Ligand Pharmaceuticals Reports 27% Revenue Growth to $167.1 Million for Fiscal Year 2024

Ligand Pharmaceuticals Incorporated reported a significant increase in its financial performance for the fiscal year ending December 31, 2024, with total revenue and other income rising to $167.1 million, a 27% increase from $131.3 million in 2023. This growth was primarily driven by a $23.8 million increase in royalties, attributed to the acquisition of financial royalty assets from Qarziba and increased sales of Filspari. The company also saw a 9% rise in Captisol sales, totaling $30.9 million, and a 53% increase in contract revenue and other income, which reached $27.5 million.

Operating costs and expenses surged by 56% to $189.7 million, largely due to a $30.6 million impairment charge related to financial royalty assets and a $15.1 million fair value adjustment to partner program derivatives. General and administrative expenses rose by 49% to $78.7 million, driven by increased stock-based compensation and costs associated with the incubation of Pelthos Therapeutics, a new subsidiary focused on commercializing innovative therapeutic products. Despite the revenue growth, Ligand reported a net loss of $4.0 million for the year, compared to a net income of $52.2 million in 2023.

Strategically, Ligand has made several significant acquisitions, including the purchase of Apeiron Biologics AG for $100.5 million, which included royalty rights to Qarziba, and a $75 million investment in Agenus to support its oncology programs. The company also completed the acquisition of certain assets from Novan, including the FDA-approved ZELSUVMI, which is expected to contribute to future revenues. These acquisitions align with Ligand's strategy to expand its portfolio of royalty-generating assets while maintaining a lean operational structure.

As of December 31, 2024, Ligand reported total assets of $941.8 million, with cash and cash equivalents amounting to $72.3 million. The company had a total of 19.1 million shares of common stock outstanding and a market capitalization of approximately $1.1 billion. Ligand's employee headcount stood at 68, with a focus on enhancing its business development and investment team. The company has expressed optimism about its future, citing a strong pipeline of partnered programs and the potential for continued revenue growth from its royalty assets.

Looking ahead, Ligand anticipates further growth driven by its strategic investments and the commercialization of its products. The company is actively engaging with potential partners to maximize the value of its assets, particularly those acquired through recent transactions. However, Ligand also acknowledges the inherent risks in the biopharmaceutical industry, including regulatory challenges and market competition, which could impact its financial performance in the future.