increase of 49% primarily due to higher royalties
from Promacta, Kyprolis and EVOMELA. Material sales were
$22.1 million, compared with $22.5 million for 2016 due to the timing of
Captisol purchases for use in clinical trials and commercial products.
License fees, milestones and other revenues were $30.3 million, compared
with $27.0 million for 2016.
Cost of goods sold was $5.4 million for 2017, compared with $5.6 million
for 2016 due to the timing and mix of Captisol sales. Amortization of
intangibles was $12.1 million, compared with $10.6 million for 2016.
Research and development expense was $26.9 million, compared with $21.2
million for 2016 due to costs of our Phase 2 GRA trial and non-cash
stock-based compensation expense. General and administrative expense was
$28.7 million, compared with $27.7 million for 2016.
GAAP net income for 2017 was $12.6 million, or $0.53 per diluted share,
compared with a GAAP net loss of $1.6 million, or $0.08 per diluted
share, for 2016. Adjusted net income for 2017 was $72.5 million, or
$3.26 per diluted share, compared with adjusted net income of $46.7
million, or $2.15 per diluted share, for 2016.
2018 Financial Guidance
Ligand today announced financial guidance for 2018. At this time, Ligand
estimates 2018 revenue will be approximately $164 million and will
include royalties of approximately $116 million, material sales of
approximately $23 million and license fees and milestones of at least
$25 million. During 2018, Ligand estimates it could potentially receive
up to an additional $20 million of license fees and milestones; however,
such payments are based on external events that are out of Ligand's
control so the Company will provide more information about the timing
and probability for any additional license fees and milestone revenue
expected to be booked in 2018 as the year progresses. These estimates
exclude revenue from a partnership, if any, on the GRA diabetes program.
Ligand estimates that cash expenses for 2018 will be in the range of $34
million to $35 million, including additional expenses in 2018 related to
the recent acquisition of Crystal Bioscience. Ligand notes that with
revenue of $164 million, adjusted earnings per diluted share would be
approximately $4.22. The adjusted EPS figure reflects the Company's
fully-taxed adjusted EPS methodology, including a 22% to 24% tax rate,
but the Company continues to pay less than 1% cash taxes as it utilizes
its over $400 million of remaining net operating losses (NOLs).
Fourth Quarter 2017 and Recent Business Highlights
Promacta®/Revolade®
-
Novartis reported fourth quarter 2017 net sales of Promacta/Revolade
(eltrombopag) of $255 million, a $77 million or 43% increase over the
same period in 2016.
-
Novartis announced that the FDA granted Breakthrough Therapy
designation to Promacta for use in combination with standard
immunosuppressive therapy for the treatment of patients with severe
aplastic anemia as a first-line therapy.
-
Novartis announced long-term study results supporting the positive
safety and efficacy of Promacta in adults with chronic/persistent (6
or more months from diagnosis) immune (idiopathic) thrombocytopenia
(ITP) were published in Blood. The study found that a majority
of patients maintained a substantial clinical response and many no
longer needed concomitant ITP medications.
-
The U.S. Department of Health and Human Services announced a
partnership with Novartis to study Promacta for potential use
post-radiation injury affecting platelets.
Kyprolis® (carfilzomib), an
Amgen Product Utilizing Captisol
-
On February 1, 2018, Amgen reported fourth quarter net sales of
Kyprolis of $227 million, a $44 million or 24% increase over the same
period in 2016. On February 2, 2018, Ono Pharmaceutical Company
reported Kyprolis sales in Japan of approximately $16.4 million for
the most recent quarter.
-
On January 17, 2018, Amgen announced that the FDA approved the
supplemental New Drug Application to add overall survival (OS) data
from the Phase 3 head-to-head ENDEAVOR trial to the Prescribing
Information for Kyprolis.
-
On January 30, 2018, Amgen announced that the Committee for Medicinal
Products for Human Use (CHMP) of the European Medicines Agency (EMA)
adopted a positive opinion recommending a label variation for Kyprolis
to include updated OS data from the Phase 3 head-to-head ENDEAVOR
trial in patients with relapsed or refractory multiple myeloma.
