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LIGAND Biopharma's Technology and Capital Partner Second Quarter 2026 Financial Results AUGUST 6 , 2026
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2 Safe Harbor Statement and Disclaimers • Thispresentationcontainsforward-lookingstatements,as definedin Section21E of the SecuritiesExchangeAct of 1934, by Ligandand its partnersthatinvolverisksand uncertaintiesand reflectLigand’sand its partners’judgmentas of thedateof thispresentation. Allstatements,otherthanstatementsof historicalfact,couldbe deemedto be forward-lookingstatements,includingstatementsthatexpressLigand’sor its partners’opinions,expectations,objectives,assumptions,plansor projectionsregardingfutureeventsor futureresults.In someinstances,wordssuchas “plans,”“believes,”“expects,”“anticipates,”and“will,”and similarexpressions,areintendedtoidentifyforward-lookingstatements. Readersarecautionednotto placeunduerelianceon theseforward-lookingstatements,whichreflectourgoodfaithbeliefs(orthoseofthe indicatedthirdparties)andspeakonlyas of thedatehereof. Theseforward-lookingstatementsinclude,withoutlimitation: Ligand’sabilityto expanditsportfoliowithlifesciencesroyaltyopportunities; thetimingof clinicaland regulatoryeventsof Ligand’spartnersand othercommercializationand marketingefforts; the timingof the initiationor completionof preclinicalstudiesand clinicaltrialsby Ligandand its partners; the timingof productlaunchesby Ligandor its partners; and guidanceregardingprojected2026or 2027financialresults.Actualeventsor resultsmay differfromLigand'sexpectationsdue to risksand uncertainties inherentin Ligand’sbusiness,including,withoutlimitation: Ligandrelieson collaborativepartnersformilestonepayments,royalties,materialsrevenue,contractpaymentsandotherrevenueprojectionsandmaynot receiveexpectedrevenue;LigandmaynotreceiveexpectedrevenuefromCaptisolmaterialsales;Ligandanditspartnersmaynotbe ableto timelyor successfullyadvanceanyproduct(s)in itsinternalor partnered pipelineor receiveregulatoryapprovalandtheremaynotbe a marketfortheproduct(s)evenif successfullydevelopedandapproved; Ligandmaynotachieveitsfinancialguidancefor2026or 2027; Ligandfaces competitionin acquiringroyaltiesand locatingsuitableroyaltiesto acquire; Ligandmay not be able to createfuture revenuesand cash flows throughthe acquisitionof royaltiesor by developinginnovative therapeutics; productsunder developmentby Ligandor its partnersmay not receiveregulatoryapproval; the totaladdressablemarketfor our partners’productsmay be smallerthan estimated; Ligandfaces competitionwithrespecttoitstechnologyplatformswhichmaydemonstrategreatermarketacceptanceorsuperiority; Ligandiscurrentlydependentona singlesourcesolesupplierforCaptisolandfailuresbysuch suppliermay resultin delaysor inabilityto meetthe Captisoldemandsof its partners; Ligand’spartnersmay changetheirdevelopmentfocusand may not executeon theirsalesand marketingplansfor marketed productsforwhichLigandhasaneconomicinterest;Ligand’scollaborationpartnersmaybecomeinsolvent; Ligand’sanditspartners’productsmaynotbeprovedtobesafeandefficaciousandmaynotperformas expectedand uncertaintyregardingthe commercialperformanceof such products; Ligand or its partnersmay not be able to protecttheir intellectualpropertyand patentscoveringcertainproductsand technologiesmaybechallengedorinvalidated; cyber-attacksorotherfailuresintelecommunicationsorinformationtechnologysystemscouldresultininformationtheft,datacorruptionand/orsignificantdisruption to Ligand’sbusinessoperations; Ligand’spartnersmay terminateany of theiragreementsor the developmentor commercializationof any of its products; Ligandand its partnersmay experiencedelaysin the commencement,enrollment,completionor analysisofclinicaltestingforitsproductcandidates,or significantissuesregardingtheadequacyofitsclinicaltrialdesignsor theexecutionofitsclinicaltrials,challenges, costs and chargesassociatedwith integratingacquisitionswith Ligand’sexistingbusinesses; Ligandmay not be able to successfullyimplementits strategicgrowthplan and continuethe developmentof its proprietaryprograms; restrictionsunderLigand’screditagreementmay limitits flexibilityin operatingits businessand a defaultunderthe agreementcouldresultin a foreclosureof the collateralsecuringsuch