Ligand Announces Preliminary Unaudited Financial Results for 2005.SAN DIEGO San Diego (săn dēā`gō), city (1990 pop. 1,110,549), seat of San Diego co., S Calif., on San Diego Bay; inc. 1850. San Diego includes the unincorporated communities of La Jolla and Spring Valley. Coronado is across the bay. -- Ligand ligand (lĭg`ənd), charged or uncharged molecule with one or more unshared pairs of electrons that can attach to a central metallic atom or ion to form an aggregate known as a complex ion (see chemical bond). Pharmaceuticals Incorporated (Pink Sheets: LGND LGND Luminance Ground ) (the "Company" or "Ligand") announced preliminary unaudited financial results for its fourth quarter and fiscal year 2005.
The Company also announced that the filing of the Annual Report on Form 10-K Form 10-K
A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information.
See 10-K. for fiscal year 2005 would be delayed to provide additional time to complete the evaluation and audit of internal control over financial reporting required by Section 404 of the Sarbanes-Oxley ("SOX (1) (Schema for Object-oriented XML) An XML schema developed by Veo Systems and Muzino Communications, which was submitted to the W3C. SOX is based on DTD, but adds data typing and reuse mechanisms. ") Act of 2002. The SOX 404 process was delayed as a result of the restatement Restatement
A revision in a company's earlier financial statements.
The need for restating financial figures can result from fraud, misrepresentation, or a simple clerical error. of our consolidated financial statements Consolidated Financial Statements
The combined financial statements of a parent company and its subsidiaries.
Because consolidated financial statements present an aggregated look at the financial position of a parent and its subsidiaries, they enable you to gauge which did not conclude until late in 2005.
Ligand has notified the Securities and Exchange Commission ("SEC") that the Company's Form 10-K for fiscal year 2005 will be delayed. The Company does not believe at this time that it will be able to file its Form 10-K by March 31, 2006 which would permit it to obtain a 15-day extension of the filing deadline under the SEC's rules. The Company expects to receive from its independent public accounting firm, as part of their audit report, a disclaimer of opinion Disclaimer of opinion
An auditor's statement that does not express any opinion regarding the company's financial condition.
disclaimer of opinion , i.e., the non-expression of an opinion, related to management's assessment of internal control over financial reporting and the effectiveness of the Company's internal control over financial reporting. The Company also expects to report material weaknesses in internal control over financial reporting when the Form 10-K is filed. As a result of the delay in the filing of its Form 10-K, the Company will continue to discuss and review its relisting application with NASDAQ NASDAQ
in full National Association of Securities Dealers Automated Quotations
U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on Staff following the filing of its Annual Report on Form 10-K.
Preliminary Results for Fourth Quarter and Fiscal Year 2005 Show Strong Product Revenue Growth and Reduction in Net Losses Versus Prior Year as well as Significant Positive Net Operating Cash Generation
The 2005 and the fourth quarter 2005 financial data and discussions presented in this press release are preliminary, unaudited, and unreviewed by BDO Seidman BDO Seidman, LLP is the United States arm of BDO International, one of the largest accounting firms outside of the Big Four. History
BDO Seidman, LLP was founded as Seidman and Seidman in New York City in 1910 by Maximillian L. Seidman. , LLP LLP - Lower Layer Protocol ("BDO BDO Big Day Out (Australian music festival)
BDO Banco de Oro (Philippines)
BDO British Darts Organisation
BDO Block Development Officer
BDO Big Dumb Object "), the Company's independent public accountants. Consequently, they should be viewed as reflecting the Company's current expectations with due regard to items still to be completed as discussed elsewhere in this press release. Since the completion of the integrated audit required by the PCAOB's Audit Standard No. 2 for fiscal year 2005 is still ongoing, the 2005 financial data provided in this press release is subject to change and the changes, individually or in the aggregate, may be material to the Company's consolidated financial position, results of operation, or liquidity.
