Ligand Pharmaceuticals benefits from FDA approval of FILSPARI
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Sep 06 2024
0mins
Should l Buy LGND?
Ligand Pharmaceuticals Inc. shares rose by 9.79% as the stock reached a 52-week high.
The FDA approved Travere Therapeutics' FILSPARI for treating focal segmental glomerulosclerosis (FSGS), marking it as the first approved drug for this condition. Ligand is set to receive a 9% royalty on worldwide net sales, which is expected to significantly enhance its long-term revenue from this market. The approval is anticipated to solidify Ligand's position in the rare kidney disease market, as over 30,000 patients in the U.S. could benefit from this treatment.
This approval not only opens a new revenue stream for Ligand but also strengthens its competitive position in the biopharmaceutical industry, potentially leading to substantial growth in its royalty earnings.
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Analyst Views on LGND
Wall Street analysts forecast LGND stock price to rise
6 Analyst Rating
6 Buy
0 Hold
0 Sell
Strong Buy
Current: 225.090
Low
220.00
Averages
237.20
High
270.00
Current: 225.090
Low
220.00
Averages
237.20
High
270.00
About LGND
Ligand Pharmaceuticals Incorporated is a biopharmaceutical company enabling scientific advancement through supporting the clinical development of medicines. It does this by financing, licensing its technologies or both. It operates two infrastructure-light royalty-generating IP platform technologies. Its Captisol platform technology is a chemically modified cyclodextrin with a structure designed to optimize the solubility and stability of drugs. This technology has enabled FDA-approved products, including Gilead’s Veklury, Amgen’s Kyprolis, Baxter’s Nexterone, and Acrotech Biopharma’s Evomela. Its NITRICIL platform technology facilitates tunable dosing, permitting an adjustable drug release profile to allow proprietary formulations that target a range of indications. Its technologies also include HepDirect, LTP and BEPro Technology Platform, and Pelican Expression Technology. It has multiple alliances, licenses and other business relationships with various pharmaceutical companies.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Ligand's Partner Receives FDA Approval for FSGS Treatment
- FDA Approval Milestone: Travere Therapeutics has received FDA approval for FILSPARI (sparsentan), the first drug for treating focal segmental glomerulosclerosis (FSGS), marking Ligand's expansion into a second rare kidney disease and potentially increasing market share significantly.
- Clinical Trial Success: In Travere's Phase 3 DUPLEX study, patients treated with FILSPARI experienced a statistically significant 46% reduction in proteinuria at Week 108, outperforming the 30% reduction seen with the maximum labeled dose of irbesartan, highlighting its therapeutic advantages.
- Significant Market Potential: FILSPARI is currently the most commonly prescribed FDA-approved medication for IgAN, and Ligand is entitled to a 9% royalty on worldwide net sales, which is expected to contribute substantially to revenue growth.
- Strategic Implications: The FDA approval not only provides Ligand with a new revenue stream but also strengthens its competitive position in the kidney disease treatment market, further solidifying its status in the biopharmaceutical industry.
See More
FDA Approves Filspari for Rare Kidney Disorder Treatment
- FDA Approval: The U.S. FDA approved Filspari on Monday for treating focal segmental glomerulosclerosis (FSGS), making it the only approved treatment for this condition, potentially benefiting over 30,000 patients in the U.S. and significantly improving their quality of life.
- Clinical Trial Results: Filspari demonstrated a 48% reduction in proteinuria over 108 weeks in late-stage trials, validating its efficacy, and the FDA's approval strongly supports Travere Therapeutics' market outlook.
- Analyst Optimism: Canaccord raised its price target for Filspari from $47 to $56, projecting peak sales of $547 million by 2032, indicating strong market confidence in the drug's potential.
- Positive Market Reaction: Shares of Travere Therapeutics surged over 40% in pre-market trading on Tuesday following the FDA approval, reflecting enthusiastic investor sentiment, although the stock has still declined about 21% year-to-date.
See More
FDA Approves Travere and Ligand's Joint Kidney Disease Therapy Expansion
- FDA Approval Expansion: Travere Therapeutics announced that its kidney therapy Filspari received FDA approval for focal segmental glomerulosclerosis (FSGS), making it the first approved treatment, which is expected to significantly improve patient quality of life.
- Stock Surge: Following the FDA approval announcement, Travere's stock surged approximately 43%, reflecting strong market optimism regarding the drug's potential sales and therapeutic effects, which may drive future revenue growth for the company.
- Royalty Earnings: Ligand Pharmaceuticals stated that under its collaboration with Travere, it will receive a 9% royalty on global net sales of Filspari, providing a stable revenue stream and enhancing its financial outlook.