obligations; Ligandmaynotrealizetheanticipatedbenefitsfrominvestmentssuchas convertiblenotes,includingthe2031convertiblenotes; XOMA’sproductspipelineandtheanticipatedtimingof completionof theproposedXOMAacquisition; changesingeneraleconomicconditions,includingasa resultofwar,conflict,epidemicdiseases,theimpositionand/orannouncementoftariffsandongoingorfuturelitigationcould exposeLigandto significantliabilitiesandhavea materialadverseeffectonLigand; andotherrisksanduncertaintiesdescribedin ourpublicfilingswiththeSecuritiesandExchangeCommission(the“SEC”),available at www.sec.gov. Informationregardingpartneredproductsand programscomesfrom informationpubliclyreleasedby our partners. Our trademarks,tradenames and servicemarks referencedhereininclude Ligand,Captisol,NITRICILandZELSUVMI.Eachothertrademark,tradenameorservicemarkappearinginthispresentationbelongstoitsowner. • Thispresentationpresentscertainnon-GAAPmeasures. A reconciliationbetweenthenon-GAAPadjustedfinancialnumbersandcorrespondingGAAPfiguresis shownin ourquarterlyearningspressreleasesor the fiscalyearannualreport,availableathttps://investor.ligand.com/news-and-events/press-releases/. • Allforwardlookingstatementsarequalifiedin theirentiretyby thiscautionarystatement,andLigandundertakesno obligationtoreviseorupdatethispresentationto reflecteventsorcircumstancesorupdatedthird partyresearchnumbersoccurringafterthedatehereof.ThiscautionismadeunderthesafeharborprovisionsofSection21EoftheSecuritiesExchangeActof1934.
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3 STRATEGIC DIFFERENTIATION Financials, advantage, team • >23% Long-term royalty revenue CAGR • Proven structuring capabilities drive outsized returns • Disciplined capital allocation; Low operating expense model ROYALTY PORTFOLIO Drives growth in 2026 and beyond • Full approval of Filspari in FSGS expected to drive significant growth • 12 Key commercial royalty assets grows to 15 :Vabysmo, Ojemda and Miplyffa • Acquisition of XOMA Royalty adds > 100 development stage programs to our portfolio Second Quarter 2026 Highlights • Acquired XOMA Royalty on July 14th • Creates operating and financial synergies • Early development stage programs create longer-term opportunities to drive growth BUSINESS DEVELOPMENT Highly productive, rigorous process • 32% royalty revenue growth over 2025 • 48% adjusted EPS1 grow th over 2025 • Executed $700M convertible bond offering at 0% coupon rate FINANCIAL Strong financial performance 1. The financial outlook, expectations and other forward-looking statements provided by Ligand for 2026 and beyond reflect Ligand’s judgement based on the information available at the time of this presentation. Please see the “Safe Harbor Statement and Disclaimers” section in this presentation for factors that may impact Ligand’s ability to meet expectations. Core adjusted EPS represents a non-GAAP measure in the Q2 2026 earnings release. See our reconciliation to the corresponding GAAP measure in our Q2 26 earnings release.
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4 XOMA Acquisition Strategic Rationale Ligand’s acquisition of XOMA doubles the size of Ligand’s royalty portfolio, offering significant upside opportunities and an immediately accretive transaction Immediately Accretive Transaction is immediately accretive, adds ~$0.50 and ~$1.50 to projected 2026 and 2027 Adjusted EPS1, respectively Diversification of Portfolio 3 new key royalty generating assets and +100 additional development stage assets Significant IP and Royalty Rights Long dated royalties, some into 2040+, increasing predictability and durability of royalty receipts Strategic Synergies Improved access to capital and BD opportunities; significant cost synergies through the elimination of duplicative costs with 1. The financial outlook, expectations and other forward-looking statements provided by Ligand for 2026 and beyond reflect Ligand’s judgement based on the information available at the time of this presentation. Please see the “Safe Harbor Statement and Disclaimers” section in this presentation for factors that may impact Ligand’s ability to meet expectations. Core adjusted EPS represents a non-GAAP measure. See our reconciliation to the corresponding GAAP measure in our Q2 26 earnings release.
