Ligand dips as Q3 earnings view misses estimates, provides FY 20 & FY21 revenue guidance

• Ligand Pharmaceuticals (LGND -3.6%) Q3 results:
• Revenues: $41.8M (+68.7%); Royalties revenue: $9.0M (-7.9%); Captisol sales: $23.4M (+241.5%); Contract revenue: $9.5M (+15.4%).
• Net Loss: ($6.7M) (-56.1%); Loss Per Share: ($0.42) (-48.2%); Non-GAAP Net Income: $17.5M (+83.4%); Non-GAAP EPS: $1.04 (+112.2%).
• 2020 guidance: Total Revenues: ~$170M vs consensus of $170.3M; non-GAAP EPS: ~$3.95 vs consensus of $1.00. Expects Royalties: $33M; Captisol sales: $92M; Contract revenue: $45M.
• 2021 guidance: Total Revenues: ~$285M vs consensus of $274.9M; non-GAAP EPS: ~$6.00 vs consensus of $3.76. Expects Royalties: $45M; Captisol sales: $200M; Contract revenue: $40M.
• Other Business Updates: Ligand announced the sale of its Vernalis research operations and internal programs to HitGen for $25M in cash. The transaction is expected to close in the 4Q 2020, subject to customary closing conditions.
• On October 1, Ligand closed the previously announced acquisition of Pfenex. Pfenex brings to Ligand a proprietary protein expression technology, as well as major collaborations with Jazz Pharmaceuticals, Merck, Serum Institute of India and Alvogen, each of which has potential to contribute meaningfully to Ligand’s royalty revenue.
• https://seekingalpha.com/news/3629115-ligand-pharma-dips-4-after-q3-earnings-view-misses-estimates-provides-fy-20-fy21-revenue