Q2 2022 Ligand Pharmaceuticals Inc Earnings Call
Operator: Welcome to the Ligand Pharmaceuticals Second Quarter Earnings Conference Call.
Welcome to the ligand Pharmaceuticals second quarter earnings Conference call. My name is Vanessa and I will be your operator for today's call. At this time all participants are in a listen only mode. Later, we will conduct a question and answer session to queue up with your question you can press.
Operator: My name is Vanessa and I will be your operator for today's call.
Operator: This concludes our conference.
Operator: At this time, all participants are in a listen-only mode.
Operator: Later, we will conduct a question and answer session.
Operator: To queue up with your question, you can press 0, then 1 on your touchtone phone.
Zero then one on your Touchtone phone. Please note that this conference is being recorded I will now turn the call over to your host Simon let them or you may begin.
Operator: Please note that this conference is being recorded.
Operator: I will now turn the call over to your host, Simon Latimer.
Operator: Thank you for participating.
Simon Latimer: You may begin.
Operator: You may now disconnect.
Simon Latimer: Thank you.
Thank you welcome to <unk> second quarter of 2022 financial results and business update conference call.
Simon Latimer: Welcome to Ligand's Second Quarter of 2022 Financial Results and Business Update Conference
Simon Latimer: Call.
Simon Latimer: Some of our speakers for today's call are in separate locations.
Some of our speakers for today's call are in separate locations speaking today for ligand will be John Higgins CEO, Matt for C O L and Matt Kornberg, CFO, we will use non-GAAP financial measures and some of our statements will be forward looking including those related to our financial condition results of operation financial guidance on the impact of the COVID-19 pandemic and the expected timing.
Simon Latimer: Speaking today for Ligand will be John Higgins, CEO, Matt Fore, COO, and Matt Korenberg, CFO.
Simon Latimer: We will use non-GAAP financial measures and some of our statements will be forward-looking, including those related to our financial condition, results of operations, financial guidance, and the impact of the COVID-19 pandemic, and the expected timing, completion, and effects of our previously announced plans to spin off the Omniad business to become a standalone public company pursuant to a business combination with Avista Public Acquisition Corp. 2.
Police and effects of our previously announced plans to spin off the omni our business to become a standalone public company pursuant to a business combination with the vis a vis the public acquisition Corp too.
Simon Latimer: Additional information concerning our risk factors and other matters concerning Ligand, can be found on our earnings press release and our periodic filings with the SEC.
Additional information concerning our risk factors and other matters concerning ligand can be found on our earnings press release, and our periodic filings with the SEC. We undertake no obligation to revise or update any statements to reflect events or circumstances. After the date of this conference call. A reconciliation between the non-GAAP financial measures, we discuss on the closest GAAP financial measures can be found in our.
Simon Latimer: We undertake no obligation to revise or update any statements to reflect events or circumstances, after the date of this conference call.
Simon Latimer: A reconciliation between the non-GAAP financial measures we discuss and the closest GAAP financial, measures can be found in our earnings release issued earlier today.
Our earnings release issued earlier today I'd now like to turn the call over to John Higgins.
Simon Latimer: I'd now like to turn the call over to John Higgins.
John Higgins: Good afternoon.
Good afternoon, Thanks for joining <unk> second quarter 2002 financial results Conference call.
John Higgins: Thanks for joining Ligand's second quarter 2002 financial results conference call.
John Higgins: We are executing well across the organization and are pleased to share our success this, quarter, highlighted by strong royalty growth, major partner news, and good progress toward our Omniad spin-out. All aspects of the business are on or ahead of plan financially.
And we are executing well across the organization and I'm pleased to share our success. This quarter highlighted by strong royalty growth major partner news and good progress toward our omni have spin out.
All aspects of the business are on or ahead of plan financially.
John Higgins: As Matt Kornberg will go into, we are raising full year 2022 guidance due to our royalty, revenue momentum.
As Matt Kornberg will go into we are raising full year 2022 guidance due to a royalty revenue momentum.
John Higgins: A couple years ago in 2020, our initial outlook for royalties was in the low $30 million range. Now we are forecasting more than $60 million in 2022.
A couple of years ago in 2020, our initial outlook for royalties within the low $30 million range now we are forecasting more than $60 million.
In 2022.
John Higgins: With our current portfolio of royalty generating assets, we are increasingly confident we are, on a trend ultimately to suppress $100 million in annual royalties, excluding any contribution from Omniad.
Where their current portfolio of royalty generating assets. We are increasingly confident we are on a trend ultimately to surpass $100 million in annual royalties.
Excluding any contribution from omni yep.
John Higgins: After the spin-out is completed and we have more updates on late-stage regulatory approvals, by partners, we will provide a more detailed framework for our financial outlook.
After the spin out is completed and we have more updates on late stage regulatory approvals by partners. We will provide a more detailed framework for our financial outlook.
John Higgins: We're excited about our business with the backdrop of what appears to be an improving, environment for the equity capital markets.
We're excited about our business with the backdrop of what appears to be an improving environment for the equity capital markets.
John Higgins: The industry has seen some major positive developments emerge very recently, and there, has been significant M&A announced, both in number of deals and size of deals, which indicates the strength and the durability of our industry.
The industry has seen some major positive developments emerge very recently and there has been significant M&A announced both the number of deals in size of deals, which indicates the strength and the durability of our industry.
John Higgins: We are increasingly excited for a spin-out of Omniad, and we believe the market environment, is strengthening for the debut of this special company. Omniad has what we believe are best-in-class antibody discovery tools that are highly sought, out by major industry players to help advance their work in drug discovery.
We are increasingly excited for a spin out of omni App and we believe the market environment is strengthening for the debut of this special company.
Yep has what we believe are best in class antibody discovery tools that are highly sought out by major industry players to help advance their work and drug discovery.
John Higgins: As a standalone company, Omniad will have a dedicated capital structure and a board, and senior leadership team with deep domain expertise to drive the investments and strategy for the company.
As a standalone company omni.
<unk> will have a dedicated capital structure, and our board and senior leadership team with deep domain expertise to drive the investments and strategy for the company.
John Higgins: The very high caliber of partners and the recent string of positive developments in regulatory events underscore how valuable this platform is in the exciting field of antibody drug discovery.
The very high caliber of partners in the recent string of positive developments and regulatory events underscore how valuable. This platform is in the exciting field of antibody drug discovery.
John Higgins: As for the actual spin-out process to split Ligand into two independent publicly traded companies, we've advanced the SEC review process and Avista, our SPAC spin-out partner, has filed the second amendment to the S4 in response to comments from the SEC.
As far as the for the actual spin out process to split lagging into two independent publicly traded companies. We've advanced the SEC review process.
The Vista, our spec spin out partner has filed its second amendment to the S. Four in response to comments from the SEC.
