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Basis of Presentation and Summary of Significant Accounting Policies (Tables) | 9 Months Ended
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Sep. 30, 2024
Organization, Consolidation and Presentation of Financial Statements [Abstract] |
Schedule of Revenue by Source | The following table represents disaggregation of royalties, Captisol and contract revenue and other income (in thousands):
| Three months ended |  | Nine months ended
| September 30, |  | September 30,
| 2024 |  | 2023 |  | 2024 |  | 2023
Royalties |  |  |  |  |  |  |
Kyprolis | $ | 11,599 |  |  | $ | 10,537 |  |  | $ | 27,229 |  |  | $ | 24,862 |
Evomela | 1,747 |  |  | 2,497 |  |  | 5,877 |  |  | 7,404 |
Teriparatide injection | 2,376 |  |  | 2,800 |  |  | 6,520 |  |  | 9,913 |
Rylaze | 3,886 |  |  | 3,678 |  |  | 10,070 |  |  | 9,315 |
Filspari | 3,206 |  |  | 1,122 |  |  | 7,402 |  |  | 1,707 |
Vaxneuvance | 1,466 |  |  | 1,313 |  |  | 3,962 |  |  | 2,990 |
Other | 2,272 |  |  | 1,916 |  |  | 6,452 |  |  | 5,256 |
Revenue from intangible royalty assets | 26,552 |  |  | 23,863 |  |  | 67,512 |  |  | 61,447 |
Income from financial royalty assets | 5,157 |  |  | 25 |  | 6,454 |  |  | 1,026 |
| 31,709 |  |  | 23,888 |  |  | 73,966 |  |  | 62,473 |
Captisol | 6,255 |  |  | 8,608 |  |  | 22,967 |  |  | 24,450 |
Contract revenue and other income |  |  |  |  |  |  |
Milestone and other | 13,848 |  |  | 372 |  |  | 25,444 |  |  | 16,290 |
Other income | — |  |  | — |  |  | 1,944 |  |  | — |
Contract revenue and other income | 13,848 |  |  | 372 |  |  | 27,388 |  |  | 16,290 |
Total | $ | 51,812 |  |  | $ | 32,868 |  |  | $ | 124,321 |  |  | $ | 103,213 |
Schedule of Short-Term Investments | Our short-term investments consist of the following at September 30, 2024 and December 31, 2023 (in thousands):
September 30, 2024 | Amortized cost |  |  | Gross unrealized gains |  |  | Gross unrealized losses |  |  | Estimated fair value
Bond fund | $ | 39,512 |  |  |  | $ | — |  |  |  | $ | (265) |  |  |  | $ | 39,247 |
U.S. government securities | 19,051 |  |  |  | 31 |  |  |  | — |  |  |  | 19,082 |
Bank deposits | 12,280 |  |  |  | 21 |  |  |  | — |  |  |  | 12,301 |
Corporate bonds | 10,969 |  |  |  | 30 |  |  |  | (3) |  |  |  | 10,996 |
Commercial paper | 10,591 |  |  |  | 5 |  |  |  | (1) |  |  |  | 10,595 |
Corporate equity securities | 6,551 |  |  |  | — |  |  |  | (6,058) |  |  |  | 493 |
| $ | 98,954 |  |  |  | $ | 87 |  |  |  | $ | (6,327) |  |  |  | 92,714 |
Viking common stock |  |  |  |  |  |  |  |  |  | 63,310 |
Total short-term investments |  |  |  |  |  |  |  |  |  | $ | 156,024 |
December 31, 2023 |  |  |  |  |  |  |  |  |  |
Bond fund | $ | 63,763 |  |  |  | $ | — |  |  |  | $ | (537) |  |  |  | $ | 63,226 |
Bank deposits | 17,165 |  |  |  | 12 |  |  |  | (1) |  |  |  | 17,176 |
Corporate bonds | 14,850 |  |  |  | 40 |  |  |  | (2) |  |  |  | 14,888 |
Commercial paper | 11,578 |  |  |  | 9 |  |  |  | (1) |  |  |  | 11,586 |
U.S. government securities | 6,736 |  |  |  | 18 |  |  |  | (3) |  |  |  | 6,751 |
Municipal bonds | 1,007 |  |  |  | — |  |  |  | (4) |  |  |  | 1,003 |
Corporate equity securities | 5,775 |  |  |  | — |  |  |  | (5,235) |  |  |  | 540 |
| $ | 120,874 |  |  |  | $ | 79 |  |  |  | $ | (5,783) |  |  |  | 115,170 |
Viking common stock |  |  |  |  |  |  |  |  |  | 32,185 |
Total short-term investments |  |  |  |  |  |  |  |  |  | $ | 147,355 |
Schedule of Available-for-Sale Debt Securities | The following table summarizes our available-for-sale debt securities by contractual maturity (in thousands):
| September 30, 2024
| Amortized Cost |  | Fair Value
Within one year | $ | 91,072 |  |  | $ | 91,152 |
After one year through five years | 4,647 |  |  | 4,655 |
Total | $ | 95,719 |  |  | $ | 95,807 |
Schedule of Goodwill and Other Identifiable Intangible Assets | Goodwill and other identifiable intangible assets consist of the following (in thousands):
| September 30, |  | December 31,
| 2024 |  | 2023
Indefinite-lived intangible assets |  |  |
Goodwill | $ | 105,250 |  |  | $ | 103,370 |
Definite lived intangible assets |  |  |
Complete technology | 39,249 |  |  | 42,911 |
Less: accumulated amortization | (19,072) |  |  | (20,894) |
Trade name | 2,642 |  |  | 2,642 |
Less: accumulated amortization | (1,810) |  |  | (1,710) |
Customer relationships | 29,600 |  |  | 29,600 |
Less: accumulated amortization | (20,280) |  |  | (19,161) |
Contractual relationships | 360,000 |  |  | 360,000 |
Less: accumulated amortization | (115,424) |  |  | (93,782) |
Total goodwill and other identifiable intangible assets, net | $ | 380,155 |  |  | $ | 402,976 |
