24th ROTH ConferenceMarch 12, 2012John HigginsPresident and Chief Executive OfficerP id        d Chi f E     i OffiMatt Fo...
Safe Harbor Statement    The following presentation contains forward-looking statements regarding Ligand’s prospects, plan...
Ligand 2012    3 Focus Points for Investors        Unprecedented Asset    Portfolio        Revenue Expansion Potential    ...
Ligand 2012    Growth Investment with Biotech Upside    G   th I    t   t ith Bi t h U id                             M j ...
The Value of Ligand’s Partnered Portfolio     More than 50 Partnered Programs     M    th 50 P t       dP        Highly Di...
Ligand’s Partnered Portfolio                Over       25           Different Partners6
Ligand’s Partnered Portfolio    O    25 Diff      P    Over 25 Different Partners            Big Pharma            Big Bio...
Ligand’s Partnered Portfolio          Over     10                  Different           Therapeutic Areas8
Ligand’s Partnered Portfolio    Over 10 Different Therapeutic Areas    Over 10 Different Therapeutic Areas            CNS ...
Ligand’s Partnered Portfolio               Over     50%in               Phase 2 or Later10
Ligand’s Partnered Portfolio     Over 50% in Phase 2 or Later     O    50% i Ph     2 L t                                 ...
Late-Stage Programs Expected in 2012                                    12 in 2012                       Twelve “Phase 3 S...
Illustrative Revenue Growth Potential                       "Shots on Goal"                             2015              ...
Leveraging Partnerships                       2012 Investment                                Estimated Partner Expenditure...
Promacta
Promacta     A potential blockbuster driver for Ligand growth     A t ti l bl kb t d i           f Li     d     th     Ora...
Promacta             A potential blockbuster driver for Ligand growth             A t ti l bl kb t d i           f Li     ...
Promacta     Hepatitis C Related‐Thrombocytopenia     H   titi C R l t d Th    b t      i        Next big potential indica...
Promacta     Franchise Expansion Beyond HepC     F    hi E       i B      dH C         Oncology-Related Thrombocytopenia  ...
FormulationTechnology
The Need for an Enabling Solubility Technology     Th N d f        E bli S l bilit T h l                             4 out...
The Need for an Enabling Solubility Technology     Th N d f        E bli S l bilit T h l                              2 ou...
Increasing Needs in Our Industry                    I      i N d i O I d t                                                ...
Increasing Needs in Our Industry                    I      i N d i O I d t                                                ...
Increasing Needs in Our Industry                    I      i N d i O I d t                                                ...
Increasing Needs in Our Industry                    I      i N d i O I d t                                                ...
Th S l bilit S l ti     The Solubility Solution            Patented, chemically‐modified cyclodextrin           Increase d...
The Solubility Solution     Th S l bilit S l ti      RATIONALLY ENGINEERED                     Not all Cyclodextrins are c...
The Solubility Solution     Th S l bilit S l ti            A CLEAR ADVANTAGE                  Solving problems. Enabling p...
The Solubility Solution     Th S l bilit S l ti                       PARTNERING                  Valued technology. Globa...
2011 D l E      di th P t        B     2011 Deals Expanding the Partner Base             Merck             Undisclosed Cap...
12 in 2012Highlights
12 in 2012 Highlight                                          Initiate Pivotal                                            ...
12 in 2012 Highlight                                             NDA                                                      ...
12 in 2012 Highlight                                           NDA                                                        ...
Summary
Projected Financial Highlights     2012 Fi    i l G id     2012 Financial Guidance               2012 R                   ...
Ligand Royalty Revenue Growth                                                                                        • Lig...
The Ligand Investment Thesis        Large asset portfolio creates tremendous upside        Cash‐flow positive with increas...
Ligand 2012     Growth Investment with Biotech Upside     G   th I    t   t ith Bi t h U id                              M...