-
On December 11, 2017, Amgen announced new results at ASH 2017 showing
the positive OS findings from the final analysis of the Phase 3 ASPIRE
trial. The study met the key secondary endpoint of OS, demonstrating
that the addition of Kyprolis to lenalidomide and dexamethasone (KRd)
reduced the risk of death by 21% versus lenalidomide and dexamethasone
alone (Rd) and extended survival by 7.9 months in patients with
relapsed or refractory multiple myeloma (median OS 48.3 months for KRd
versus 40.4 months for Rd, HR = 0.79, 95 percent CI, 0.67 - 0.95; p =
0.0045).
-
On January 17, 2018, Amgen announced that the Journal of Clinical
Oncology published the positive OS findings from the final
analysis of the Phase 3 ASPIRE trial.
-
On October 23, 2017, Amgen announced top-line results of the Phase 3
ARROW trial, which showed Kyprolis administered once-weekly at the 70
mg/m2 dose with dexamethasone allowed relapsed and
refractory multiple myeloma patients to live 3.6 months longer without
their disease worsening than Kyprolis administered twice-weekly at the
27 mg/m2 dose with dexamethasone.
Additional Pipeline and Partner Developments
-
Sage Therapeutics announced positive top-line results from two Phase 3
trials of brexanolone in severe postpartum depression (PPD) and in
moderate PPD. Sage plans to file a New Drug Application (NDA) with the
FDA in 2018.
-
Melinta Pharmaceuticals announced the U.S. launch of the
Captisol-enabled intravenous (IV) formulation of Baxdela for the
treatment of adult patients with acute bacterial skin and skin
structure infections (ABSSSI) caused by designated susceptible
bacteria.
-
HanAll Biopharma successfully out-licensed antibody projects that were
discovered using the OmniAb platform, triggering $6 million of
payments to Ligand.
-
Aptevo Therapeutics announced it presented preclinical data on
OmniAb-derived APVO436 at ASH 2017, at the World Bispecific Summit and
at the AACR-NCI-EORTC Molecular Targets and Cancer Therapeutics 2017
annual meeting.
-
OmniAb partner ARMO BioSciences announced the pricing of an initial
public offering with gross proceeds of approximately $147 million.
-
Takeda Pharmaceuticals highlighted the Phase 3 initiation of
pevonedistat and its TAK-020 program during its presentation at the JP
Morgan 36th Annual Healthcare Conference.
-
Retrophin announced it presented new data from the open-label
extension portion of the Phase 2 DUET study of sparsentan for the
treatment of focal segmental glomerulosclerosis (FSGS) at the American
Society of Nephrology Kidney Week 2017.
-
Aldeyra Therapeutics announced enrollment of the first patient in a
Phase 2b clinical trial of topical ocular reproxalap for the treatment
of dry eye disease.
-
Aldeyra Therapeutics announced it presented data from its Phase 2
clinical trial of reproxalap in noninfectious anterior uveitis at the
American Uveitis Society Fall Meeting.
-
Viking Therapeutics announced positive results from a 12-week, Phase 2
clinical trial of VK5211 in patients who recently suffered a hip
fracture. Top-line data demonstrated statistically significant,
dose-dependent increases in lean body mass ranging from 4.8% to 9.1%
following treatment with VK5211. Viking intends to present additional
results from the study at an upcoming scientific conference.
-
Viking Therapeutics announced positive top-line results from a 25-week
proof-of-concept study of VK0214 in an in vivo model of
X-linked adrenoleukodystrophy (X-ALD) and presented data at the 87th
Annual Meeting of the American Thyroid Association.
-
Viking Therapeutics announced the pricing of a $63.3 million public
offering of common stock (including over-allotment exercise) with
proceeds to fund continued development of VK5211, VK2809 and VK0214.
-
Sermonix Pharmaceuticals announced completion of a financing to
advance towards a Phase 2 clinical trial of lasofoxifene in estrogen
receptor positive (ER+) metastatic breast cancer.
-
Opthea announced the dosing of the first patient in the Phase 2b trial
of OPT-302 for wet age-related macular degeneration (AMD) and
announced commencing a Phase 1b/2a trial evaluating the safety and
efficacy of OPT-302 in patients with center-involved diabetic macular
edema.
-
Syros Pharmaceuticals announced that new preclinical data on SY-1365,
a selective cyclin-dependent kinase 7 (CDK7) inhibitor currently in a
Phase 1 clinical trial in advanced solid tumors, showed anti-tumor
activity in in vitro and in vivo models of blood cancers.