Total 2005 Product Sales Increase 38% with AVINZA(R) 62% Over Prior Year
Total revenues for the year ended December December: see month. 31, 2005 were $176.6 million compared to $163.5 million for fiscal year 2004, an increase of 8%. Excluding the effect in 2004 of the sale of royalty rights of $31.3 million, total revenues would have increased from $132.2 million in 2004 to $176.6 million in 2005, an increase of 34%. Loss from operations was $26.5 million compared to $37.4 million for 2004, a decrease of 29%. Net loss for the year ended December 31, 2005 was $36.4 million ($0.49 per share) compared to $45.1 million ($0.61 per share) for 2004, representing a decrease of 19% (20% per share).
For the fourth quarter ended December 31, 2005, total revenues were $49.1 million, compared to $67.1 million for the same 2004 period, a decrease of 27%. Total revenues in 2004 included revenues of $31.3 million for sale of royalty rights. Excluding the effect in 2004 of the sale of royalty rights, total revenues would have increased from $35.8 million in 2004 to $49.1 million in 2005, an increase of 37%. Net product sales also increased by 37% for the three months ended December 31, 2005, from $34.2 million for the same period in 2004 to $46.7 million in 2005. Net loss for the quarter ended December 31, 2005 was $2.7 million ($0.04 per share) compared to net income of $17.3 million for the same 2004 period.
"Ligand's strong product sales growth of 37% in the fourth quarter of 2005 compared to the same period in 2004 reflects a 52% increase of AVINZA sales to $33.4 million and a 62% increase of AVINZA sales to $112.8 million for the full year 2005 compared to 2004," said Paul V Paul V, 1552–1621, pope (1605–21), a Roman named Camillo Borghese; successor of Leo XI. He was created cardinal (1596) by Clement VIII and was renowned for his knowledge of canon law. . Maier Maier is a surname, and may refer to:
The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. (excluding co-promotion Co-promotion is a marketing practice where a company in addition to its own, uses another company's sales force to promote the same brand or range of brands. The term is frequently confused with Co-marketing. See also
Marketing co-operation expense) compared to the prior year, we achieved a reduction in quarterly operating losses operating loss
The excess of operating expenses over revenue. As with operating income, operating losses exclude revenues and expenses from operations that are not considered a regular part of the business. Also called deficit. Compare operating income. to $0.7 million in the fourth quarter of 2005, an improvement sequentially in each quarter of 2005. In addition, the Company generated net operating cash of $8.4 million for the year ended December 31, 2005 and ended the year with $88.8 million in cash, cash equivalents, short-term Short-term
Any investments with a maturity of one year or less.
1. Of or relating to a gain or loss on the value of an asset that has been held less than a specified period of time. investments, and restricted investments.
"The continuing improvement in 2005 operating results and cash flow further strengthens the Company's financial profile and supports the ongoing strategic process during fiscal 2006. We are pleased with our 2005 growth compared to prior year, although we note that fourth quarter AVINZA (primarily due to our decision to eliminate some low margin Medicaid Medicaid, national health insurance program in the United States for low-income persons; established in 1965 with passage of the Social Security Amendments and now run by the Centers for Medicare and Medicaid Services. business) and ONTAK(R) product demand softened soft·en
v. soft·ened, soft·en·ing, soft·ens
1. To make soft or softer.
2. To undermine or reduce the strength, morale, or resistance of.
3. and our operating groups are working to improve that demand. We are also tackling the detailed, voluminous work of completing the evaluation of internal control over financial reporting required by Section 404 of SOX. Finishing this work, the integrated audit, and filing the 10-K is the top priority for our finance and accounting organization," said Maier.
