Q4 2020 Ligand Pharmaceuticals Inc Earnings Call
Ladies and gentlemen, and thank you for standing by and welcome to the ligand Pharmaceuticals Q4 earnings Conference call. At this time, all participants are in a listen only mode.
Operator: Ladies and gentlemen, thank you for standing by, and welcome to the Ligand Pharmaceuticals Q4 earnings conference call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question and answer session. To ask a question during the session, you will need to press star one on your telephone keypad. If you require any further assistance, please press star then zero. I would now like to hand the conference over to your speaker today, Patrick O'Brien. Thank you. Please go ahead. Thank you.
After the speaker presentation, there will be a answer a question and answer session to ask a question. During the session you will need to press star one on your telephone keypad. If you require any further assistance. Please press Star then zero I would now like to hand, the conference over to your Speaker today Patrick O'brien. Thank you. Please go ahead.
Patrick O'brien: Thank you, Brandy, and welcome to Ligand's fourth quarter of 2020 Financial Results and Business Update conference call. All of our speakers for today's call are in separate locations.
Thank you Brandy and welcome to lie against fourth quarter of 'twenty, and 'twenty financial results and business update conference call all of our speakers for today's call are and separate locations.
Speaking today for ligand will be John Higgins CEO, Matt for C O O and Matt Kornberg CFO.
Patrick O'brien: Speaking today for Ligand will be John Higgins, CEO, Matt Fore, COO, and Matt Korenberg, CFO. We will use non-GAAP financial measures, and some of our statements will be forward-looking. Additional information concerning risk factors and other matters concerning Ligand can be found in our Ligand earnings press release and our periodic filings with the SEC. Ligand undertakes no obligation to revise or update any statements to reflect events or circumstances after the date of this conference call. I would now like to turn the call over to John Higgins.
We will use non-GAAP financial measures and some of our statements will be forward looking and additional information concerning risk factors and other matters concerning ligand can be found and are like and earnings press release, and our periodic filings with the SEC.
Ligand undertakes no obligation to revise or update any statements to reflect events or circumstances. After the date of this conference call I would now like to turn the call over to John Higgins.
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Good morning, Thanks for joining our fourth quarter, 'twenty and 'twenty earnings call.
John Higgins: Good morning. Thanks for joining our fourth quarter 2020 earnings call. The past year was outstanding.
Last year was outstanding this year was filled with opportunities and challenges and through it'll ligand had stellar clinical scientific and operating performance.
John Higgins: The year was filled with opportunities and challenges, and through it all, Ligand had stellar financial, scientific, and operating performance. As a life science technology company, we are built upon diverse, best-in-class technology platforms to serve our large portfolio of partners and customers. Our focus is to deliver to investors a high-growth business driven by a royalty-based contract. 2020 set the stage, and we are now very well positioned for significant growth and expansion of the business in 2021.
And it's a life science technology company, we're built upon diverse best in class technology platforms to serve our large portfolio of partners and customers.
Our focus is to deliver investors a high growth business driven by our royalty based contract.
'twenty 'twenty and set the stage and we are now very well positioned for significant growth and expense and the closeness in 'twenty and 'twenty one.
There had been for recent defining factors for ligand and driving our value.
John Higgins: There have been four recent defining factors for ligand driving our value. One major expansion of our Omniab antibody discovery platform, to the most prolific acquisition year in our history, diversifying and adding to our growth process.
One major expansion of our on the App antibody discovery platform.
Two the most prolific acquisition year, and our history, diversifying and adding to our growth prospects.
Three serving gilead can meet their decorate and production needs to help address the ongoing global health crisis.
John Higgins: Serving Gilead to meet their Baccalaureate production needs to help address the ongoing global health crisis and for stellar financial performance. I will now expand on each of these four factors. First, I'll comment on the growth of our army at this. We bought this platform five years ago, and over the past year, we made major investments in the technology and expanded the team to solidify Ligand's position as the industry-leading best in class antibody discovery platform. Omniab provides our partners with access to the world's most advanced antibody repertoires and screening technologies to enable unparalleled discovery of next-generation therapeutics. It is a highly efficient and customizable end-to-end solution for the growing antibody discovery needs of the global biopharmaceutical industry. At the heart of our Omnia platform are both our AI enhanced models and biological intelligence, or B.I.
And for stellar financial performance.
I will now expand on EBIT for factor.
First I'll comment on the growth of our Ami at business. We bought this platform five years ago and over the past year, we made major investments and the technology and expanded the team to solidify ligand its position as the industry, leading best in class antibody discovery platform.
On the and provides our partners with access to the world's most advanced antibody repertoires and screening technologies to enable unparalleled discovery on next generation therapeutics.
It's a highly efficient and customize the ball into and solution for the growing antibody discovery needs on the global biopharmaceutical industry.
At the heart of our Omnia platform are both our AI enhanced models and the biological intelligence or the B I of our proprietary transgenic animals that generate high quality fully human antibodies optimized naturally through the animal systems.
John Higgins: of our proprietary transgenic animals that generate high-quality, fully human antibodies optimized naturally through the animal system. Partners seek out Ligand due to the quality of our science, our discovery efficiency, and our proprietary inventions. We help partners create mono and bispecific antibodies that become leading drug candidates targeting some of the world's most challenging health problems. The antibody market is exploding in size, with major new treatments coming to market at an increasing rate. Antibodies are also the largest area of R&D investment in the industry. We are pleased to see the recent increased visibility and valuations within the investment community for antibody drug discovery technology, with newly minted public companies, increasing consolidation through M&A, and existing participants moving up in value. Ligand is very well positioned as a leader as we have more and more partners, a growing roster of late-stage clinical trials, and a large number of potential regulatory approvals over the next five years.
Partners seek out ligand due to the quality of our science, our discovery efficiency and our proprietary inventions.
We help partners create motto and bi specific antibodies that become leading drug candidates targeting some of the world's most challenging health needs.
The antibody market is exploding and size with major new treatments coming to market and an increasing rate and.
Antibodies are also the largest area of R&D investment and the industry.
We are pleased to see the recent increased visibility and valuations within the investment community for antibody drug discovery technologies.
With newly minted public companies, increasing consolidation through M&A and existing per Clifton.
Moving up and value.
Ligand is very well positioned as a leader and we.
We have more and more partners a growing roster of late stage clinical trials and a large number of potential regulatory approvals over the next five years.
Recent market developments validate the upside potential for ligand.
John Higgins: Recent market developments validate the upside potential for LIGAND. We see 2021 as a breakout year for this platform, given the expected first-ever Omniab drug regulatory approvals and key trial data from various programs due this year. Secondly, quality acquisitions are driving our business opportunities and upside. 2020 was Ligand's most productive year ever for M&A, with four deals and nearly half a billion dollars deployed. The deals brought us earnings accretion, new partners, lucrative contracts, new laboratories, and 100 new scientists to expand our services. M&A is a particular strength for Ligand. Ten years ago, we bought Captasol, and five years ago, we acquired Omniab.
We see 'twenty 'twenty, one as a breakout year for this platform given expected FERC ever on the Abbott drug regulatory approvals and key trial data from various programs due this year.
Secondly, quality acquisitions are driving our business opportunities and upside.
'twenty and 'twenty was lie against most productive year ever for M&A with four deals and nearly half a billion dollars deployed.
The deals brought us earnings accretion new partners lucrative contracts, new laboratories, and 100 and scientists to expand our services.
M&A is a particular strength for ligand and.
10 years ago, we bought Captisol and five years ago, we acquired on the App.
Both acquisitions have been major unequivocal successes.
John Higgins: Both acquisitions have been major, unequivocal successes. The Ligand Strategy Team has good instincts for where to invest, driven by insight and collaboration with more than 125 corporate partners. We invest where the science is best and where it's headed. Our recent deals give you a sense for where we see major future opportunities. We are doubling down on the antibody space with two more Tuckin OmniApp acquisitions this past year. And we bought Icogen and Phoenix, giving us a premier position in the ion channel space and a proprietary protein expression platform. All the new operating units have been successfully and fully integrated into Ligand and are projected to contribute meaningfully to our business in 2021. Thirdly, a major factor is the work with Gilead, meeting their immense needs for caposol to manufacture Bechlery, the COVID-19 treatment.
The ligand strategy team has good instincts for weather and best driven by insight and collaboration with more than 100 and twenty-five corporate partners.
We invest where the science is best and where it's heading.
Our recent deals give you a sense for where we see major future opportunity.
We are doubling down to the antibody space with two more tuck in Ami App acquisitions this past year.
And we bought I, cogent, and Phoenix, giving us a premier position and the ion channel space and our proprietary protein expression platform.
All the new operating units are successfully and fully integrated into ligand and are projected to contribute meaningfully to our business in 'twenty and 'twenty one.
Thirdly, a major factor as a work with Gilead meeting their immense needs for captisol to manufacture backward.
COVID-19 treatment.
Our work started more than a year ago now it has been and all consuming and rewarding mission, both scientifically and medically.
John Higgins: Our work started more than a year ago, and it has been an all-consuming and rewarding mission, both scientifically and medically. Gilead relies on Ligand's Capsosol to formulate Becquerel. Beyond delivering a necessary manufacturing ingredient that makes the drug possible, we are partners to Gilead in assisting and supporting an important element of the production work. Medical experts are suggesting COVID-19 will be endemic, meaning it's a disease that will be around to some degree for years to come.
Gilead relies on Libra and Captisol to formulate Zachary.
Beyond delivering a necessary manufacturer and ingredient that makes the drug possible, we're partners to gilead, and assisting and supporting and important element of the production work.