John Higgins: After the review is fully completed and the registration statements for Avista and OmniApp are declared effective, we will then proceed to the shareholder vote by the Avista SPAC shareholders and the spin-off of OmniApp through the merger with the SPAC. The outlook on timing to close the spin-off and merger and have two independent public companies is currently Q4 2022.
After the review is fully completed and the registration statements for Vista and on behalf of our declared effective. We will then proceed to the shareholder vote by the <unk> shareholders and the spin off of omni up through the merger with this back.
The outlook on timing to close the spinoff and merger and have two independent public companies is currently Q4 2022.
John Higgins: Strategically, Ligand-Romainco is focused on three primary areas. One, acquiring royalty rights to late-stage assets consistent with what we've done the last five to ten years.
Strategically ligand remain co is focused on three primary areas one acquiring royalty rights to late stage assets consistent with what we've done the last five to 10 years too.
John Higgins: Two, continuing to strike partnerships for our capsule and pelican technologies.
Two continuing to strike partnerships for our Capstone Pelican technology.
John Higgins: And three, refocusing our capital markets activity and messaging for Ligand-Romainco following the OmniApp spin-out.
And three refocusing our capital markets activity and messaging for liking remain cult following the army a spin out.
John Higgins: We have good momentum with our royalty portfolio and our goal is to continue to expand the number of partner assets through acquisition or technology licensing. It's an attractive market to be looking for assets to acquire or invest in.
We have good momentum with our royalty portfolio and our goal is to continue to expand the number of partner assets through acquisition.
Or technology licensing.
It's an attractive market to be looking for assets to acquire or invest in.
John Higgins: We are ready for Romainco to operate separately from OmniApp. As a standalone company, we are highly optimistic that Romainco's business model and growth prospects will create opportunities for both existing and new shareholders and for analysts to engage with Ligand.
We are ready for remain co to operate separately for mom yet as a standalone company. We are highly optimistic that remain cause business model and growth prospects will create opportunities for both existing and new shareholders and for analysts to engage with ligand.
John Higgins: Now I'd like to turn the call over to Matt Kornberg to review our financial results and guidance in more detail.
Now I'd like to turn the call over to Matt Kornberg to review, our financial results and guidance in more detail.
Matt Kornberg: Thanks, John.
Matt Kornberg: Today I'll review our financial results, update guidance, and give a brief update on some of our major partner programs. The second quarter of 2022 was a strong quarter financially with particularly impressive performance in the royalty revenue line. Total revenues for the quarter were $57.4 million. Royalty revenue increased 108% to $18 million from $8.6 million a year ago. Royalties on all of our major products grew year-over-year. In addition to Kyprolis, which posted its largest quarterly revenue ever, a significant portion of the total royalty growth was driven by Rylace and Terraperitide. Terraperitide in particular realized significant year-over-year and quarter-over-quarter growth. In Q2 2022, we realized $4.9 million of royalty on this drug versus our original expectations for less than $2 million.
Thanks, Sean.
Today I'll review, our financial results update guidance and give a brief update on some of our major partner programs.
The second quarter of 2022 was a strong quarter financially with particularly impressive performance in the royalty revenue line.
Total revenues for the quarter were $57 4 million.
Royalty revenue increased 108% to $18 million from $8 6 million a year ago.
Royalties on all of our major products grew year over year.
In addition to Kyprolis, which posted its largest quarterly revenue ever a significant portion of the total royalty growth was driven by release and tear paradigm.
<unk> in particular realized significant year over year and quarter over quarter growth.
In Q2, 2022, we realized $4 9 million of royalty on this drug versus our original expectations for less than $2 million.
Matt Kornberg: At the beginning of the year, we expected additional generic competitors for Terraperitide by the middle of 2022 based on input from our commercial partner. That competition has not yet materialized, and as a result, the product is exceeding our expectations.
At the beginning of the year, we expected additional generic competitors for tariff parity by the middle of 2022 based on input from our commercial partner.
That competition has not yet materialized and as a result, the product is exceeding our expectations.
Matt Kornberg: Total Capsosol sales were $29.5 million for the quarter, and this compares with $62.5 million a year ago.
Total captisol sales were $29 5 million for the quarter and this compares with $62 5 million a year ago.
Matt Kornberg: As expected and as we've discussed with investors, COVID-related Capsosol sales are much lower this year versus last year.
As expected and as we've discussed with investors Covid related capsule sales are much lower this year versus last year.
Matt Kornberg: Core Capsosol sales were $3.3 million this quarter, in line with our expectations and on track to meet our expectations for the year. Contract revenue in Q2 2022 was $9.9 million. This is lower than last year's second quarter of $13.6 million, but as investors know, contract revenue fluctuation is mostly due to timing of partner events and related milestone payments.
Core Captisol sales were $3 3 million this quarter in line with our expectations and on track to meet our expectations for the year.
Contract revenue in Q2, 2022 was $9 $9 million. This is lower than last year's second quarter of $13 6 million, but as investors know contract revenue fluctuation is mostly due to timing of partner events and related milestone payments.
Matt Kornberg: Our GAF EPS for the quarter was a loss of $0.05.
Our GAAP EPS for the quarter was a loss of five.
Net loss for the second quarter of 2022 included a $1 9 million net.
Net noncash loss from changes in the value of ligand public company holdings.
Matt Kornberg: Net loss for the second quarter of 2022 included a $1.9 million net non-cash loss from changes in the value of Ligand's public company holdings.
Adjusted diluted EPS for the second quarter of 2022 was $1 <unk>.
This compares with $1 63 in the second quarter of 2021.
We remove COVID-19 related capsule sales, our adjusted diluted EPS for Q2 2022 was 34.
Compared with 76 in Q2 2021.
With our core revenue nearly equivalent in Q2 2022 in Q2 2021. The decrease in adjusted diluted EPS is largely driven by additional omni up expenses as that business scales up in preparation for the spin off.
Okay.
In the quarter, we repurchased $62 million in principal of our convertible notes at a three 4% discount to par for $60 million in cash.
As of June 32022, we had cash cash equivalents and short term investments of about $148 million.
Turning now to guidance, we're raising our 2022 revenue outlook for the combined business. We now forecast 2022 royalties to be in the range of <unk> $62 million to $66 million up from our previous outlook of $55 million to $60 million.
This increase of about 10% for the full year is driven mostly by upside from <unk> and kyprolis offset by slightly lower full year contribution from vaccine Vance.
Mentioned earlier, Kyprolis is doing well and hitting all time highs for quarterly revenue.
Tara pair tied as writing strong commercial trends because additional generics have not entered the market yet.
We're now assuming the other generics will enter in early 2023, if that does turn out to be the case, we would anticipate sales for a tear paradigm next year will be lower than 2022.
As for Baxter Vance, it's a very promising vaccine with impressive new data announced over the past few months.
It is now positioned to launch for the pediatric age group by early next year.
<unk> is our partner and they will compete against Pfizer in the $6 billion vaccine market.
The pediatric population represents 75% of the market and merck's approval in that population coming more than a year ahead of Pfizer we.