Internal Research and Development
-
Ligand announced initiation of an internally funded program to develop
contrast agents with reduced renal toxicity for diagnostic imaging
procedures through proof-of-concept. This development program will
leverage Ligand's Captisol technology, as well as intellectual
property obtained through its acquisition of Verrow Pharmaceuticals
for $2 million in cash plus earn outs.
-
A paper by Ligand scientists entitled "Chickens with humanized
immunoglobulin genes generate antibodies with high affinity and broad
epitope coverage to conserved targets" was published in the journal MAbs,
highlighting the use of OmniChicken in antibody drug discovery.
Recent Acquisition
-
In October 2017, Ligand acquired Crystal Bioscience and its
OmniChicken antibody discovery technology for $25 million in cash at
closing, up to $10.5 million of success-based milestones and revenue
sharing from existing licensees for a defined period. The acquisition
initially added four Shots on Goal to Ligand's portfolio, and the
OmniChicken technology may be utilized by multiple current OmniAb
partners as they seek to develop antibodies for difficult-to-address
epitopes.
New Licensing Deals
-
Ligand announced worldwide license agreements with Ferring
Pharmaceuticals and Glenmark Pharmaceuticals to use the OmniAb
platform technologies to discover fully human antibodies. Ligand is
eligible to receive annual access payments, milestone payments and
royalties on future net sales of any antibodies discovered under these
licenses.
-
Ligand entered into Captisol Clinical Use Agreements with Syros
Pharmaceuticals and with Vaxxas Inc.
Adjusted Financial Measures
The Company reports adjusted net income and adjusted net income per
diluted share in addition to, and not as a substitute for, or superior
to, financial measures calculated in accordance with GAAP. The Company's
financial measures under GAAP include stock-based compensation expense,
amortization of debt-related costs, amortization related to acquisitions
and intangible assets, changes in contingent liabilities, net losses of
Viking Therapeutics, mark-to-market adjustment for amounts owed to
licensors, fair value adjustments to Viking Therapeutics convertible
note receivable and warrants, unissued shares relating to the Senior
Convertible Notes and others that are listed in the itemized
reconciliations between GAAP and adjusted financial measures included at
the end of this press release. However, other than with respect to total
revenue, the Company only provides guidance on an adjusted basis and
does not provide reconciliations of such forward-looking adjusted
measures to GAAP due to the inherent difficulty in forecasting and
quantifying certain amounts that are necessary for such reconciliation,
including adjustments that could be made for changes in contingent
liabilities, net losses of Viking Therapeutics, stock-based compensation
expense, mark-to-market adjustments for amounts owed to licensors,
effects of any discrete income tax items and fair value adjustments to
Viking Therapeutics convertible note receivable. Management has excluded
the effects of these items in its adjusted measures to assist investors
in analyzing and assessing the Company's past and future core operating
performance. Additionally, adjusted earnings per diluted share is a key
component of the financial metrics utilized by the Company's board of
directors to measure, in part, management's performance and determine
significant elements of management's compensation.
About Ligand Pharmaceuticals
Ligand is a biopharmaceutical company focused on developing or acquiring
technologies that help pharmaceutical companies discover and develop
medicines. Our business model creates value for stockholders by
providing a diversified portfolio of biotech and pharmaceutical product
revenue streams that are supported by an efficient and low corporate
cost structure. Our goal is to offer investors an opportunity to
participate in the promise of the biotech industry in a profitable,
diversified and lower-risk business than a typical biotech company. Our
business model is based on doing what we do best: drug discovery,
early-stage drug development, product reformulation and partnering. We
partner with other pharmaceutical companies to leverage what they do
best (late-stage development, regulatory affairs and commercialization)
to ultimately generate our revenue.
Ligand's Captisol® platform technology is a patent-protected,
chemically modified cyclodextrin with a structure designed to optimize
the solubility and stability of drugs. OmniAb® is a
patent-protected transgenic animal platform used in the discovery of
fully human mono- and bispecific therapeutic antibodies. Ligand has
established multiple alliances, licenses and other business
relationships with the world's leading pharmaceutical companies
including Novartis, Amgen, Merck, Pfizer, Celgene, Gilead, Janssen,
Baxter International and Eli Lilly.
Follow Ligand on Twitter @Ligand_LGND.