Medical experts are suggesting COVID-19 will be endemic meaning it's a disease that will be around to some degree for years to come our.
Our view today's net decorate and will remain the standard of care and a backbone to future therapies and.
John Higgins: Our view today is that VECRI will remain a standard of care and a backbone to future therapy, and Beckery will continue to require Capasol to make it for years to come, adding to our business in the long term. Finally, the fourth factor driving our success is our stellar financial performance. As Matt Korenberg will discuss, revenue and adjusted EPS for full year 2020 are both up more than 45% compared to last year, and robust performance is expected into 2021. Driving our performance are many new licensing contracts we signed this past year, more milestone payments for more partners, higher capsule sales, and the financial contribution from acquisitions. We have growing cash flow and are investing in the business even more, hoping to further accelerate our partner revenue. Importantly, given our confidence in the business, we have made a strong investment in buying back Ligand's stock. We have deployed over $500 million in the past two years, buying back more than 5 million shares, or 25% of our stock. The average price we paid was $104 per share.
On Bakary will continue to require captisol to make it for years to come adding to our business long term.
Finally, the fourth factor driving our success is our stellar financial performance.
As Matt Kornberg will discuss revenue and adjusted EPS for full year, 'twenty and 'twenty are both up more than 45 per cent compared to last year.
And robust performance as expected into 'twenty 'twenty one.
Driving our performance our many new license with contract we signed this past year more milestone payments for more partners higher Captisol sales.
And the financial contribution from acquisitions.
We are growing cash flow and are investing and the business, even more helping to further accelerate our partner revenue.
Importantly, given our confidence and the goodness, we have made a strong investment and buying back log and stock.
We have deployed over $500 billion in the past two years buying back more than 5 million shares.
Or <unk> 25 per cent of our stock.
The average price, we paid was $104 per share.
We reviewed a wide range of the options for capital deployment and saw the buyback of ligand stock as an obvious highly attractive deep value opportunity.
John Higgins: We reviewed a wide range of the options for capital deployment and saw the buyback of Ligand stock as an obvious, highly attractive, deep value opportunity, now with a reduction in shares outstanding. We have meaningfully increased the outlook for earnings and cash flow per share for all shareholders going forward. As I conclude my remarks, I want to add that Ligand is providing great service to our partners and executing efficiently. We have a very talented leadership team, a highly engaged, experienced board of directors, and a dedicated team of scientists driving the business. I want to acknowledge their hard work this past year and thank them for their excellent contributions. In parallel with our business success, we are a team that cares about our communities and the environment.
Now with a reduction and shares outstanding.
We have meaningfully increased the outlook for earnings and cash flow per share for all shareholders going forward.
As I conclude my remarks, I want to add that ligand is providing great service to our partners and executing efficiently.
We have a very talented leadership team are highly engaged and experienced board of directors and.
And dedicated team of scientists driving the business.
I want to acknowledge their hard work this past year and thank them for their excellent contributions.
In parallel with our business success, we are a team that cares about our communities and the environment.
We are dedicated to social equality and have implemented measures to help elevate our voice and vocation for social Justice.
John Higgins: We are dedicated to social equality and have implemented measures to help elevate our voice and vocation for social justice, and we are implementing measures to reduce our carbon footprint and Minimize Consumables and Other Factors of Production in Running Our Technology. To do well, we need to do good. We encourage you to review the ESG reports on our website, follow us on Twitter, and review our upcoming proxy for additional disclosures on our environmental and social work. In 2021, our goal is to continue to expand our industry-leading technology offerings and to deliver the best year ever financially in Ligand's history, with guidance that calls for revenues increasing more than 50% and significant cash flow. What we do matters. We're contributing to the advancement of some vitally important medicines to improve human health. Now, for a more detailed review of our financial results, I'll turn the call over to Matt Korenberg.
And we are implementing measures to reduce our carbon footprint and minimize consumables and other factors of production and running our technology.
To do well, we need to do good.
We encourage you to review the ESG reports on our website follow us on Twitter and review our upcoming proxy for additional disclosures on our environmental and social work.
In 'twenty and 'twenty one our goal is to continue to expand our industry, leading technology offerings and to deliver the best year ever financially and ligand history with guidance that calls for revenues increase and more than 50% and significant cash flow.
What we do matters were contributing to the advancement of some vitally important medicines to advance human health.
Now for a more detailed review of our financial results.
I'll turn the call over to Matt Kornberg.
Thanks, John.
Matthew E. Korenberg: Thanks, John. The fourth quarter of 2020 was a fantastic end to another strong year from Ligand. Robust top-line growth driven by our capital material sales led the way in Q4, with strong financial results across the business. In addition, after closing the Phoenix transaction on the first day of the quarter, we spent the final months of the year integrating that business and team into Ligand, capping off a very busy strategic agenda for the year that included four corporate acquisitions and the sale of our Vernalis business. We continue to generate significant cash, with 2020 resulting in our eighth consecutive year of strong earnings and positive cash generation. Our fourth quarter financial performance was the most robust of the year.
The fourth quarter of 2020 was a fantastic and to another strong year from ligand robust topline growth driven by our Captisol material sales led the way and Q4 with strong financial results across the business.
In addition, after closing the Phoenix transaction on the first day of the quarter. We spent the final months of the year integrating that business and team into ligand capping off a very busy strategic agenda for the year that included four corporate acquisitions and the sale of our analysis business.
We continued to generate significant cash with 2020, resulting and our eighth consecutive year of strong earnings and positive cash generation.
Our fourth quarter financial performance was the most robust of the year total revenue for the quarter was $70 million up from $27 million a year ago and <unk>.
Matthew E. Korenberg: Total revenue for the quarter was $70 million, up from $27 million a year ago, and included $11 million of royalty revenue, $41 million of capital material sales, and $18 million of contract revenue. With respect to royalties, Kyprolis revenue of $272 million by Amgen for Q4 of 2020 was up over Q3 of 2020 and up year over year, despite the fact that sales in 2020 continue to be impacted by the pandemic. Ono again had an outstanding sales quarter for Kyprolis, posting $18.1 million in Q4, continuing its growth and reporting the largest quarter ever following the previous high in Q3 2020. Cactus oil sales of 41 million in the quarter compared with 7.1 million a year ago, up more than five times the level in 2019, similar to our trends throughout 2020.
<unk> 11 million of royalty revenue $41 million of Captisol material sales and $18 million of contract revenue.
With respect to royalties Kyprolis revenue of 272 million by Amgen for Q4 of 2020 was up over Q3, 2020 and up year over year. Despite the fact the sales in 2020 continued to be impacted by the pandemic.
Oh, no again had an outstanding sales quarter for Kyprolis, posting $18 1 million and Q4, continuing its growth and reporting the largest quarter ever following the previous high in Q3 2020.
Captisol sales of $41 million and the quarter compared with $7 1 million a year ago up more than five times the level and 2019 similar to our trends throughout 2020.
Our contract revenue in Q4, 2020 was $18 million compared with $8 8 million a year ago.
Matthew E. Korenberg: Our contract revenue in Q4 2020 was $18 million, compared with $8.8 million a year ago, with the increase driven by several Omniab-related milestones in service payments and our Icogen partnerships, which was also offset by the sale of our Vernalis business partway through the quarter. Adjusted diluted EPS for Q4 2020 was $1.62, or 128% higher than Q4 2019. For the full year 2020, we achieved $186.4 million in total revenue, which is an increase from $120.3 million in 2019 as we reported, or $106.1 million as adjusted for the sale of the Promacta Royalty in Q1 2019. Including the Promacta adjustment, all three business lines increased year over year despite the challenging environment caused by the COVID-19 pandemic. Adjusted diluted EPS for 2020 was $4.55, or an increase of 47% over the $3.09 as reported in 2019, or an increase of 81% over the $2.52 as adjusted for the sale of Prometheus. We finished the quarter with approximately $411 million of cash, cash equivalents, and short-term investments.
With the increase driven by several on the related milestones and service payments and our acreage and partnerships, which was also offset by the sale of ARVO now for and Alice business partway through the quarter.
Adjusted diluted EPS for Q4, 2020 was $1, 60% to 128% higher than Q4 2019.
For the full year 2020, we achieved $186 4 million and total revenue, which is an increase from $123 million and 2019, as we reported or $106 1 million as adjusted for the sale of the Promacta royalty and Q1 and 2019.
Including the Promacta adjustment all three business lines increased year over year, despite the challenging environment and the COVID-19 pandemic and.
Adjusted diluted EPS for 2020 was $4 55 or.
Or and increase of 47% over the $3 <unk> as reported in 2019 or and Inc.
<unk> of 81% over the $2.52 as adjusted for the sale and from Act.
We finished the quarter was approximately $411 million of cash cash equivalents and short term investments.
Turning to financial guidance, we introduced 2000 and 'twenty one guidance at our analyst day event and the fall of 2020.
We're now increasing our guidance to reflect our recently announced positive trial results from <unk> on their drugs per cent in.
We now expect to refer to file for FDA approval in 2021, resulting in a $5 $9 million net milestone to ligand and our top line guidance for 2021 total revenue is now $291 million up from 285 million previously.
Matthew E. Korenberg: Turning to financial guidance, we introduced 2021 guidance at our Analyst Day event in the fall of 2020. We're now increasing our guidance to reflect the recently announced positive trial results from TREVIR on their drug, Parcentan. We now expect Revere to file for FDA approval in 2021, resulting in a $5.9 million net milestone for LIGE. Our top line guidance for 2021 total revenue is now $291 million, up from $285 million previously. We expect an overall corporate gross margin for the year of approximately 75 to 80%, and we expect cash operating expenses for 2021 of 80 to 85%. These revenue and expense components translate to full year 2021 adjusted diluted EPS of approximately $6.15, which is up 35% from the 2020 adjusted diluted EPS of $4.55.
