Back to top

Image: Bigstock

Ligand (LGND) Beats on Q2 Earnings & Sales, Raises View

Read MoreHide Full Article

Ligand Pharmaceuticals Incorporated  reported second-quarter 2020 adjusted earnings of $1.00 per share, which beat the Zacks Consensus Estimate of 65 cents. The company had reported adjusted earnings of 68 cents in the year-ago quarter.

Total revenues increased 65.8% year over year to $41.4 million mainly due to higher Captisol revenues. Moreover, the top line surpassed the Zacks Consensus Estimate of $28.22 million.

Shares of Ligand were up 1.6% following the results. The company’s shares have gained 14.2% so far this year compared with the industry’s 3.7% increase.

Quarterly Highlights

Beginning first-quarter 2020, the company reports revenues under four categories — Royalties, Captisol, Service revenues and Contract revenues.

Royalty revenues were $7.2 million in the second quarter compared with $6.6 million in the year-ago quarter. Ligand primarily earns royalties on sales of Amgen's (AMGN - Free Report) Kyprolis and Acrotech Biopharma’s Evomela, which were developed using its Captisol technology.

Captisol sales were $24.5 million compared with $8.5 million in the year-ago quarter. The significant increase was due to higher sales of Captisol to support availability of Gilead’s (GILD - Free Report) remdesivir as a treatment for patients with severe COVID-19. The drug received FDA’s Emergency Use Authorization on May 1. Based on Ligand’s current outlook, it plans to increase annual production capacity of Captisol more than eight-fold next year.

Contract revenues were $5.2 million in the second quarter compared with $5.3 million a year ago. The company recorded Service revenue of $4.6 million, almost flat year over year.

2020 Guidance Raised

Ligand raised its guidance for sales and earnings for 2020. The company expects total revenues and earnings for 2020 to be approximately $165 million and $4.10 per share, compared with the previous guidance of $140 million and $3.65 per share, respectively. The Zacks Consensus Estimate for revenues and earnings per share is pegged at $140.7 million and $3.70, respectively.

Zacks Rank

Ligand currently has a Zacks Rank #3 (Hold).

Moderna, Inc. (MRNA - Free Report) is a better-ranked stock  from the biotech sector, carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

For 2020, Moderna’s estimates have narrowed from loss of $1.56 to loss of $1.42 over the past 30 days. For 2021, its earnings per share estimates have moved up from 5 cents to $1.90 in the said time frame. The company delivered a beat in each of the trailing four quarters, with the average being 8.92%. Share price of the company has increased 298.7% so far this year.

Biggest Tech Breakthrough in a Generation

Be among the early investors in the new type of device that experts say could impact society as much as the discovery of electricity. Current technology will soon be outdated and replaced by these new devices. In the process, it’s expected to create 22 million jobs and generate $12.3 trillion in activity.

A select few stocks could skyrocket the most as rollout accelerates for this new tech. Early investors could see gains similar to buying Microsoft in the 1990s. Zacks’ just-released special report reveals 8 stocks to watch. The report is only available for a limited time.

See 8 breakthrough stocks now>>

Published in