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Basis of Presentation and Summary of Significant Accounting Policies (Tables)
 9 Months Ended
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 endedNine months ended
September 30,September 30,
2024202320242023
Royalties
Kyprolis$11,599 $10,537 $27,229 $24,862 
Evomela1,747 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 
Filspari3,206 1,122 7,402 1,707 
Vaxneuvance1,466 1,313 3,962 2,990 
Other2,272 1,916 6,452 5,256 
Revenue from intangible royalty assets26,552 23,863 67,512 61,447 
Income from financial royalty assets5,157 256,454 1,026 
31,709 23,888 73,966 62,473 
Captisol6,255 8,608 22,967 24,450 
Contract revenue and other income
Milestone and other13,848 372 25,444 16,290 
Other income— — 1,944 — 
Contract revenue and other income13,848 372 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 costGross unrealized gainsGross unrealized lossesEstimated fair value
     Bond fund $39,512 $— $(265)$39,247 
     U.S. government securities19,051 31 — 19,082 
     Bank deposits12,280 21 — 12,301 
     Corporate bonds10,969 30 (3)10,996 
     Commercial paper10,591 5 (1)10,595 
     Corporate equity securities6,551 — (6,058)493 
$98,954 $87 $(6,327)92,714 
      Viking common stock63,310 
Total short-term investments$156,024 
December 31, 2023
     Bond fund$63,763 $— $(537)$63,226 
     Bank deposits17,165 12 (1)17,176 
     Corporate bonds14,850 40 (2)14,888 
     Commercial paper11,578 9 (1)11,586 
     U.S. government securities6,736 18 (3)6,751 
     Municipal bonds1,007 — (4)1,003 
     Corporate equity securities5,775 — (5,235)540 
$120,874 $79 $(5,783)115,170 
     Viking common stock32,185 
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 CostFair Value
Within one year$91,072 $91,152 
After one year through five years4,647 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,
20242023
Indefinite-lived intangible assets
     Goodwill$105,250 $103,370 
Definite lived intangible assets
     Complete technology39,249 42,911 
          Less: accumulated amortization(19,072)(20,894)
     Trade name2,642 2,642 
          Less: accumulated amortization(1,810)(1,710)
     Customer relationships29,600 29,600 
          Less: accumulated amortization(20,280)(19,161)
     Contractual relationships360,000 360,000 
          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,
20242023
Agenus Upsize Option (expires on 6/30/25)
$3,815 $— 
Viking shares collar7,318 — 
     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,
20242023
Equity securities in Primrose Bio$6,712 $32,726 
InvIOs investment
4,196 — 
Neuritek warrants— 3,000 
Palvella Series C preferred stock1,000 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,
20242023
Raw materials$2,495 $420 
Work in process260 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,
20242023
Compensation$3,830 $4,682 
Subcontractor1,756 1,756 
Professional fees3,296 2,394 
Customer deposit621 621 
Supplier276 303 
Royalties owed to third parties2,989 900 
Amounts owed to former licensees— 45 
Other2,832 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,
 20242023
Unrecognized tax benefits$14,481 $14,039 
Novan (Pelthos) contract liability
15,324 13,700 
Other long-term liabilities69 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 endedNine months ended
September 30,September 30,
2024202320242023
SBC - Research and development expenses$982 $1,639 $2,588 $5,362 
SBC - General and administrative expenses14,189 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 endedNine months ended
September 30,September 30,
2024202320242023
Risk-free interest rate4.4%4.3%4.3%4.1%
Dividend yield————
Expected volatility44.7%44.7%44.7%51.5%
Expected term (years)4.75.24.75.3
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 endedNine months ended
September 30,September 30,
2024202320242023
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 effect1,099 4,762 1,815 4,663