Ligand Pharmaceuticals Incorporated (LGND) swung to a net loss for the quarter ended Dec. 31, 2016. The company has made a net loss of $3.12 million, or $ 0.15 a share in the quarter, against a net profit of $6.34 million, or $0.29 a share in the last year period. On the other hand, adjusted net income from continuing operations for the quarter stood at $16.08 million, or $0.74 a share compared with $12.24 million or $0.59 a share, a year ago.
Revenue during the quarter surged 80.19 percent to $38.18 million from $21.19 million in the previous year period. Gross margin for the quarter contracted 341 basis points over the previous year period to 92.42 percent. Total expenses were 49.31 percent of quarterly revenues, up from 48.03 percent for the same period last year. That has resulted in a contraction of 128 basis points in operating margin to 50.69 percent.
Operating income for the quarter was $19.36 million, compared with $11.01 million in the previous year period.
"2016 was an exceptional year for Ligand. We reported substantial revenue growing more than 50% over last year and strong operating cash flow. Evomela, a new commercial product with a high royalty rate to Ligand, launched and joined Promacta® and Kyprolis® as major drivers of royalty revenue. We also had a very successful year operating our OmniAb business following the acquisition of OMT approximately one year ago. Additionally, many new deals entered our portfolio and numerous late-stage partnered assets generated meaningful positive news," said John Higgins, chief executive officer.
Working capital turns negative
Working capital of Ligand Pharmaceuticals Incorporated has turned negative to $64.08 million on Dec. 31, 2016 from positive $194.74 million on Dec. 31, 2015. Current ratio was at 0.72 as on Dec. 31, 2016, down from 10.35 on Dec. 31, 2015.
Debt moves up
Ligand Pharmaceuticals Incorporated has witnessed an increase in total debt over the last one year. It stood at $212.91 million as on Dec. 31, 2016, up 5.41 percent or $10.92 million from $201.98 million on Dec. 31, 2015. Total debt was 35.39 percent of total assets as on Dec. 31, 2016, compared with 37.83 percent on Dec. 31, 2015. Debt to equity ratio was at 0.62 as on Dec. 31, 2016, down from 0.66 as on Dec. 31, 2015.
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
