Ligand Pharmaceuticals Incorporated (NASDAQ: LGND) today reported financial results for the second quarter and six months ended June 30, 2013, and provided an operating forecast and program updates.
“We have had a very strong first half in 2013, and the coming quarters look promising as we anticipate further growth in royalty revenue, potential approvals for a new royalty-bearing drug and label expansions, NDA filings for partnered products and completing our first full year of operational profitability,” commented John Higgins, President and Chief Executive Officer of Ligand. “We are proud of the important preclinical, clinical, regulatory and business development accomplishments made by Ligand and our partners since the close of the first quarter. Our solid operational execution and financial performance is facilitating our transition to a growth company with strong earnings potential.”
Highlights for the second quarter of 2013 include total revenues of $9.6 million. Non-GAAP net income from continuing operations was $1.4 million, or $0.07 per diluted share. Net income was $6.1 million, or $0.30 per diluted share. A description of the non-GAAP calculations and reconciliation to comparable GAAP financial measures is provided in the accompanying table titled “Non-GAAP Financial Measures.”
Second Quarter Financial ResultsTotal revenues from continuing operations for the second quarter of 2013 increased by 67% to $9.6 million as compared with $5.7 million for the same period in 2012. Royalty revenues were $4.9 million as compared with $3.0 million for the same period in 2012, primarily due to higher royalties from Promacta ® and new royalties from Kyprolis ®. Material sales increased to $4.0 million from $1.7 million for the same period in 2012, due to timing of customer purchases of Captisol. Cost of goods sold was $1.2 million for the second quarter of 2013, compared with $0.4 million for the second quarter of 2012, with the increase primarily due to higher material sales. Other operating costs and expenses from continuing operations in the second quarter of 2013 were $6.9 million, compared with $7.1 million in the second quarter of 2012. Research and development expenses decreased $0.8 million, primarily due to lower spending on internal development programs, and general and administrative expenses increased $0.4 million, primarily due to higher non-cash stock-based compensation expense. In the second quarter of 2013, Ligand recorded a non-cash impairment of $0.5 million for the write-off of in-process research and development.