Forward-Looking Statements
This news release contains forward-looking statements by Ligand that
involve risks and uncertainties and reflect Ligand's judgment as of the
date of this release. Words such as "plans," "believes," "expects,"
"anticipates," and "will," and similar expressions, are intended to
identify forward-looking statements. These forward-looking statements
include, without limitation, statements regarding: Ligand's future
revenue, including the timing, mix and volume of Captisol orders, the
timing of the initiation or completion of preclinical studies and
clinical trials by Ligand and its partners, the timing of regulatory
filings with the FDA and other regulatory agencies, the timing of new
product launches by Ligand and its partners and the related royalties
Ligand expects to receive from its partners, and guidance regarding the
full-year 2018 financial results. Actual events or results may differ
from Ligand's expectations due to risks and uncertainties inherent in
Ligand's business, including, without limitation: Ligand may not receive
expected revenue from royalties, Captisol material sales and license
fees and milestone revenue; Ligand and its partners may not be able to
timely or successfully advance any product(s) in its internal or
partnered pipeline; Ligand may not achieve its guidance for 2018 or any
portion thereof or beyond; Ligand's 2018 revenues may not be at the
levels as currently anticipated; Ligand may not be able to create future
revenues and cash flows by developing innovative therapeutics; results
of any clinical study may not be timely, favorable or confirmed by later
studies; products under development by Ligand or its partners may not
receive regulatory approval; there may not be a market for the
product(s) even if successfully developed and approved; Ligand's
partners may terminate any of its agreements or development or
commercialization of any of its products; Ligand may not generate
expected revenues under its existing license agreements and may
experience significant costs as the result of potential delays under its
supply agreements; Ligand and its partners may experience delays in the
commencement, enrollment, completion or analysis of clinical testing for
its product candidates, or significant issues regarding the adequacy of
its clinical trial designs or the execution of its clinical trials,
which could result in increased costs and delays, or limit Ligand's
ability to obtain regulatory approval; unexpected adverse side effects
or inadequate therapeutic efficacy of Ligand's product(s) could delay or
prevent regulatory approval or commercialization; and Ligand may not be
able to successfully implement its strategic growth plan and continue
the development of its proprietary programs. The failure to meet
expectations with respect to any of the foregoing matters may reduce
Ligand's stock price. Additional information concerning these and other
risk factors affecting Ligand can be found in prior press releases
available at www.ligand.com
as well as in Ligand's public periodic filings with the Securities and
Exchange Commission available at www.sec.gov.
Ligand disclaims any intent or obligation to update these
forward-looking statements beyond the date of this release, including
the possibility of additional license fees and milestone revenues we may
receive. This caution is made under the safe harbor provisions of the
Private Securities Litigation Reform Act of 1995.
Other Disclaimers and Trademarks
The information in this press release regarding certain third-party
products and programs, including Promacta, a Novartis product, and
Kyprolis, an Amgen product, comes from information publicly released by
the owners of such products and programs. Ligand is not responsible for,
and has no role in, the development of such products or programs.
Ligand owns or has rights to trademarks and copyrights that it uses in
connection with the operation of its business including its corporate
name, logos and websites. Other trademarks and copyrights appearing in
this press release are the property of their respective owners. The
trademarks Ligand owns include Ligand®, Captisol® and OmniAb®.
Solely for convenience, some of the trademarks and copyrights referred
to in this press release are listed without the ®, © and ™ symbols, but
Ligand will assert, to the fullest extent under applicable law, its
rights to its trademarks and copyrights.