We expect that that will produce or helped drive royalties in the future.
We now expect capsule material sales to be in the range of $55 million to $60 million up from our previous outlook of 40% to $50 million.
We continue to expect approximately $17 million to $19 million of our capsule sales to be core captisol sales and the balance to be capsule sales for COVID-19.
We affirm our forecast for contract revenue to be in the range of $52 million to $62 million.
These guidance components result in total revenue for ligand, a $169 million to $188 million, which is up from our previous total of 147.
To $172 million.
Within the revenue numbers I, just provided we expect 35% to $45 million would be attributable to omni or <unk> business.
revenue numbers I just provided, we expect 35 to 45 million to be attributable to the Omnia business, principally in the contract revenue line. And with respect to the COVID-related capsule sales, our updated guidance reflects the sales already completed year to date, as well as sales that are completed or expected to be completed in Q3. We're also raising our guidance for the ligand business excluding Omnia in COVID-related capsule. For that portion of the business, we now expect revenue to be 97 to 104 million, up from 90 to 100 million previously. And adjusted to the EPS to be $1.80 to $2.05, up from $1.50 to $1.80 previously. We estimate that the combined earnings for both COVID-related capsule and Omnia for 2022 is about $0.60 to $0.95 per share. Therefore, for consolidated reporting for the year, our outlook has increased to $2.40 to $3 in adjusted diluted EPS, up from our previous range of $1.70 to $2.20. One final note on the guidance I just provided. We've excluded from all these numbers two large milestone payments that may hit in late 2022 or early 2023. Ligand is owed $15 million upon the approval of Sparcentin, and Omnia is owed $25 million upon the first commercial sale of Teclistamat. Given the size of these payments, it's impossible to build a range around their achievement, and as such, we've simply excluded them from guidance, since we do not know with high confidence exactly when those payments will be achieved. Just as a reminder, I'd like to direct our listeners to our second quarter earnings press release issued earlier today and available on our website for a reconciliation of our adjusted financial results to the GAAP results I talked about today.
Principally in the contract revenue line.
With respect to the Coker related capsule sales our updated guidance reflects a sales already completed year to date as well as sales that are completed or expected to be completed in Q3.
We're also raising our guidance for the ligand business, excluding omni <unk> and Cobra related capsule for that portion of the business. We now expect revenue to be $97 million to $104 million up from $90 million to $100 million previously.
And adjusted diluted EPS to be $1 80 to $2 <unk> up from $1 50 to $1 80 previously.
We estimate that the combined earnings for both cover related capsule and omni yet for 2022 is about 60 to 95 per share.
Therefore for consolidated reporting for the year, our outlook has increased to $2 40 to $3 and adjusted diluted EPS up from our previous range of $1 70 to $2 20.
One final note on the guidance I just provided we are excluded from all of these numbers to large milestone payments that may hit in late 2022 or early 2023.
Ligand is over $50 million upon the approvals are sent in.
Omni episode 25 million upon the first commercial sale of <unk>.
Given the size of these payments, it's impossible to build a range around their achievement and as such we simply excluded them from guidance since we do not know with high confidence exactly when those payments will be achieved.
Matt Kornberg: Adjusted diluted EPS for the second quarter of 2022 was $1.03, and this compares with $1.63 in the second quarter of 2021. If we remove COVID-related capsule sales, our adjusted diluted EPS for Q2 2022 was $0.34 compared with $0.76 in Q2 2021.
Just as a reminder, I would like to direct.
<unk> to our second quarter earnings press release issued earlier today and available on our website for a reconciliation of our adjusted financial results to the GAAP results I talked about today.
Now I'll turn to providing a few updates on some of the key portfolio of programs with the remaining with ligand following on the <unk> spinoff.
Now I'll turn to providing a few updates on some of the key portfolio programs that are remaining with Ligand following the OmniEBS spinoff. We're continuing to monitor the progress of Sparcentan as we approach the November 17th PDUFA day for IgA nephropathy. We expect a launch early next year and expect Sparcentan royalties to be a major driver of growth for us.
Spin off.
We're continuing to monitor the progress of our center in as we approach the November 17th <unk> date for Iga nephropathy.
We expect to launch earlier next year early next year and expect our center in royalties to be a major driver of growth for us.
<unk> provided a regulatory update last week, when they announced plans to submit their conditional marketing authorization application with their partner <unk> pharma for Iga nephropathy in Europe .
Trevir provided a regulatory update last week when they announced plans to submit their conditional marketing authorization application with their partner V4 Pharma for IgA nephropathy in Europe .
With a review decision expected in the second half of 2023.
<unk> also now plans to pursue traditional approvals are sent in for <unk> pending completion of the phase III duplex study, which is expected to conclude in the first half of 2023.
with a review decision expected in the second half of 2023. GRAVIR also now plans to pursue a traditional approval of Sparsentan for FSGS pending completion of the phase three duplex study, which is expected to conclude in the first half of 2023.
In June Merck announced the FDA approval of Vacs demands for infants and children six weeks through age through 17 years of age.
In June , Merck announced the FDA approval of vaccine demands for infants and children six weeks through 17 years of age.
Subsequently the Cdc's ACI P voted unanimously to provisionally recommend use of vaccine Vance as an option for pneumococcal vaccination in infants and children.
Subsequently, the CDC's ACIP voted unanimously to provisionally recommend use of vaccine advance as an option for pneumococcal vaccination in infants and children.
Back to answers, a 15 billion pneumococcal vaccine utilizing <unk> <unk> 197 vaccine carrier protein.
BaxDuvance is a 15-valient pneumococcal vaccine utilizing ligands, CREM197 vaccine carrier protein that's produced using the Pelican Expression Technology Platform.
Just using the Pelican expression technology platform.
Additionally, Merck announced positive results from our phase one two study evaluating <unk> six which is our investigational 21 billion pneumococcal conjugate vaccine utilizing law against Kremlin 97 vaccine carrier protein.
Additionally, Merck and I will pause the results from a phase 1-2 study evaluating B116, which is their investigational 21 billion pneumococcal conjugate vaccine utilizing ligands, CREM197 vaccine carrier protein.
Merck stated sorry started a broad phase III program for <unk> in July 2022.
Merck started a broad phase 3 program for B116 in July 2022.
Lastly on the program front <unk> announced positive results from their be simple for pivotal phase III study for SB 206 in patients with molluscum.
Lastly, on the program front, Novant announced positive results from their Be Simple 4 pivotal phase 3 study for SB206 in patients with molluscum. At the end of 12 weeks, 32.4% of patients in the SB206 group achieved complete clearance of lesions compared with 19.7% of patients in the vehicle group.
At the end of 12 weeks 32, 4% of patients in the SB 206 group.
<unk> complete clearance of lesions compared with 19, 7% of patients in the vehicle group.
<unk> plans to file an NDA for this program SB 206 later this year.
With that overview ill.