Schedule of Derivative Assets | Derivative assets consist of the following (in thousands):
| September 30, |  | December 31,
| 2024 |  | 2023
Agenus Upsize Option (expires on 6/30/25) | $ | 3,815 |  |  | $ | — |
Viking shares collar | 7,318 |  |  | — |
Total current derivative assets | $ | 11,133 |  |  | $ | — |
Primrose mRNA | $ | 2,921 |  |  | $ | 3,531 |
Agenus Partner Programs | 14,099 |  |  | — |
Agenus Warrant (5 years contractual term) | 2,226 |  |  | — |
Total noncurrent derivative assets | $ | 19,246 |  |  | $ | 3,531 |
Schedule of Other Investment | Other investments consist of the following (in thousands):
| September 30, |  | December 31,
| 2024 |  | 2023
Equity securities in Primrose Bio | $ | 6,712 |  |  | $ | 32,726 |
InvIOs investment | 4,196 |  |  | — |
Neuritek warrants | — |  |  | 3,000 |
Palvella Series C preferred stock | 1,000 |  |  | 1,000 |
Total other investments | $ | 11,908 |  |  | $ | 36,726 |
Schedule of Inventory in Other Assets | inventory (raw materials and work in process related to the manufacturing of finished goods) for the preparation of commercial supplies of ZELSUVMI™ by Pelthos Therapeutics, a wholly owned subsidiary of Ligand. For additional information on ZELSUVMI, see Note 4, Acquisitions. Below is a summary of the inventory included in other current assets (in thousands):
| September 30, |  | December 31,
| 2024 |  | 2023
Raw materials | $ | 2,495 |  |  | $ | 420 |
Work in process | 260 |  |  | 195 |
Total Pelthos inventory in other current assets | $ | 2,755 |  |  | $ | 615 |
Schedule of Accrued Liabilities | Accrued liabilities consist of the following (in thousands):
| September 30, |  | December 31,
| 2024 |  | 2023
Compensation | $ | 3,830 |  |  | $ | 4,682 |
Subcontractor | 1,756 |  |  | 1,756 |
Professional fees | 3,296 |  |  | 2,394 |
Customer deposit | 621 |  |  | 621 |
Supplier | 276 |  |  | 303 |
Royalties owed to third parties | 2,989 |  |  | 900 |
Amounts owed to former licensees | — |  |  | 45 |
Other | 2,832 |  |  | 1,766 |
Total accrued liabilities | $ | 15,600 |  |  | $ | 12,467 |
Schedule of Other Long Term Liabilities | Other long-term liabilities consist of the following (in thousands):
| September 30, |  | December 31,
| 2024 |  | 2023
Unrecognized tax benefits | $ | 14,481 |  |  | $ | 14,039 |
Novan (Pelthos) contract liability | 15,324 |  |  | 13,700 |
Other long-term liabilities | 69 |  |  | 19 |
| $ | 29,874 |  |  | $ | 27,758 |
Schedule of Accounting for Share-Based Compensation | The following table summarizes share-based compensation expense recorded as components of research and development expenses and general and administrative expenses for the periods indicated (in thousands):
| Three months ended |  | Nine months ended
| September 30, |  | September 30,
| 2024 |  | 2023 |  | 2024 |  | 2023
SBC - Research and development expenses | $ | 982 |  |  | $ | 1,639 |  |  | $ | 2,588 |  |  | $ | 5,362 |
SBC - General and administrative expenses | 14,189 |  |  | 5,245 |  |  | 30,977 |  |  | 14,660 |
| $ | 15,171 |  |  | $ | 6,884 |  |  | $ | 33,565 |  |  | $ | 20,022 |
Schedule of Fair-Value Options Awarded to Employees and Directors | The fair value for options that were awarded to employees and directors was estimated at the date of grant using the Black-Scholes option valuation model with the following weighted-average assumptions:
| Three months ended |  | Nine months ended
| September 30, |  | September 30,
| 2024 |  | 2023 |  | 2024 |  | 2023
Risk-free interest rate | 4.4% |  | 4.3% |  | 4.3% |  | 4.1%
Dividend yield | — |  | — |  | — |  | —
Expected volatility | 44.7% |  | 44.7% |  | 44.7% |  | 51.5%
Expected term (years) | 4.7 |  | 5.2 |  | 4.7 |  | 5.3
Schedule of Computation of Basic and Diluted Earnings per Share | The following table presents the calculation of weighted average shares used to calculate basic and diluted earnings per share (in thousands):
| Three months ended |  | Nine months ended
| September 30, |  | September 30,
| 2024 |  | 2023 |  | 2024 |  | 2023
Weighted average shares outstanding: | 18,419 |  |  | 17,380 |  |  | 18,061 |  |  | 17,241 |
Dilutive potential common shares: |  |  |  |  |  |  |
Restricted stock | — |  |  | — |  |  | 173 |  |  | 82 |
Stock options | — |  |  | — |  |  | 340 |  |  | 302 |
2023 Notes | — |  |  | — |  |  | — |  |  | 159 |
Shares used to compute diluted income (loss) per share | 18,419 |  |  | 17,380 |  |  | 18,574 |  |  | 17,784 |
Potentially dilutive shares excluded from calculation due to anti-dilutive effect | 1,099 |  |  | 4,762 |  |  | 1,815 |  |  | 4,663 |

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