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5 Our Strategy: Disciplined, Diversified, Unchanged Strategy Since 2022 Disciplined, high - quality portfolio construction • Rigorous underwriting and a lean operating model • XOMA acquisition accelerates and diversifies our base of royalty assets An Attractive Market Backdrop Grow ing demand for non- dilutive capital • Biotech innovation continues to expand the royalty opportunity set • Non-dilutive capital is increasingly mainstream across the industry Why Ligand Wins Experienced team, balance sheet, existing asset base • Trusted, creative counterparty reputation • Structures creative solutions for partners • Disciplined capital allocation across market cycles • Rigorous underwriting, attractive returns • Building on an already diversified asset base Robust BD Pipeline One of our strongest pipelines to date • Spans royalty acquisitions, structured financings, project finance and special situations • Cash generation supports continued royalty portfolio expansion
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6 Ligand 2022 To 2026 Comparison 2022 2023 2024 2025 20261 Royalty Revenue $73M $85M $109M $161M $225−250M Cash OpEx $92M $40M $38M $40M $50M Adjusted EPS $2.442 $4.062 $ 5 . 742 $8.132 $9.00−9.502 Key Commercial Programs 7 8 12 12 15 Platforms Captisol, OmniAb, Pelican Captisol Captisol, NITRICIL Captisol, NITRICIL Captisol, NITRICIL FTEs 170 35 42 47 52 1. Aggregate amounts for 2026 are estimated based upon guidance provided in our Q2 2026 earnings release 2. Adjusted EPS represents a non -GAAP measure. See our earnings releases for a reconciliation to the corresponding GAAP measure in the respective earnings releases During the last four years, Ligand has transformed its business model to an operationally light strategy focused on profitable and compounding grow th
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7 Ligand Potential Pipeline Opportunity FDA Approval H1 ’27 MLM Peak Sales3: $1B+ Peak Royalty: $100M+ Qtorin Rapamycin CHI: Reg Clarity H2 ‘27 THI: Ph 3 Results H2 ‘26 Peak Sales4: $500M Peak Royalty: $45M Ersodetug Pivotal Results Q2 ’27 Hypertension Peak Sales4,5 : $250M Peak Royalty: $20M+ AVIM Therapy PSC: Potential NDA Submission H1 ’27 PBC: Ph 2b Results Q1 ‘27 Peak Sales4: $1B+ Peak Royalty: $45M+ Volixibat 1 Phase 3 Results H2 ‘27 ER+/HER2− mBC Peak Sales3: $1B Peak Royalty: $80M Lasofoxifene Phase 3 Results 2027 MDD Peak Sales4: $2B+ Peak Royalty: $100M Osavampator 2 Ph 3 Results Late-’27 to Early-’28 I T P, IgAN Peak Sales3: $1B+ Peak Royalty: $20M+ Mezagitimab 1 Volixibat is in development by Mirum Pharmaceuticals under license from Takeda 2 Osavampator is being developed by Takeda in Japan and by a Takeda partner outside Japan 3 Peak sales estimates provided by our partner in latest corporate presentation 4 Peak sales consensus estimate per Factset as of the date of this presentation 5 Royalty based on Orchestra's annual revenues related to AVIM therapy
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Financial Update Tavo Espinoza
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9 Second Quarter 2026 Financial Highlights Q2 2026 Total Revenue $64M 34% increase vs 2025 Q2 2026 Adjusted EPS 1 $2. 37 48% increase vs 2025 Cash & Investments ~$1. 4B ~$700M in deployable capital after XOMA closed on July 14, 2026 Q2 2026 Royalties $48M 32% increase vs 2025 1. Adjusted EPS represents a non-GAAP measure. See our Q2 26 earnings release for a reconciliation to the corresponding GAAP measure.
