NASDAQ$LGND

Ligand Pharmaceuticals Incorporated · Q3 2020 earnings

Q3 2020 earnings · · Investor relations

Briefing

Ligand reported strong financial results driven by Captisol sales and strategic acquisitions.

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.

Headline financials

Total Revenue

$41.8M

Previous: $24.8M+68.7%
EPS (adj)

$1.04

Previous: $0.49+112.2%
Capital Expenditures

$2.04M

No prior period
Free Cash Flow

-$6.7M

Previous: -$15.3M+56.1%
Net Income

-$6.7M

Previous: -$15.3M+56.1%
Operating Income

$3.75M

Previous: -$5.16M+172.6%
Gross Profit

$3.75M

Previous: $21.7M-82.7%
Cash & Equivalents

$457M

Previous: $225M+102.8%
Total Assets

$1.25B

Previous: $1.55B-19.4%
Stock-Based Comp

$7.74M

Previous: $6.3M+22.9%

Revenue & EPS history

Ligand · Revenue · Quarterly

$41.8M

Q3 2020+68.7%vs Q3 2019
Beat estimate in 14 of 16 quarters(88%)
ActualEstimate

Revenue by segment

Ligand · $32.4M total across 2 segments · Q3 2020

  • Captisol Sales
    $23.4M
  • Royalties
    $9.01M

Forward guidance

Ligand reiterates its 2020 financial guidance and 2021 financial guidance newly introduced at its Analyst Day event on October 20, 2020.

Tailwinds

  • 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.

Headwinds

  • 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.
  • Alternative COVID-19 therapies or vaccines may be approved or the risk of coronavirus infection could significantly diminish, any of which could materially and adversely affect the commercial opportunity for remdesivir.
  • Ligand may be unable to scale-up the supply of Captisol or at acceptable prices.

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 Q3 2020

Historical avgQ3 2020

+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%

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