- Market Outlook: As Filspari is also FDA-approved for IgA nephropathy, Ligand expects its royalties to achieve a 23% compound annual growth rate by 2030, further solidifying its position in the high-growth pharmaceutical market.
See More
FILSPARI Receives FDA Approval for FSGS Treatment
- FDA Approval Milestone: Travere Therapeutics has received FDA approval for FILSPARI to treat FSGS in patients aged 8 and older, marking it as the first approved drug for this condition, which is expected to significantly enhance Ligand's long-term royalty revenue.
- Significant Market Potential: With over 30,000 individuals in the U.S. suffering from FSGS without nephrotic syndrome, the launch of FILSPARI will generate a 9% royalty on worldwide net sales for Ligand, further solidifying its position in the rare kidney disease market.
- Clinical Trial Success: In the DUPLEX study, FILSPARI achieved a 48% reduction in proteinuria in patients without nephrotic syndrome over 108 weeks, significantly outperforming the 27% reduction seen with the control drug irbesartan, demonstrating its superior efficacy.
- Good Safety Profile: FILSPARI was generally well tolerated among both adult and pediatric patients, with a safety profile comparable to irbesartan, providing strong support for its clinical application and market adoption.
See More
Travere Therapeutics Receives FDA Approval for New Drug
- FDA Approval for New Indication: Travere Therapeutics' Filspari has received FDA approval to reduce proteinuria in specific patients, becoming the first FDA-approved drug for focal segmental glomerulosclerosis (FSGS), marking a significant advancement in treatment options.
- Patient Population Potential: Travere estimates that there are at least 30,000 FSGS patients in the U.S. without nephrotic syndrome, providing a substantial market opportunity for Filspari, which could drive future revenue growth for the company.
- Clinical Trial Results: In a late-stage trial, Filspari-treated FSGS patients experienced a 48% reduction in proteinuria over 108 weeks, significantly outperforming the 27% reduction in the control group, demonstrating its notable efficacy in improving patient health outcomes.
- Positive Market Reaction: While Travere's stock dipped 0.2% in after-hours trading, shares of Ligand Pharmaceuticals, which has a licensing agreement for Sparsentan under the Filspari brand, rose 3%, reflecting positive market sentiment regarding the approval, with TVTX gaining 107% over the past year.
See More
FDA Extends Review Period for Filspari Drug Application
- FDA Review Extension: The FDA has extended the review period for Filspari's supplemental New Drug Application to January 2026, with a decision expected on April 13, 2026; if approved, it would be the first treatment specifically indicated for FSGS, significantly enhancing Travere's market potential.
- Citi Maintains Rating: Citi has maintained a 'Buy' rating and a $48 price target for Travere, asserting that the current share price does not fully reflect the company's opportunities in the FSGS market, and anticipates FDA approval for Filspari, which could further drive stock price increases.
- Clinical Trial Results: Although Travere's Phase 3 study did not meet its primary kidney function endpoint, it demonstrated improvements in proteinuria and reduced progression to kidney failure, indicating Filspari's potential in treating FSGS, which may attract increased investor interest.
- Market Sentiment Analysis: Retail investor sentiment on Stocktwits is 'bullish' for TVTX and 'neutral' for LGND; despite a 20% decline in TVTX shares year-to-date, the market remains optimistic about the upcoming FDA decision, potentially leading to a pre-decision stock price increase.
See More
Ligand's Partner Receives FDA Approval for FSGS Treatment
- FDA Approval Milestone: Travere Therapeutics has received FDA approval for FILSPARI (sparsentan), the first drug for treating focal segmental glomerulosclerosis (FSGS), marking Ligand's expansion into a second rare kidney disease and potentially increasing market share significantly.
- Clinical Trial Success: In Travere's Phase 3 DUPLEX study, patients treated with FILSPARI experienced a statistically significant 46% reduction in proteinuria at Week 108, outperforming the 30% reduction seen with the maximum labeled dose of irbesartan, highlighting its therapeutic advantages.
- Significant Market Potential: FILSPARI is currently the most commonly prescribed FDA-approved medication for IgAN, and Ligand is entitled to a 9% royalty on worldwide net sales, which is expected to contribute substantially to revenue growth.
- Strategic Implications: The FDA approval not only provides Ligand with a new revenue stream but also strengthens its competitive position in the kidney disease treatment market, further solidifying its status in the biopharmaceutical industry.
See More
FDA Approves Filspari for Rare Kidney Disorder Treatment
- FDA Approval: The U.S. FDA approved Filspari on Monday for treating focal segmental glomerulosclerosis (FSGS), making it the only approved treatment for this condition, potentially benefiting over 30,000 patients in the U.S. and significantly improving their quality of life.