And we expect an overall corporate gross margin for the year of approximately 75% to 80% and we expect cash operating expenses for 2021 of $80 million to $85 million.
These revenue and expense components translate to full year 2021, adjusted diluted EPS of approximately $6 15, which is up 35% from the 2020 adjusted diluted EPS of $4.55.
Related to.
Relating to just percentage and longer term projections as we wait for more updates from severe on their sports Center and program. We're pleased to see this program now increasing and potential to move toward the market to serve and important and underserved medical market.
We will follow their guidance for timelines and regulatory updates, but given it could be potentially material new royalty stream for ligand, we are providing a preliminary outlook for the program as we see it now.
At this time, we estimate a potential launch and the second half of 2022 if.
If that occurs the first full year of sales would be and 2023.
Evaluating third party reports and considering our royalty rate. The initial projections, we have for potential royalties to ligand and 2023 is $10 million to $20 million.
Matthew E. Korenberg: Relating to Sparsantan and longer-term projections, as we wait for more updates from Trevere on their Sparsantan program, we're pleased to see this program now increasing in potential to move toward the market to serve an important and underserved medical market. We will follow their guidance for timelines and regulatory updates, but given it could potentially be a potentially material new royalty stream for Ligand, we are providing our preliminary outlook for the program as we see it now. At this time, we estimate a potential launch in the second half of 2022. If that happens, the first full year of sales would be in 2023. Based on third-party reports and considering our royalty rate, the initial projections we have for potential royalties to Ligand in 2023 are $10 to $20 million. Over the longer term, we see third-party analysts project a percent increase in sales by Trivere of $500 million to $1 billion at peak.
Over the longer term, we see third party analysts projected per center and sales by <unk> of $500 million to $1 billion at peak.
We will provide more information on our outlook as the program advances.
With respect to quarterly pacing for 'twenty and 'twenty 'twenty one throughout the year, we expect our royalty line will show the normal trends with a lower Q1, and then increasing each quarter through Q4.
Our captisol revenue and contract revenue are both expected to be spread relatively evenly across the year.
Developments and the pandemic and with partner clinical success and timing may cause shifts from quarter to quarter, but we currently expect a relatively steady pacing on both fronts.
Regarding strategic M&A as well as capital deployment, we continue to maintain and active evaluation of our M&A priorities as well as our capital deployment strategy overall and.
And Q4, 'twenty and 'twenty, we'd deployed $24 million of capital, we used $19 million to repurchase our convertible bond and just under $5 million to repurchase our shares.
Matthew E. Korenberg: We will provide more information on our outlook as the program advances. With respect to quarterly pacing for 2021, throughout the year, we expect our royalty line to show the normal trends with a lower Q1 and then increasing each quarter through Q4. Our capital revenue and contract revenue are both expected to be spread relatively evenly across the year.
During 2020, we also acquired <unk>, our eye on channel technology platform, Phoenix, a protein expression technology platform, and <unk> and tourists and both of which augment our industry, leading omni have antibody discovery platform.
As we look forward into 'twenty and 'twenty, one we'll continue our focus on transactions that add new technology platforms to ligand.
Matthew Gregory Hewitt: Developments in the pandemic and with partner clinical success and timing may cause shifts from quarter to quarter, but we currently expect a relatively steady pacing on both. Regarding strategic M&A as well as capital deployment, we continue to maintain an active evaluation of our M&A priorities as well as our capital deployment strategy overall. In Q4 2020, we deployed $24 million of capital. We used $19 million to repurchase our convertible bond and just under $5 million to repurchase our shares. During 2020, we also acquired Icogen, our ion channel technology platform, Phoenix, our protein expression technology platform, and Accela and Taurus, both of which augment our industry-leading Omniab antibody discovery platform. As we look forward into 2021, we'll continue our focus on transactions that add new technology platforms to Ligand, add meaningful partner programs to our portfolio, and bring companies and technologies that complement our Omniab platform. Finally, just before I turn the call over to Matt Fore, I direct our listeners to review our Q4 earnings press release issued earlier today and available on our website for a reconciliation of our adjusted financials to GAAP-reported items. With that, I'll turn the call over to Matt for some comments on our portfolio and pipeline.
Meaningful partnered programs to our portfolio and bring companies and technologies that complement our omni and platform.
Finally, just before I turn the call over to Matt for a direct our listeners to review our Q4 earnings press release issued earlier today and available on our website for a reconciliation of our adjusted financials to GAAP reported items.
With that I'll turn the call over to Matt for some comments on our portfolio and pipeline.
Yeah.
Thanks, Matt.
Throughout 2021 against technologies have substantial positive impacts on global human health and highly visible and important ways.
And now here in 2021, our technologies and our partners that use them are poised for major events in the coming months and quarters.
This morning, I'll briefly review some highlights and updates for each of our four core technologies and I'd like to start with on the App and the suite of technologies within what we call our antibody discovery Tech stack.
We believe on the App is our most valuable platform technology as it continues to offer a unique combination of best in class advanced antibody discovery tools, and our partners who license. The Omnia technologies are supported by our team and respected and world class scientists with a track record and quickly discovering high quality antibodies.
We continue to innovate and invest and the Omnia platform with internal R&D and technology development through collaborations with leading academic centers and through bolt on acquisitions and our partners value. The work that we do and we understand the importance of quickly and efficiently discovering fully human antibodies and a variety of formats.
In 2020, we acquired and integrated new technologies and scientist into omni App from <unk> and tourists Biosciences, and <unk> technology brought us and ultra high resolution and high speed sell screening technology and facilitate antibody recovery and selection from our animals.
Operator: Transcribed by https://otter.ai
Matthew Gregory Hewitt: Thanks, Matt. Throughout 2020, Ligand's technologies will have substantial positive impacts on global human health in highly visible and important ways. And now, here in 2021, our technologies and our partners that use them are poised for major events in the coming months and quarters. This morning, I'll briefly review some highlights and updates for each of our four core technologies. And I'd like to start with Omniab and the suite of technologies within what we call our Antibody Discovery Tech Stack. We believe Omniab is our most valuable platform technology as it continues to offer a unique combination of best-in-class advanced antibody discovery, and our partners who license Omniab technologies are supported by our team of respected world-class scientists with a track record of quickly discovering high-quality antibiotics. We continue to innovate and invest in the Omniab platform.
And this technology Leverages engineering advancements that originally came out of Stanford University and uses proprietary AI based computing approach.
It's worse acquisition brought Tau based CVR <unk> III humanizing binding domain antibody technologies to be on the up suite, what we now refer to as Omni tour.
Kelly and our bodies feature some of the longest <unk> of any species with unique genetic and structural diversity.
And enable binding to extremely challenging biological targets with application and therapeutics diagnostics and basic research.
So rami on technology now is differentiated by our use of leveraging our artificial intelligence or AI capabilities and our deep history of novel genetic engineering, and biological intelligence or <unk> of our proprietary try and transgenic animals.
The <unk> elements allow us to operate a highly efficient business model and serving our broad and expanding partner base.
Our best in class technology stack is enabling our omni and business teams to secure new license agreements with expanded economic terms.
Matthew Gregory Hewitt: [inaudible] Our partners value the work that we do, and we understand the importance of quickly and efficiently discovering fully human antibodies in a variety of formats. In 2020, we acquired and integrated new technologies and scientists into Omniab from Accela and Taurus Bioscience. The Accela technology brings us an ultra-high-resolution and high-speed cell screening technology to facilitate antibody recovery and selection from our animals. This technology leverages engineering advancements that originally came out of Stanford University and uses proprietary AI based computing approaches. The Taurus acquisition brought tau-based CDRH3 humanizing binding domain antibody technologies to the Omniab, what we now refer to as OmniTOR. Cow antibodies feature some of the longest CDR3s of any species with unique genetic and structural diversity that can enable binding to extremely challenging biological targets with application in therapeutics, diagnostics, and basic research.
And in 2021, we will continue to add staff to further leverage and expand the on the AD Tech stack and serve our growing partnership base.
Switching now to our patented captisol formulation technology.
2020 was a transformation on transformational year for Captisol on many levels as John generally just brought.
And with globally recognized commercial products that use our captisol technology, we've seen record growth of inbound interest and the technology, along with continued and growing commercial momentum and.
Q4, we shipped more captisol partners around the world and and any other quarter.
We have a close partnership with Gilead for <unk> and note Gilead recent statement net approximately $8 million COVID-19 patients and the U S have been treated with secondary.
And also that in the fourth quarter, we entered into a 10 year extension of our Captisol supply agreement with Gilead and our team is proud of the role. They have played and will continue to play and supporting this critically important therapy.
Personally I'm very proud of the work that the Captisol team has done and continues to do.
We also entered into more capsule licensing deals in 2020, then and any other year closing out the year with more than 160, New research license agreements.
Matthew Gregory Hewitt: So our OmniAb technology now is differentiated by our use of leveraging our artificial intelligence or AI capabilities in our deep history of novel genetic engineering and biological intelligence or BI of our proprietary transgenic animals. The AI elements allow us to operate a highly efficient business model in serving our broad and expanding partner base. Our best-in-class technology stack is enabling our omnibusiness team to secure new license agreements with expanded economics. And in 2021, we will continue to add staff to further leverage and expand the Omniab Tech Stack and serve our growing partnership base. Switching now to our patented Captosol formulation technology, 2020 was a transformational year for Captosol on many levels, as John generally described. And with globally recognized commercial products that use our Capsosol technology, we've seen record growth in inbound interest in the technology, along with continued and growing commercial momentum. In Q4, we ship more Capasol to partners around the world than in any other quarter.
