Ligand Pharmaceuticals Incorporated (NASDAQ: LGND) today reported financial results for the third quarter and nine months ended September 30, 2013, and provided an operating forecast and program updates.
Highlights for the third quarter of 2013 include:
- Total revenues of $13.0 million
- Non-GAAP net income from continuing operations of $2.5 million, or $0.12 per diluted share
- Net income of $2.0 million, or $0.09 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.”
“Ligand continued to post significant revenue growth and to demonstrate the strength of its business model during the third quarter,” commented John Higgins, President and Chief Executive Officer of Ligand. “Recently, two significant partnered programs received regulatory approvals. Pfizer’s Duavee™ received FDA approval for the treatment of moderate-to-severe vasomotor symptoms associated with menopause and the prevention of postmenopausal osteoporosis. GlaxoSmithKline’s Revolade™ (Promacta®) received European Commission marketing approval to treat low platelet counts in patients with chronic hepatitis C infection. These are exciting developments, along with portfolio additions and other late-stage advancements that reinforce the long-term potential of Ligand's partnered portfolio.”Third Quarter 2013 Financial Results Total revenues for the third quarter of 2013 were $13.0 million, an increase of 104% compared with $6.4 million for the same period in 2012. Royalty revenues increased to $5.7 million from $3.2 million for the same period in 2012, primarily due to higher royalties from Promacta® and new royalties from Kyprolis®. Material sales increased to $6.7 million from $1.8 million for the same period in 2012 due to timing of customer purchases of Captisol. Cost of goods sold was $2.5 million for the third quarter of 2013, compared with $0.7 million for the third quarter of 2012, with the increase primarily due to higher material sales. Other operating costs and expenses from continuing operations for the third quarter of 2013 were $7.4 million, compared with $7.1 million for the third quarter of 2012. Research and development expenses decreased $0.2 million, primarily due to lower spending on internal development programs, and general and administrative expenses increased $0.5 million, primarily due to higher non-cash stock-based compensation expense.