Ligand Pharmaceuticals Incorporated (LGND), a biopharmaceutical company follows a business model focused on the development of royalty-generating assets using its Captisol formulation technology. This La Jolla, CA-based company is well known for its key partnered assets like Promacta (chronic idiopathic thrombocytopenia and aplastic anemia) and Kyprolis (multiple myeloma). Revenues at Ligand Pharma are mainly dependent on royalties and licensing fees apart from Captisol material sales.
In this scenario, investor focus remains on several late-stage clinical events and regulatory milestones for the rest of 2015 apart from the usual top-and bottom-line numbers. Label expansion for Promacta and Kyprolis should bring in additional royalties.
Ligand Pharma has a pretty good earnings track record with the company delivering positive earnings surprises in three of the four trailing quarters with an average surprise of 26.9%. Estimate revisions are, however, flat for 2015.
Currently, Ligand Pharma has a Zacks Rank #3 (Hold), but that could definitely change following the company’s earnings report which was just released. We have highlighted some of the key stats from this just-revealed announcement below:
Earnings: Ligand Pharma reported in-line fourth quarter earnings. Both our consensus estimates and the company’s reported EPS is at 48 cents (including stock-based compensation expense).
Revenues: Revenues, however, fell short of expectations. Ligand Pharma posted revenues of $23 million, compared to our consensus estimate of $24 million.
Key Stats: Once again, Ligand Pharma delivered higher royalty revenues on the back of Promacta and Kyprolis sales. The company recorded Captisol sales of $13 million in the fourth quarter. Meanwhile, the company continues to progress with its partnered and pipeline assets.
2015 Guidance: Ligand Pharma, which had already provided guidance for 2015 late last year, maintained both its earnings and revenue guidance. The company still expects to earn $2.14–$2.18 per share on total revenues of $81 million to $83 million. The Zacks Consensus Estimate for earnings and revenues are $1.53 per share and $86 million, respectively.
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