And 13 clinical and commercial agreements, while also filling and hundreds of inbound sample requests per capsule.
And our Captisol technology is positioned very well for continued success in 2021 and for many years to come.
Ligand maintains a broad and global patent portfolio for Captisol with more than 400 patents worldwide relating to the technology Inc.
<unk> over 40 patents that are issued here in the United States with the latest expiration date in 2033.
We also have other patent applications covering methods of making captisol and if issued extend to at least 2040.
Beyond that our Captisol partners greatly value our quality, our scale of manufacturing and our reproducibility and our vast and growing safety database for Captisol.
Switching gears now our <unk> team is doing a fantastic job managing and growing our ion channel technology partnerships.
And they also had a very productive year in 2020.
We closed out the year announcing a new deal with Glaxosmithkline or GSK gained access to our team's unique expertise and small molecule therapeutics, specifically targeting trans membrane proteins and <unk>.
Matthew Gregory Hewitt: We have a close partnership with Gilead for VECLRI and note Gilead's recent statement that approximately a million COVID-19 patients in the U.S. have been treated with VECLRI. I note also that in the fourth quarter, we entered into a 10-year extension of our captosol supply agreement with Gilead, and our team is proud of the role they have played and will continue to play in supporting this Personally, I'm very proud of the work that the Capsosol team has done and continues to do.
Collaboration will utilize the <unk> ion channel focused discovery technology to identify and develop inhibitors on the specific genetically validated molecular targets relevant to a number of neurological diseases.
As part of that deal, we received an upfront payment of $7 million and we're eligible for milestones of more than $150 million and tiered royalties on net sales on any drug.
And it's commercialized.
Matthew Gregory Hewitt: We also entered into more capital licensing deals in 2020 than in any other year, closing out the year with more than 160 new research license agreements and 13 clinical and commercial agreements, while also filling hundreds of inbound sample requests for CAHPS. We're confident that our capital technology is positioned very well for continued success in 2021 and for many years to come. Ligand maintains a broad and global patent portfolio for Capitasol with more than 400 patents worldwide relating to the technology, including over 40 patents that are issued here in the United States, with the latest expiration date in 2033. We also have other patent applications covering methods of making Captosol that, if issued, would extend to at least 2040. Beyond that, our capital partners greatly value our quality, our scale of manufacturing, and our reproducibility, and our vast and growing safety databases for capital. Switching gears now, our iKitchen team is doing a fantastic job managing and growing our Ion Channel Technology Partnership, and they also had a very productive year in 2020.
The collaboration by GSK.
GSK came to us because logins unique model systems and depth of expertise will enable them to advance. This drug discovery program with a higher probability of success and they helped deliver a new treatment option for patients suffering from neurological diseases.
In addition to this new partnership with GSK and channel team is also managing to partnered programs with Roche with more than $500 million and potential milestone payments associated with them as well as potential tiered royalties and also a valuable collaboration with the cystic fibrosis Foundation.
And now switching to our Phoenix protein expression and business the acquisition of Phoenix close four months ago and is now fully integrated into ligand as John described.
For those who may be new to the technology, the Phoenix expression technology platform Leverages proprietary strains of Pseudomonas fluorescence.
And is unique and highly valuable to the industry because of its ability to express complex antibody derivatives and other engineered protein modalities and simply put it's a technology that makes manufacturing of complex drugs possible.
Flex drugs have the potential for greater specificity improved side effect profiles and ultimately successful therapeutic outcomes and these characteristics make them and area of a substantial amount of current pharmacy biopharmaceutical development focus and the industry.
Matthew Gregory Hewitt: We closed out the year announcing a new deal with GlaxoSmithKline, where GSK gained access to our team's unique expertise in small molecule therapeutics, specifically targeting transmembrane proteins. This collaboration will utilize the Igogen ion channel focus discovery technology to identify and develop inhibitors of a specific genetically validated molecular target relevant to a number of neurological diseases. As part of that deal, we received an upfront payment of $7 million, and we're eligible for milestones of more than $150 million in tiered royalties on net sales of any drug that is commercialized from the collaboration by GSK. GSK came to us because Ligand's unique model systems and depth of expertise will enable them to advance this drug discovery program with a higher probability of success and may help deliver a new treatment option for patients suffering from neurological diseases.
We leveraged our rich history with the platform with extremely high throughput screening technologies and proprietary computer driven automation to get robust production strange very quickly for our partners.
We believe that our CMC development engine and state of the art analytical capabilities position us very well to be leader in this space.
The protein expression technology deliver significant competitive advantages to our partners, including the speed with which they can enter into clinical production increased production quality and lower cost of goods and our platform has a success rate of more than 80% and producing proteins that had failed and traditional systems like those based on <unk>.
Coli or traditional chose cells.
Importantly, this technology has been further validated from our regulated regulatory standpoint, with the approval of care <unk> injection and both the U S and Europe with two exciting late stage assets with global industry, leading partners that have now submitted for approvals, specifically Merck submitted applications to the FDA and the EMEA.
Or approvals of the 114, which is their investigational 15, valent pneumococcal conjugate vaccine that uses the Phoenix protein expression technology.
Matthew Gregory Hewitt: In addition to this new partnership with GSK, the Ion Channel team is also managing two partner programs with Roche, with more than $500 million in potential milestone payments associated with them, as well as potential tiered royalties, and also a valuable collaboration with the Cystic Fibrosis Center. Now, switching to our Phoenix Protein Expression business. The acquisition of Phoenix closed four months ago and is now fully integrated into Ligand, as John described.
The applications include positive data from multiple phase two and phase III clinical studies with VB, one four and earlier this month the FDA accepted for review the BLA for <unk>, one four and thereby triggering a milestone payment of $1 5 million to ligand.
In December jazz Pharmaceuticals initiated the submission of our BLA to the FDA seeking market approval for GBP 45, Inc.
Matthew Gregory Hewitt: For those who may be new to the technology, the Phoenix Expression Technology Platform leverages proprietary strains of Pseudomonas florescens and is unique and highly valuable to the industry because of its ability to express complex antibody derivatives and other engineered protein modalities. Simply put, it's a technology that makes the manufacturing of complex drugs possible. These complex drugs have the potential for greater specificity, improved side effect profiles, and ultimately, successful therapeutic outcomes. And these characteristics make them an area of substantial current biopharmaceutical development focus in the industry. We leverage a rich history with the platform, with extremely high-throughput screening technologies and proprietary computer-driven automation to get robust production streams very quickly for our partners. We believe that our CMC development engine and state-of-the-art analytical capabilities position us very well to be a leader in this space.
This drug is a recombinant <unk> asparaginase produced and our expression platform, which alleviated supply challenges and resulted in a robust process showing manufacturing consistency and efficiency.
Going forward, we see a growth trajectory for the protein expression business that can drive revenue and yield a variety of different types of deals with durable downstream economics to ligand.
And we see clear paths and opportunities for partner development deals for traditional asset out licensing deals for assets that are part of the legacy R&D pipeline associated with the portfolio and platform and for what we term platform carrying deals where our partners come to us to leverage our technology and combination with their own pieces and <unk>.
Knowledge.
And with that I'll turn the call back over to the operator for questions.
Operator.
At this time, if you would like to ask a question. Please press Star then the number one on your telephone keypad well pause for just a moment to compile the Q&A roster.
Your first question comes from the line of Joe Pin Guinness with H C. Wainwright.
Matthew Gregory Hewitt: Protein expression technology delivers significant competitive advantages to our partners, including the speed with which they can enter into clinical production, increased production quality, and lower cost of goods. Our platform has a success rate of more than 80% in producing proteins that have failed in traditional systems like those based on E. coli or traditional CHO cells. Importantly, this technology has been further validated from a regulatory standpoint with the approval of teriparatide injection in both the US and Europe, and two exciting late-stage assets with global industry leading partners that have now been submitted for approval. Specifically, Merck submitted applications to the FDA and the EMEA for approvals of V114, which is their investigational 15-valent pneumococcal conjugate vaccine that uses the Phoenix protein expression technology.
Hey, everyone. Good morning, Thanks for taking the question and congratulations on your real continued progress here. So three things and the first one is really a comment there congratulations on smart Santana I.
And I guess, you're really coming to the tail end here of a very strong developmental path and really talks to your early strategic moves when you bought pharmacopeia and all the work that they did including randomized phase II data that allows you to leverage much higher economics for as you said a drug based on estimates that are out there.
$500 million to $1 million per $1 billion and peak sales so congratulations to seeing the potential and game here for that.
So I guess my two questions are the following first with Rem death severe now that we have some general views about infection rates and what have you.
Do you feel you are hitting a bit of steady state Rem death severe needs for the Captisol platform and.
And how do you see sort of the one or two year plan around that for Rem death severe.
Yeah. Thanks, so the snap for and can comment there and obviously, we've got captisol guidance out there.
Matthew Gregory Hewitt: The applications include positive data from multiple phase 2 and phase 3 clinical studies with V114. And earlier this month, the FDA accepted for review the BLA for V114, thereby triggering a milestone payment of $1.5 million to Ligand. In December, Jazz Pharmaceuticals initiated the submission of a BLA to the FDA seeking market approval for JVP458. This drug is a recombinant of Winnea asparaginase produced in our expression platform, which alleviated supply challenges and resulted in a robust process showing manufacturing consistency and efficiency. Going forward, we see a growth trajectory for the protein expression business that can drive revenue and yield a variety of different types of deals with durable downstream economics to ligand. We seek clear paths and opportunities for partner development deals, for traditional asset outlicensing deals, for assets that are part of the legacy R&D pipeline associated with the portfolio and platform, and for what we term platform pairing, where partners come to us to leverage our technology in combination with their own And with that, I'll turn the call back over to the operator for questions.
