Company: LGNZZ
Filing Date: 2025-08-08
Form Type: 10-Q
Source: 0000886163-25-000051
Chunk: 35

Company: LIGAND PHARMACEUTICALS INC
Filing Date: 2025-08-08
Form: 10-Q
Item: Item 1
Chunk 35
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 six months ended June 30, 2025 and 2024, we recorded a reduction of $0.8 million and $4.6 million, respectively, to Elutia allowance of expected credit loss. Soticlestat AgreementIn October 2023, we made an investment of $30 million to acquire a 13% portion of the royalties and milestones owed to Ovid Therapeutics related to the potential approval and commercialization of soticlestat. 

In June 2024, Takeda announced topline results of the Phase 3 clinical trial of soticlestat, narrowly missing its primary endpoint to reduce convulsive seizure frequency compared to placebo in patients with Dravet syndrome, and missing its primary endpoint to reduce major motor drop seizure frequency compared to a placebo in patients with Lennox-Gastaut syndrome. As a result, we recognized an impairment over the soticlestat financial royalty asset of $26.2 million during the three and six months ended June 30, 2024. In January 2025, Takeda announced its decision to discontinue its soticlestat program. As a result, we recognized a full impairment of the soticlestat financial royalty asset in the fourth quarter of 2024. 

24

6. Fair Value Measurements

Assets and Liabilities Measured on a Recurring BasisThe following table presents the hierarchy for our assets and liabilities measured at fair value (in thousands):June 30, 2025December 31, 2024Level 1Level 2Level 3TotalLevel 1Level 2Level 3TotalAssets:Short-term investments, excluding Viking(1)$72,560 $78,291 $— $150,851 $81,807 $61,811 $— $143,618 Investment in Viking common stock26,500 — — 26,500 40,240 — — 40,240 Derivative assets(2)— — 17,958 17,958 — — 10,583 10,583      Total assets$99,060 $78,291 $17,958 $195,309 $122,047 $61,811 $10,583 $194,441 Liabilities:Contingent liabilities - CyDex$— $— $351 $351 $— $— $383 $