LIGAND PHARMACEUTICALS, INCORPORATED
|
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
|
(Unaudited, in thousands, excluding per-share data)
|
|
|
|
Three Months Ended December 31,
|
|
Year Ended December 31,
|
|
|
|
2017
|
|
|
|
2016
|
|
|
|
2017
|
|
|
|
2016
|
|
Revenues:
|
|
|
|
|
|
|
|
|
Royalties
|
|
$
|
28,313
|
|
|
$
|
19,581
|
|
|
$
|
88,685
|
|
|
$
|
59,423
|
|
Material sales
|
|
|
7,734
|
|
|
|
9,056
|
|
|
|
22,070
|
|
|
|
22,502
|
|
License fees, milestones and other revenues
|
|
|
14,417
|
|
|
|
9,548
|
|
|
|
30,347
|
|
|
|
27,048
|
|
Total revenues
|
|
|
50,464
|
|
|
|
38,185
|
|
|
|
141,102
|
|
|
|
108,973
|
|
Operating costs and expenses:
|
|
|
|
|
|
|
|
|
Cost of goods sold
|
|
|
1,738
|
|
|
|
2,896
|
|
|
|
5,366
|
|
|
|
5,571
|
|
Amortization of intangibles
|
|
|
3,994
|
|
|
|
2,731
|
|
|
|
12,120
|
|
|
|
10,643
|
|
Research and development
|
|
|
8,633
|
|
|
|
6,408
|
|
|
|
26,887
|
|
|
|
21,221
|
|
General and administrative
|
|
|
7,749
|
|
|
|
6,795
|
|
|
|
28,653
|
|
|
|
27,653
|
|
Total operating costs and expenses
|
|
|
22,114
|
|
|
|
18,830
|
|
|
|
73,026
|
|
|
|
65,088
|
|
Income from operations
|
|
|
28,350
|
|
|
|
19,355
|
|
|
|
68,076
|
|
|
|
43,885
|
|
Other income (expense), net
|
|
|
1,291
|
|
|
|
(2,393
|
)
|
|
|
(6,217
|
)
|
|
|
(9,459
|
)
|
Increase in contingent liabilities
|
|
|
(278
|
)
|
|
|
(738
|
)
|
|
|
(2,580
|
)
|
|
|
(3,334
|
)
|
Gain (Loss) from Viking
|
|
|
1,302
|
|
|
|
(8,994
|
)
|
|
|
(2,048
|
)
|
|
|
(23,132
|
)
|
Total other expense, net
|
|
|
2,315
|
|
|
|
(12,125
|
)
|
|
|
(10,845
|
)
|
|
|
(35,925
|
)
|
Income before income taxes
|
|
|
30,665
|
|
|
|
7,230
|
|
|
|
57,231
|
|
|
|
7,960
|
|
Income tax expense
|
|
|
(37,675
|
)
|
|
|
(10,355
|
)
|
|
|
(44,675
|
)
|
|
|
(10,327
|
)
|
(Loss) income from continuing operations
|
|
$
|
(7,010
|
)
|
|
$
|
(3,125
|
)
|
|
$
|
12,556
|
|
|
$
|
(2,367
|
)
|
|
|
|
|
|
|
|
|
|
Discontinued operations:
|
|
|
|
|
|
|
|
|
Gain on sale of Oncology Product Line, net of tax
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
731
|
|
Net (loss) income:
|
|
$
|
(7,010
|
)
|
|
$
|
(3,125
|
)
|
|
$
|
12,556
|
|
|
$
|
(1,636
|
)
|
|
|
|
|
|
|
|
|
|
Basic per-share amounts:
|
|
|
|
|
|
|
|
|
(Loss) income from continuing operations
|
|
$
|
(0.33
|
)
|
|
$
|
(0.15
|
)
|
|
$
|
0.60
|
|
|
$
|
(0.11
|
)
|
Discontinued operations
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
0.04
|
|
Net (loss) income
|
|
$
|
(0.33
|
)
|
|
$
|
(0.15
|
)
|
|
$
|
0.60
|
|
|
$
|
(0.08
|
)
|
Diluted per-share amounts:
|
|
|
|
|
|
|
|
|
(Loss) income from continuing operations
|
|
$
|
(0.33
|
)
|
|
$
|
(0.15
|
)
|
|
$
|
0.53
|
|
|
$
|
(0.11
|
)
|
Discontinued operations
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
0.04
|
|
(Loss) Net income
|
|
$
|
(0.33
|
)
|
|
$
|
(0.15
|
)
|
|
$
|
0.53
|
|
|
$
|
(0.08
|
)
|
|
|
|
|
|
|
|
|
|
Weighted average number of common shares-basic
|
|
|
21,109,367
|
|
|
|
20,898,453
|
|
|
|
21,032,400
|
|
|
|
20,831,454
|
|
Weighted average number of common shares-diluted
|
|
|
21,109,367
|
|
|
|
20,898,453
|
|
|
|
23,480,537
|
|
|
|
20,831,454
|
|
|
LIGAND PHARMACEUTICALS, INCORPORATED
|
CONDENSED CONSOLIDATED BALANCE SHEETS
|