Four.
And for the year for 2021.
As John was describing and his comments there is a growing view and I think this is you talked to experts and the field that that COVID-19 will be and endemic disease. Obviously gilead has invested substantially and randomized double blind controlled trials for <unk>.
And can shown.
Really stellar data in terms of improving recovery times et cetera, we entered into a new 10 year deal.
With Gilead supply deal.
Last year and near the end of year.
And 10 year relationship gives us.
Binding visibility rolling forecasts.
Throughout the year.
And we feel very good about our outlook for the program and as you look now there is still obviously.
A high level of hospitalization.
And we have quoted net.
Proximately, one and two patients hospitalized and the U S are treated with secondary.
And we continue to see obviously, a high a high demand for Captisol.
Beyond that.
Gilead continues to invest over 40 interventional observational studies for victory are ongoing.
And continuing to look at new setting just well outpatient setting new formulations sub Q inhaled formulations, and all of which are utilized capsule as well. So hopefully that gives you a little more color and detail there and there may be others that matter.
Operator: Operator.
Operator: At this time, if you would like to ask a question, please press star, then the number one on your telephone keypad. We'll pause for just a moment to compile the Q&A roster. Your first question comes from the line of Joe Pantginis with H.C. Wainwright.
<unk> John one asset.
Okay.
No. It certainly does thank you for that and then my last question really is a little higher level with regard to your underlying business here and I want to focus on omni channel.
Joseph Pantginis: Hey, everyone. Good morning.
<unk> been focusing quite for quite some time in my discussions with investors and Omnia really represents a business unto itself and you did brought and multiple tech platforms and what have you. So I guess my question is two pronged first can you describe your overall inbounds for omni app across the different.
Joseph Pantginis: Thanks for taking the question, and congratulations on your real continued progress here. So three things, and the first one is really a comment or congratulations on Sparcentan. I guess, you know, you're really coming to the tail end here of a very strong developmental path and really talks to your early strategic moves when you bought Pharmacopia and all the work that they did, including randomized phase two data that allowed you to leverage much higher economics for a drug, you know, based on estimates that are out there, 500 to a billion dollars in peak sales. So congratulations to seeing the potential end game here for that. So I guess my two questions are the following. First, with remdesivir, now that we have, you know, some general views about infection rates and what you have, do you feel you're hitting a bit of steady state remdesivir needs for the capitol platform? And how do you see the sort of one or two year plan around that for remdesivir?
Tech stack that you described and the different species and platforms that you have under omni app on their sort of are they across the board are certain technologies favored more than others and then.
So I'll leave that is part one.
Yes.
I'll make just a general comment and then Matt forward and get into some more of the details but.
So on and that required the platform five years ago, and every year, we've invested more and staff and computers.
And also other tuck in acquisition with fascinating and we know that and the industry success.
SaaS and clinical.
Research and discovery success breeds more business.
And and early on.
Here are two of our operations we.
We had a good record of dealmaking.
We are seeing more discovery success pre.
Preclinical and clinical starts and the word got around the industry and that drove more deals.
The last 12 to 18 months what is.
Joseph Pantginis: Yeah, thanks. So this is Matt for you. You can comment there.
Becoming very clear is that our further investment and and this yellow excel and Coors.
Matthew Gregory Hewitt: Obviously, we've got the capital guidance out there for the year 2021. But, as John was describing in his comments, there's a growing view. And I think this is because you talk to experts in the field that COVID-19 will be an endemic disease. Obviously, Gilead has invested substantially in randomized, double-blind control trials for VECLRI. And, and shown really stellar data in terms of improving recovery times, etc. We entered into a new 10 year deal with Gilead. Last year, near the end of the year, a 10 year relationship gives us binding visibility, rolling forecasts throughout the year, and we feel very good about our outlook for the program. As you look now, there's still obviously a high level of hospitalization. However, continuing to look at new settings as well, outpatient settings, new formulations, sub-Q, and inhaled formulations, all of which utilize Capitothal as well. So hopefully, that gives you a little more color and detail there. There may be others that matter John want to add. Thank you. I appreciate it.
We have and inside view into what the industry needs and we are bolting on other adjacent technologies that is really enhancing that platform.
Industry insiders and industry players notice and they want it and that is also further driving dealmaking. So we are on.
Always had best in class since we've owned it.
But our position and leadership prominence is only building.
Perhaps you want to comment more on the technical side in terms of our B I.
Yeah, well, obviously, we've got a rich history of continued innovation and genetic engineering and animals and that's something that I'll say is is really at the heart and.
And and a bedrock foundational element of the on the technology, but we've also.
As shown on our commitment to technology development around the buy the biological intelligence of our animals themselves right. So.
Sorting technologies things like E X.
<unk> acquisition and.
That allow us to find.
Find lead antibody heat and faster out of our animals, obviously speed and depth of analysis matter a lot to our partners and we continue to add on to that that that core of biological intelligence.
Joseph Pantginis: No, that certainly does. Thank you for that. And then my last question really is a little higher level with regard to your underlying business here, and I want to focus on Omniab. I've been focusing for quite some time in my discussions with investors that Omniab really represents a business unto itself, and you have brought in multiple tech platforms or what have you. So I guess my question is two-pronged. First, can you describe your overall inbounds for Omniab across the different tech stack that you described and the different species and platforms that you have under Omniab? Are there sort of, you know, are they across the board? Are certain technologies favored more than others?
And now as you some partners say is that finding the right antibody. After you get after you get and antibody response.
It is like finding a perhaps a needle and haystack do you want to find that masked antibody that has the biological and all of these that you are looking for hits the target and a certain way.
Has the manufacturer ability and and other at durability elements you want to see can be like finding a needle and haystack and and what some.
Our partnership status.
Logical intelligence.
More and more needles near the top of that haystack. So the expense that you can find them more quickly you can get the highest quality antibody and you can even in development.
And as John was generally routing and you have partners like <unk> and Merck Genentech Genmab, all of whom have had successes.
Joseph Pantginis: And then, so I'll leave that as part one.
Joseph Pantginis: Yeah, Jim, thanks. I'll, I'll make just a general comment.
John Higgins: And then Matt Ford can get into some more of the details. But so, we acquired the platform five years ago, and every year, we've invested more in staff and computers, and also other tuck in acquisitions. What's fascinating, and we know that in the industry, success Success, clinical research discovery success breeds more business, and early on, the first year or two of our operations, we had a good record of dealmaking. We were seeing more discovery, success, preclinical, and clinical starts, and the word got around the industry, and that drove more deals. In the last 12 to 18 months, what is becoming very clear is that our further investment, Ab initio, Accela, Taurus, we have an inside view into what the industry needs, and we are bolting on other adjacent technologies that are really enhancing this platform. Industry insiders, industry players know this, and they want it. And that is also further driving deal making. So we've always had the best in class since we've owned it. But our position and leadership prominence is only building. Matt, perhaps you want to comment more on the technical side in terms of our BI.
Finding high quality antibodies.
And are talking about those at scientific and medical conferences that really be gets more and more inbound interest.
Around around the technology.
That is really really helpful guys and Thats just part B of that is just I guess and I'm not sure your comfort level about described or discussing the competitive landscape, but it really comes down to the numbers game and I'm talking strictly factual points here when you look at certain other companies and recent entrants to.
The public markets and the antibody space that are garnering significantly higher valuations just for an antibody platform.
You just based on my looks here you have appears to have you have much better by with regard to the number of species and tech platforms numbers of partnerships and just just greater numbers across the board I don't know how much youre willing to discuss the landscape.
Yes, John Thanks.
It's fascinating ligand.
A diverse company.
John Higgins: Yeah, well, obviously, we've got a rich history of continued innovation in genetic engineering and animals. And that's something that I'll say is really at the heart and a bedrock foundational element of Omnia technology.
Multitude of technology platforms, we really serve a range of discovery needs that the industry requires on me.
<unk> is one part of our business investors ask questions and obviously do it analysis across the board.
But when you specifically focused on our <unk>.
Matthew Gregory Hewitt: But we've also shown a commitment to technology development around BI, the biological intelligence of our animals themselves, right? So sorting technologies, things like the Excel acquisition, that allow us to find lead antibodies faster from our animals. Obviously, speed and depth of analysis matter a lot to our partners, and we've continued to add to that core of biological intelligence. An analogy some partners say is that, you know, finding the right antibody, after you get an antibody response, is like finding perhaps a needle in a haystack. You want to find that best antibody that has the biological qualities that you're looking for hits the target in a certain way, has the manufacturer ability and other durability elements you want to see. It can be like finding a needle in a haystack.
<unk> platform the antibody business.
It's very well positioned against these other industry players some are still private and of course, that's not as much publicly available information, we're seeing a growing number of companies are going public were seeing headlines around M&A.
And what's fascinating is that and antibody. So we're talking about simple therapeutics. Okay. So so that the medical category is the same right and mostly oncology based targets.
And immunology the medical category is the same the clinical the regulatory path.
And and generally.
And the target customers. The partners are the same as well. So we're all participating in the same market. So when you start to evaluate or.
Compare compare these companies you can look at the number of partners.
The number of programs in and discovery stage or in the clinic.
And look at the economics and.
And across each one of these we are very very well positioned.
We bought on the App, we had about 15 partners five years ago today, we have over 50.