- Clinical Trial Results: Filspari demonstrated a 48% reduction in proteinuria over 108 weeks in late-stage trials, validating its efficacy, and the FDA's approval strongly supports Travere Therapeutics' market outlook.
- Analyst Optimism: Canaccord raised its price target for Filspari from $47 to $56, projecting peak sales of $547 million by 2032, indicating strong market confidence in the drug's potential.
- Positive Market Reaction: Shares of Travere Therapeutics surged over 40% in pre-market trading on Tuesday following the FDA approval, reflecting enthusiastic investor sentiment, although the stock has still declined about 21% year-to-date.
See More
FDA Approves Travere and Ligand's Joint Kidney Disease Therapy Expansion
- FDA Approval Expansion: Travere Therapeutics announced that its kidney therapy Filspari received FDA approval for focal segmental glomerulosclerosis (FSGS), making it the first approved treatment, which is expected to significantly improve patient quality of life.
- Stock Surge: Following the FDA approval announcement, Travere's stock surged approximately 43%, reflecting strong market optimism regarding the drug's potential sales and therapeutic effects, which may drive future revenue growth for the company.
- Royalty Earnings: Ligand Pharmaceuticals stated that under its collaboration with Travere, it will receive a 9% royalty on global net sales of Filspari, providing a stable revenue stream and enhancing its financial outlook.
- Market Outlook: As Filspari is also FDA-approved for IgA nephropathy, Ligand expects its royalties to achieve a 23% compound annual growth rate by 2030, further solidifying its position in the high-growth pharmaceutical market.
See More
FILSPARI Receives FDA Approval for FSGS Treatment
- FDA Approval Milestone: Travere Therapeutics has received FDA approval for FILSPARI to treat FSGS in patients aged 8 and older, marking it as the first approved drug for this condition, which is expected to significantly enhance Ligand's long-term royalty revenue.
- Significant Market Potential: With over 30,000 individuals in the U.S. suffering from FSGS without nephrotic syndrome, the launch of FILSPARI will generate a 9% royalty on worldwide net sales for Ligand, further solidifying its position in the rare kidney disease market.
- Clinical Trial Success: In the DUPLEX study, FILSPARI achieved a 48% reduction in proteinuria in patients without nephrotic syndrome over 108 weeks, significantly outperforming the 27% reduction seen with the control drug irbesartan, demonstrating its superior efficacy.
- Good Safety Profile: FILSPARI was generally well tolerated among both adult and pediatric patients, with a safety profile comparable to irbesartan, providing strong support for its clinical application and market adoption.
See More
Travere Therapeutics Receives FDA Approval for New Drug
- FDA Approval for New Indication: Travere Therapeutics' Filspari has received FDA approval to reduce proteinuria in specific patients, becoming the first FDA-approved drug for focal segmental glomerulosclerosis (FSGS), marking a significant advancement in treatment options.
- Patient Population Potential: Travere estimates that there are at least 30,000 FSGS patients in the U.S. without nephrotic syndrome, providing a substantial market opportunity for Filspari, which could drive future revenue growth for the company.
- Clinical Trial Results: In a late-stage trial, Filspari-treated FSGS patients experienced a 48% reduction in proteinuria over 108 weeks, significantly outperforming the 27% reduction in the control group, demonstrating its notable efficacy in improving patient health outcomes.
- Positive Market Reaction: While Travere's stock dipped 0.2% in after-hours trading, shares of Ligand Pharmaceuticals, which has a licensing agreement for Sparsentan under the Filspari brand, rose 3%, reflecting positive market sentiment regarding the approval, with TVTX gaining 107% over the past year.
See More
FDA Extends Review Period for Filspari Drug Application
- FDA Review Extension: The FDA has extended the review period for Filspari's supplemental New Drug Application to January 2026, with a decision expected on April 13, 2026; if approved, it would be the first treatment specifically indicated for FSGS, significantly enhancing Travere's market potential.
- Citi Maintains Rating: Citi has maintained a 'Buy' rating and a $48 price target for Travere, asserting that the current share price does not fully reflect the company's opportunities in the FSGS market, and anticipates FDA approval for Filspari, which could further drive stock price increases.
- Clinical Trial Results: Although Travere's Phase 3 study did not meet its primary kidney function endpoint, it demonstrated improvements in proteinuria and reduced progression to kidney failure, indicating Filspari's potential in treating FSGS, which may attract increased investor interest.
- Market Sentiment Analysis: Retail investor sentiment on Stocktwits is 'bullish' for TVTX and 'neutral' for LGND; despite a 20% decline in TVTX shares year-to-date, the market remains optimistic about the upcoming FDA decision, potentially leading to a pre-decision stock price increase.
See More