Fourth Quarter 2005 Product Sales Increase 37% and AVINZA 52% Over Prior Year
Total Net Product Sales:
Our total net product sales for the three months ended December 31, 2005 were $46.7 million compared to $34.2 million for the same 2004 period, an increase of 37%. Total net product sales for the year ended December 31, 2005 were $166.1 million compared to $120.3 million for the same 2004 period, an increase of 38%. A comparison of total net product sales by product is as follows (in thousands):
Three months Twelve months ended ended December December 31, 31, ----------------- ------------------- 2005 2004 2005 2004 -------- -------- --------- --------- AVINZA(R) $33,426 $22,012 $112,793 $69,470 -------- -------- --------- --------- ONTAK(R) 6,823 7,910 30,996 32,200 -------- -------- --------- --------- Targretin(R) capsules 5,612 3,623 18,692 15,105 -------- -------- --------- --------- Targretin(R) and Panretin(R) gels 856 618 3,600 3,560 -------- -------- --------- --------- Total net product sales $46,717 $34,163 $166,081 $120,335 ======== ======== ========= =========
Sales of AVINZA increased to $33.4 million for the three months ended December 31, 2005 compared to $22.0 million for the same 2004 period. Fourth quarter 2005 sales of AVINZA benefited from a $2.9 million reduction in the provision for losses on returns. This adjustment resulted from lower rates of return on lots of AVINZA that closed out in the fourth quarter of 2005, thereby lowering the historical weighted average rate of return used for estimating the allowance. For the year ended December 31, 2005, sales of AVINZA were $112.8 million compared to $69.5 million in 2004. The increase is due to price increase effects, higher prescriptions as a result of an increased level of marketing and sales activity, a shift in the mix of prescriptions to the higher doses of AVINZA and the product's position in state Medicaid and commercial formularies. Demand for AVINZA as measured by prescription levels increased by 27% in 2005 compared to 2004, as reported by IMS Health IMS Health (NYSE: RX) is an international consulting and data services company that supplies the pharmaceutical industry with sales data and consulting services. IMS Health was founded in 1954 by Bill Frohlich and David Dubow. . Sales of AVINZA in 2005 also benefited from the full year impact of a 9% price increase effective July July: see month. 1, 2004 and the partial year impact of a 7% price increase effective April 1, 2005. Net AVINZA product sales for 2005 were negatively impacted by an increase in Medicaid rebates and managed care rebates.
Sales of ONTAK decreased to $6.8 million for the three months ended December 31, 2005 compared to $7.9 million for the same 2004 period. Sales of ONTAK were $31.0 million for the full year 2005 compared to $32.2 million in 2004. ONTAK sales in 2005 were negatively impacted by a 13% decrease in wholesaler outmovement due primarily to a decline in the office segment of the market, which has been impacted by negative changes in reimbursement Reimbursement
Payment made to someone for out-of-pocket expenses has incurred. rates. Growth in key areas in the hospital segment was not sufficient to offset the office segment trend. ONTAK sales for 2005 were also negatively impacted by a continued increase in chargebacks and rebates due to changes in patient mix and the evolving reimbursement rates. The decrease in ONTAK unit sales unit sales
Sales measured in terms of physical units rather than dollars. Unit sales data are often used by financial analysts when evaluating the health of a company. was partially offset by the full year impact of a 9% price increase effective January January: see month. 1, 2004 and the partial year impact of a 7% price increase effective January 1, 2005 and a 4% price increase effective July 1, 2005. We expect improved reimbursement rates for 2006 will benefit the office segment of the market.
Sales of Targretin(R) capsules increased to $5.6 million for the three months ended December 31, 2005 compared to $3.6 million for the same 2004 period. For the full year 2005, sales of Targretin capsules were $18.7 million compared to $15.1 million in 2004. Based on information provided by IMS Health, U.S. demand for Targretin capsules, as measured by product outmovement, increased by 8% in 2005. Unit sales in Europe Europe (yr`əp), 6th largest continent, c.4,000,000 sq mi (10,360,000 sq km) including adjacent islands (1992 est. pop. 512,000,000). increased by 30%. Sales also benefited by the full year impact of a 7% price increase effective January 1, 2004 and a partial year impact of a 7% price increase effective January 1, 2005 and a 5% price increase effective July 1, 2005. As a result of the implementation of the Section 641 Demonstration Program and Medicare Medicare, national health insurance program in the United States for persons aged 65 and over and the disabled. It was established in 1965 with passage of the Social Security Amendments and is now run by the Centers for Medicare and Medicaid Services. Part D, we expect improved patient access for Targretin in 2006.