Matthew Gregory Hewitt: And what some of our partners have said is that biological intelligence puts more and more needles near the top of that haystack so that you can find them more quickly, you get the highest quality antibody, and you can move it in development. And as John was generally referencing, we have partners like Janssen and Merck, Genentech, and Genmab, all of whom have had successes finding high-quality antibodies and are talking about those at scientific and medical conferences, which really begets more and more inbound interest around
<unk> programs as.
As well into the hundreds now.
And many of them still early discovery stage, but on a successor hit rate is very high we now have a very very substantial calendar of partner clinical events over 8000 patients being treated and multitude of trials and.
And notably a lot of these other platforms.
Our targeting really the first FDA approvals or major regulatory approvals out for five or six years.
For ligand. It's in 2021, it's this year. So the number of programs is high the number of partners is high.
Joseph Pantginis: That is really, really helpful, guys. And then just part B of that is just, I guess, and I'm not sure your comfort level about describing or discussing the competitive landscape, but it really comes down to the numbers game, and I'm talking strictly about, you know, factual points here. When you look at certain other companies and recent entrance to the public markets in the antibody space that are garnering significantly higher, you know, valuations just for an antibody platform, you, just based on my observations here, have, it appears to have, you have much better BI with regard to the number of species and tech platforms, numbers of partnerships, and just greater numbers across the board. I don't know how much you're willing to discuss the landscape.
The later stage nature of development and ultimately the back and economics for these companies are very similar the pricing milestone payments back and royalties and so on so.
We feel very good about the business and.
And I think theres going to be just heightened.
Interest and profiling around this operations.
<unk> 2021 <unk>.
Progresses.
Appreciate all the feedback and thank you guys for indulging me.
Okay.
Your next question.
Your next question comes from the line of <unk> Prasad with Barclays.
And <unk>. Your line is open and if you're on mute. Please on mute your line.
Hi, good morning, Thanks for taking the questions.
John just jumped on the call a few minutes ago. So a couple of questions from me.
John Higgins: Yeah, Joe, thanks. Yeah, it's fascinating. Ligand is a diverse company, a multitude of technology platforms. We really serve a range of discovery needs that the industry requires. OmniApp is one part of our business. Investors ask questions and obviously do analysis across the board. But when you specifically focus on our Omniab platform, the antibody business, it's very well positioned against these other industry players, some of which are still private.
And you started seeing order flow as material increase from.
And from the generic companies will have and license them and I am done.
And one.
Secondly, could you provide us and update on the therapeutic equivalents status far day Paradise.
And lastly is it fair to assume that the guidance increase and 2021 and is all linked to the milestone payment.
And since the last analyst day are there any other programs, where you have better visibility on milestones in 2021. Thank you.
Thanks, Paul This is Matt I can take the first couple of questions.
John Higgins: Of course, there's not as much publicly available information. We're seeing a growing number of companies going public. We're seeing headlines around M&A. And what's fascinating is that in antibodies, we're talking about human therapeutics, okay, so the medical category is the same, right, mostly oncology-based targets, immunology. The medical category is the same, the clinical, and the regulatory path.
Obviously as we've disclosed previously we are supplying captisol to be members of Gilead Manny.
And manufacturing consortium and they are a global consortium.
To supply over 127 countries around the world and we are and continue to supply those.
And those partners.
That continues to be a vibrant part of the captisol business as well on.
John Higgins: And in general, the target customers, and the partners are the same as well, so we're all participating in the same market. So when you start to evaluate or compare these companies, you can look at the number of partners, the number of programs in the discovery stage or in the clinic, and you can look at the economics.
You asked about the <unk>.
Sure per tied injection and allergens and work towards therapeutic equivalents I can report that Alvin and filed positive human factors data and that was submitted to the FDA in January so that network.
<unk> has been completed and the reports were submitted to.
John Higgins: And across each one of these, we are very, very well positioned. We bought Omniab. We had about 15 partners five years ago, and today we have over 50. The number of programs is well into the hundreds, www.youtube.com or www.youtube.com or www.youtube.com, and notably, a lot of these other platforms are targeting really the first FDA approvals or major regulatory approvals out four or five or six years. For Ligand, it's in 2021. It's this year. So the number of programs is high, the number of partners is high, the later stage nature of development, and ultimately, the back-end economics for these companies are very similar. The pricing, the milestone payments, the back-end royalties, and so on. So we feel very good about the business, and I think there's going to be heightened interest in profiling around this operation as 2021 progresses.
The FDA and.
In January so those are now under review at the FDA.
And <unk> I think your last question was about.
Milestones and visibility on milestones.
And in the past we've.
We've talked to investors about our milestones and buckets of what we expect to hit and then some upside numbers.
We haven't quantified the upside this year, but obviously the.
The <unk> milestone that we mentioned was in our upside bucket this year.
And we do think that there is.
Some other milestones that are in the upside bucket that may hit this year, but.
We continue to think that the current guidance reflects.
And average number of those milestones and sort of properly risk adjusted hitting this year and.
We can achieve those numbers, but theres still does remain some upside if some of these events come in.
Timing wise or more.
And more frequently than we might expect otherwise so there is definitely still some upside on the milestone side.
Joseph Pantginis: Appreciate all
Joseph Pantginis: I appreciate all the feedback, and thank you guys for indulging.
Operator: [inaudible]
That's helpful. John Thanks, Matt.
Operator: Your next question comes comes
And again, if you would like to ask a question. Please press Star then the number one on your telephone keypad again net of Star then the number one. Your next question comes from the line of Matt height with Craig Hallum.
Operator: Your next question comes from the line of Balaji Prasad with Barclays. Balaji, your line is open. If you're on mute, please unmute your line.
Balaji V. Prasad: All right, good morning. Thanks for taking the questions. John, I just jumped on the call a few minutes ago. So, a couple of questions from me.
Capital.
Good morning, congratulations on the strong year guys.
A couple of questions on Omnia first.
Balaji V. Prasad: Have you started seeing order flows materially increase from the generic companies who have been licensed for Remdesivir 1? Secondly, could you provide us with an update on the therapeutic equivalent status for teriparatide? And lastly, is it fair to assume that the guidance increase in 2021 is all linked to the milestone payment? And since the last analyst day, are there any other programs where you have better visibility on milestones in 2021? Thank you.
It was a little bit of change and wording and the press release this morning, adding the AI and <unk>.
<unk> and I know John you touched on them a little bit but I'm. Just curious are these recent additions to the platform or.
Is it customers have been asking.
More about those attributes and that's something that you feel like and now is the time to kind of highlight them a little bit more.
Yes, nothing new.
The AI artificial intelligence.
Matthew Gregory Hewitt: Thanks, Balaji. This is Matt Fore. I can take the first couple of questions.
It has become more prominent in the last 12 months, particularly with.
Matthew Gregory Hewitt: Obviously, as we've disclosed previously, we are supplying Capitothal to the members of Gilead's manufacturing consortium; they have a global consortium to supply over 127 countries around the world, and we are and continue to supply those partners. So, that continues to be a vibrant part of the Capsosol business as well. You asked about the teriparatide injection and Alvagen's work towards therapeutic equivalents. I can report that Alvagen filed positive human factors data, and that was submitted to the FDA in January. So, that work has been completed, and the reports were submitted to the FDA in January, so those are now under review at the FDA.
Our acquisition of.
Excel and ebb and yes, when we look at our.
And methods for using antigens.
For the discovery work.
And as a heavy.
Computer driven.
Operations and and.
And our customers and I'll, let and.
And how we positioned our services.
And for investors, what we're finding is that things and increasing audience that really understands the high value of AI. So.
So that is and evolution, but.
On the biological intelligence.
On our animal platform. It is it is.
Best in class and frankly, the only and class that has this complement of <unk>.
Matthew E. Korenberg: And Balaji, I think your last question was about milestones and visibility on milestones. I think in the past, we've talked to investors about our milestones and buckets of what we expect to hit, and then some upside numbers. We haven't quantified the upside this year, but obviously the TREVIR milestone that we mentioned was in our upside bucket this year, and we do think that there are some other milestones that are in the upside bucket that may hit this year, but we continue to think that the current guidance reflects an average number of those milestones properly risk-adjusted hitting this year, and we can achieve those numbers. But there still does remain some upside if some of these events come in timing-wise or more frequently than we might expect otherwise, so there's definitely still some upside on the milestone. That's all for John.
Two the species the mouse the ramp and chicken and now with on the court and and that that is coupled with with the AI. So.
It's been a part of our business for the last five years ever since we've acquired on yet, but it has expanded with additional tuck in acquisitions.
Understood Alright, Thank you and then.
Sticking with Amit So I think see stone and Gloria are probably the likely first approvals are potential approvals to come out of that pipeline.
Gloria I think is the furthest along maybe walk through the process, there and China as far as and when could we hear something on on Gloria and what is the process. Once the Chinese agency approves the drug may be walk through when that actually might start to translate into royalties.
And.
Yes, Matt So you're right our goria and Keystone are the are the two most advanced on.
And partners with.
With our NDA is under review right now in China bolt on expected to be approved this year based on the filing dates.
Matthew E. Korenberg: That's helpful, John. Thanks, Matt.
Matthew Gregory Hewitt: And again, if you would like to ask a question, please press star and then the number one on your telephone keypad. Again, that is star and then the number one. Your next question comes from the line of Matt Height with Craig Hallam Capital.
And obviously generally there was a period also that on.
Lead up to launch et cetera, but we.
We do expect both of those are potential approvals. This year those are the most advanced.
On the App programs and so hard to give exact details on on.
