• Introduces 2025 full year revenue guidance of $180 million to $200 million, a 17% increase in revenue growth over 2024, and core adjusted earnings per diluted share of $6.00 to $6.25
• Twelve commercial-stage programs and late-stage pipeline are expected to drive strong revenue growth over the next five years
• Long-term royalty receipts expected to deliver at least a 22% compound annual growth rate

Ligand Pharmaceuticals Incorporated (Nasdaq: LGND) will host its Investor and Analyst Day in Boston today. The event will feature presentations from Ligand CEO Todd Davis, CFO Tavo Espinoza, and other members of the senior management team who will provide an in-depth review of the company’s growth strategy, portfolio, platform technologies, and long-term financial outlook.

“2023 marked the beginning of a new chapter in Ligand's history, and I could not be prouder of our team and their incredible accomplishments over the past two years. We set ambitious yet attainable goals, and I am confident that we have the right people, processes, and infrastructure in place to continue executing our strategy. We are focused on investing in highly differentiated assets and operating royalty-generating platform technologies that we believe will generate significant long-term shareholder value,” said Todd Davis, CEO of Ligand.

At today’s event, Ligand’s senior management team will highlight:

• Ligand’s transformation over the past two years into a profitable, diversified, and infrastructure light organization that enables investors to participate in the innovation and promise of the biotech industry while avoiding concentrated binary risk
• The company’s robust financial performance in 2024, driven by an expected 27% increase in full year royalty revenue and a 38% increase in full year core adjusted earnings per diluted share; Ligand increased guidance twice this year based on the strength of new and existing commercial-stage assets
• Filspari (Travere Therapeutics), Capvaxive (Merck), Ohtuvayre (Verona Pharma plc), Qarziba (Recordati S.p.A.), and Veklury (Gilead Sciences, Inc.) as key drivers of royalty revenue growth in 2025
• Ligand has had the most active dealmaking years in its recent history, deploying $192 million across eight investments, and is currently evaluating more than $1 billion in actionable opportunities
• The company’s royalty-generating technology platforms—Captisol® and NITRICIL™— that Ligand believes offer broad applicability and significant revenue growth

Financial Overview and Outlook

Today, Ligand will reiterate its 2024 guidance outlined in November:

• Total revenue of $160 million to $165 million comprised of $105 million to $108 million in royalty revenue, $27 million to $29 million of Captisol sales, and $28 million of contract revenue¹
• Core adjusted earnings per diluted share of $5.50 to $5.70

Ligand will also introduce its 2025 guidance:

• Total revenue of $180 million to $200 million, comprised of $135 million to $140 million in royalty revenue, $35 million to $40 million of Captisol sales, and $10 million to $20 million of contract revenue
• Core adjusted earnings per diluted share of $6.00 to $6.25

Ligand will also provide an updated 5-year outlook:

• Long–term royalty receipts expected to deliver at least a 22% compound annual growth rate (CAGR)
• Existing commercial programs and late-stage pipeline (“Pharm Team”) support royalty revenue CAGR of 18%
• Total royalty receipts of approximately $285 million in 2029

Event Webcast

The event will be broadcast live starting at 10:30 a.m. Eastern Time. The webcast and today’s presentation can be accessed at: https://investor.ligand.com/news-and-events/events-and-presentations/default.aspx. A replay of the webcast will be available on the website after the event.

Adjusted Financial Measures

Ligand reports adjusted net income and adjusted net income per diluted share in addition to, and not as a substitute for, or superior to, financial measures calculated in accordance with GAAP. The company’s financial measures under GAAP include share-based compensation expense, amortization of debt-related costs, amortization related to acquisitions and intangible assets, amortization of financial royalty assets, changes in contingent liabilities, mark-to-market adjustments for amounts relating to its equity investments in public companies, excess tax benefit from share-based compensation, Pelthos operating loss, impairment of financial royalty assets, loss from equity method investment in Primrose Bio, income tax effect of adjusted reconciling items and others that are listed in the itemized reconciliations between GAAP and adjusted financial measures included in its prior earnings releases. A reconciliation of forward-looking non-GAAP core adjusted earnings per diluted share to the most directly comparable GAAP measures is not available without unreasonable effort, as certain items cannot be reasonably predicted because of their high variability, complexity and low visibility. Specifically, non-cash adjustments that could be made for changes in contingent liabilities, changes in the market value of its investments in public companies, share-based compensation expense and the effects of any discrete income tax items, directly impact the calculations of our core adjusted earnings per diluted share, which we expect to have a significant impact on our future GAAP financial results.

