Ligand Pharma (LGND)
NASDAQ:LGND
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Ligand Pharma
(NASDAQ:LGND)
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Rating:77Outperform
Price Target:
$251.00
▲(8.27% Upside)
Action:Reiterated
Date:05/11/26
The score is driven primarily by strong financial performance (high TTM profitability and cash generation) and a constructive earnings outlook/catalyst set highlighted on the call (guidance and XOMA accretion). Technicals are neutral overall, while valuation is a notable drag due to the negative P/E and lack of dividend yield data.
Positive Factors
Royalty aggregation model & scale
Ligand's asset-light royalty aggregation strategy creates recurring, high-margin cash flows without heavy commercialization costs. Scale from 18 deals and a larger asset base diversifies revenue sources, improves deal sourcing economics, and supports durable growth even if individual partner outcomes vary.
Negative Factors
Partner execution & timing risk
Reliance on third-party development, launch and reimbursement schedules makes revenue lumpy and forecasting uncertain. Over a multi-month horizon, missed or delayed partner milestones can materially shift royalty receipts and cash generation, stressing payout predictability and reinvestment plans.
Read all positive and negative factors
Positive Factors
Negative Factors
Royalty aggregation model & scale
Ligand's asset-light royalty aggregation strategy creates recurring, high-margin cash flows without heavy commercialization costs. Scale from 18 deals and a larger asset base diversifies revenue sources, improves deal sourcing economics, and supports durable growth even if individual partner outcomes vary.
Read all positive factors
Ligand Pharma (LGND) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$4.27B
Dividend YieldN/A
Average Volume (3M)247.37K
Price to Earnings (P/E)―
Beta (1Y)0.92
Revenue Growth51.24%
EPS GrowthN/A
CountryUS
Employees68
SectorHealthcare
Sector Strength45
IndustryBiotechnology
Share Statistics
EPS (TTM)7.84
Shares Outstanding20,041,061
10 Day Avg. Volume257,535
30 Day Avg. Volume247,371
Financial Highlights & Ratios
PEG Ratio>-0.01
Price to Book (P/B)3.59
Price to Sales (P/S)13.64
P/FCF Ratio74.76
Enterprise Value/Market Cap1.08
Enterprise Value/Revenue16.80
Enterprise Value/Gross Profit17.03
Enterprise Value/Ebitda18.16
Forecast
1Y Price Target
$279.71Price Target Upside20.66% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering7
EPS Forecast (FY)9.04
Revenue Forecast (FY)$283.73M
Ligand Pharma Business Overview & Revenue Model
Company Description
Ligand Pharmaceuticals Incorporated, a biopharmaceutical company, focuses on developing or acquiring technologies that help pharmaceutical companies to discover and develop medicines worldwide. Its commercial programs include Kyprolis and Evomela,...
How the Company Makes Money
Ligand primarily makes money through an asset-light partnering and licensing model rather than selling large volumes of its own drugs. Key revenue streams typically include: (1) Royalties on commercial products: When a partnered product that is co...
Ligand Pharma Earnings Call Summary
Earnings Call Date:May 07, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 10, 2026
Earnings Call Sentiment Positive
The earnings call was broadly positive: the company reported strong underlying operating momentum (royalty revenue +56% YoY, total revenue +14% YoY, adjusted EPS +23% YoY), meaningful near-term and long-term growth catalysts (Filspari approval and Palvella Phase III success), a transformative announced acquisition (XOMA) expected to be immediately accretive and to materially scale the portfolio, and a strong liquidity position. Key risks discussed include GAAP volatility from equity fair-value movements, lumpy Captisol/contract revenue and timing dependence on partner execution, and remaining uncertainty until the XOMA transaction closes and its tax attributes are fully quantified. Overall, the positives — including multiple high-value clinical and commercial catalysts and a materially enlarged, diversified portfolio — outweigh the highlighted near-term financial and timing uncertainties.Positive Updates
Royalty Revenue Acceleration
Royalty revenue was $43.0M in Q1 2026, up 56% year-over-year, driven primarily by Filspari, Ohtuvayre and Qarziba.
Negative Updates
Fair Value Volatility and Elevated Nonoperating Expense
Nonoperating expense was $41.6M in Q1 2026 versus $14.0M prior year (approximately a +197% increase), driven by changes in fair value of equity holdings (e.g., Pelthos), which contributed to GAAP volatility.
Read all updates
Q1-2026 Updates
Positive
Negative
Royalty Revenue Acceleration
Royalty revenue was $43.0M in Q1 2026, up 56% year-over-year, driven primarily by Filspari, Ohtuvayre and Qarziba.
