Roth Affirms Ligand Pharma (LGND) at 'Buy' Following FDA Acceptance of Lundbeck's CE-Carbamazepine NDA Resubmission

Roth Capital is commenting on Ligand Pharmaceuticals (Nasdaq: LGND) today after Lundbeck announced that its resubmitted NDA for CE-carbamazepine was accepted by the FDA.

Analyst Joseph Pantginis commented today, We believe Lundbeck has addressed any open questions of the FDA regarding the NDA and expect approval. This anticipated approval would add another royalty line to Ligand's income. Ligand's royalty on the drug is 2.75% and we project peak sales conservatively be in the $373-400 million range. A new area of royalty growth is also now expected from the recent approval of Spectrum's Evomela for which Ligand will receive a 20% royalty. Also, as recently highlighted, partner Retrophin will have Phase IIb data (likely pivotal in our belief) for sparsentan FSGS in 3Q16 (9% royalty on potential approval). Melinta is expected to file for approval this year for Baxdela (delafloxacin - 2.5% royalty) and SAGE (NC) is expected to report topline Phase III data for SRSE in 2H16 (3% royalty). We also expect increasing visibility from the GRA program with the expected start of the Phase II program for LGD-6972.

For an analyst ratings summary and ratings history on Ligand Pharma click here. For more ratings news on Ligand Pharma click here.

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