Gross margin on product sales was 82.2% for the three months ended December 31, 2005 compared to 62.8% for the same 2004 period. Gross margin for the fourth quarter 2005 reflects the benefit of a $2.9 million reduction in the provision for losses on returns. Gross margin for the fourth quarter of 2004 reflects a charge to royalty expense of $3.0 million for deferred royalties at the end of a contracted royalty period for which we did not have offset rights.
For the full year, gross margin on product sales was 76.0% in 2005, compared to 66.9% in 2004. The increase in the margin in 2005 is primarily due to the increase in sales of AVINZA which represented 67.9% of net product sales for 2005 compared to 57.7% for 2004 as well as to ONTAK margins which were positively impacted during 2005 by lower royalties as a result of the restructuring restructuring - The transformation from one representation form to another at the same relative abstraction level, while preserving the subject system's external behaviour (functionality and semantics). of the Company's royalty obligation to Lilly For lily, the flower, see .
Lilly is a surname and a female given name, and may refer to: People
Recorded in asset accounts and then depreciated or amortized, as is appropriate for expenditures for items with useful lives longer than one year. license royalty and technology rights recorded in connection with the acquisition of the rights to those products and accordingly, margins improve as sales of these products increase and there is greater coverage of the fixed amortization of the intangible assets Intangible Asset
An asset that is not physical in nature.
Examples are things like copyrights, patents, intellectual property, and goodwill. These are the opposite of tangible assets. .
Gross margins in 2005 were also favorably fa·vor·a·ble
1. Advantageous; helpful: favorable winds.
2. Encouraging; propitious: a favorable diagnosis.
3. impacted by price increases on ONTAK, Targretin capsules and Targretin(R) gel which became effective January 1, 2004 and July 1, 2005 and for AVINZA which became effective July 1, 2004 and April 1, 2005. Under the sell-through sell-through
of the sale of prerecorded video cassettes, without their first being for hire only revenue recognition method, changes to prices do not impact net product sales and therefore gross margins until product sells through the distribution channel.
Collaborative R&D/Other Revenues:
Collaborative research and development and other revenues for the three months ended December 31, 2005 were $2.4 million compared to $32.9 million for the same 2004 period. For the full year 2005, collaborative research and development and other revenues were $10.5 million in 2005 compared to $43.2 million for the same 2004 period. Fourth quarter 2004 other revenue included $31.3 million for the sale of royalty rights.
Research and development expenses were $13.9 million for the three months ended December 31, 2005 compared to $14.4 million for the same 2004 period. For the full year 2005, research and development expenses were $56.1 million compared to $65.2 million for the same 2004 period. Spending for new product development expenses accounted for the majority of the decrease, due primarily to a reduced level of spending on phase III clinical trials Noun 1. phase III clinical trial - a large clinical trial of a treatment or drug that in phase I and phase II has been shown to be efficacious with tolerable side effects; after successful conclusion of these clinical trials it will receive formal approval from the for Targretin capsules in NSCLC NSCLC non (or cancer).
NSCLC Non-small cell lung cancer, see there .
Selling, general, and administrative expenses for the three months ended December 31, 2005 were $17.5 million compared to $15.7 million for the same 2004 period. For the full year 2005, selling, general, and administrative expenses were $74.7 million compared to $65.8 million for the same 2004 period. The increase for 2005 reflects a higher level of costs associated with additional Ligand sales representatives hired in the second and third quarter of 2004 to promote AVINZA and higher advertising and promotion expenses for AVINZA, ONTAK, and Targretin capsules. The 2005 period also reflects higher accounting, legal, and consulting expenses incurred in connection with the Audit Committee's review of the Company's consolidated financial statements, the restatement and re-audit of the Company's consolidated financial statements and ongoing shareholder litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute.