Matthew Gregory Hewitt: Good morning, congratulations on a strong year, guys. A couple questions on Omniab first, you know there was a little bit of a change in wording in the press release this morning adding the AI and BI components, and I know John you touched on them a little bit, but I'm just curious are these recent additions to the platform, or is it that customers have been asking more about those attributes, and it's something that you feel like now is the time to kind of highlight them a little
Precise rollout timing post approvals.
And the partners.
And basically just stated that they expect the approvals this year based on the filing dates and the announcements around the filings we'd expect at Glorietta B, a little sooner than <unk>. So in the in the earlier part of the year.
But that's up and we'll continue to continue to monitor and and the partners have obviously done very good work and stellar clinical data.
Unknown Speaker: Unknown Speaker Yeah, nothing new.
And really.
Unknown Speaker: The AI, artificial intelligence, has become more prominent in the last 12 months, particularly with our acquisition of Excella and Ab initio. When we look at our methods for using antigens for the discovery work,
And have been ahead of schedule, all along with both of those programs.
That's great and then the last one for me regarding <unk>.
Youre going to be kicking off the pivotal trial this quarter.
How quickly and maybe some details on the trial I think you went over a little bit of it on your analyst day, but just as a reminder, the details how quickly how many patients and as you look at coming out of that trial.
Unknown Speaker: It's a heavy, computer-driven operation, and our customers know it. And that's how we position our services. For investors, what we're finding is that there is an increasing audience that really understands the high value of AI. So, that is an evolution. But BI, biological intelligence, really our animal platform, it is the best in class, and frankly, the only platform that has this complement of a multitude of species, the mouse, the rat, the chicken, and now Omnicorp. And, and that that is coupled with
I would imagine that youre looking to potentially partner, but the is there a scenario where given that this isn't necessarily a drug that this is an imaging agent is there a scenario where you would just take this on.
Yourself, maybe higher sales force and bring this to market yourselves anything any color there would be helpful. Thank you.
Yes, Matt I'll comment on the on the clinical trial.
And then John and Matt and they want to comment on on the <unk>.
And I kind of downstream approaches as well, but.
Unknown Speaker: Unknown Speaker With the AI. So it's, it's
Unknown Speaker: [inaudible]
The first starting off with the product, we're initiating a pivotal trial for <unk>.
Matthew Gregory Hewitt: All right, thank you. And then, sticking with Omniab, I think Seastone and Gloria are probably the likely first approvals or potential approvals to come out of that pipeline. Gloria, I think is the furthest along; maybe walk through the process there in China as far as when we could hear something on Gloria and what the process is once the Chinese agency approves the drug. Maybe walk through when that actually might start to translate into royalties.
Capsule and the innate.
Hexcel and will participate and at what is it $1 $5 billion existing market and a contrast agent market here and the U S.
The trial itself is a.
Trial designed to demonstrate reduction in the incidence of contrast induced.
Matthew Gregory Hewitt: Yeah, Matt. So you're right. Gloria and Seastone are the two most advanced Omniab partners with NDAs under review right now in China. Both are expected to be approved this year, based on the filing dates. And obviously, generally, there's a period also that, you know, a lead up to launch, etc. But we do expect both of those to be potential approvals this year; those are the most advanced Omniab programs. So hard to give exact details on precise rollout timing post approvals, but the partners have basically just stated that they expect the approvals this year. Based on the filing dates and the announcements around the filings, we'd expect Gloria to be a little sooner than Seastone, so in the earlier part of the year, but that's something we'll continue to continue to monitor. And, And the partners have obviously done very good work, with stellar clinical data, and really have been ahead of schedule all along with both of those programs.
Kidney injury, or what's called Ci Hai and <unk>.
As well as equivalents of image quality.
And following the administration and.
Our drugs and <unk> as it compares to Ge's omni pick and the trial itself is a 540 subject clinical trial.
And as you said, we're gearing up to start that this quarter. It's an adaptive design, it's a randomized multicenter double blind.
Parallel group trial.
And in patients with impaired renal function that are undergoing invasive coronary and geography.
So there will be a.
A prespecified interim analysis looking at rate of Sci Hai.
And if that will be performed after about 60% accrual asked and we expect the trial itself to take on.
A total of.
About two years that that.
Matthew Gregory Hewitt: That's great. And then, regarding IO-HEXAL, you're going to be kicking off the pivotal trial this quarter. How quickly, maybe some details on the trial, I think you went over a little bit of it on your analyst tape, but just as a reminder, the details, how quickly, how many patients and, as you look at coming out of that trial, I would imagine that you're looking to potentially partner, but is there a scenario where, given that this isn't necessarily a drug, that this is an imaging agent, is there a scenario where you Anything, any color there would be helpful. Thank you.
On a pre specified interim analysis, probably and in the timeframe and about 10 to 12 months into the trial. So.
And with a significant reduction and rate of Gi Hai and and a demonstration of image equivalents.
And that would potentially allow for a 552 past approval of CIO hexcel.
But with a label that would or could include.
John.
A reduction and risk of Ci Hai so differentiated product with.
And kind of a clean and streamlined.
Pat.
Okay.
Yeah.
That's great. Thank you very much.
Your next question comes from the line of Scott Henry with Roth Capital.
Yes.
Thank you good morning, and congratulations on strong momentum really across the whole business.
Matthew Gregory Hewitt: Yeah, Matt, I'll comment on the clinical trial, and then John or Matt may want to comment on the kind of downstream approaches as well.
Just had a couple of questions.
First on Captisol and I assume we're still at 200 million revenue guidance for 2021.
Matthew Gregory Hewitt: But the first starting off with the product, we're initiating a pivotal trial for Capsol enabled iohexol. It'll participate in what is a $1.5 billion existing market for contrast agents here in the US. The trial itself is a trial designed to demonstrate reduction in the incidence of contrast-induced Acute Kidney Injury, or what's called CIAKI, as well as equivalence of image quality following the administration of our drug, CEI-alhaxol, as it compares to GE's Omnipake. As you said, we're gearing up to start that this quarter. It's an adaptive design; it's a randomized, multi-center, double-blind, parallel group trial in patients with impaired renal function that are undergoing invasive coronary angiography.
Could you talk about how we should think about the cadence of the quarters for Captisol.
Obviously strong and Q4.
Thinking about this year, yes sure. Thanks Scott.
I think.
And as folks recall, we gave the estimate for Q1 of $45 million.
Back at our analyst day.
And then on this call today, and I mentioned that I think the captisol and number should be relatively spread evenly across the year on.
Obviously the pandemic.
Has resulted in significant case increase in the fall late fall and winter and then.
Cases are starting to come down generally across the U S and the globe.
And from a production standpoint, theres, a little bit longer lead time, so we.
Matthew Gregory Hewitt: So there will be a pre-specified interim analysis looking at the rate of CIAKI that'll be performed after about 60% of accrual, so we expect the trial itself to take a total of about two years. That pre-specified interim analysis, probably in the timeframe of about 10-12 months into the trial, with a significant reduction in the rate of CIAKI and a demonstration of image equivalence that would potentially allow for a So a differentiated product with a kind of clean and streamlined development path.
We still see.
The same 200 as you indicated and we still see a relatively even spread across the four quarters.
Based on kind of current and forecast.
Okay, great. Thank you that's helpful.
Second question.
Obviously, there's a lot going on and the pipeline and there's a lot of events and 2021.
The question is.
And what would you view us as the three to five largest kind of levers catalysts that will be the primary ones for investors to focus on and I don't know if you have any quick thoughts on that but I thought it would be interesting.
Matthew Gregory Hewitt: That's great; thank you very much.
Scott Robert Henry: Your next question comes from the line of Scott Henry with Roth Capital.
Yes, Scott Thanks for the question and.
Scott Robert Henry: Thank you. Good morning, and congratulations on the strong momentum really across the whole business. I just had a couple questions.
To start on my call and kind of frame four main factors defining our value and.
Scott Robert Henry: First on Captosol, I assume we're still at $200 million revenue guidance for 2021. Could you talk about how we should think about the cadence of the quarters for Captosol? It's obviously strong in Q4.
To break them down those four.
Really and easy outlined to work with to answer your question.
On the App the platform is.
Is doing very very well and so looking for new license agreements.
Scott Robert Henry: Thank you very much. Thank you. Thank you.
Major late stage data.
Matthew Gregory Hewitt: Yeah, sure. Thanks, Scott.
And BLA approvals and launches.
Matthew Gregory Hewitt: I think, as folks recall, we gave an estimate for Q1 of $45 million back at our analyst day. And then on this call today, I mentioned that I think the capital numbers should be relatively spread evenly across the year. Obviously, the pandemic has resulted in significant case increases in the fall, late fall, winter, and then cases are starting to come down generally across the U.S. and the globe. But from a production standpoint, there's a little bit longer lead time. So we still see the same 200, as you indicated, and we still see a relatively even spread across the four quarters, based on current forecasts.
So it's it's a list of stuff but.
It's going to we believe deliver our first commercial revenue royalty based revenue. This year, there's going to be more breakthrough data on some really important market defining drugs and and.
And what we've done the last 18 months I think it's going to be in terms of acquisitions around that platform is going to be more obvious for investors, it's clear to our partners, but so that's that's one factor.
On our acquisitions.
We're only three to nine months in on two major acquisitions, Phoenix and I can share both are well integrated right now and we did one deal with GSK, but this year I think we're going to really really start to bear fruit.
King at not only revenue and earnings contribution, but also a substantial move dealmaking around dose and.
Scott Robert Henry: Okay, great. Thank you. That's helpful.
Scott Robert Henry: Second question. You know, obviously, there's a lot going on in the pipeline, and there are a lot of events in 2021. The question is, you know, what would you view as the, you know, three to five largest kind of levers, catalysts that would be the primary ones for investors to focus on? I don't know if you have any quick thoughts on that, but I thought it would be interesting.
