Ligand Pharma Updates Annual Guidance As It Spins Out Pelican Subsidiary

Ligand Pharmaceuticals Incorporated LGND entered into a merger agreement under which its subsidiary, Pelican Technology Holdings Inc, has become a wholly owned subsidiary of Primrose Bio Inc

Primrose Bio is a stand-alone private company focused on synthetic biology. As part of the transaction, Ligand retains the existing commercial royalties related to the Pelican Expression Technology and will own 49.9% of Primrose Bio

Simultaneous with the merger, Ligand entered into a Purchase and Sale Agreement with Primrose Bio and contributed $15 million in exchange for a portion of the economic rights from two contracts previously entered into by Primordial Genetics and an economic interest in potential future revenues generated from PeliCRM197.

Ligand retains the existing royalty rights from the Pelican Expression Technology, including economic rights to Jazz's RYLAZE, Merck's VAXNEUVANCE and V116 vaccines, Alvogen's Teriparatide, Serum Institute of India's Pneumosil and MenFive vaccines, among others.

Ligand is increasing adjusted EPS guidance and modifying revenue guidance. 

As a result of the divestiture and given the profile of the Pelican business, Ligand will have lower contract revenue than previously expected but increased adjusted earnings. 

Ligand's updated guidance is now revenue of $124 million-$126 million, compared to prior guidance of $124-$128 million versus a consensus of $127.05 million.

The company expects adjusted diluted EPS of $5.10-$5.25 versus the prior range of $4.85-$5.00 and the consensus of $4.98.

Guidance for royalties is now $82 million to $84 million (previously $78 to $82 million). 

Sales of Captisol are expected to be $25 million (previously $24 million), and contract revenue is now expected to be $17 million (previously $22 million).

Price Action: LGND shares are up 1.55% at $63.53 on the last check Tuesday.

Market News and Data brought to you by Benzinga APIs
Comments
Loading...
Date
ticker
name
Actual EPS
EPS Surprise
Actual Rev
Rev Surprise
Posted In: BiotechEarningsNewsGuidanceHealth CareSmall CapGeneralBiotechnologyBriefsHealth Care
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!