When a person begins a civil lawsuit, the person enters into a process called litigation. . We expect selling, general, and administrative expenses in 2006 to be higher than 2005 due to a continuing higher level of accounting expenses, particularly costs of compliance with the Sarbanes-Oxley Act See SOX. , higher audit fees and consulting expenses, costs to be incurred in connection with employee retention agreements, and higher AVINZA related clinical, advertising, and promotion expenses. Prior to the termination agreement with Organon or·ga·non or or·ga·num
n. pl. or·ga·nons or or·ga·nums or or·ga·na
1. An organ.
2. A set of principles for use in scientific investigation.
pl. organa [Gr.] organ. , the companies shared equally all costs for clinical, advertising, and promotion activities. In connection with the termination of the co-promotion agreement starting in January 2006, we are now responsible for all such expenses.
Co-promotion expense payable to Organon for the three months ended December 31, 2005 was $10.0 million compared to $7.8 million for the same 2004 period. For the full year 2005, co-promotion expenses payable to Organon amounted to $32.5 million compared to $30.1 million for the same 2004 period. Prior to the restatement of our revenues to the sell-through revenue recognition method, we calculated the amount owed to Organon using the sell-in revenue recognition method. In connection with the agreement in January 2006 to terminate the co-promotion, the companies resolved their disagreement concerning prior co-promote fees and as a result, we paid Organon $14.75 million in January 2006. Resolution of this matter resulted in no material adjustment to amounts previously recorded in 2005 for co-promote expense. Additionally, in connection with the termination agreement, the companies agreed that Organon would be paid 30% of reported U.S. GAAP GAAP
See: Generally Accepted Accounting Principles
See generally accepted accounting principles (GAAP). net sales Net Sales
The amount a seller receives from the buyer after costs associated with the sale are deducted.
This amount is calculated by subtracting the following items from gross sales: merchandise returned for credit, allowances for damaged or missing goods, freight for the fourth quarter of 2005. During the 2006 transition period through September September: see month. 30, 2006, Organon will be paid 23% of reported U.S. GAAP net sales, subject to certain adjustments downward if minimum calls are not achieved. Additionally, the Company will pay Organon $37.75 million on or before October October: see month. 15, 2006 and $10.0 million on or before January 15, 2007, provided that Organon has made its minimum required level of sales calls. Under certain conditions, including change of control, the cash payments will accelerate. In addition, after the transition period, the Company will make quarterly royalty payments to Organon equal to 6.5% of AVINZA net sales through December 31, 2012 and thereafter 6% through patent expiration EXPIRATION. Cessation; end. As, the expiration of, a lease, of a contract, or statute.
2. In general, the expiration of a contract puts an end to all the engagements of the parties, except to those which arise from the non- fulfillment of obligations created , currently anticipated to be November of 2017.
Cash, cash equivalents, short-term investments, and restricted investments totaled $88.8 million at December 31, 2005 compared to $114.9 million at December 31, 2004 and $75.6 million at September 30, 2005. Operating activities provided cash of $8.4 million in 2005 compared to $5.8 million in 2004.
As announced on November 18, 2005, Ligand has retained UBS UBS Union Bank of Switzerland
UBS United Bible Societies
UBS United Blood Services
UBS United Buying Service
UBS Used Bookstore
UBS University Business Services
UBS Universal Building Society (UK)
UBS Ulaanbaatar Broadcasting System to explore all strategies to maximize shareholder value. That process remains ongoing and, as such, Ligand will not hold a conference call in conjunction with this release.
Ligand discovers, develops and markets new drugs that address critical unmet un·met
Not satisfied or fulfilled: unmet demands. medical needs of patients in the areas of cancer, pain, skin diseases, men's and women's hormone-related diseases, osteoporosis osteoporosis (ŏs'tēō'pərō`sĭs), disorder in which the normal replenishment of old bone tissue is severely disrupted, resulting in weakened bones and increased risk of fracture; osteopenia , metabolic disorders Noun 1. metabolic disorder - a disorder or defect of metabolism
disorder, upset - a physical condition in which there is a disturbance of normal functioning; "the doctor prescribed some medicine for the disorder"; "everyone gets stomach upsets from time to time" , and cardiovascular cardiovascular /car·dio·vas·cu·lar/ (-vas´ku-ler) pertaining to the heart and blood vessels.