Quality additions to our portfolio.
But I believe it's also going to just reinforce our acumen and.
And good M&A.
On <unk>.
John.
The pandemic continues.
I think the leadership that the world pharma companies are providing is giving us hope that we'll get this pandemic under control, but but our partnership with Gilead for Vickery is.
John Higgins: Yeah, Scott, thanks for the question. And at the start of my call, I kind of frame four main factors defining our value and, to break them down, those four.
And is frankly going to be still a major driver of our performance.
And this year.
And then finally, just generally what we're seeing with the P&L on the fourth thing I called out was our financial performance I started on and we're describing and licensing and operating performance and acquisition record.
John Higgins: are really an easy outline to work with to answer your question. Omniab, the platform, is doing very, very well. And so it's looking for new license agreements, major late stage data, and BLA approvals and launches. So it's a list of stuff, but it's going to, we believe, deliver our first commercial revenue, royalty-based revenue this year.
On the financial performance.
It is high revenue growth so the top line we.
We believe it's going to look very very compelling.
Attractive margins disciplined spending.
Good good margins.
And then with our significant share repurchase.
Two years ago, we had 23 million shares outstanding today, we have about $17 million.
John Higgins: There's going to be more breakthrough data on some really important market-defining drugs. And what we've done in the last 18 months, I think it's going to be, in terms of acquisitions around that platform, more obvious for investors. It's clear to our partners. So that's one factor.
So that lien share base is going to deliver more earnings and cash flow per share. So that's going to be much more in focus these share and what and factors cannot Kim evaluate.
Okay, great. Thank you for the color and final question and I.
I don't know that you will answer it but.
John Higgins: In our acquisitions, we're only three to nine months in on two major acquisitions, Phoenix and Icogen. Both are well integrated right now. We did one deal with GSK, but this year, I think we're going to really, really start to bear fruit looking at not only revenue and earnings contribution but also substantial new deal making around those quality additions to our portfolio. But I believe it's also going to just reinforce our acumen at good M&A. Unknown Speaker 1999-2010 Transcription by CastingWords Transcription by CastingWords The pandemic continues.
I think and in the prepared remarks, you said that the average price of the share buyback buyback was $145. If I heard correctly could you give a range out of curiosity of of the share buybacks.
And thank you yes no.
Actual average share price was 104 $104 per share.
We are so yes.
About and total since.
November of 2018.
Bought back John just referenced over 6 million shares or so total and.
John Higgins: You know, I think the leadership that the oil pharma companies are providing is giving us hope that we'll get this pandemic under control. But our partnership with Gilead for Veklery is frankly going to be a major driver of our performance this year. And then finally, just generally, what we're seeing with the P&L, the fourth thing I called out was just our financial performance. I started with, we're describing licensing and operating performance and acquisition record. But the financial performance, it's high revenue growth. So the top line, we believe it's going to look very, very compelling.
Average price of about 100, and the low hundreds hundred and for so.
Okay that makes a lot more sense that that number seemed off to me. That's why I asked the question. Thank you for that clarification sure.
And we have time for one further question. Your last question comes from the line of Dana Flanders with Guggenheim.
Great. Thank you for the question I just have.
One.
For Matt and related to just cap structure and priorities for cash flow on a go forward basis. Obviously, the cash balance has moved a bit lower just given your activity on on the M&A front and share buybacks.
John Higgins: Attractive margins, disciplined spending, good, good margins, and then with our significant share repurchase. Two years ago, we had 23 million shares outstanding. Today, we have about 17 million. So that lean share base is going to deliver more earnings and cash flow per share. So that's going to be much more focused this year on what investors can evaluate.
But you will be generating cash flow.
A significant amount of cash flow next year, how would you just thinking about the cash available for M&A over the next 12 to 24 months and given recent share price performance.
Or are you weighing.
Some of the capital deployment opportunities.
Opportunities you have whether it be buyback or debt repurchases or M&A. Thank you.
Yeah. Thanks Dana.
Scott Robert Henry: Okay, great. Thank you for the color. Final question, and I don't know that you will answer it, but I think in the prepared remarks, you said that the average price of the share buyback was $145, if I heard correctly. Could you give a range, out of curiosity, for the share buyback?
Yeah.
As folks know, we have about $500 million of face value of the debt.
Still outstanding and as I mentioned on these numbers today and we've put in the press release, we have about $400 million of $411 million of cash.
On the balance sheet.
If we project forward to maturity of the convert we have plenty of cash to just repay the convert.
Matthew E. Korenberg: Thanks, Scott. The actual average share price was $104, $104 per share. So yeah, that's about in total since November of 2018. We bought back, as John just referenced, over 6 million shares or so total, and an average price of about $100 in the low 100s, $104 or so.
As is the under at the face value of the principal value of the convert.
So from our standpoint.
We have excuse me, we have excess cash.
Yeah.
To the tune of 100 and $200 million at least.
To go out and do M&A, even if we did not.
Refinance the convert or otherwise.
Well, we still think our share prices.
And really undervalued.
We obviously have the opportunity to refinance the convert if we so chose.
Scott Robert Henry: Okay, that makes a lot more sense. That number seemed off to me, so that's why I asked the question. Thank you for that clarification.
And so from a strategic.
Capital standpoint, we have the cash to do whatever whatever we'd like to do.
Dana Flanders: And we have time for one further question. Your last question comes from the line of Dana Flanders with Guggenheim.
And I mentioned in my prepared remarks, though that I think our focus has really.
And then on a multi pronged approach of large platform M&A as well as <unk>.
Dana Flanders: Great, thank you for the question. I just have one for Matt and related to just the cap structure and priorities for cash flow on a go-forward basis. Obviously, the cash balance has moved a bit lower just given your activity on the M&A front and share buybacks, you know, but you will be generating cash flow, a significant amount of cash flow next year. How are you just thinking about the cash available for M&A over the next 12 to 24 months? And given, you know, recent share price performance, how are you weighing some of the capital deployment opportunities you have, whether it be buyback, debt repurchases, or M&A? Thank you.
Capital deployment of our capital returned to shareholders.
We'll continue to evaluate all that as we go forward.
But in the and the next three to six months or so I think we're in a mode, where we are.
Working through and making sure that all the platforms are running.
And as optimally as they can so fully integrating and getting everything.
Two to our standards, we're nearly there, but I think it's appropriate for us to.
Digest that a bit it doesn't mean, we won't keep looking and Emma.
M&A takes a long time and it's very opportunistic so.
Matthew E. Korenberg: Yeah, thanks, Dana. As folks know, we have about $500 million of the face value of the debt still outstanding. And as I mentioned in these numbers today and we put in the press release, we have about $411 million of cash on the balance sheet. If we project forward to maturity of the convert, we have plenty of cash to just repay the convert. Transcripts provided by Transcription Outsourcing, LLC, to the tune of $100 or $200 million at least to go out and do M&A even if we did not refinance the convert or otherwise. While we still think our share prices are significantly undervalued, we obviously have the opportunity to refinance the convert if we so choose.
And by no means are we closed for business, but.
From a priority standpoint, I think what we'll as I said look for.
Technology acquisitions that augment the.
And our business continue our lead and that business and we'll look for new technology platforms, and we will look to add major pipeline and royalties that will be meaningful to ligand. So those three on the M&A front with a continued focus.
Of evaluating share return on capital return as well as.
M&A.
Thank you.
Great. Thanks Dana.
And I will now turn the call back over to the speakers for any closing remarks.
Matthew E. Korenberg: So from a strategic capital standpoint, we have the cash to do whatever we'd like to do. I mentioned in my prepared remarks, though, that I think our focus has really been on a multi-pronged approach of large platform M&A as well as capital deployment or capital return to shareholders. We'll continue to evaluate all that as we go forward, but in the next three to six months or so, I think we're in a mode where we're working through and making sure that all the platforms are running as optimally as they can, so fully integrating and getting everything up to our standards. We're nearly there, but I think it's appropriate for us to digest that a bit. That doesn't mean we won't keep looking, and M&A takes a long time, and it's very opportunistic.
Yeah.
Yes. Thank you really pre sales people turn out to day and questions and we're pleased to have 2020 behind us.
John.
Great opportunity and some challenges but.
And the team answered the call and down and we're really pleased with our performance. We're set up for 'twenty and 'twenty. One we have been fighting through some virtual conferences will be on the road and we look forward to continuing to report on our progress. Thank you for joining our call.
This concludes today's conference call you may now disconnect.
[music].
And then.
And then.
Yes.
John.
Moving.
Okay.
John.
Matthew E. Korenberg: By no means are we closed for business. From a priority standpoint, I think we'll, as I said, look for technology acquisitions that augment the Omniab business and continue our lead in that business. We'll look for new technology platforms, and we'll look to add major pipeline royalties that will be meaningful to Ligand. So those three on the M&A front, with a continued focus on evaluating share return, or capital return, as well
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Hello and.
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Dana Flanders: Thank you.
Dana Flanders: Great. Thanks, Tina.
John Higgins: And I will now turn the call back over to the speakers for any closing remarks.
John Higgins: Yeah, thank you. Really appreciate people's turnout today and questions. We're pleased to have 2020 behind us, a year of great opportunity and some challenges, but the team answered the call, and we're really pleased with our performance. We're set up for 2021. We have invites to some virtual conferences. We'll be on the road, and we look forward to continuing to report on our progress. Thank you for joining our call.
And.
Net income.
Come on.
Uh huh.
[music].
Operator: This concludes today's conference call. You may now disconnect.
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