Roth   ligand higgins-foehr 3-12-12
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Roth ligand higgins-foehr 3-12-12

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Roth ligand higgins-foehr 3-12-12

  1. 1. 24th ROTH ConferenceMarch 12, 2012John HigginsPresident and Chief Executive OfficerP id d Chi f E i OffiMatt FoehrEVP and Chief Operating Officer
  2. 2. Safe Harbor Statement The following presentation contains forward-looking statements regarding Ligand’s prospects, plans and strategies, drug development programs and collaborations. Forward-looking statements include financial projections, expectations regarding research and development programs, and other statements including words such as “will,“ “should,” “could,” “plan,” etc. Actual events or results may differ from Ligand’s expectations. For example, expense reductions and drug development programs may not be realized. In addition there can be no assurance that Ligand will achieve its guidance in 2012 or thereafter. The forward-looking statements made in the presentation are subject to several risk factors, including, but not limited to, statements regarding intent, belief or current expectations of the Ligand its internal and partnered to intent belief, Ligand, programs, including Promacta, Ligand’s reliance on collaborative partners for milestone and royalty payments, regulatory hurdles facing Ligands and partners product candidates, uncertainty regarding Ligands and partners product development costs, the possibility that Ligands and partners drug candidates might not be proved to be safe and efficacious and commercial performance of Ligands and/or its partners products. Additional risks may apply to forward looking statements made in this presentation forward-looking presentation. The risk factors facing Ligand are explained in greater detail in Ligand’s filings with the SEC, including the most recently filed annual reports on Form 10-K and quarterly reports on Form 10-Q, as well as other public filings. While forward-looking statements reflect our good faith beliefs (or those of the indicated third parties), they are not guarantees of future performance. We disclaim any obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.2
  3. 3. Ligand 2012 3 Focus Points for Investors Unprecedented Asset  Portfolio Revenue Expansion Potential p Investment  Investment Leverage3
  4. 4. Ligand 2012 Growth Investment with Biotech Upside G th I t t ith Bi t h U id M j tf li i Major portfolio expansion Ligand Royalties in potential blockbuster programs 2012 Significant reduction in operating expenses Focused on recurring quarterly revenue  Focused on recurring quarterly revenue Acquisition strategy to fuel future growth Reward Ligand 2006 Risk4
  5. 5. The Value of Ligand’s Partnered Portfolio More than 50 Partnered Programs M th 50 P t dP Highly Diversified More Ways to Succeed More Ways to Succeed Fully Funded Partners Carry Majority of Risk f k Allows Ligand to Run Lean Business5
  6. 6. Ligand’s Partnered Portfolio Over  25 Different Partners6
  7. 7. Ligand’s Partnered Portfolio O 25 Diff P Over 25 Different Partners Big Pharma Big Biotech Specialty Pharma Biotech7
  8. 8. Ligand’s Partnered Portfolio Over  10 Different  Therapeutic Areas8
  9. 9. Ligand’s Partnered Portfolio Over 10 Different Therapeutic Areas Over 10 Different Therapeutic Areas CNS Anti-F ngal Anti-Fungal Infectious Diabetes Disease InflammationOsteoporosis Oncology Blood Disorders Di d Women’s Health Pain9 Arthritis
  10. 10. Ligand’s Partnered Portfolio Over  50%in  Phase 2 or Later10
  11. 11. Ligand’s Partnered Portfolio Over 50% in Phase 2 or Later O 50% i Ph 2 L t Approved/ Marketed 16% Phase 3/NDA Phase 1 Phase 1 12% 35% Phase 2 30%11
  12. 12. Late-Stage Programs Expected in 2012 12 in 2012 Twelve “Phase 3 Stage” Programs in 2012  Carfilzomib (Onyx) – FDA Review of NDA Delafloxacin (Rib‐X) – Initiate Phase 3 Promacta (GSK) File sNDA for HepC Promacta® (GSK) – File sNDA for HepC CE‐Melphalan (Ligand) – Initiate Pivotal (Ligand) – Initiate Pivotal Aprela® (Pfizer) – File NDA Dinaciclib (Merck) – Initiate Phase 3 CE Carbamazepine (Lundbeck) Phase 3 Readout CE‐Carbamazepine (Lundbeck)– Phase 3 Readout Merck Undisclosed CE  Initiate Pivotal Merck Undisclosed CE – Initiate Pivotal CE‐Clopidogrel (MDCO) – Initiate Pivotal Study Lilly Undisclosed CE – Initiate Phase 3 Promacta (GSK) – Initiate Phase 3 Oncology ( ) gy Hospira Undisclosed CE – Initiate Pivotal p12
