Ligand Pharma Announces Merger to Enhance ZELSUVMI Sales

Ligand Pharma ( (LGND) ) has shared an update.

On April 17, 2025, Ligand Pharmaceuticals announced a merger agreement between its subsidiaries, Pelthos Therapeutics and LNHC, Inc., and Channel Therapeutics Corporation. The merger, supported by $50 million in equity capital, aims to enhance the commercialization of ZELSUVMI, an FDA-approved topical gel for Molluscum contagiosum, and will see the combined company operate under the name Pelthos Therapeutics Inc. The transaction is expected to close in the summer of 2025, with Ligand entitled to a 13% royalty on worldwide sales of ZELSUVMI. This strategic move is anticipated to deliver significant value to shareholders and advance Channel’s existing NaV 1.7 programs.

Spark’s Take on LGND Stock

According to Spark, TipRanks’ AI Analyst, LGND is a Neutral.

Ligand Pharma’s overall score reflects strong financial growth and a robust cash position, countered by operational challenges impacting margins. Technical analysis suggests caution with mixed signals, while valuation concerns arise from negative P/E. The positive earnings call with promising guidance enhances the outlook.

To see Spark’s full report on LGND stock, click here.

More about Ligand Pharma

Ligand Pharmaceuticals is a biopharmaceutical company that facilitates scientific advancement by supporting the clinical development of high-value medicines. It provides financing and licensing of technologies to generate value for stockholders. Pelthos Therapeutics, a subsidiary of Ligand, focuses on commercializing innovative therapeutic products, including ZELSUVMI, a topical gel for treating Molluscum contagiosum.

YTD Price Performance: -3.50%

Average Trading Volume: 113,192

Technical Sentiment Signal: Sell

Current Market Cap: $2.06B

For a thorough assessment of LGND stock, go to TipRanks’ Stock Analysis page.