Ligand Pharmaceuticals (LGND) Investor Day 2024 summary

Strategic transformation and business model evolution

• Undertook major restructuring, spinning out OmniAb and Primrose Bio, reducing headcount from 170 in 2022 to 42 in 2024, and OpEx by over 60%, while building a senior deal team to scale royalty aggregation and finance capabilities.

• Focused on a diversified royalty aggregation model, investing in differentiated clinical and commercial stage assets, leveraging operating expertise for late-stage development, M&A, and project finance deals.

• Built a proprietary database and proactive portfolio management system, enabling systematic tracking, partner engagement, and expansion of royalty opportunities.

• Maintains a lean infrastructure, with a scalable team and light OpEx, supporting profitable, high-margin, predictable, compounding growth across a broad therapeutic focus.

• Deep biopharma relationships and a seasoned investment team enable proprietary deal sourcing and rigorous due diligence.

Financial performance and guidance

• 2024 revenue guidance increased twice to $160–$165M, with royalty revenue up 27% to $105–$108M and adjusted core EPS of $5.50–$5.70, up 38% from 2023.

• 2025 guidance projects total revenue of $180M–$200M (up 17%), royalty revenue of ~$140M (up 30%), and adjusted EPS of $6–$6.25, with core OpEx rising to just under $40M.

• Five-year outlook projects royalty receipts CAGR of 22%–>20% through 2029, supported by commercial programs, new investments, and a risk-adjusted pipeline.

• Ended Q3 2024 with $220M in cash/investments and $125M available credit, providing ~$350M capital for future deals.

• Expects compounding effect as reinvestment of cash flows accelerates post-2028, potentially enabling a dividend strategy.

Investment activity, portfolio, and pipeline developments

• $192M deployed across 8 investments in 2024, including Qarziba, Ohtuvayre, Palvella, and others, with a robust pipeline of 30+ actionable opportunities and $1B+ investable capital.

• Portfolio includes 12 major commercial-stage royalty assets and over 75 active programs, with key assets such as QARZIBA, Ohtuvayre, FILSPARI, CAPVAXIVE, PTX-022, and ZELSUVMI.

• Qarziba: Acquired via Apeiron Biologics, strong ex-US sales, ongoing FDA discussions for US entry, and continued global expansion.

• Ohtuvayre: First new inhaled COPD therapy in 20+ years, FDA approved June 2024, strong early sales, and potential for further indication expansion.

• ZELSUVMI, the first NITRICIL platform asset, approved and set for 1H 2025 launch pending partnership, targeting $200M+ peak sales with minimal market penetration.