(unaudited, in thousands)
|
|
|
|
December 31, 2017
|
|
December 31, 2016
|
Assets
|
|
|
|
|
Current assets:
|
|
|
|
|
Cash, cash equivalents and short-term investments
|
|
$
|
201,661
|
|
$
|
141,048
|
Accounts receivable, net
|
|
|
25,596
|
|
|
14,700
|
Note receivable
|
|
|
3,877
|
|
|
3,207
|
Inventory
|
|
|
4,373
|
|
|
1,923
|
Other current assets
|
|
|
1,514
|
|
|
2,175
|
Total current assets
|
|
|
237,021
|
|
|
163,053
|
|
|
|
|
|
Deferred income taxes
|
|
|
84,422
|
|
|
123,891
|
Goodwill and other identifiable intangible assets
|
|
|
314,543
|
|
|
276,912
|
Investment in Viking
|
|
|
6,438
|
|
|
8,345
|
Commercial license rights
|
|
|
19,526
|
|
|
25,821
|
Property and equipment, net
|
|
|
4,212
|
|
|
1,819
|
Other assets
|
|
|
4,859
|
|
|
1,744
|
Total assets
|
|
$
|
671,021
|
|
$
|
601,585
|
|
|
|
|
|
Liabilities and Stockholders' Equity
|
|
|
|
|
Current contingent liabilities
|
|
$
|
4,703
|
|
$
|
5,088
|
Accounts payable and accrued liabilities
|
|
|
9,636
|
|
|
9,131
|
Short-term debt
|
|
|
224,529
|
|
|
212,910
|
Total current liabilities
|
|
|
238,868
|
|
|
227,129
|
|
|
|
|
|
Long-term portion of contingent liabilities
|
|
|
9,258
|
|
|
2,916
|
Other long-term liabilities
|
|
|
4,248
|
|
|
687
|
Total liabilities
|
|
|
252,374
|
|
|
230,732
|
Equity component of currently redeemable convertible notes
|
|
|
18,859
|
|
|
29,563
|
Total Ligand Pharmaceuticals stockholders' equity
|
|
|
399,788
|
|
|
341,290
|
Total liabilities and stockholders' equity
|
|
$
|
671,021
|
|
$
|
601,585
|
|
LIGAND PHARMACEUTICALS INCORPORATED
|
ADJUSTED FINANCIAL MEASURES
|
(Unaudited, in thousands, excluding per-share data)
|
|
|
|
Three months ended
|
|
Year ended
|
|
|
December 31,
|
|
December 31,
|
|
|
|
2017
|
|
|
|
2016
|
|
|
|
2017
|
|
|
|
2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net (loss) income
|
|
$
|
(7,010
|
)
|
|
$
|
(3,125
|
)
|
|
$
|
12,556
|
|
|
$
|
(1,636
|
)
|
Stock-based compensation expense
|
|
|
8,998
|
|
|
|
5,204
|
|
|
|
24,915
|
|
|
|
18,893
|
|
Non-cash interest expense(1)
|
|
|
2,972
|
|
|
|
2,795
|
|
|
|
11,619
|
|
|
|
10,926
|
|
Amortization related to acquisitions
|
|
|
8,189
|
|
|
|
2,895
|
|
|
|
18,412
|
|
|
|
11,072
|
|
(Gain)/Loss from Viking
|
|
|
(1,302
|
)
|
|
|
8,994
|
|
|
|
2,048
|
|
|
|
23,132
|
|
Increase in contingent liabilities(2)
|
|
|
278
|
|
|
|
738
|
|
|
|
2,580
|
|
|
|
3,334
|
|
Other(3)
|
|
|
(3,658
|
)
|
|
|
(68
|
)
|
|
|
(3,985
|
)
|
|
|
(498
|
)
|
Income tax effect of adjusted reconciling items above
|
|
|
(5,546
|
)
|
|
|
(7,295
|
)
|
|
|
(19,495
|
)
|
|
|
(23,726
|
)
|
Deferred tax asset adjustment(4)
|
|
|
32,758
|
|
|
|
5,939
|
|
|
|
32,758
|
|
|
|
5,939
|
|
Excess tax benefit from stock-based compensation(5)
|
|
|
(1,878
|
)
|
|
|
-
|
|
|
|
(4,719
|
)
|
|
|
-
|
|
Valuation allowance release
|
|
|
(4,169
|
)
|
|
|
-
|
|
|
|
(4,169
|
)
|
|
|
-
|
|
Discontinued operations, net of tax
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(731
|
)
|
Adjusted net income from continuing operations
|
|
$
|
29,632
|
|
|
$
|
16,077
|
|
|
$
|
72,520
|
|
|
$
|
46,705
|
|
Diluted per-share amounts attributable to common shareholders:
|
|
|
|
|
|
|
|
|
Net (loss) income
|
|
$
|
