Company: LGNZZ
Filing Date: 2025-02-28
Form Type: 10-K
Source: 0000886163-25-000012
Chunk: 115

Company: LIGAND PHARMACEUTICALS INC
Filing Date: 2025-02-28
Form: 10-K
Item: Item 7
Chunk 115
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2024 vs. FY 2023

(Dollars in thousands)20242023Change% ChangeCost of Captisol$11,074 $10,512 $562 5 %Amortization of intangibles32,959 33,654 (695)(2)%Research and development21,425 24,537 (3,112)(13)%General and administrative78,654 52,790 25,864 49 %Financial royalty assets impairment30,572 — 30,572 n/aFair value adjustment to partner program derivatives15,055 — 15,055 n/aTotal operating costs and expenses$189,739 $121,493 $68,246 56 %

Total operating costs and expenses for 2024 increased by $68.2 million or 56% compared with 2023. 

49

Cost of Captisol increased year over year in 2024 primarily due to higher sales of Captisol during 2024 compared to 2023. 

At any one time, we are working on multiple programs. As such, we generally do not track our R&D expenses on a specific program basis. Our R&D expenses decreased by $3.1 million in 2024 compared to 2023, with the decrease primarily attributable to lower employee related expenses and lab supplies resulting from the Pelican spin-off in September 2023. The decrease was partially offset by additional costs associated with incubating the Pelthos business.

General and administrative expenses increased by $25.9 million in 2024 compared to 2023, with the increase primarily driven by higher stock-based compensation expenses for investments made in building out our business development and investment team. Additionally, a one-time, non-cash stock award modification expense related to the departure of Ligand's former Chief Operating Officer and costs associated with incubating the Pelthos Therapeutics business contributed to the increase.

Financial royalty asset impairment was $30.6 million for 2024 primarily due to Takeda's decision to discontinue the soticlestat program.

Fair value adjustment to partner program derivatives was $15.1 million for 2024 primarily due to certain Agenus partners discontinuing development of their partnered programs. These programs may be relicensed at a later date, and Ligand would retain its economic interest upon any relicense activity.

We do not provide forward-looking estimates of costs and time to complete our ongoing research and development projects as such estimates would involve