Ligand Pharma to Acquire XOMA, Expands Royalty Portfolio

An update from Ligand Pharma ( (LGND) ) is now available.

On April 27, 2026, Ligand Pharmaceuticals agreed to acquire fellow royalty aggregator XOMA Royalty Corporation for $39.00 per share in cash, valuing the target at about $739 million and offering a roughly 14% premium to XOMA’s 30‑day volume‑weighted average price. XOMA shareholders will also receive one non‑transferable contingent value right per share tied to 75% of net proceeds from ongoing litigation with Janssen Biotech over TREMFYA.

The deal, unanimously approved by both boards and backed by voting agreements from BVF Partners and XOMA’s leadership, is expected to close in the third quarter of 2026 subject to shareholder and regulatory approvals. The acquisition will expand Ligand’s royalty portfolio to more than 200 assets, add seven marketed drugs and over 120 commercial, clinical and preclinical programs, and significantly deepen exposure in ophthalmology, oncology, CNS and rare diseases.

Ligand says the transaction will immediately boost earnings, prompting it to raise 2026 revenue guidance to $270 million–$310 million and adjusted EPS guidance to $8.50–$9.50, and it projects an additional $1.50 per share of adjusted EPS accretion in 2027. For XOMA investors, the structure delivers upfront cash for the existing portfolio plus upside optionality through the CVR, while for Ligand the combination promises greater scale, diversification and financial synergies in the niche yet growing royalty‑aggregation segment of biotech finance.

The most recent analyst rating on (LGND) stock is a Buy with a $282.00 price target. To see the full list of analyst forecasts on Ligand Pharma stock, see the LGND Stock Forecast page.

Spark’s Take on LGND Stock

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

Score is driven primarily by improving financial performance in 2025 but tempered by higher leverage and historical volatility. The latest earnings call was notably positive with reaffirmed growth guidance and strong long-term targets, while technical indicators are mixed/soft and valuation (P/E ~29) is not cheap with no dividend support.

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

More about Ligand Pharma

Ligand Pharmaceuticals is a leading U.S. biotechnology royalty aggregator that partners with biopharmaceutical companies to finance and advance late‑stage clinical development programs. The company owns and manages a broad portfolio of more than 100 development and commercial-stage royalty assets and also generates revenue by licensing proprietary drug formulation technologies, including Captisol and NITRICIL, to a global network of pharma partners.

XOMA Royalty Corporation is likewise a biotechnology royalty aggregator focused on acquiring future economic interests in pre-commercial and commercial therapeutic candidates licensed to pharmaceutical and biotech companies. By purchasing these royalty and milestone streams, XOMA provides non‑dilutive, non‑recourse funding to innovators while building a diversified portfolio spanning multiple therapeutic areas and development stages.

Average Trading Volume: 216,156

Technical Sentiment Signal: Buy

Current Market Cap: $4.61B

For an in-depth examination of LGND stock, go to TipRanks’ Overview page.