Ligand Pharmaceuticals Incorporated (LGND) has reported a 23.14 percent fall in profit for the quarter ended Mar. 31, 2017. The company has earned $5.08 million, or $0.22 a share in the quarter, compared with $6.61 million, or $0.30 a share for the same period last year. On the other hand, adjusted net income from continuing operations for the quarter stood at $12.65 million, or $0.57 a share compared with $13.64 million or $0.63 a share, a year ago. Revenue during the quarter went down marginally by 1.29 percent to $29.27 million from $29.65 million in the previous year period. Gross margin for the quarter expanded 206 basis points over the previous year period to 98.83 percent. Total expenses were 65.09 percent of quarterly revenues, up from 49.08 percent for the same period last year. That has resulted in a contraction of 1601 basis points in operating margin to 34.91 percent.
Operating income for the quarter was $10.22 million, compared with $15.10 million in the previous year period.
"We are pleased to be reporting a substantial increase in first quarter royalty revenue led by Promacta®, Kyprolis® and EVOMELA®, as well as strong cash flow from operations. In addition to achieving solid sales growth, our partners made important clinical, regulatory and commercial progress on a global basis," said John Higgins, chief executive officer. "During the first quarter we completed enrollment in a Phase 2 clinical trial with our novel, small-molecule GRA program for the treatment of type 2 diabetes mellitus, and we look forward to reporting topline results this September. We also added to our Shots-on-Goal business model with new licensing agreements including those for OmniAb® and Captisol®."
For fiscal year 2017, Ligand Pharmaceuticals Incorporated expects revenue to be $130 million. The company expects diluted earnings per share to be $2.70 on adjusted basis.
Working capital turns negative
Working capital of Ligand Pharmaceuticals Incorporated has turned negative to $52.29 million on Mar. 31, 2017 from positive $120.82 million on Mar. 31, 2016. Current ratio was at 0.77 as on Mar. 31, 2017, down from 10.87 on Mar. 31, 2016. Days sales outstanding went down to 28 days for the quarter compared with 42 days for the same period last year.
Days inventory outstanding has increased to 1007 days for the quarter compared with 161 days for the previous year period.
Debt moves up
Ligand Pharmaceuticals Incorporated has witnessed an increase in total debt over the last one year. It stood at $215.75 million as on Mar. 31, 2017, up 5.42 percent or $11.09 million from $204.65 million on Mar. 31, 2016. Short-term debt stood at $215.75 million as on Mar. 31, 2017. Total debt was 34.26 percent of total assets as on Mar. 31, 2017, compared with 33.36 percent on Mar. 31, 2016. Debt to equity ratio was at 0.58 as on Mar. 31, 2017, up from 0.52 as on Mar. 31, 2016. Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: editor@irisindia.net