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10 XOMA Integration Update 1Operational and Financial Synergies Significant operating cost synergies • XOMA operating expenses of ~$30M collapses to <$5M under Ligand • Public-company costs (legal, audit, SEC filings) eliminated Tax Attributes $110M+ in acquired Section 174 R&D tax credits and NOLs • Expected to be utilized over the next 3−5 years • Resulting in significant U.S. cash tax savings Portfolio Expansion 120+ total assets acquired • 7 commercial-stage (3 meaningful revenue drivers) • ~14 late-stage clinical programs • 100+ additional assets carry option value • $2.3 billion of potential milestone opportunities Tremfya Contingent Value Right Litigation Upside • Ligand is entitled to 25% of any proceeds received from the Janssen Tremfya litigation • No legal costs, governance role or downside P&L impact related to the CVR
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11 Overview of Ligand’s 2031 Convertible Notes Took advantage of strong convertible debt market and executed a $700M transaction, including exercise of the greenshoe 0% Coupon and 27.5% Conversion Premium Net Share Settlement reduces further dilution as we will repay the principal in cash ~12% cost for up 100% call spread, results in no dilution up to stock price of $524 per share Pre-tax annual yield 2.4%/After-tax annual yield 1.2% Repurchased ~229K shares for $60M to alleviate pressure on the stock caused by hedging, demonstrating our confidence in our valuation Net proceeds lower our cost of capital, are accretive to earnings, and allow Ligand to take advantage of our robust business development pipeline Issuance Size Convertible Terms Call Spread Shares Repurchased Use of Proceeds
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12 Second Quarter 2026 Financial Performance *Represents a non-GAAP financial measure. See non-GAAP reconciliation in the Q2 26 and Q2 25 earnings press releases. $ in millions, except for per share amounts (unaudited) Three Months Ended June 30, 2026 2025 Revenues: Royalties $48.0 $36.4 Captisol 8.0 8.3 Contract revenue 7.7 2.9 Total revenues 63. 7 47.6 Operating costs and expenses: Cost of Captisol 3.2 2.9 Amortization of intangibles 8.1 8.3 R&D Expense 14.7 6.6 G&A Expense 29.1 20.2 Fair value adjustments to partner program derivatives - 1.3 Total Operating Expenses 55. 1 39. 2 Operating Income 8.6 8.4 Non-Operating Income, net 55.7 2.8 GAAP Net Income 48.5 4.8 Non- GAAP Net Income* $50. 8 $32. 0 GAAP Diluted from EPS $2.22 $0.24 Non- GAAP Diluted EPS* $2. 37 $1.60 Q2 2026 Highlights • Royalty revenue +32% – Driven by Filspari, Ohtuvayre and Zelsuvmi • Adjusted EPS +48% to $2. 37 – Reflects strong operating leverage • R&D includes $12M one - time charge – Related to Orchestra Bio investment • G&A investments – Increase in stock-based compensation, scaling of BD function, cost to execute XOMA acquisition • Non- operating expense driven by fair value adjustments (Excluded from adjusted results)
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13 2026 Financial Guidance Tightening of EPS guidance range reflects increase in interest income and lower share count Royalty Revenue $225−250M Includes : Ojemda, Vabysmo and Miplyffa (no change) Adjusted EPS 1 $9. 00−9. 50 ( Previously $8. 50 - 9. 50) Total Revenue $270−310M (no change) Non- Royalty Revenue Captisol: $35– 40M Contract: $10−20M (no change) 1. Adjusted EPS represents a non-GAAP measure. See our reconciliation to the corresponding GAAP measure in our earnings release.
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Portfolio Update Lauren Hay
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15 Marketer Program Indication Royalty Rate Filspari IgA Nephropathy; Focal Segmental Glomerulosclerosis 9% Kyprolis R/R Multiple Myeloma Tiered 1.5% to 3% Qarziba High-Risk Neuroblastoma Tiered Mid-Teen Vabysmo Wet AMD; Diabetic Macular Edema 0.5% Ohtuvayre Chronic Obstructive Pulmonary Disease 3% Rylaze Acute Lymphoblastic Leukemia Tiered Low Single-Digit Capvaxive Pneumococcal Disease Low Single-Digit Ojemda R/R Pediatric Low-Grade Glioma Mid Single-Digit Zelsuvmi Molluscum Contagiosum 13% Miplyffa Niemann-Pick Type C Mid Single-Digit Vaxneuvance Pneumococcal Disease Low Single-Digit Teriparatide Osteoporosis 25% to 40%* Nexterone Ventricular Fibrillation Low Single-Digit Pneumosil Pneumococcal Disease Low Single-Digit Tzield Type-1 Diabetes Less than 1% Key Commercial Partnered Programs * Represents gross profit share, not royalty rate New investments/approvals since 2022