NOVAM plans to file an NDA for this program, SB206, later this year.
Turn the call over to Matt <unk> to provide additional details on the <unk> business and strategy.
With that overview, I'll turn the call over to Matt Ford to provide additional details on the OmniEd Business and Strategy.
Thanks, Matt.
I'm going to focus my comments this afternoon on our omni platform as we continue to prepare for the business to become an independent publicly traded company in the fourth quarter. We're.
Thanks, Matt. I'm going to focus my comments this afternoon on our Omni-Ab platform as we continue to prepare for the business to become an independent, publicly traded company in the fourth quarter.
We're making good progress on our operational and strategic goals as we prepare to become a standalone public company and as John said in his opening remarks, the path. We're on to separate omni app into its own company is exciting and momentum is building to further drive growth and expansion of the company post spin.
Matt Kornberg: In the quarter, we repurchased $62 million in principal of our convertible notes at a 3.4% discount to par for $60 million in cash. As of June 30, 2022, we had cash, cash equivalents, and short-term investments of about $148 million.
We're making good progress on our operational and strategic goals as we prepare to become a stand-alone public company. And as John said in his opening remarks, the path we are on to separate OmniAb into its own company is exciting and momentum is building to further drive growth and expansion of the company post-spin.ldo.gowell.com
Recent events and input from our partners validate our plans our team continues to be highly focused on value, creating areas that include gaining new partners supporting existing partnerships and expanding the utility of the <unk> platform.
Recent events and input from our partners validate our plans. Our team continues to be highly focused on value-creating areas that include gaining new partners, supporting existing partnerships, and expanding the utility of the AMIAB platform.
Matt Kornberg: Turning now to guidance, we're raising our 2022 revenue outlook for the combined business. We now forecast 2022 royalties to be in the range of $62 to $66 million, up from our previous outlook of $55 to $60 million. This increase of about 10% for the full year is driven mostly by upside from TerraPeritide and Kyprolis, offset by slightly lower full-year contribution from Bax New Vance.
Just as some background for those on the call who might not be as familiar with it the omni App discovery platform provides our partners with access diverse antibody repertoires and cutting edge high throughput screening technologies designed and operated with a goal of enabling the discovery of next generation therapeutics.
Matt Kornberg: As mentioned earlier, Kyprolis is doing well and hitting all-time highs for quarterly revenue.
Matt Kornberg: TerraPeritide is riding strong commercial trends because additional generics have not entered the market yet.
Matt Kornberg: We're now assuming the other generics will enter in early 2023, and if that does turn out to be the case, we would anticipate sales for TerraPeritide next year will be lower than 2022.
Just as some background for those on the call who might not be as familiar with it, the OmniAb Discovery platform provides our partners with access to diverse antibody repertoires and cutting edge high throughput screening technologies designed and operated with the goal of enabling the discovery of next generation therapeutics.
Matt Kornberg: As for Bax New Vance, it's a very promising vaccine with impressive new data announced over the past few months.
Matt Kornberg: It's now positioned to launch for the pediatric age group by early next year.
Matt Kornberg: Merck is our partner, and they will compete against Pfizer in this $6 billion vaccine market. The pediatric population represents 75% of the market, and Merck's approval in that population coming more than a year ahead of Pfizer, we expect that that will produce or help drive royalties in the future.
Matt Kornberg: We now expect capsule material sales to be in the range of $55 to $60 million, up from our previous outlook of $40 to $50 million. We continue to expect approximately $17 to $19 million of our capsule sales to be core capsule sales, and the balance to be capsule sales for COVID.
Matt Kornberg: We affirm our forecast for contract revenue to be in the range of $52 to $62 million. These guidance components result in total revenue for logging in of $169 to $188 million, which is up from our previous total of $147 million to $172 million. Within the revenue numbers I just provided, we expect $35 to $45 million to be attributable to the Omniab business.
At the heart of the Omnia platform as the biological intelligence or what we call of our proprietary transgenic animals.
At the heart of the Omniab platform is the biological intelligence, or what we call BI, of our proprietary transgenic animals.
Multiple species of animals have been genetically modified to generate antibodies with human sequences to facilitate the efficient development of human therapeutic candidates.
Multiple species of animals have been genetically modified to generate antibodies with human sequences that facilitate the efficient development of human therapeutic candidates.
Within omni App, we also have extensive capabilities centered around ion channels and transporters.
Within OmniAb, we also have extensive capabilities centered around ion channels and transporters.
We view these as differentiated capabilities for viable target to lead delivery and particularly for difficult and high value ion channel targets. These capabilities were established and built around small molecules and have clear potential in multiple formats and modalities.
We view these as differentiated capabilities for viable target to lead delivery and particularly for difficult and high value ion channel targets. These capabilities were established and built around small molecules and have clear potential in multiple formats and modalities.
In addition, these differentiated core capabilities can provide novel reagent generation proprietary assays and in silicon capabilities that support partnered discovery programs and can be accessed when pursuing ion channels and transport our targets in a variety of approaches.
In addition, these differentiated core capabilities can provide novel reagent generation, proprietary assays, and in silico capabilities that support partner discovery programs and can be accessed when pursuing ion channels and transporter targets in a variety of approaches.
Our mission within omni Abbvie is to enable the rapid development of innovative therapeutics by pushing the frontiers of drug discovery technologies, we work to achieve this by enabling the discovery of high quality therapeutic candidates and by being the partner of choice for pharma and biotech companies. We are very proud proud of the role that we play within the.
Our mission within OmniAb is to enable the rapid development of innovative therapeutics by pushing the frontiers
We work to achieve this by enabling the discovery of high quality therapeutic candidates and by being the partner of choice for pharma and biotech companies.
The industry and the contribution that we make to the discovery of therapeutics to improve human health.
We are very proud of the role that we play within the industry and the contribution that we make to the discovery of therapeutics to improve human health.
A significant value driver and differentiator for omni App is that our team and technology can be easily inserted into a variety of workflows to meet each program's scientific needs.
A significant value driver and differentiator for OmniApp is that our team and technology can be easily inserted into a variety of workflows to meet each program's scientific needs.
Flexibility allows us to efficiently grow our portfolio of programs, while investing in further improving what we see as a best in class biologically driven discovery technology platform.
That flexibility allows us to efficiently grow our portfolio of programs while investing in further improving what we see as a best-in-class, biologically driven discovery technology platform.
Currently more than 60 partners have access to omni abderite antibodies and more than 270 programs are being actively developed and this number continues to grow as we add new partners and as existing partners leverage our platform for more programs in new and exciting ways.
Currently, more than 60 partners have access to omniab-derived antibodies and more than 270 programs are being actively developed. And this number continues to grow as we add new partners and as existing partners leverage our platform for more programs in new and exciting ways.
During the second quarter, we added four new omni AD partners.
Yes.
Today, there are two MTA approved drugs that were derived from our omni app platform and another one that is under review at both the FDA and EMEA.
