Ligand Pharma Inc Roche Contingent Value Rights (LGNDZ)

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Ligand Pharmaceuticals Announces First Quarter Results
Conference call begins at 4:30 p.m. Eastern time today

Press Release Source: Ligand Pharmaceuticals Incorporated On Wednesday May 5, 2010, 4:05 pm
SAN DIEGO--(BUSINESS WIRE)--Ligand Pharmaceuticals Incorporated (NASDAQ: LGND - News) today announced financial results for the first quarter of 2010 and provided an operating forecast and program updates.

“Ligand recorded a number of important achievements in the first quarter, beginning with the closing of the Metabasis acquisition in January, and continuing with milestone payments from Merck and more recently Roche under fully funded research partnerships. We continue to make progress with our internal programs as well, including the presentation of positive Phase I data from our SARM program. Looking forward, we believe our diversified product pipeline, productive partnership collaborations and strong spending discipline hold potential to deliver strong cash flow over the long-term,” said John L. Higgins, President and Chief Executive Officer of Ligand Pharmaceuticals.

Financial Results

Total revenues from continuing operations for the three months ended March 31, 2010 were $6.0 million, compared with $9.5 million for the same period in 2009. The decline was primarily due to decreases in collaboration revenues and milestones earned.

Operating costs and expenses from continuing operations in the first quarter of 2010 were $10.4 million, compared with $17.3 million in the first quarter of 2009. Research and development expenses decreased by $3.1 million, primarily due to lower costs associated with clinical trials and lower headcount. General and administrative expenses decreased by $3.8 million, primarily due to reduced legal fees, lower facilities costs and lower headcount.

The net loss in the first quarter of 2010 was $2.8 million, or $0.02 per share, compared with a net loss of $5.1 million, or $0.05 per share, in the comparable 2009 quarter. The loss from continuing operations in the first quarter of 2010 was $3.0 million, or $0.02 per share, compared with a loss from continuing operations of $7.5 million, or $0.07 per share, in the comparable 2009 quarter. Income from discontinued operations in the first quarter of 2010 was $0.2 million, or $0.00 per share, compared with income from discontinued operations of $2.4 million, or $0.02 per share, in the comparable 2009 quarter.

As of March 31, 2010, Ligand had cash, cash equivalents, short-term investments and other current assets of $40.4 million. Cash outflows during the quarter ended March 31, 2010 included approximately $8 million of expected non-recurring payments related to the acquisitions of Neurogen and Metabasis, legal settlement payments and a termination payment related to a collaboration with Bristol-Myers Squibb.

2010 Operating Forecast

Affirming its previous 2010 revenue forecast, Ligand expects 2010 total revenue of approximately $30 million, including approximately $6.0 million of non-cash deferred revenue, consisting of royalty payments from King Pharmaceuticals for sales of AVINZA® and from GlaxoSmithKline (GSK) for sales of PROMACTA, revenue from collaboration agreements and potential milestone payments from existing corporate partners. For the remaining three quarters of 2010, the Company anticipates total operating costs will be approximately $25 million, including non-cash expenses of approximately $4 million.

Select Program Highlights and Outlook

The following is a summary of key programs, including status highlights and outlook for 2010.

Promacta – GlaxoSmithKline


•Revolade has been launched in a number of major markets such as Germany, Sweden and United Kingdom.

SERMs – Pfizer


•Conbriza launch in Europe is expected in the second half of 2010
•Viviant’s pending NDA is expected to receive an FDA advisory committee following a submission of a complete response by Pfizer
•Aprela NDA submission is expected in the second half of 2010

CXCR2 (SCH 527123) – Merck


•A Phase IIb chronic obstructive pulmonary disorder (COPD) trial in 500 patients was initiated in January 2010

CDK (SCH727965) – Merck, Phase II studies ongoing:


•Non-small cell lung cancer (NSCLC)
•Acute myelogenous leukemia (AML) and acute lymphoblastic leukemia (ALL)
•Mantle cell lymphoma (MCL) and B-cell chronic lymphocytic leukemia (B-CLL)

Hepatitis C (RG7348) – Roche


•A $6.5 million milestone payment was earned for progression into Phase I

SARM Program


•First-in-human Phase I single ascending dose data for LGD-4033 was presented at the 14th International Congress of Endocrinology in Kyoto, Japan in March
•Preclinical data on molecular pharmacology on LGD-4033 is scheduled to be presented at the 92nd Annual Meeting of the Endocrine Society in San Diego on June 19, 2010
•Completion and data for Phase Ib multiple ascending dose trial is targeted for the third quarter of 2010

Conference Call

Ligand management will host a conference call today beginning at 4:30 p.m. Eastern time (1:30 p.m. Pacific time) to discuss this announcement and answer questions. To participate via telephone, please dial [phone] from the U.S. or [phone] from outside the U.S., using the passcode “Ligand.” A replay of the call will be available until June 4, 2010 at 5:30 p.m. Eastern time by dialing [phone] from the U.S. or [phone] from outside the U.S. The account number is 361 and the passcode is 349820. Individual investors can access the Webcast through Ligand’s web site at http://cts.businesswire.com/ct/CT?id=smartlink&url=http%3A%2F%2Fwww.ligandl.com&esheet=6278606&lan=en_US&anchor=www.ligand.com&index=1&md5=ef9afee263e347b6f97264595dfaab50