- Ligand Pharmaceuticals (LGND -9.3%) gets some rude treatment by the market in early trading. Shares are down on more than double normal volume in apparent response to the failure of Amgen's (AMGN -1.1%) Phase 3 study of a combination regimen including KYPROLIS (carfilzomib) for the treatment of certain multiple myeloma patients.
- Investors may be a bit premature on their perception that sales of KYPROLIS will be hampered by the negative results considering the company's statement that the standard-of-care for newly diagnosed multiple myeloma has moved away from the chemo agent melphalan, which was a component of the combo regimens investigated in the study. The long-term trial commenced in March 2013.
- Ligand receives sales-based royalties from 1.5 - 3.0% from KYPROLIS. In the most recent four quarters, Amgen booked $611M in sales for the drug which translated to a 2.5% royalty for Ligand or ~$15.3M, almost 21% of the company's revenues over the same time frame.