  13. 13. Illustrative Revenue Growth Potential "Shots on Goal"    2015 Vision                                                                                   Vision Promacta Turning into Reality Avinza® 2012 Conbriza Nexterone Carfilzomib Promacta Aprela Avinza Dinaciclib Conbriza® CE‐Clopidogrel p g Nexterone® N t ® CE‐Melphalan Captisol Material Sales CE‐Carbamazepine License/Milestone Fees Lilly CE Program Hospira CE Program p g $30M Captisol Material Sales License/Milestone Fees $150 200M $150-200M13
  14. 14. Leveraging Partnerships 2012 Investment Estimated Partner Expenditure E i dP E di >$300 M Ligand Cash Expenses $20 M $20 M14
  15. 15. Promacta
  16. 16. Promacta A potential blockbuster driver for Ligand growth A t ti l bl kb t d i f Li d th Oral medicine that boosts platelets to treat thrombocytopenia Marketed by GSK for ITP Significant royalty interest Major upcoming 2012 catalysts Major upcoming 2012 catalysts Long patent protection through 2025 Potential for major label expansion16
  17. 17. Promacta A potential blockbuster driver for Ligand growth A t ti l bl kb t d i f Li d th Promacta Annual Sales ($M) Promacta Annual Sales ($M) $140  Other EU $120  $120 US • Dramatic Revenue Acceleration Dramatic Revenue Acceleration • 252% growth in 2011  $100  • Promacta is Gaining ITP Market Share vs. Nplate $80  $80 • 17% in 2010$ millions • 29% in 2011 $60  • Ligand is entitled to a net 8.3% royalty on $1  $40  billion in annual sales billi i l l $20  $‐ 0 2009 2010 201117
  18. 18. Promacta Hepatitis C Related‐Thrombocytopenia H titi C R l t d Th b t i Next big potential indication for Promacta is HepC Phase 3 ENABLE 1 and 2 data expected at EASL in Barcelona, April 18‐22 • Primary endpoint successfully met in both studies GSK has committed to filing an sNDA in 2012 Potential blockbuster market opportunity for HepC indication alone • 8‐10% of all HepC patients world‐wide have thrombocytopenia that limits  their ability to start or complete a HepC anti‐viral treatment1 • Third party sell‐side analysts project major sales potential for Promacta in  HepC 1Thrombocytopenia in Hepatitis C: Impact on Patient Management http://www.clinicaloptions.com/Hepatitis/Treatment%20Updates/Thrombocytopenia.aspx18
  19. 19. Promacta Franchise Expansion Beyond HepC F hi E i B dH C Oncology-Related Thrombocytopenia gy y p Oncology‐related thrombocytopenia (ORT) is currently in Phase 2 development at GSK ORT is comprised of two separate patient populations • Chemotherapy‐induced thrombocytopenia • Cancers of the blood such as myelodysplastic syndrome (MDS) or acute     myeloid leukemia (AML) Excess bleeding results in severe  complications or death for nearly 25% of  these patients1 Another potential blockbuster indication  for Promacta as total worldwide patients  approaches 100K annually 1Expert Opinion: Thrombocytopenia and Myelodysplastic Syndrome http://www.medscape.org/viewarticle/56502319
  20. 20. FormulationTechnology
  21. 21. The Need for an Enabling Solubility Technology Th N d f E bli S l bilit T h l 4 out of 5 Drug candidates i R&D pipelines D did in i li believed to have poor solubility Chemical & Engineering News, 201021
  22. 22. The Need for an Enabling Solubility Technology Th N d f E bli S l bilit T h l 2 out of 5 Currently marketed d C l k d drugs have h poor solubility American Pharmaceutical Review ‐ Solubility Roundtable, 201122
  23. 23. Increasing Needs in Our Industry I i N d i O I d t Solubility publications 10,000 8,000 ns r of publication 6,000Number 4,000 2,000 2 000 0 1980                1985               1990               1995              2000                2005               2010 Year American Pharmaceutical Review, 2012
  24. 24. Increasing Needs in Our Industry I i N d i O I d t Solubility publications 10,000 8,000 ns r of publication 6,000Number 4,000 2,000 2 000 0 1980                1985               1990               1995              2000                2005               2010 Year American Pharmaceutical Review, 2012
  25. 25. Increasing Needs in Our Industry I i N d i O I d t Solubility publications 10,000 High‐throughput screening publications 8,000 ns r of publication 6,000Number 4,000 2,000 2 000 0 1980                1985               1990               1995              2000                2005               2010 Year American Pharmaceutical Review, 2012
  26. 26. Increasing Needs in Our Industry I i N d i O I d t Solubility publications 10,000 High‐throughput screening publications 8,000 Introduction of HT screening in the mid 1990s  accelerated drug discovery and the need for solubility  ns r of publication technologies 6,000Number 4,000 2,000 2 000 0 1980                1985               1990               1995              2000                2005               2010 Year American Pharmaceutical Review, 2012
