Business Corpus: IBD 50's Ligand Crushes Views And Projects 2 Blockbuster DrugsLigand Pharmaceuticals reported adjusted profit of $2.59 per share on $90 million in sales for its second quarter. The post IBD 50's Ligand Crushes Views And Projects 2 Blockbuster Drugs appeared first on Investor's Business Daily.

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Ligand Pharmaceuticals (LGND) crushed second-quarter expectations late Monday and suggested two drugs in which it partners with Amgen (AMGN) and Novartis (NVS) are "squarely on course" to become blockbusters in 2018.

In after-hours trading on the stock market today, Ligand stock was flat after closing up 0.8%, at 226.74. Ligand is an IBD 50 stock. Ligand has a best-possible Composite Rating of 99 and it leads all 500 stocks in IBD's biotech industry group.

For the quarter, Ligand reported adjusted profit of $2.59 per share on $90 million in sales. Profit, adjusted for one-time gains and costs, spiked 287% and sales rose 221%. Both metrics crushed analyst forecasts, according to Zacks Investment Research, for 93 cents and $60 million, respectively.

Chief Executive John Higgins said Novartis-partnered Promacta and Amgen-partnered Kyprolis are well on their way to topping $1 billion in sales this year. Promacta increases the number of platelets in the blood. It sold $867 million in 2017. Cancer drug Kyprolis brought in $835 million.

"As well, we saw a flurry of other positive news from partners and an expanding calendar of expected clinical, regulatory or business events including from partners such as Sage Therapeutics (SAGE), Viking Therapeutics (VKTX), Seelos, Immunovant and others," Higgins said in a written statement.

Unique Biotech Model

Ligand is unique among biotech companies. It acquires early-stage technologies necessary for drug development. Then, it licenses those platforms out to partners.

In the second quarter, royalties rose 121% year over year to $31.4 million. However, under new accounting rules, royalties should be compared with the third quarter of 2017 due to the timing of sales recognition. In comparison with that period, royalties grew 43%.

Material sales were $7.6 million, up nearly 36%. License fees, milestones and other revenues were $51 million, rising from $8.2 million in the year-earlier period. Ligand attributed the major growth to a $47 million payment from WuXi Biologics to amend a license agreement.

Guidance for $232 million in 2018 sales topped analysts' view for $209 million. That includes $120 million in royalties, $23 million in material sales and $89 million in license fees and milestones. Ligand also projected adjusted income of $6.30 per share, above views for $4.93 a share.

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The post IBD 50's Ligand Crushes Views And Projects 2 Blockbuster Drugs appeared first on Investor's Business Daily.