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16 Developer( s) Program Indication(s) Phase Royalty Rate QTORIN Rapamycin Microcystic Lymphatic Malformations Cutaneous Venous Malformations Pre-Reg Phase 3 Ready Tiered 8−9.8% Lasofoxifene Metastatic Breast Cancer Phase 3 Tiered 6−10% AVIM/Virtue SAB Hypertension / In-Stent Restenosis Phase 3 High teens<$100M Mid single-digit >$100M3 Frontline Pediatric Low-Grade Glioma Phase 3 Mid-single digit Mezagitamab IgA Nephropathy Immune Thrombocytopenia Phase 3 Low-single digit Osavampator1 Major Depressive Disorder Phase 3 Low to mid-single digit Volixibat2 Primary Sclerosing Cholangitis Primary Biliary Cholangitis Phase 2b Low to mid-single digit D-Fi Dystrophic Epidermolysis Bullosa Phase 3 Mid single-digit Bot/Bal Microsatellite-Stable Colorectal Cancer Phase 3 2.625% OHB-607 Bronchopulmonary Dysplasia Prevention Phase 2b Low to mid-single digit Undisclosed Anti-TL1A Ulcerative Colitis Crohn’s Disease Phase 3 Low-single digit Key Pipeline Partnered Programs 1. Osavampator is being developed by Takeda in Japan and by a Takeda partner outside Japan 2. Volixibat is in development by Mirum Pharmaceuticals under license from Takeda All key pipeline programs represent new or follow - on investment activity since 2022 3. Royalty based on Orchestra's annual revenues related to the AVIM and Virtue SAB programs
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17 Potential Near-Term Growth Drivers: Vabysmo Product Value Proposition • Third best selling product in Roche’s entire pharmaceutical portfolio • First approved bispecific antibody inhibiting both VEGF-A and Ang-2, reducing vascular leakage, neovascularization, and inflammation more than VEGF-only agents • Delivering value to patients affected by wet age-related macular degeneration, diabetic macular edema, and macular edema following retinal vein occlusion Analyst Consensus Peak Sales 1: $7B+, Potential Royalty to Ligand: ~$35M Recent New s Key Upcoming Catalysts Apr 2026: FDA label expansion for macular edema following retinal vein occlusion beyond 6 months July 2026: Roche reported H1 2026 sales of CHF 2.1B (~$2.6B) 2027: BLA/MAA filing Choroidal Neovascularization 1 Peak sales consensus estimates per Factset as of the date of this presentation
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18 Potential Near-Term Growth Drivers: Ojemda Product Value Proposition Launched: Relapsed or Refractory Pediatric Low-Grade Glioma (r/r pLGG) • First targeted therapy demonstrating clinically meaningful tumor shrinkage and durable responses in relapsed/refractory BRAF fusion/rearrangement and V600−mutated pLGG Phase 3: Frontline Pediatric Low-Grade Glioma (Frontline pLGG) • Potential expansion of highly targeted type II RAF inhibitor from refractory to newly diagnosed patients Analyst Consensus Peak Sales 1: $1B+, Potential Royalty to Ligand: ~$60M Recent New s Key Upcoming Catalysts Jan 2026: Day One announced 2026 Ojemda US net revenue guidance of $225−250 million2 Feb 2026: Positive CHMP opinion granted for R/R March 2026 : Servier announced acquisition of Day One for $2.5B April 2026 : Ipsen gained marketing approval in Europe H2 2026 to H1 2027: Potential approval in Japan Mid - 2027: Topline Phase 3 data in frontline pLGG 1 Analyst peak sales for Ojemda under Day One, no update since acquisition of Day One by Servier in April 2026 2 Guidance provided by Day One in January 2026, no update provided since acquisition of Day One by Servier in April 2026
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19 FDA Approval FDA Approval Geographic Ex pansion FDA Approval Potential FDA Approval for Qtorin Rapamycin in MLM Potential Geographic Expansion for Commercial - Stage Products Portfolio Potential Catalysts In Next 18−Months Pivotal Trial Readouts Phase 3 Trial Readouts Lasofoxifene Mezagitamab Osavampator2 Volixibat1 AVIM Up To 7 Pivotal Trial Readouts Anticipated in Next 18 −Months 1. Volixibat is in development by Mirum Pharmaceuticals under license from Takeda 2. Osavampator is being developed by Takeda in Japan and by a Takeda partner outside Japan Ersodetug
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Q&A