Ligand Pharmaceuticals Incorporated (NASDAQ: LGND) today announced preliminary financial results for the three months ended September 30, 2012 and provided a business update. In a separate announcement made today Ligand also announced plans to restate financial statements for 2011 and the first two quarters of 2012. Investors should rely on the forthcoming restated financial statements rather than previously filed financial statements and other financial information. The restatement relates to errors in the calculation of the fair value of the contingent liability related to what Ligand potentially owes Prism Pharmaceuticals (now Baxter International) and CyDex Contingent Value Rights holders out of the total proceeds potentially due from a license agreement with The Medicines Company.
"During the past several months, we saw numerous major events for our late-stage partnered programs and are projecting a strong fourth quarter financially as we finish out 2012," commented John Higgins, President and Chief Executive Officer. “Our business model is advancing very nicely as we build new sources of significant revenue growth and see continued success with our pipeline and partnered assets. We fully expect to finish the fourth quarter of 2012 being profitable and cash-flow positive from operations, and to enjoy financial growth as we move into 2013 and beyond."
Preliminary Third Quarter Results
Total revenues from continuing operations for the third quarter of 2012 were $6.4 million, consisting largely of Promacta royalties. Cost of goods sold was $0.7 million for the third quarter of 2012. Operating expenses were in line with expectations, with research and development expenses of $2.6 million and general and administrative expenses of $4.4 million.Net loss for the third quarter of 2012 was $0.2 million, or ($0.01) per share. As of September 30, 2012, Ligand had cash, cash equivalents, short-term investments and restricted investments of $8.4 million. 2012 Operating Forecast For 2012 Ligand expects total revenues to be approximately $30 million to $31 million and combined research and development and general and administrative expenses to be approximately $26 million, including approximately $6 million of non-cash expense items. Previous guidance for 2012 was for revenues to be approximately $30 million and combined research and development and general and administrative expenses to be approximately $25 million. Additionally, Ligand continues to expect its operations to be profitable and cash-flow positive for the year.