Why Is Ligand Pharmaceuticals Stock Trading Higher Today?

Ligand Pharmaceuticals Incorporated LGND reported fourth-quarter 2023 sales of $28.1 million, beating the consensus of $25.72 million. 

Revenues for the same period in 2022, excluding sales related to COVID-19, were $26.8 million. 

Royalties for the fourth quarter of 2023 were $22.5 million, compared with $22.0 million for the same period in 2022. 

Core Captisol sales (excluding sales of Captisol related to COVID-19) were $3.9 million compared with $3.3 million a year ago. 

There were no Captisol sales related to treatments for COVID-19 for the fourth quarter of 2023, compared with $23.5 million in the fourth quarter of 2022. Contract revenue was $1.7 million, up from $1.5 million a year ago.

Adjusted net income from continuing operations for the fourth quarter of 2023 was $24.4 million, or $1.38 per diluted share, beating the consensus of $0.66 and up from $23.5 million, or $1.36 per diluted share, a year ago.

Excluding the impact of gains from sales of Viking Therapeutics Inc VKTX stock and gross profit from Captisol sales related to COVID-19, core adjusted net income for the fourth quarter of 2023, was $18.6 million, or $1.05 per diluted share, compared with $13.0 million, or $0.75 per diluted share, for the same period in 2022. 

“2023 was a transformative year for Ligand, both operationally and financially. We refocused the company to be a lean-infrastructure, high-margin business…We are now well-positioned and resourced to close on multiple new investments. We also saw important clinical and regulatory events across our existing partnered assets and expect this momentum will continue in 2024 and beyond,” said Todd Davis, CEO of Ligand.

Guidance: Ligand reaffirms the fiscal year 2024 EPS guidance of $4.25-$4.75 versus the consensus estimate of $4.27. The company expects revenue of $130 million-$142 million versus the consensus of $138.5 million.

The company expects 2024 royalties ranging from $90 million to $95 million, sales of Captisol ranging from $25 million to $27 million, and contract revenue ranging from $15 million to $20 million.

Price Action: LGND shares are up 20.3% at $89.54 on the last check Tuesday.