...the company faces it biggest existential threat in what is likely to be a momentous impairment of its largest royalty generating asset, Promacta,"
Fr. Emmanuel Lemelson, June 16, 2014 Research Report
Now on the left side of this chart, with Promacta... the inevitable patent termination, product comes off patent sales decline and they will go to zero"
John Higgins, Ligand Pharma CEO, March 5, 2019 Conference Call
Shares of Ligand Pharmaceuticals (NASDAQ: LGND) continued its downward spiral, plunging almost 13 percent in early trading today, March 6, 2019, falling as much as 63 percent since September 30, 2018 and hitting a 2-year low. Yesterday after market close the company reported it was disposing of its single-largest asset, the 25-year-old Promacta, stating in part:
We do not control the IP and some of the initial patents come off as early as 2021," (referring to the event as a 'patent cliff').
The company further stated:
When it [Promacta] does royalties are expected to quickly diminish significantly... when off patent, the following year the company estimated it could lose over $125 million of revenue,"
In June 2014, Lemelson Capital Management issued its first report pointing out competitive threats to Promacta, its limited future potential as well as the risks associated with Ligand's revenue streams. Since that time, Fr. Emmanuel has publish 4 additional research reports, issued 16 articles/press releases, posted 66 tweets, given 11 interviews, and written two letters to Congress, making nearly 1,000 distinct allegations, including accounting and securities fraud perpetrated by Ligand.
In January 2019 multiple law firms announced investigations into Ligand for possible violations of federal securities laws.
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