During the second quarter, we added four new OmniApp partners.
Today, there are two NMPA approved drugs that were derived from our OmniAb platform, and another one that is under review at both the FDA and EMEA.
With action expected in the coming weeks.
Also of note a partner very recently entered the clinic with the first antibody drug conjugate or ADC that was discovered using our platform.
with action expected in the coming weeks.
Also of note, a partner very recently entered the clinic with the first antibody drug conjugate, or ADC, that was discovered using our platform.
We're pleased with the progress and are excited to deliver ligand shareholders their shares in a new Standalone company as we expect the completion of the spin in the next few months.
We're pleased with the progress and are excited to deliver Ligand shareholders their shares in a new standalone company as we expect the completion of the spin in the next few months.
Matt Kornberg: And adjusted diluted EPS to be $1.80 to $2.05 up from $1.50 to $1.80 previously. We estimate that the combined earnings for both COVA related capsule and Omniab for 2022, is about $0.60 to $0.95 per share. Therefore, for consolidated reporting for the year, our outlook is increased to $2.40, to $3 in adjusted diluted EPS up from our previous range of $1.70 to $2.20. One final note on the guidance I just provided, we've excluded from all these numbers two, large milestone payments that may hit in late 2022 or early 2023.
And with that I'll turn the call back over to the operator for questions operator.
And with that, I'll turn the call back over to the operator for questions.
Matt Kornberg: Ligand is owed $15 million upon the approval of Sparcentin and Omniab is owed $25 million, upon the first commercial sale of Teclistamab. Given the size of these payments, it's impossible to build a range around their achievement, and as such, we've simply excluded them from guidance since we do not know with high confidence exactly when those payments will be achieved.
We will now begin our question and answer session. If you have a question. Please press zero and then one on your Touchtone phone if you wish to be removed from the queue. Please press star Zero and then two if youre using a speakerphone. Please pick up the handset first before pressing the numbers. Once again, if you have a question. Please press zero than one.
Matt Kornberg: Just as a reminder, I'd like to direct our listeners to our second quarter earnings press, release issued earlier today and available on our website for reconciliation of our adjusted financial results to the GAAP results I talked about today.
I'll back over to the operator for questions. Operator.
We will now begin our question and answer session. If you have a question, please press zero, then one on your touch tone phone. If you wish to be removed from the queue, please press zero, then two. If you're using a speakerphone, please pick up the handset first before pressing the numbers. Once again, if you have a question, please press zero, then one on your touch tone phone. We have our first question from Larry Solo with CJS Securities.
<unk> on your Touchtone phone.
We have our first question from Larry Solow with CJS Securities.
Matt Kornberg: Now I'll turn to providing a few updates on some of the key portfolio programs that are, remaining with Ligand following this Omniab spinoff. We're continuing to monitor the progress of Sparcentin as we approach the November 17th, PDUFA date for IgA nephropathy.
Hi, Good afternoon, it's Pete Lukas for Larry.
Matt Kornberg: We expect a launch early next year and expect Sparcentin royalties to be a major driver, of growth for us.
Matt Kornberg: Trevere provided a regulatory update last week when they announced plans to submit their, conditional marketing authorization application with their partner V4 Pharma for IgA nephropathy in Europe with a review decision expected in the second half of 2023.
Matt Kornberg: Trevere also now plans to pursue a traditional approval of Sparcentin for FSGS pending completion, of the phase three duplex study which is expected to conclude in the first half of 2023.
Matt Kornberg: In June, Merck announced the FDA approval of vaccine bans for infants and children six, weeks through 17 years of age.
In terms of Kyprolis sales grew very nicely in the quarter. Just wondering how much of this growth is being driven by second line therapy in combo with <unk>.
Matt Kornberg: Subsequently, the CDC's ACIP voted unanimously to provisionally recommend use of VaxNuVans, as an option for pneumococcal vaccination in infants and children. VaxNuVans is a 15-valent pneumococcal vaccine utilizing Ligand's CREM197 vaccine carrier, protein that's produced using the Pelican Expression Technology Platform.
Hi, good afternoon. It's Pete Lucas for Larry. In terms of Kyprolis cells grew very nicely in the quarter. Just wondering how much of this growth is being driven by second line therapy in combo with Darzalex.
Matt Kornberg: Additionally, Merck announced positive results from a phase one two study evaluating B116, which is their investigational 21-valent pneumococcal conjugate vaccine utilizing Ligand's, CREM197 vaccine carrier protein. Merck stated, sorry, started a broad phase three program for B116 in July 2022.
Matt Kornberg: Lastly, on the program front, NOVAN announced positive results from their B-Simple 4 Pivotal, Phase 3 study for SB-206 in patients with molluscum. At the end of 12 weeks, 32.4% of patients in the SB-206 group achieved complete clearance, of lesions compared with 19.7% of patients in the vehicle group. NOVAN plans to file an NDA for this program SB-206 later this year.
Matt Kornberg: With that overview, I'll turn the call over to Matt Ford to provide additional details on the Omniab business and strategy.
Sure.
Yes. Thanks for the question, yes, no really nice quarter out of.
Thanks for the question. Really nice quarter out of Kyprolis. Amgen obviously with record sales in their territories. Ono in Japan had good sales. Not quite a record quarter but very nice sales for that region. And the China sales we're estimating was kind of in line with a second quarter growth. So their captcha rejecting Misty is another related trend. Because Sheet Tree is a drop-down market in youtuber territory. And will sow mentor to them on other platforms. And in fairer markets Ahad is still quite a bit of delt with the delta form. That's where a hugehalf turn-up rate for top-slash banner is going to begin. I'm gonna save one minute maybe.
Out of Kyprolis, Amgen, obviously with record sales in their territories.
Ono in Japan had good sales not quite a record quarter, but very nice sales for that region and the China sales.
We're estimating was kind of in line with our second quarter growth. So good good sales all along all around.
Honestly don't get details on exactly what line of therapy is driving or exactly where the.
good sales all around. We obviously don't get details on exactly what line of therapy is driving or exactly where the sales come from, but anecdotally, we're hearing what you're hearing that increased use with Darzalex and the broader dataset that Amgen and others have been putting out is what's driving some of that revenue growth.
Where the sales come from but.
Anecdotally, we are hearing sort of what youre hearing that.
Creased use with <unk>.
The broader dataset that Amgen and others have been putting out is is what's driving some of that revenue growth.
Very helpful. Thanks, and just one more quick one for me switching gears here can you give us an update on the progress with VK 2008, or nine therapy for fatty liver disease I know the enthusiasm has waned a bit around this one but just would love to get an update on where we stand if there is one to provide.
Very helpful, thanks. And just one more quick one from me switching gears here. Can you give us an update on the progress with VK 2809 therapy for fatty liver disease? I know the enthusiasm has waned a bit around this one, but just would love to get an update on where we stand if there is one to provide.
Yeah.
Yeah sure obviously the program Youre talking about is the Vikings TR Beta Nash program that.
