Company: LGNZZ
Filing Date: 2025-02-28
Form Type: 10-K
Source: 0000886163-25-000012
Chunk: 114

Company: LIGAND PHARMACEUTICALS INC
Filing Date: 2025-02-28
Form: 10-K
Item: Item 7
Chunk 114
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 customer orders. Contract revenue and other revenue increased by $9.5 million primarily due to milestone payments earned from Verona Pharma upon the approval and commercial launch of Ohtuvayre.

Revenue from intangible royalty assets is a function of our partners' product sales and the applicable royalty rate. Kyprolis royalty rate is under a tiered royalty rate structure with the highest being 3%. Evomela has a contractually fixed royalty rate of 20%. Teriparatide injection has a tiered gross profit share between 25% and 40% on sales that have been adjusted for certain deductible items as defined in the respective license agreement. The Rylaze and Vaxnuevance royalty rates are in the low single digits. Filspari has a fixed royalty rate of 9%. 

The following table represents revenue from intangible royalty assets by program (in millions):

(in millions)2024 Estimated Partner Product SalesEffective Royalty Rate2024 Royalty Revenue 2023 Estimated Partner Product SalesEffective Royalty Rate2023 Royalty RevenueKyprolis$1,627.4 2.4%$38.4 $1,503.1 2.4%$35.6 Rylaze409.4 3.3%13.7 397.5 3.4%13.5 Filspari135.6 9.0%12.2 30.0 9.0%2.7 Evomela43.5 20.0%8.7 51.0 20.0%10.2 Teriparatide injection(1)30.2 27.2%8.2 37.2 29.8%11.1 Vaxneuvance791.3 0.7%5.2 653.9 0.6%4.1 Other451.7 2.0%8.9 272.5 2.5%6.7 Total$3,489.1 $95.3 $2,945.2 $83.9 

(1) We receive tiered profit sharing of 25% on quarterly profits less than $3.75 million, 35% on quarterly profits greater than $3.75 million but less than $7.5 million and 40% on quarterly profits greater than $7.5 million.

Operating Costs and Expense

FY