What drove LGND's earnings growth in 2024?

Ligand Pharmaceuticals Inc. (LGND) experienced varying degrees of earnings growth and performance metrics throughout 2024, with a notable decline in Q4. Here's a detailed analysis of the key factors that drove LGND's earnings growth in 2024:

1. **Strategic Growth Initiatives**: LGND's strategic growth plans, unveiled at the Investor and Analyst Day, highlight the company's focus on innovation and expansion. These initiatives likely contributed to the robust financial performance in earlier quarters, including Q1 and Q2.
2. **Core Business Performance**: The company's core business, primarily focused on drug development and innovative solutions, has been a significant driver of earnings. The Q3 earnings report highlights strong growth in this area, indicating that LGND's core operations are performing well.
3. **Financial Acquisitions and Investments**: LGND's financial performance has been influenced by strategic acquisitions and investments. For instance, the Q2 earnings report mentions a $33.8 million decrease in investments in Primrose Bio, which could have had a negative impact on earnings, but other investments and acquisitions might have positively contributed.
4. **Revenue from Royalties and Licensing**: LGND's royalty revenue and licensing fees have been a substantial contributor to its earnings. The Q1 earnings call transcript highlights the company's successful royalty revenue model, which has likely supported earnings growth throughout the year.
5. **Stock Sale and Divestitures**: The company's financial results have also been affected by stock sales and divestitures. For example, the Q1 earnings report mentions a $2.64 contribution to adjusted EPS from the sale of Viking stock, which indicates that such transactions can significantly impact earnings.

In summary, LGND's earnings growth in 2024 was driven by strategic growth initiatives, core business performance, financial acquisitions and investments, revenue from royalties and licensing, and stock sale and divestitures. The company's ability to execute these strategies effectively has been a key factor in its financial success.