Yeah, sure. Obviously, the program you're talking about is the Vikings TR Beta NASH program that has been progressing significantly well. Obviously, the trial had some delays through COVID with enrollment and otherwise. We're working towards their data, which they expect next year. And then following that, obviously, they'll likely have to run a pivotal trial to get to the end of the year.
Has been progressing significantly well, obviously the trial had some delays through COVID-19 with enrollment and otherwise.
They're.
We're working towards their data.
Which they expect next year.
And then following that obviously they'll likely have to run a pivotal trial to get to.
The endpoint all signs so far are trials on track and data should be should be solid.
Great. Thank you very much.
Great. Thank you.
Matt Ford: Matt?
And our next question from Matt Hewitt with Craig Hallum.
Matt Ford: Thanks, Matt.
Good afternoon.
John .
You had given us the three priorities for remain co and I'm just curious given the environment that we've kind of weathered here. So far this year I'm just curious if that's created any interesting opportunities from <unk>.
kind of weathered here so far this year. I'm just curious if that's created any interesting opportunities from an acquisition standpoint as you look to bolster that the royalty rights portion of your business.
Acquisition standpoint, as you look to bolster the royalty rates portion of your business.
Matt Ford: I'm going to focus my comments this afternoon on our Omniab platform as we continue to prepare, for the business to become an independent, publicly traded company in the fourth quarter. We're making good progress on our operational and strategic goals as we prepare to become, a standalone public company. And as John said in his opening remarks, the path we are on to separate Omniab into its, own company is exciting, and momentum is building to further drive growth and expansion of the company post-spin.
Yes.
It certainly has.
We've talked about our business model and we.
Yes, it certainly has.
We are dedicated to technologies necessary to discover develop drugs.
We've talked about our business model and we're dedicated to technology necessary to discover, develop drugs, but also royalty acquisitions, finding companies that need more capital support, doing our diligence and coming in. We excel in thriving markets when there's tremendous capitalization and fund flows. We've seen the last decade tremendous inbound interest to license to access our technologies.
But also royalty acquisitions finding.
Is that that need more capital support.
During our diligence and coming in.
We excel in thriving markets when theres tremendous capitalization and fund flows.
Matt Ford: Recent events and input from our partners validate our plans.
We've seen the last decade tremendous inbound interest to license to access our technologies, but obviously theres been a pretty significant contraction the last year and a half.
Or reading over 20% of companies.
But obviously there's been a pretty significant contraction the last year and a half. We're reading over 20% of companies, public biotechs, have less than one year of cash.
Biotechs of less than one year of cash and.
So this is creating an opportunity quality companies.
We're on the wrong side of their stock price.
And so this is creating an opportunity. Quality companies are on the long side of their stock price in desperate need of cash. So it's creating more inbound overtures to partner on some late stage assets from an investment perspective. From an acquisition, you know our history. We've acquired a handful of what we call busted biotechs, good companies with IP and data. But again, they really got stuck from a market timing issue.
Neither cash so it's creating more inbound overtures to partner on some late stage assets.
Our investment perspective from an acquisition.
You know our history, we've acquired a handful of what we call bucket biotechs are good companies with IP data, but.
I can be.
So you really got stuck from a market timing issue.
We're being more selective about doing those sort of acquisition.
We're good at it we really have demonstrated a great track record of securing high quality assets for very attractive values, but.
We're being more selective about doing those sort of acquisitions. We're good at it. We really have demonstrated a great track record of securing high quality assets.
But we want to be disciplined in terms of how much infrastructure overhead and cost we're bringing on one final comment I'll make is we are highly engaged.
Matt Ford: Our team continues to be highly focused on value-creating areas that include gaining, new partners, supporting existing partnerships, and expanding the utility of the Omniab platform.
for very attractive values, but we want to be disciplined in terms of how much infrastructure overhead and cost we're bringing on. One final comment I'll make is we are highly engaged. We are throttling our activity a little bit.
Matt Ford: Just as some background for those on the call who might not be as familiar with it, the, Omniab discovery platform provides our partners with access to diverse antibody repertoires and cutting-edge high-throughput screening technologies designed and operated with the goal of enabling the discovery of next-generation therapeutics.
Matt Ford: At the heart of the Omniab platform is the biological intelligence, or what we call BI, of our proprietary transgenic animals. Multiple species of animals have been genetically modified to generate antibodies with human, sequences that facilitate the efficient development of human therapeutic candidates.
Matt Ford: Within Omniab, we also have extensive capabilities centered around ion channels and transporters. We view these as differentiated capabilities for viable target-to-lead delivery, and particularly, for difficult and high-value ion channel targets. These capabilities were established and built around small molecules and have clear potential, in multiple formats and modalities. In addition, these differentiated core capabilities can provide novel reagent generation, proprietary, assays, and in silico capabilities that support partner discovery programs and can be accessed when pursuing ion channels and transporter targets in a variety of approaches.
Matt Ford: Our mission within Omniab is to enable the rapid development of innovative therapeutics, by pushing the frontiers of drug discovery technologies.
Matt Ford: We work to achieve this by enabling the discovery of high-quality therapeutic candidates and, by being the partner of choice for pharma and biotech companies.
We're throttling our activity a little bit.
With an eye towards completing the spin out and we do believe we're very close where we haven't lost opportunities, but practically speaking.
Matt Ford: We are very proud of the role that we play within the industry and the contribution that, we make to the discovery of therapeutics to improve human health.
Matt Ford: A significant value driver and differentiator for Omniab is that our team and technology, can be easily inserted into a variety of workflows to meet each program's scientific needs. This flexibility allows us to efficiently grow our portfolio of programs while investing, in further improving what we see as a best-in-class, biologically-driven discovery technology platform.
Unknown Speaker: Unknown Speaker Currently, more than 60 partners have access, to Omniab-derived antibodies, and more than 270 programs are being actively developed. And this number continues to grow as we add new partners, and as existing partners leverage, our platform for more programs in new and exciting ways. During the second quarter, we added four new Omniab partners.
Matt Ford: Today there are two NMPA-approved drugs that were derived from our Omniab platform, and, another one that is under review at both the FDA and EMEA, with action expected in the coming weeks.
with an eye towards completing this spin out. And we do believe we're very close. We haven't lost opportunities, but practically speaking, we want to make sure that we've got a clean story. There's no other public proxy issues that might interfere with closing this very important transaction for all of our shareholders.
Wanted to make sure that we've got a clean story there is no other public proxy issues that might.
Interfere with closing this very important transaction for all of our shareholders.
That makes complete sense and thank you for the details there maybe.
Matt Ford: Also of note, a partner very recently entered the clinic with the first antibody drug conjugate, or ADC, that was discovered using our platform.
Maybe one more question as far as the Pelican platform is concerned obviously you've had some really good success initially.
That makes complete sense and thank you for the details there.
