Ligand Pharmaceuticals

This biotechnology firm generates most of its revenue in two ways—by partnering with other pharmaceutical companies, which pay royalties and license fees for use of Ligand’s drugs, and through sales of the company’s “drug reformulation technology,” Captisol. Acquired by Ligand in 2011, Captisol enables the creation of new/improved drugs by improving the solubility, stability and dosing of active pharmaceutical ingredients (to date, six have been approved by the FDA). It also contributed $19 million of the company’s $49 million total revenues last year, and accounted for just over half of 2013 revenue growth. —N.S.