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Analyzing Ligand Pharmaceuticals’ Top Line Trends

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Ligand Pharmaceuticals (LGND) generates revenues from royalties, material sales, license fees, milestone payments, and other sources.

The company’s royalty revenue fell from $24.23 million in Q1 2017 to $20.82 million in Q1 2018. Its materials sales, including Captisol sales, increased from $1.12 million in Q1 2017 to $4.39 million in Q1 2018.

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Royalty revenues

Ligand Pharmaceuticals’ royalty revenues come from its Promacta, Kyprolis, and Evomela sales. In Q1 2018, royalties on the sales of these products totaled $15.6 million, $3.3 million, and $1.6 million, respectively, compared to $16.7 million, $4.6 million, and $1.9 million, respectively, in Q1 2017.

Licensing and milestone revenue

Ligand’s revenue from license fees and milestone payments increased tenfold from $3.92 million in Q1 2017 to $30.95 million in Q1 2018. The company’s total revenue rose from $29.27 million in Q1 2017 to $56.16 million in Q1 2018. The milestone payments it received increased from $1 million in Q1 2017 to $2.8 million in Q1 2018, with the growth coming from licensing fees, which increased from $2.87 million in Q1 2017 to $26.95 million in Q1 2018.

Revenue from other sources increased from $36,000 in Q1 2017 to $1.16 million in Q1 2018. The increase in Ligand’s licensing revenue was the result of $20 million it received from Roivant on entering into a GRA (glucagon receptor antagonist) license agreement for developing and commercializing LGD-6972.

For 2018, 2019, and 2020, Ligand Pharmaceuticals is expected to generate revenues of $211.47 million, $202.83 million, and $244.02 million, respectively.

In the next article, we’ll take a look at the operational performance of Ligand Pharmaceuticals.

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