Abbr. and inflammatory diseases Noun 1. inflammatory disease - a disease characterized by inflammation
disease - an impairment of health or a condition of abnormal functioning
NEC, necrotizing enterocolitis - an acute inflammatory disease occurring in the intestines of premature infants; . Ligand's proprietary drug discovery and development programs are based on its leadership position in gene transcription Gene transcription
The process by which genetic information is copied from DNA to RNA, resulting in a specific protein formation.
Mentioned in: Gene Therapy technology, primarily related to intracellular receptors Intracellular receptors are receptors located inside the cell rather than on its cell membrane. Examples are the class of nuclear receptors located in the cell nucleus and the IP3 receptor located on the endoplasmic reticulum. . For more information, go to http://www.ligand.com.
Caution Regarding Forward-Looking Statements forward-looking statement
A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections.
This news release contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended a·mend
v. a·mend·ed, a·mend·ing, a·mends
1. To change for the better; improve: amended the earlier proposal so as to make it more comprehensive.
2. , that reflect Ligand's judgment and involve risks and uncertainties as of the date of this release. These statements include statements containing words such as "expect" and "believe." The statements include those related to 2005 financial data, including revenues and demand, estimates and discussion including management's expectations and trend analyses, models, completion of the integrated audit and review of internal control over financial reporting under Section 404 of Sarbanes-Oxley and the filing of Annual Report on Form 10-K for 2005, material weaknesses in internal control over financial reporting, progressive improvements in gross margins, declining operating expenses, improved ONTAK reimbursement rates, improved patient access to Targretin, higher SG&A expenses, expense offsets, cash resources, cash flow, the strategic process, and relisting on NASDAQ . Actual events or results may differ from Ligand's expectations, judgments, and beliefs. There can be no assurance as to when the audit and review of internal control over financial reporting will be completed or when the Company will file the Annual Report Form 10-K for 2005; that the Company will identify all material weaknesses or that it will successfully or timely remediate re·me·di·a·tion
The act or process of correcting a fault or deficiency: remediation of a learning disability.
re·me any identified material weakness or significant deficiencies; that gross margins, revenues or demand will continue on any trend or improve or that expenses will decline or be offset; that improvements in reimbursement rates or patient access will occur; that the Company will have adequate cash or cash flow for future periods; that the strategic process will be successful or yield preferred results or that the Company will be relisted on NASDAQ in any particular timeframe or at all. In addition, the Company's stock price may suffer as a result of matters including: the delay in the completion of the 404 evaluation and audit of internal control over financial reporting or the filing of Form 10-K; the results of the SEC's enforcement investigation currently being conducted with which the Company is co-operating. The Company's relationships with its vendors, stockholders or other creditors may also be adversely affected as a result.
The 2005 financial data and discussions presented in this press release are preliminary, unaudited, and reflect the Company's current estimates. They should be viewed as reflecting the Company's expectations and with due regard to items still to be completed discussed elsewhere in this press release. Since the 2005 audit and review of internal control over financial reporting is ongoing, the 2005 financial information provided in this press release is subject to change and the changes, individually or in the aggregate, may be material to the Company's financial position, results of operation, or liquidity.
Moreover, current and future financial results depend on estimates and the proper operation of highly-complex accounting models, all of which are subject to change and errors. The Company has previously reported and expects to identify material weaknesses in its internal control over financial reporting which could have a material adverse effect in our ability to accurately and timely report financial information. Changes and/or errors in our financial data may be material either individually or in the aggregate. Any change, error or delay in preparing financial statements or filings could adversely affect our financial results, timeliness of SEC filings and stock price.