About Ligand Pharmaceuticals

Ligand is a biopharmaceutical company enabling scientific advancement through supporting the clinical development of high-value medicines. Ligand does this by providing financing, licensing our technologies or both. Its business model seeks to generate value for stockholders by creating a diversified portfolio of biopharmaceutical product revenue streams that are supported by an efficient and low corporate cost structure. Ligand’s goal is to offer investors an opportunity to participate in the promise of the biotech industry in a profitable and diversified manner. Its business model focuses on funding programs in mid- to late-stage drug development in return for economic rights, purchasing royalty rights in development stage or commercial biopharmaceutical products and licensing its technology to help partners discover and develop medicines. Ligand partners with other pharmaceutical companies to leverage what they do best (late-stage development, regulatory management and commercialization) in order to generate its revenue. Ligand’s Captisol® platform technology is a chemically modified cyclodextrin with a structure designed to optimize the solubility and stability of drugs. Ligand has established multiple alliances, licenses and other business relationships with the world’s leading biopharmaceutical companies including Amgen, Merck, Pfizer, Jazz, Takeda, Gilead Sciences, and Baxter International. For more information, please visit www.ligand.com. Follow Ligand on X @Ligand_LGND.

We use our investor relations website and X as a means of disclosing material non-public information and for complying with our disclosure obligations under Regulation FD. Investors should monitor our website and our X account, in addition to following our press releases, SEC filings, public conference calls and webcasts.

Forward-Looking Statements

This news release contains forward-looking statements, as defined in Section 21E of the Securities Exchange Act of 1934, by Ligand that involve risks and uncertainties and reflect Ligand's judgment as of the date of this release. All statements, other than statements of historical fact, could be deemed to be forward-looking statements. In some instances, words such as “plans,” “believes,” “expects,” “anticipates,” and “will,” and similar expressions, are intended to identify forward-looking statements. Readers are cautioned not to place undue reliance on these forward-looking statements, which reflect our good faith beliefs (or those of the indicated third parties) and speak only as of the date hereof. These forward-looking statements include, without limitation, statements regarding the outlook or guidance regarding the final 2024 financial results and expectations for near-term and future revenue and expenses, and the breakdown of such revenue, growth in revenue and adjusted earnings; outlooks or guidance regarding the financial results and guidance for fiscal 2025 as well as potential growth over the next five years; statements regarding market position and competition for royalty transactions; expectations regarding internal and partners’ research and development programs, including the timing of the initiation or completion of clinical trials, the potential for and timing of regulatory approval and product launch by Ligand and its partners; expectations regarding future sales of products by Ligand's partners and the durability of Ligand's royalties; the ability for current and future technology platforms to generate license deals and royalties; Ligand's strategy to deploy capital including the size of the potential pipeline of transactions; and anticipated near-term milestones. Actual events or results may differ from Ligand's expectations due to risks and uncertainties inherent in Ligand’s business, including, without limitation: the inherent risks of clinical development and regulatory approval of product candidates, including that the total addressable market for our partner’s products may be smaller than estimated; Ligand faces competition including with respect to royalty acquisition transactions, which may result in fewer transactions projected or may increase the cost of acquiring new programs, and our technology platforms, which may demonstrate greater market acceptance or superiority; partnered commercial products may not perform as expected; Ligand relies on collaborative partners for milestone payments, royalties, materials revenue, contract payments and other revenue projections; the possibility that Ligand’s and its partners’ drug candidates might not be proved to be safe and efficacious and FDA may not agree with our or our partners’ conclusions regarding the results of clinical trials; uncertainty regarding the commercial performance of Ligand’s and/or its partners’ products; Ligand may not achieve its guidance for 2024, 2025 or beyond; disruption to Ligand's and its partners' business, including delaying manufacturing, preclinical studies and clinical trials and product sales, and impairing global economic activity, all of which could materially and adversely impact Ligand's results of operations and financial condition; changes in general economic conditions, including as a result of geopolitical events (including the U.S. 2024 presidential and congressional elections); there may not be a market for the product(s) even if successfully developed and approved; Ligand is currently dependent on a sole supplier for Captisol® and failures by such supplier may result in delays or inability to meet the Captisol demands of its partners; Ligand's partners may terminate their agreements in certain circumstances or discontinue development or commercialization of any of their products; Ligand or its partners may not be able to protect their intellectual property and patents covering certain products and technologies may be challenged or invalidated; and ongoing or future litigation could expose Ligand to significant liabilities and have a material adverse effect on the company; and other risks and uncertainties described in its public filings with the Securities and Exchange Commission, available at www.sec.gov. The failure to meet expectations with respect to any of the foregoing matters may reduce Ligand's stock price. Ligand disclaims any intent or obligation to update these forward-looking statements beyond the date of this release, including the possibility of additional license fees and milestone revenues we may receive. This caution is made under the safe harbor provisions of the Private Securities Litigation Reform Act of 1995.

Information regarding partnered products and programs comes from information publicly released by Ligand partners. Ligand’s trademarks, trade names, and service marks referenced herein include Ligand and Captisol. Each other trademark, trade name or service mark appearing in this press release belongs to its owner.

¹ 2024 guidance excludes the $60 million realized gain from short-term investments on the sale of Viking Therapeutics stock.

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