Maybe one more question. As far as the Pelican platform is concerned, obviously you've had some really good success initially out of that program. But I'm just curious, what would be the next one or two opportunities coming out of the Pelican opportunity? Thank you.
Out of that program, but I'm, just curious what would be the next one or two opportunities.
Coming out of the Pelican opportunity. Thank you.
Thanks, Matt.
Yes, the Pelican platform has been performing.
Extremely well obviously.
Thanks Matt. Yeah, the Pelican platform has been performing extremely well. Obviously, four major programs that we talk about publicly on the calls and in our disclosures with the Merck Backs New Vance program, Jazz Rylase, the Alvegenteire Paratyde program, and Numasil from Serum Institute of India. There's additional programs from Serum Institute of India, one in Manjimin.
Four major programs that we talk about publicly on the calls and in our disclosures with.
The Merck vaccine Vance program jazz Riley the Allergan tear paratype program.
And new Michelle from serum Institute of India.
There is additional programs from serum Institute of India.
Mentioned meningococcal vaccine.
And then there is additional programs from jazz.
Working on that.
Our follow ons, there and obviously I mentioned today.
<unk> hundred six program from Merck all of those we expect will be kind of the next crop of growth drivers for the portfolio and behind that there is a handful of existing in.
New license deals that the team has done over the course of.
At the time before we had on the business as well as since we've owned the business that should fuel the growth for years to come.
of the time before we had owned the business as well as since we've owned the business that should fuel the growth for years to come.
That's great. Thank you.
Thanks Pat.
Our next question is from Bruce <unk> with Morgan Stanley .
That was great. Thank you.
Thanks, Matt.
Yes. Good afternoon. My question is simple a couple of years ago.
Our next question is from Bruce Seldman with Morgan Stanley .
Yes, good afternoon. My question is simple. A couple of years ago, I was in the
We came out with a product for post.
Pardon me in depression.
I've never heard anything in your calls as to how that is progressing.
We came out with a product for post-
I have never heard anything in your calls as to how that is progressing. Can you give us an update on that please?
You give us update on that please.
Sure. Thanks Bruce.
There are actually a couple of programs for postpartum depression in the portfolio.
Thanks, Bruce. Yeah, there are actually a couple of programs for postpartum depression in the portfolio. One was from a company called Sage Therapeutics that the program is now approved, called Zolereso. It's had limited commercial success, but has done about a million and a half in revenue a quarter for the last several years as the program's...
One was from a company called Sage Therapeutics that.
The program is now approved to called Zelle RSO.
It's had limited commercial success, but is done.
Sure.
About $1 million or have some revenue a quarter for the last several years.
As the programs.
Commercialization has been limited to an institution or in hospital.
Delivery.
Commercialization has been limited to in institution or in hospital delivery. A second partner called Marinus has a program called ganaxylone or IV ganaxylone, which was recently approved orally, but the IV formulation is still in development. And that is being studied in that disease as well. So both those are in the portfolio and progressing.
Our second partner called <unk> is a program called K Max alone or IV can ask alone which was recently.
Proved orally.
The IV formulation is still in development.
That.
<unk> is being studied in that disease as well so.
Both of those are in the portfolio and progressing.
Okay. Thank you.
Thank you.
We have no further questions I will now turn the call over to Mr. John Higgins for closing remarks.
Good, okay, thank you.
Thank you.
We have no further questions. I will now turn the call over to Mr. John Higgins for closing remarks.
Matt Ford: We're pleased with the progress and are excited to deliver Ligand shareholders their shares, in a new standalone company as we expect the completion of the spin in the next few months.
Thank you I appreciate the turn out the questions.
We are delighted with our performance. This year, we are watching the equity markets.
Matt Ford: And with that, I'll turn the call back over to the operator for questions.
Thank you. Appreciate the turnout, the questions. We are delighted with our performance this year. We're watching the equity markets. It's a challenging environment, but our execution has been superb. And I know it's not lost on our largest shareholders who spend maybe more time in meetings with us, but we're effectively running two companies now, two public companies. We have the management teams built out, the infrastructure.
A challenging environment, but our execution has been superb and.
Operator: Operator?
No it's not lost on our <unk>.
Largest shareholders, who has been maybe more time in meetings with us, but we're effectively running two companies now two public companies. We have the management team has built out the infrastructure.
Both companies are really very far along to be run independently.
We continued to execute on licensing new deal, making obviously reporting on a partner events, but the momentum we have.
And both companies are really very far along to be run independently. We continue to execute on licensing, new deal making, obviously reporting on our partner events. But the momentum we have with the overall company, but specifically the momentum we have into this spin out, we feel really, really good about. So thanks for your patience. It's been a long journey the last year or so as we've worked up our planning and had our process communicated.
With the overall company, but specifically the momentum we have into the spin out we feel really really good about so thanks for your patience has been a long journey the last year or so as we've worked up our planning.
Process communicated.
But we feel we are close and we are really excited about all aspects of our business right now thanks for joining the call public in person conferences are coming back we will be live at some events. This fall, but the next one coming up in about five weeks. The HW conference at the Middle of September . So if you sign up for that.
Operator: Operator Thank you.
Operator: We will now begin our question and answer session.
But we feel we are close and we are really excited about all aspects of our business right now.
Operator: If you have a question, please press 0, then 1 on your touchtone phone.
Operator: If you wish to be removed from the queue, please press 0, then 2. If you're using a speakerphone, please pick up the handset first before pressing the numbers.
Operator: Once again, if you have a question, please press 0, then 1 on your touchtone phone.
Larry Solo: We have our first question from Larry Solo with CJS Securities.
Pete Lucas: Pete Lucas Hi.
Pete Lucas: Good afternoon.
Pete Lucas: It's Pete Lucas for Larry.
Thanks for joining the call. Public in-person conferences are coming back. We will be live at some events this fall but the next one coming up is in about five weeks the HCW conference in the middle of September . So if you sign up for that we'll see you there. Thanks everyone. Bye bye.
Pete Lucas: In terms of Kyprolis sales, grew very nicely in the quarter.
Pete Lucas: Just wondering how much of this growth is being driven by second-line therapy in combo, with Darzalex?
Pete Lucas: Pete Lucas Yeah, thanks for the question.
Pete Lucas: Yeah, no, really nice quarter out of Kyprolis.
Pete Lucas: Amgen, obviously, with record sales in their territories.
John Higgins: So if you sign up for that, we'll see you there.
Pete Lucas: Ono in Japan had good sales. Not quite a record quarter, but very nice sales for that region.
John Higgins: Thanks, everyone.
Pete Lucas: And the China sales we're estimating was kind of in line with a second-quarter growth.
John Higgins: Bye-bye.
Pete Lucas: So good sales all around.
See you there thanks, everyone Bye bye.
Pete Lucas: We obviously don't get details on exactly what line of therapy is driving or exactly, where the sales come from.
Pete Lucas: But anecdotally, we're hearing sort of what you're hearing, that increased use with Darzalex, and the broader data set that Amgen and others have been putting out is what's driving some of that revenue growth.
