Ligand Pharmaceuticals Incorporated reported significant financial developments in its Q3 2024 10-Q filing, highlighting a robust increase in total revenues and strategic acquisitions. For the three months ended September 30, 2024, the company generated total revenues and other income of $51.8 million, a substantial increase of $18.9 million (58%) compared to $32.9 million in Q3 2023. Year-to-date (YTD) revenues reached $124.3 million, up $21.1 million (20%) from $103.2 million in the same period last year.

The growth in revenue was primarily driven by a 33% increase in royalties, totaling $31.7 million in Q3 2024, attributed to higher sales from the QARZIBA financial royalty asset and increased sales of FILSPARI. Additionally, contract revenue surged to $13.8 million, a remarkable increase of 3,623% from $0.4 million in Q3 2023, largely due to a commercial milestone related to Verona's Ohtuvayre.

Despite the revenue growth, Ligand's operating costs and expenses also rose significantly, totaling $48.7 million in Q3 2024, an increase of $16.8 million (53%) from the previous year. General and administrative expenses were notably higher at $24.5 million, compared to $14.7 million in Q3 2023, primarily due to one-time stock compensation expenses and costs associated with the acquisition of Novan.

The company reported a net loss of $7.2 million for Q3 2024, an improvement from a net loss of $10.3 million in Q3 2023. For the nine months ended September 30, 2024, Ligand recorded a net gain of $27.1 million, down from $33.9 million in the same period in 2023. The decrease in net income was influenced by a $26.5 million impairment loss related to the soticlestat financial royalty asset following a failed clinical trial.

Strategically, Ligand completed several acquisitions, including the $100.5 million acquisition of Apeiron in July 2024, which is expected to enhance its financial royalty assets. The company also entered into a $75 million revolving credit facility, later increased to $125 million, providing additional liquidity for future investments.

As of September 30, 2024, Ligand's cash and cash equivalents stood at $63.6 million, a significant increase from $22.9 million at the end of 2023. Total assets rose to $954.9 million, up from $787.2 million at the end of the previous fiscal year, reflecting the company's growth trajectory and strategic investments.