(0.33
|
)
|
|
$
|
(0.15
|
)
|
|
$
|
0.53
|
|
|
$
|
(0.08
|
)
|
Stock-based compensation expense
|
|
|
0.43
|
|
|
|
0.25
|
|
|
|
1.06
|
|
|
|
0.91
|
|
Non-cash interest expense(1)
|
|
|
0.14
|
|
|
|
0.13
|
|
|
|
0.49
|
|
|
|
0.52
|
|
Amortization related to acquisitions
|
|
|
0.39
|
|
|
|
0.14
|
|
|
|
0.78
|
|
|
|
0.53
|
|
(Gain)/Loss from Viking
|
|
|
(0.06
|
)
|
|
|
0.43
|
|
|
|
0.09
|
|
|
|
1.11
|
|
Increase in contingent liabilities(2)
|
|
|
0.01
|
|
|
|
0.04
|
|
|
|
0.11
|
|
|
|
0.16
|
|
Other(3)
|
|
|
(0.18
|
)
|
|
|
-
|
|
|
|
(0.16
|
)
|
|
|
(0.02
|
)
|
Income tax effect of adjusted reconciling items above
|
|
|
(0.26
|
)
|
|
|
(0.35
|
)
|
|
|
(0.83
|
)
|
|
|
(1.14
|
)
|
Deferred tax asset adjustment(4)
|
|
|
1.55
|
|
|
|
0.28
|
|
|
|
1.40
|
|
|
|
0.29
|
|
Excess tax benefit from stock-based compensation(5)
|
|
|
(0.09
|
)
|
|
|
-
|
|
|
|
(0.20
|
)
|
|
|
-
|
|
Valuation allowance release
|
|
|
(0.20
|
)
|
|
|
|
|
(0.18
|
)
|
|
|
Discontinued operations, net of tax
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(0.04
|
)
|
2019 Senior Convertible Notes share count adjustment
|
|
|
(0.09
|
)
|
|
|
(0.03
|
)
|
|
|
0.17
|
|
|
|
(0.09
|
)
|
Adjusted net income from continuing operations
|
|
$
|
1.31
|
|
|
$
|
0.74
|
|
|
$
|
3.26
|
|
|
$
|
2.15
|
|
|
|
|
|
|
|
|
|
|
Weighted average shares used in calculation of GAAP diluted earnings
per share
|
|
|
21,109
|
|
|
|
20,898
|
|
|
|
23,481
|
|
|
|
20,831
|
|
Shares excluded due to anti-dilutive effect on GAAP net loss
|
|
|
3,025
|
|
|
|
1,728
|
|
|
|
-
|
|
|
|
1,884
|
|
Weighted average dilutive potential common shares issuable of 2019
Senior Convertible Notes
|
|
|
(1,501
|
)
|
|
|
(843
|
)
|
|
|
(1,214
|
)
|
|
|
(995
|
)
|
Weighted average shares used in calculation of adjusted diluted
earnings per share
|
|
|
22,633
|
|
|
|
21,783
|
|
|
|
22,267
|
|
|
|
21,720
|
|
|
(1) Non-cash debt related costs is calculated in accordance with
the authoritative accounting guidance for convertible debt
instruments that may be settled in cash.
|
|
(2) Changes in fair value of contingent consideration related to
CyDex and Metabasis transactions.
|
|
(3) Amounts due to Bristol-Myers Squibb relating to Retrophin
license agreement and fair market value adjustment on Viking note
and warrants.
|
|
(4) Deferred tax asset adjustment for the three and twelve months
ended December 31, 2017 relates primarily to the reduction in the
U.S. corporate income tax rate from 35% to 21% beginning in 2018.
Deferred tax asset adjustment for the three and twelve months
ended December 31, 2016 relates to a valuation allowance placed on
the deferred tax asset associated with Viking losses including the
other than temporary impairment charge of $7.4 million.
|
|
(5) Excess tax benefits from stock-based compensation are recorded
as a discrete item within the provision for income taxes on the
consolidated statement of income pursuant to ASU 2016-09, which
was previously recognized in additional paid-in capital on the
consolidated statement of stockholders' equity.
|
View source version on businesswire.com: http://www.businesswire.com/news/home/20180221006252/en/
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