Operator: Thank you, ladies and gentlemen.
Larry Solo: Larry Solo Very helpful, thanks.
And thank you ladies and gentlemen, this concludes our conference. Thank you for participating you may now disconnect.
Larry Solo: And just one more quick one from me, switching gears here.
Larry Solo: Can you give us an update on the progress with VK2809 therapy for fatty liver disease?
Larry Solo: I know the enthusiasm has waned a bit around this one, but just would love to get an update, on where we stand if there is one to provide.
Pete Lucas: Pete Lucas Yeah, sure.
Pete Lucas: Obviously, the program you're talking about is the Vikings TR-Beta NASH program that has, been progressing significantly well. Obviously, the trial had some delays through COVID with enrollment and otherwise.
Pete Lucas: We're working towards their data, which they expect next year.
And thank you ladies and gentlemen. This concludes our conference. Thank you for participating. You may now disconnect.
Pete Lucas: And then following that, obviously, they'll likely have to run a pivotal trial to get, to the endpoint.
Pete Lucas: All signs so far are trials on track and data should be solid.
Pete Lucas: Great.
Pete Lucas: Thank you very much.
Pete Lucas: Great.
Matt Hewitt: Thank you.
Matt Hewitt: We have our next question from Matt Hewitt with Craig Hallam.
Matt Hewitt: Good afternoon.
John Higgins: John, you know, you had given us the three priorities for RemainCo, and I'm just curious, given the environment that we've kind of weathered here so far this year, I'm just curious if that's created any interesting opportunities from an acquisition standpoint, as you look to bolster the royalty rights portion of your business?
John Higgins: Yes.
John Higgins: Well, it certainly has.
John Higgins: We've talked about our business model, and we're dedicated to technology necessary to discover, develop drugs, but also royalty acquisitions, finding companies that need more capital support, doing our diligence and coming in.
John Higgins: We excel in thriving markets when there's tremendous capitalization and fund flows. We've seen the last decade tremendous inbound interest to license, to access our technologies, but obviously there's been a pretty significant contraction the last year and a half.
John Higgins: We're reading, you know, over 20% of companies, public biotechs have less than one year of cash.
John Higgins: And so this is creating an opportunity.
John Higgins: Quality companies are on the wrong side of their stock price, in desperate need of cash.
Okay.
John Higgins: So it's creating more inbound overtures to partner on some late stage assets from an investment perspective.
John Higgins: From an acquisition, you know our history.
[music].
John Higgins: We've acquired a handful of what we call, bucket biotechs, good companies with IP and data.
John Higgins: But again, they really got stuck from a market timing issue.
John Higgins: We're being more selective about doing those sort of acquisitions.
John Higgins: We're good at it.
John Higgins: We really have demonstrated a great track record of securing high quality assets, for very attractive values.
John Higgins: But we want to be disciplined in terms of how much infrastructure, overhead and cost we're bringing on.
John Higgins: One final comment I'll make is we are highly engaged.
John Higgins: We are throttling our activity a little bit with an eye towards completing this spin out.
John Higgins: And we do believe we're very close.
John Higgins: We haven't lost opportunities, but practically speaking, we want to make sure that we've got a clean story.
John Higgins: There's no other public proxy issues that might interfere with closing this very important transaction for all of our shareholders.
Matt Hewitt: That makes complete sense and thank you for the details there.
Matt Hewitt: Maybe one more question.
Matt Hewitt: As far as the Pelican platform is concerned, obviously you've had, some really good success initially out of that program.
Matt Hewitt: But I'm just curious, what would be the next one or two opportunities coming out of the Pelican opportunity?
Matt Hewitt: Thank you.
Matt Hewitt: Thanks, Matt.
Matt Hewitt: Yeah, the Pelican platform has been performing extremely well.
Matt Hewitt: Obviously, four major programs that we talk about publicly on the calls and in our disclosures, with the Merck Vax New Vans program, Jazz Rai Lace, the Alvagen Terra Paratide program and Numisil from Serum Institute of India.
Matt Hewitt: There's additional programs from Serum Institute of India, one in meningococcal vaccine.
Yes.
Matt Hewitt: And then there's additional programs from Jazz that they're working on that are follow-ons there.
Matt Hewitt: And obviously I mentioned today the V116 program from Merck.
Matt Hewitt: All of those we expect will be kind of the next crop of growth drivers for the portfolio. And behind that, there's a handful of existing and new license deals that the team has done over the course of the time before we had owned the business as well as since we've owned the business that should fuel the growth for years to come.
[music].
Bruce Oedeman: Our next question is from Bruce Oedeman with Morgan Stanley.
Bruce Oedeman: Yes, good afternoon.
Bruce Oedeman: My question is simple.
Bruce Oedeman: A couple of years ago, we came out with a product for postpartum depression.
Bruce Oedeman: I've never heard anything in your calls as to how that is progressing.
Bruce Oedeman: Can you give us an update on that, please?
Bruce Oedeman: Sure.
Bruce Oedeman: Thanks, Bruce.
Bruce Oedeman: There are actually a couple of programs for postpartum depression in the portfolio. One was from a company called Sage Therapeutics that the program is now approved.
Bruce Oedeman: It's called Zorresso.
Bruce Oedeman: It's had limited commercial success but has done about a million and a half in revenue a quarter for the last several years as the program's commercialization has been limited to in institution or in hospital delivery.
Bruce Oedeman: A second partner called Marinus has a program called Ganaxalone or IV Ganaxalone, which was recently approved orally, but the IV formulation is still in development, and that is being studied in that disease as well.
Bruce Oedeman: So both those are in the portfolio and progressing.
Bruce Oedeman: Okay, thank you.
Bruce Oedeman: Thank you.
Operator: We have no further questions.
John Higgins: I will now turn the call over to Mr. John Higgins for closing remarks.
John Higgins: Thank you.
John Higgins: I appreciate the turnout, the questions.
John Higgins: We are delighted with our performance this year.
John Higgins: We're watching the equity markets.
John Higgins: It's a challenging environment, but our execution has been superb.
John Higgins: I know it's not lost on our largest shareholders who spend maybe more time in meetings with us, but we're effectively running two companies now, two public companies.
John Higgins: We have the management teams built out, the infrastructure, and both companies are really very far along to be run independently. We continue to execute on licensing, new deal-making, obviously reporting out on partner events, but the momentum we have with the overall company, but specifically the momentum we have into this spin-out, we feel really, really good about.
John Higgins: So thanks for your patience.
John Higgins: It's been a long journey, the last year or so, as we've worked up our planning and had our process communicated, but we feel we are close, and we are really excited about all aspects of our business right now.
John Higgins: Thanks for joining the call.
John Higgins: Public in-person conferences are coming back.
John Higgins: We will be live at some events this fall, but the next one coming up is in about five weeks, the HDW conference, the middle of September.