NASDAQ$LGND

Ligand Pharmaceuticals Incorporated · Q1 2022 earnings

Q1 2022 earnings · · Investor relations

Briefing

Reported solid financial performance driven by royalty-bearing products and core technology platforms, and the announced separation of OmniAb is underway.

Ligand Pharmaceuticals reported a decrease in revenue for Q1 2022, with $45.7 million compared to $55.2 million in the prior period, primarily due to a reduction in COVID-19 related Captisol sales. Royalty revenue grew 93% to $13.7 million, and contract revenue increased by 19% to $19.9 million. The company's net loss for the quarter was $(15.4) million, or $(0.91) per share, compared to a net income of $18.1 million, or $1.05 per diluted share, for the same period in 2021. Adjusted net income was $13.1 million, or $0.76 per diluted share, compared to $24.3 million, or $1.41 per diluted share, for the same period in 2021.

  • Revenue for Q1 2022 was $45.7 million, a decrease from $55.2 million in the prior period.
  • Royalty revenue grew 93% to $13.7 million, driven by sales from products using the Pelican platform.
  • Contract revenue increased 19% to $19.9 million.
  • Net loss for Q1 2022 was $(15.4) million, or $(0.91) per share, compared to net income of $18.1 million, or $1.05 per diluted share, for the same period in 2021.

Headline financials

Total Revenue

$45.7M

Previous: $55.2M-17.1%
EPS (adj)

$0.76

Previous: $1.41-46.1%
Capital Expenditures

-$4.88M

Previous: $3.4M-243.2%
Free Cash Flow

-$20.3M

Previous: $18.1M-211.9%
Net Income

-$15.4M

Previous: $18.1M-185.0%
Operating Income

-$9.31M

Previous: $4.72M-297.4%
Gross Profit

-$9.31M

Previous: $4.72M-297.4%
Cash & Equivalents

$15M

Previous: $31.9M-52.9%
Total Assets

$1.11B

Previous: $1.3B-14.7%
Stock-Based Comp

$9.04M

Previous: $8.41M+7.6%

Revenue & EPS history

Ligand · Revenue · Quarterly

$45.7M

Q1 2022-17.1%vs Q1 2021
Beat estimate in 14 of 16 quarters(88%)
ActualEstimate

Revenue by segment

Ligand · $13.7M total across 1 segment · Q1 2022

  • Royalties
    $13.7M+92.6%

Forward guidance

Ligand reaffirms its 2022 revenue guidance for the combined business and provides revenue estimates for the OmniAb business, anticipating the spin-off later this year. Excluding OmniAb and COVID-related Captisol, Ligand expects revenue to be $90 million to $100 million and adjusted earnings per diluted share to be $1.50 to $1.80.

Tailwinds

  • Ligand expects 2022 royalties of $55 million to $60 million.
  • Captisol sales are projected to be $40 million to $50 million.
  • Contract revenue is estimated at $52 million to $62 million.
  • Total revenue for the combined business is expected to be $147 million to $172 million.
  • Excluding OmniAb and COVID-related Captisol, Ligand anticipates revenue of $90 million to $100 million and adjusted earnings per diluted share of $1.50 to $1.80.

Headwinds

  • The contribution from COVID-related Captisol and the OmniAb business is expected to be between $0.20 and $0.40 per diluted share.
  • Full company adjusted earnings per diluted share are projected to be $1.70 to $2.20.
  • OmniAb revenue is expected to be $35 million to $45 million, principally in the contract revenue line.
  • Of the $40 million to $50 million of expected Captisol sales, approximately $17 million to $19 million is attributable to core Captisol sales, with the balance from COVID-19 treatments.
  • The Distribution and Business Combination may not be completed in accordance with the expected plans or anticipated timeline or at all, and may not achieve the intended strategic, operational and financial benefits, and will involve significant time, expense and management attention, any of which could negatively impact Ligand’s business, financial condition and results of operations.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 19 quarterly earnings reports · overlaid with Q1 2022

Historical avgQ1 2022

+0.1%

Avg return

Earnings day

+2.0%

Avg return

5 days after

-0.8%

Avg return

30 days after

52%

33 / 64 earnings

Positive

+18.7%

Q4 2013

Best reaction

-21.6%

Q3 2011

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+5.3%+5.0%
Q4 2025+2.6%+6.7%+2.1%
Q3 2025+9.3%+9.6%-2.9%
Q1 2025-3.2%+0.0%+0.4%
Q4 2024+0.6%+0.2%-6.4%
Q3 2024+3.7%+3.3%+6.8%
Q2 2024-4.9%+2.1%+5.1%
Q1 2024+10.3%+19.8%+13.1%
Q4 2023+13.3%+5.8%-1.8%
Q3 2023+2.8%+3.8%+16.3%
Q2 2023+6.7%+1.4%-4.2%
Q1 2023+5.2%+3.2%-0.2%
Q4 2022+5.9%+3.0%-2.1%
Q3 2022+12.8%+31.3%+6.0%
Q2 2022+5.7%+9.5%-3.5%
Q1 2022-2.9%-13.0%-9.1%
Q4 2021-16.3%-19.7%-8.7%
Q3 2021+7.8%+4.9%-6.9%
Q2 2021-8.1%-10.0%-7.4%
Q1 2021-9.5%-10.5%-22.3%
Q4 2020+1.7%+17.6%-18.5%
Q3 2020-0.2%+5.4%+3.4%
Q2 2020+0.6%+0.4%-11.9%
Q1 2020+3.2%+6.8%+22.1%
Q4 2019+3.3%+2.8%+16.7%
Q3 2019-7.4%-1.4%-4.9%
Q2 2019-14.8%-11.5%-14.7%
Q1 2019-3.3%-4.1%-14.6%
Q4 2018-2.7%+1.8%-10.0%
Q3 2018-2.7%-8.9%-10.7%
Q2 2018+9.8%+7.7%+13.0%
Q1 2018+7.3%+13.2%+26.4%
Q4 2017+0.0%-1.9%+3.7%
Q3 2017-4.9%-1.3%-8.4%
Q2 2017+5.7%+2.5%+9.4%
Q1 2017-2.9%+0.2%+1.2%
Q4 2016-2.8%+1.3%+1.5%
Q3 2016-2.7%+3.1%+10.8%
Q2 2016-7.4%-13.2%-20.2%
Q1 2016-1.4%
Q4 2015-4.2%
Q3 2015+5.1%
Q2 2015+2.3%
Q1 2015+4.5%
Q4 2014+2.3%
Q3 2014-3.9%
Q2 2014+7.7%
Q1 2014-2.9%
Q4 2013+18.7%
Q3 2013-10.7%
Q2 2013-1.7%
Q1 2013+1.7%
Q4 2012+7.4%
Q3 2012+10.8%
Q2 2012-8.8%
Q4 2011-8.8%
Q1 2012+1.3%
Q3 2011-21.6%
Q2 2011-6.5%
Q1 2011+0.9%
Q4 2010-0.3%
Q3 2010-2.4%
Q2 2010-3.6%
Q1 2010-9.6%

Discussion

Share your read of this quarter. Sign-in carries your eToro identity.

Join the conversation

Sign in with eToro to post your read of this quarter and vote on others'.

Sign in with eToro