  27. 27. Th S l bilit S l ti The Solubility Solution Patented, chemically‐modified cyclodextrin Increase drug solubility, reduce site reactions d l bl d Highly versatile across drug families Highly versatile across drug families Major safety database with Type V Drug Master File Over 100 clinical studies27
  28. 28. The Solubility Solution Th S l bilit S l ti RATIONALLY ENGINEERED Not all Cyclodextrins are created equally.28
  29. 29. The Solubility Solution Th S l bilit S l ti A CLEAR ADVANTAGE Solving problems. Enabling products to market.29
  30. 30. The Solubility Solution Th S l bilit S l ti PARTNERING Valued technology. Globally recognized experts.30
  31. 31. 2011 D l E di th P t B 2011 Deals Expanding the Partner Base Merck Undisclosed Captisol program The Medicines Company Captisol‐enabled clopidogrel Sage Therapeutics Captisol‐enabled CNS Lilly Captisol platform relationship Hospira Undisclosed Captisol program31
  32. 32. 12 in 2012Highlights
  33. 33. 12 in 2012 Highlight Initiate Pivotal Study The Medicines Company Captisol‐enabled clopidogrel MEDCO has announced they plan to initiate a pivotal registration study in 2012 for CE-clopidogrel, with potential NDA filing in 2013 l is h i ingrediant in Plavix®, currently Clopidogrel i the active i Cl id di i Pl i l only available orally This program offers the first intravenous formulation of clopidogrel to doctors and patients Ligand is entitled to receive milestones and royalties, and Captisol material sales from the clopidogrel p g program34
  34. 34. 12 in 2012 Highlight NDA Action Onyx Carfilzomib Onyx has filed the NDA for carfilzomib and currently has a PDUFA date of July, 27, 2012 for an FDA decision Carfilzomib is Captisol-enabled and has shown strong efficacy and safety to date in patients with multiple ffi d f t t d t i ti t ith lti l myeloma Third party analysts predict over $1 billion in peak sales for carfilzomib Ligand is entitled to receive milestones and royalties, and Captisol material sales from the carfilzomib program35
  35. 35. 12 in 2012 Highlight NDA Submission Pfizer Aprela Pfizer has recently announced they will be filing an NDA in 2012 for Aprela Aprela is the combination of Conbriza® (bazedoxifene) and Premarin® and is designed as a therapeutic for post-menopausal symptoms Conbriza, a SERM molecule, was discovered by Ligand and licensed to Wyeth (now Pfizer) in the 1990 s 1990’s Ligand is entitled to receive milestones and royalties from the Aprela program36
  36. 36. Summary
  37. 37. Projected Financial Highlights 2012 Fi i l G id 2012 Financial Guidance 2012 R 2012 Revenue Composition C iti • $30M in total revenue • $25M in operating expenses ~25% % ‐ Includes $6M non‐cash expense Material  • COGS at 30‐35% of material sales Sales ~ 50% Royalty ~ 25% ~ 25% License  Fees NOLs exceed $450 million 19.7 million shares outstanding38
  38. 38. Ligand Royalty Revenue Growth • Ligand revenue model focused on  $16 RQR (recurring quarterly revenue) Other $14 Avinza • Revenue sharing from licensee  Promacta product revenue $12 • RQR has 100% gross margin $ millions $10 • RQR projected to increase by over  RQR j d i b 50% in 2012 $8 • Promacta expected to be a major  p j $6 growth driver in 2012 AND has 13  years remaining patent life $4 • Several potential new sources of Several potential new sources of  $2 RQR to come on line within  the next several years with potential  $‐0 new  product launches by licensees 2010 2011                 2012 Actual              Actual               Projected39
  39. 39. The Ligand Investment Thesis Large asset portfolio creates tremendous upside Cash‐flow positive with increasing revenue base Promacta is a potential blockbuster asset that can drive significant valuation Innovative internal R&D with focus on ROI Innovative internal R&D with focus on ROI 12 in 2012 ‐ potential for major late‐stage news flow this year40
  40. 40. Ligand 2012 Growth Investment with Biotech Upside G th I t t ith Bi t h U id M j tf li i Major portfolio expansion Ligand Royalties in potential blockbuster programs 2012 Significant reduction in operating expenses Focused on recurring quarterly revenue  Focused on recurring quarterly revenue Acquisition strategy to fuel future growth Reward Ligand 2006 Risk41
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