Read all positive updates
Company Guidance
Ligand reiterated 2026 guidance assuming the XOMA Royalty deal closes in Q3: total revenue $270–$310 million, royalty revenue $225–$250 million and adjusted EPS $8.50–$9.50, with XOMA expected to add ~$0.50 of adjusted EPS in 2026 and ~$1.50 in 2027; the company also expects combined operating cash flow of approximately $300 million (reflecting acquired tax attributes) and plans to deploy $150–$250 million annually into new royalty opportunities. Management noted Q1 results of $52 million total revenue (up 14% YoY), $43 million royalty revenue (up 56% YoY), adjusted EPS $1.63 (up 23% YoY) and GAAP diluted loss per share of $0.67, ending the quarter with ~$780 million cash and investments plus $200 million undrawn revolver (~$1 billion available). Additional near-term guides included Captisol contract revenue visibility to meet a $35–$40 million range and the potential for milestones and additional earnings from XOMA’s portfolio post-close.Ligand Pharma Financial Statement Overview
Summary
Income Statement
86
Very Positive
Balance Sheet
72
Positive
Cash Flow
80
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 274.48M | 268.09M | 167.13M | 131.31M | 196.25M | 241.54M |
| Gross Profit | 270.66M | 261.50M | 156.06M | 96.27M | 143.42M | 179.37M |
| EBITDA | 253.90M | 192.74M | 40.79M | 100.84M | 81.20M | 142.77M |
| Net Income | 153.56M | 124.45M | -4.03M | 52.15M | -33.36M | 57.14M |
Balance Sheet | ||||||
| Total Assets | 1.53B | 1.56B | 941.77M | 787.22M | 762.67M | 1.30B |
| Cash, Cash Equivalents and Short-Term Investments | 779.40M | 733.52M | 256.17M | 170.31M | 211.87M | 341.11M |
| Total Debt | 451.98M | 451.49M | 7.11M | 6.17M | 87.75M | 324.39M |
| Total Liabilities | 534.78M | 543.42M | 111.33M | 86.30M | 165.18M | 476.43M |
| Stockholders Equity | 997.32M | 1.02B | 830.44M | 700.91M | 597.49M | 821.16M |
Cash Flow | ||||||
| Free Cash Flow | 122.96M | 48.91M | 77.41M | -4.27M | 119.93M | 70.04M |
| Operating Cash Flow | 123.42M | 49.36M | 97.05M | 49.58M | 137.85M | 78.80M |
| Investing Cash Flow | -476.56M | -377.32M | -143.66M | -11.68M | 163.62M | 30.52M |
| Financing Cash Flow | 418.84M | 428.22M | 97.14M | -59.95M | -275.99M | -137.76M |
Ligand Pharma Technical Analysis
Positive
231.82
Price Trends
201.76
Positive
198.68
Positive
181.60
Positive
Market Momentum
6.34
Negative
67.36
Neutral
78.65
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LGND, the sentiment is Positive. The current price of 231.82 is above the 20-day moving average (MA) of 207.77, above the 50-day MA of 201.76, and above the 200-day MA of 181.60, indicating a bullish trend. The MACD of 6.34 indicates Negative momentum. The RSI at 67.36 is Neutral, neither overbought nor oversold. The STOCH value of 78.65 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for LGND.
Ligand Pharma Risk Analysis
Ligand Pharma disclosed 45 risk factors in its most recent earnings report. Ligand Pharma reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Ligand Pharma Peers Comparison
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $4.27B | -74.37 | 16.19% | ― | 51.24% | ― | |
69 Neutral | $5.25B | 67.94 | 39.71% | ― | 42.46% | ― | |
56 Neutral | $5.91B | -14.83 | -163.52% | ― | ― | -35.59% | |
55 Neutral | $3.88B | -7.39 | -43.96% | ― | 4905.26% | -34.49% | |
54 Neutral | $1.29B | -4.76 | -67.12% | ― | ― | -68.11% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% | |
50 Neutral | $6.76B | -29.33 | -25.02% | ― | -12.58% | -15.21% |
* Healthcare Sector Average
LGND
Ligand Pharma
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103.95%
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Ligand Pharma Corporate Events
Business Operations and StrategyLegal Proceedings
Ligand Pharma Ends TR‑Beta License With Viking Therapeutics
Negative
Apr 30, 2026
On April 24, 2026, Ligand Pharmaceuticals notified Viking Therapeutics that it will terminate their TR‑Beta Program license, covering assets including VK2809 and VK0214, effective May 4, 2026, citing Viking’s alleged material breach of...
Business Operations and StrategyFinancial DisclosuresLegal ProceedingsM&A Transactions
Ligand Pharma to Acquire XOMA, Expands Royalty Portfolio
Positive
Apr 27, 2026
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 v...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.