Additional information concerning these and other risk factors affecting Ligand's business can be found in prior press releases as well as in Ligand's public periodic filings with the SEC, available via Ligand's web site at www.ligand.com. Ligand disclaims any intent or obligation to update these forward-looking statements beyond the date of this release.
AVINZA, Targretin, ONTAK and Panretin(R) are registered trademarks of Ligand Pharmaceuticals Incorporated. Each other trademark, trade name or service mark appearing in this news release belongs to its holder.
LIGAND PHARMACEUTICALS INCORPORATED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) (in thousands, except share and per share data) Three Months Ended Year Ended December 31, December 31, ----------------------- ----------------------- 2005 2004 2005 2004 ----------- ----------- ----------- ----------- Revenues: Product sales $46,717 $34,163 $166,081 $120,335 Sale of royalty rights, net - 31,275 - 31,342 Collaborative research and development and other revenues 2,351 1,613 10,527 11,835 ----------- ----------- ----------- ----------- Total revenues 49,068 67,051 176,608 163,512 ----------- ----------- ----------- ----------- Operating costs and expenses: Cost of products sold 8,308 12,722 39,847 39,804 Research and development 13,905 14,374 56,075 65,204 Selling, general and administrative 17,505 15,666 74,656 65,798 Co-promotion 10,029 7,845 32,501 30,077 ----------- ----------- ----------- ----------- Total operating costs and expenses 49,747 50,607 203,079 200,883 ----------- ----------- ----------- ----------- Income (loss) from operations (679) 16,444 (26,471) (37,371) Other income (expense), net (2,038) 1,086 (9,869) (7,537) ----------- ----------- ----------- ----------- Income (loss) before income taxes (2,717) 17,530 (36,340) (44,908) Income tax expense (5) (196) (59) (233) ----------- ----------- ----------- ----------- Net income (loss) $(2,722) $17,334 $(36,399) $(45,141) =========== =========== =========== =========== Basic per share amounts: Net income (loss) $(0.04) $0.23 $(0.49) $(0.61) =========== =========== =========== =========== Weighted average number of common shares 74,057,555 73,860,662 74,019,501 73,692,987 =========== =========== =========== =========== Diluted per share amounts: Net income (loss) $(0.04) $0.20 $(0.49) $(0.61) =========== =========== =========== =========== Weighted average number of common shares 74,057,555 99,449,757 74,019,501 73,692,987 =========== =========== =========== =========== LIGAND PHARMACEUTICALS INCORPORATED CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (in thousands) December December 31, 31, 2005 2004(a) --------- --------- Assets Current assets: Cash, cash equivalents and short-term investments $86,930 $112,492 Other current assets 46,037 55,715 --------- --------- Total current assets 132,967 168,207 Restricted investments 1,826 2,378 Property and equipment, net 22,483 23,647 Acquired technology, product rights and royalty buy-down, net 146,770 127,443 Other assets 10,573 10,791 --------- --------- $314,619 $332,466 ========= ========= Liabilities and Stockholders' Deficit Current liabilities, excluding deferred revenue $77,692 $64,184 Current portion of deferred revenue, net 157,519 152,528 Long-term debt 166,745 167,089 Other long-term liabilities 10,737 11,637 Common stock subject to conditional redemption 12,345 12,345 Stockholders' deficit (110,419) (75,317) --------- --------- $314,619 $332,466 ========= =========
(a) Certain reclassifications have been made to amounts included in the condensed con·dense
v. con·densed, con·dens·ing, con·dens·es
1. To reduce the volume or compass of.
2. To make more concise; abridge or shorten.
a. consolidated balance sheet consolidated balance sheet
A balance sheet in which assets and liabilities of a parent company and its controlled subsidiaries are combined, thereby presenting balance sheet items for the parent and its subsidiaries as if they were a single firm. as of December 31, 2004 to conform to Verb 1. conform to - satisfy a condition or restriction; "Does this paper meet the requirements for the degree?"
coordinate - be co-ordinated; "These activities coordinate well" the current year presentation.