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| And I'm happy to say that in the last year, we've successfully transformed the company to take Ligand to the next stage of growth |
| During late 2023 and early 2024, and there is an opportunity for further value creation through additional important catalysts expected this year |
| The continued addition of potential new patients provides good evidence of future revenue potential that supports the consensus estimates for 2024 to earn approximately $110 million of revenue for the year |
| We grew revenue by more than 20% when you exclude last year's COVID related Captisol sales, while reducing 2023 cash operating expenses from above $90 million per year to below $40 million per year |
| We are well positioned to execute against our goals in 2024 and deliver attractive growth and shareholder returns over the long-term |
| Royalty revenue increased 16% to $83.9 million from $72.5 million a year ago with the growth driven by strength in growth Amgen's Kyprolis, Jazz's Rylaze and Merck's Vaxneuvance |
| While we are having discussions with potential strategic licensing partners, we're also making good progress towards the creation of Pathios and the launch of ZELSUVMI |
| Third, we strengthened our royalty portfolio by adding several innovative and exciting new programs, including Sanofi's TZIELD and Takeda's soticlestat |
| In 2023, one of our key priorities was assembling a strong and experienced investment team to execute on our strategy, and we are pleased with our progress in this regard |
| The breadth of our asset portfolio provides us with a lower volatility and much greater predictability than is typical in biotech businesses, which in turn provides us the confidence to share these longer term projections |
| In summary, we are very pleased with our 2023 financial results as well as the progress we've made over the last year, improving our investment capabilities and growing our asset portfolio |
| Kyprolis, which is an important drug for multiple myeloma, continued its strong performance with another solid quarter in Q4 |
| We believe these products, along with Rylaze and FILSPARI will continue to drive royalty revenue growth in the future |
| With successful approval, we believe V116 will continue to drive the Merck franchise growth benefit Ligand through our low-single-digit royalty |
| First, we delivered strong financial performance |
| The team is extremely excited about the potential for this program |
| Slide 3 summarizes our financial and portfolio achievements in 2023, which underscores our strong momentum and the strength of our business model |
| We delivered strong results in 2023 that met or exceeded the high end of our guidance range, with total revenue of $131 million and core adjusted earnings per share of $4.06 |
| In addition to highlighting the names of all 16 approved drugs along with their timing of approval, the chart on the right shows vertical bars annually that represent the cumulative volume of Captisol that we've sold and demonstrates the continued momentum with the business |
| With this strong financial position, we feel we are well positioned to have another successful year led by investment activity, providing exciting growth opportunities for Ligand |
| Traction on this business is exemplified by the number and pace of approvals as well as the volume of material that we've sold since acquiring the business |
| Customer demand remains strong for both clinical and commercial Captisol as partners continue to find benefit from our technology platform |
| Ligand benefits from a low-single-digit royalty on ensifentrine and we believe the program will be another of our key growth drivers |
| We believe that we have the right team to execute and excel in this high margin, high growth strategy |
| Finally, during the second quarter of 2023, Viking announced positive top-line results from the Phase 2b VOYAGE study evaluating VK-2809 in patients with biopsy confirmed NASH |
| There remains high-unmet need in rare pediatric epilepsies and soticlestat is uniquely positioned to deliver value to patients and caregivers through its demonstrated seizure reduction capability as well as its strong safety profile and ability to be combined with a broad range of antiepileptic treatments |
| Our diversified portfolio including our major commercial royalty generating programs, late-stage pipeline form the foundation for compounding growth |
| Core Captisol sales for 2023 outperformed our expectation for the year |
| And as Todd mentioned, we also introduced in December for the first time and we reiterate today a longer term outlook, where we see royalty revenue growing at a compound annual growth rate above 20% from 2022 to 2028, and adjusted core EPS growing even faster at a compound annual growth rate above 25% |
| This portfolio provides us with substantial cash flow to reinvest in new high value enhancing royalty opportunities |
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| The supply constraints we were referring to in my prepared comments were really related to the predecessor product |
| alone, over half of whom are dissatisfied with their current treatment regimen |
| I guess first question, just on the -- and you guys called it out on the royalties a little bit down versus Q3 and usually the tiering up |
| Total R&D and G&A operating expenses decreased by 27% in 2023, due to primarily to lower headcount-related expenses associated with the spin out of Pelican |
| We have been anticipating generic competition to enter the market, and it appears that may be beginning to materialize |
| So there is -- as there is any investment business, there'll be periods where there's a lack of activity seemingly in terms of closes and then there'll be periods where there's significant activity in terms of closes |
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