Joohwan Kim

Joohwan Kim inquired about how the reiterated guidance range accounts for the slight delay in FSGS approval, specifically asking about the assumed FSGS royalties in the low end of the 2026 range.

Answer

CEO Todd Davis stated that the 2026 royalty guidance included a modest, risk-adjusted assumption of $4 million for FSGS, as disclosed at Investor Day. He noted that the delay minimally impacts this number, and FSGS is expected to be a minor contributor in 2026 but more significant in later years.

Joohwan Kim asked for clarification on Ligand's reiterated guidance range, specifically how the slight delay for FSGS approval impacts it and the assumed FSGS royalties in the low end of the 2026 range.

Answer

CEO Todd Davis clarified that the delay for FSGS approval has a minimal impact on the 2026 guidance. He stated that the 2026 royalty guide includes a relatively modest, risk-adjusted assumption of $4 million for FSGS, noting it will be a minor contributor in 2026 but is expected to become more significant in later years.

Joohwan Kim, on for Whitney Ijem, asked for clarity on the magnitude of development costs CSL needs to recoup before Arcturus receives profit-sharing payments and inquired about the next steps for KOSTAIVE's commercialization in the EU.

Answer

CFO Andrew Sassine explained that while a specific total for recoupable costs hasn't been disclosed, the recently recognized $28 million share of gross profit contributes toward that amount. He deferred to their partner CSL for details on the EU commercialization strategy but reiterated that Arcturus's cash runway guidance to Q1 2027 does not depend on future KOSTAIVE revenue.