Ligand posts 4Q profit as charge comes off books

(AP) — Ligand Pharmaceuticals Inc. said Tuesday it turned a profit in the fourth quarter, compared with a year ago when it booked a hefty acquisition-related charge.

Ligand posted a profit of $3 million, or 3 cents per share. In the fourth quarter of 2008, it lost $69.6 million, or 72 cents per share, mostly due to a $72 million charge connected to its purchase of biotechnology company Pharmacopeia.

Revenue grew 13 percent to $14 million from $12.4 million. Ligand said its royalty revenue dropped to $1.8 million from $5.4 million, but collaborative research and development and other revenue jumped to $12.2 million from $7 million.

For the full year, Ligand cut its loss to $1.9 million, or 2 cents per share, from $98.1 million, or $1.03 per share, in 2008. Revenue grew 43 percent, to $38.9 million from $27.3 million.

For 2010, the company said it expects to book about $35 million in operating expenses and around $30 million in revenue.

In afternoon trading, Ligand stock rose 7 cents, or 4.5 percent, to $1.64.