We Continue To Be Impressed By Ligand’s Revenue Growth, Says Roth Capital
In a research report sent to investors today, Roth Capital analyst Joseph Pantginis maintained a Buy rating on Ligand Pharmaceuticals (NASDAQ:LGND) with a $92 price target, following the company’s third-quarter pre-announcement.
Pantginis wrote, “We continue to be impressed by Ligand’s revenue growth while it remains ever vigilant in managing its expenses. While investor focus is primarily focused on Promacta and Kyprolis royalties, which we believe will continue to grow, we also look toward near term increased contribution from 1) the recently launched Duavee and 2) anticipated launch of CE-Melphalan. For Promacta, GlaxoSmithKline and now Novartis have been throwing significant resources towards developing the drug in oncology indications (above the approved indications for ITP, HepC and SAA). Recall that Promacta was recently approved for SAA under Breakthrough Designation. NVS is expected to file for approval in MDS next year. We also believe that ITP remains a strong driver for Promacta’s future growth and we are also encouraged by the drug’s potential in pediatric indications. The current prescription data continue to point to Promacta growth, while taking into account potential volatility in the HepC indication. In oncology, we believe Promacta’s growth could be based on lower risk supportive care settings, such as chemo-induced thrombocyotpenia and are also hopeful regarding early data supporting potential disease modifying capabilities. LGND’s royalty revenue model continues to bear fruit, with multiple catalysts in sight.”
According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Joseph Pantginis has a total average return of -12.3% and a 29.1% success rate. Pantginis has a -19.4% average return when recommending LGND, and is ranked #3311 out of 3319 analysts.