Ligand Pharma’s Strategic Positioning and Growth Prospects Justify Buy Rating

Ligand Pharma (LGND) has received a new Buy rating, initiated by Citi analyst, Yigal Nochomovitz.

Yigal Nochomovitz has given his Buy rating due to a combination of factors that highlight Ligand Pharma’s strategic positioning in the biotech sector. The company focuses on royalty aggregation of development and commercial-stage assets, out-licensing novel platforms, and investing in mid-to-late-stage clinical programs. This approach helps mitigate volatility by reducing concentration risk while maintaining potential upside, distinguishing Ligand from larger pharma royalty aggregators by targeting earlier-stage assets that yield higher internal rates of return.
Additionally, Ligand’s recent performance, with a significant increase in stock value year-to-date, reflects materialized gains from long-term investments. The company is expected to benefit from strong commercial performances of products like Filspari, Kyprolis, Ohtuvayre, and Qarziba, which are projected to drive substantial royalty revenue. Upcoming catalysts, such as anticipated approvals and launches, are likely to further enhance Ligand’s valuation, supporting Nochomovitz’s optimistic outlook and Buy rating.