Ligand Pharma (LGND) AI Stock Analysis

• Market Cap: $4.06B
• Dividend Yield: N/A
• Average Volume (3M): 204.87K
• Price to Earnings (P/E): 99.2
• Beta (1Y): 1.00
• Revenue Growth: 64.83%
• EPS Growth: -9.12%
• Country: US
• Employees: 68
• Sector: Healthcare
• Sector Strength: 45
• Industry: Biotechnology
• EPS (TTM): 3.09
• Shares Outstanding: 19,681,720
• 10 Day Avg. Volume: 227,291
• 30 Day Avg. Volume: 204,871
• PEG Ratio: 4.53
• Price to Book (P/B): 2.36
• Price to Sales (P/S): 11.73
• P/FCF Ratio: 20.58
• Enterprise Value/Market Cap: 0.85
• Enterprise Value/Revenue: 13.70
• Enterprise Value/Gross Profit: 15.94
• Enterprise Value/Ebitda: 34.44
• 1Y Price Target: $238.33
• Price Target Upside: 15.60% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 6
• EPS Forecast (FY): 7.54
• Revenue Forecast (FY): $263.80M

• Rating: 72 Outperform
• Price Target: $232.00 ▲(12.53% Upside)

Ligand Pharma's overall stock score is driven by strong earnings call performance and positive technical indicators. However, high valuation and financial performance challenges, particularly in cash flow management, temper the score.

Positive Factors

Revenue Growth

Strong revenue growth indicates robust demand for Ligand's technologies and partnerships, enhancing its market position and long-term growth prospects.

Royalty Revenue Growth

Increased royalty revenue reflects successful commercialization of partnered products, providing a stable and growing income stream for Ligand.

Strong Balance Sheet

A strong balance sheet with significant deployable capital supports Ligand's ability to invest in growth opportunities and maintain financial stability.

Negative Factors

Increased Operating Expenses

Rising operating expenses may pressure profitability margins, requiring effective cost management to sustain long-term financial health.

Cash Flow Challenges

Declining free cash flow growth can limit Ligand's ability to fund operations and investments, impacting its long-term financial flexibility.

Decreased Gross Profit Margin

A declining gross profit margin suggests potential cost management issues, which could affect profitability and competitive positioning over time.

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, which are used to treat multiple myeloma; Veklury for the treatment of moderate or severe COVID-19; Teriparatide injection product for osteoporosis; Vaxneuvance for the prevention of invasive disease caused by Streptococcus pneumoniae; and Pneumosil, a pneumococcal conjugate vaccine to help fight against pneumococcal pneumonia among children. The company also offers Rylaze, a recombinant erwinia asparaginase for the treatment of acute lymphoblastic leukemia or lymphoblastic lymphoma in adult and pediatric patients; and Nexterone, a captisol-enabled formulation of amiodarone; and Zulresso, a captisol-enabled formulation of brexanolone for the treatment of postpartum depression. In addition, it provides Noxafil-IV, a captisol-enabled formulation of posaconazole for IV use; Duavee for the treatment of postmenopausal osteoporosis; Aziyo portfolio of commercial pericardial repair and CanGaroo envelope extracellular matrix products; Exemptia for autoimmune diseases; Vivitra for breast cancer; Bryxta and Zybev for various indications; and Minnebro for the treatment of hypertension. The company's partners and licenses programs, which are in clinical development used for the treatment of cancer, seizure, diabetes, cardiovascular disease, muscle wasting, liver and kidney disease, and other diseases. Further, it sells Captisol materials. The company was incorporated in 1987 and is headquartered in Emeryville, California.

How the Company Makes Money

Ligand Pharmaceuticals generates revenue through a diversified business model that includes licensing agreements, milestone payments, and royalties from its partnered programs. The company partners with large pharmaceutical firms that utilize Ligand's technologies in their drug development processes, receiving upfront payments and contingent milestone payments upon the achievement of specific regulatory or developmental milestones. Additionally, Ligand earns royalties on the sales of approved drugs that incorporate its technologies. Significant partnerships with major pharmaceutical companies bolster its revenue streams and provide a steady income reflecting the success of partnered drug candidates in the market.

Ligand Pharma Financial Statement Overview

Summary

Ligand Pharma's financial performance is mixed. Strong revenue growth is offset by inconsistent profitability margins and cash flow challenges. The balance sheet is stable with moderate leverage, but operational efficiency and cash flow management need improvement.

Income Statement

Ligand Pharma's income statement shows a mixed performance. The TTM data indicates a strong revenue growth rate of 33.93%, which is a positive sign. However, the gross profit margin has significantly decreased to 19.20% from previous years, indicating potential cost management issues. The net profit margin improved to 14.26% in the TTM, showing profitability recovery. The EBIT margin is negative, suggesting operational challenges, while the EBITDA margin is relatively low at 5.63%.

Balance Sheet

The balance sheet reflects a stable financial position with a debt-to-equity ratio of 0.47 in the TTM, indicating moderate leverage. The return on equity is low at 4.21%, suggesting limited efficiency in generating returns from equity. The equity ratio is not explicitly calculated, but the company's equity position appears strong relative to its assets.

Cash Flow

Cash flow analysis reveals a decline in free cash flow growth by 22.87% in the TTM, which is concerning. The operating cash flow to net income ratio is healthy at 1.81, indicating good cash generation relative to net income. However, the free cash flow to net income ratio of 0.72 suggests that a significant portion of net income is not translating into free cash flow.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	251.23M	167.13M	131.31M	196.25M	241.54M	163.56M
Gross Profit	215.82M	156.06M	96.27M	143.42M	179.37M	133.14M
EBITDA	99.90M	40.79M	100.84M	81.20M	142.77M	56.67M
Net Income	48.58M	-4.03M	52.15M	-33.36M	57.14M	-2.98M
Balance Sheet
Total Assets	1.48B	941.77M	787.22M	762.67M	1.30B	1.36B
Cash, Cash Equivalents and Short-Term Investments	664.52M	256.17M	170.31M	211.87M	341.11M	411.19M
Total Debt	451.00M	7.11M	6.17M	87.75M	324.39M	456.41M
Total Liabilities	526.60M	111.33M	86.30M	165.18M	476.43M	652.76M
Stockholders Equity	950.17M	830.44M	700.91M	597.49M	821.16M	709.52M
Cash Flow
Free Cash Flow	30.76M	77.41M	-4.27M	119.93M	70.04M	50.13M
Operating Cash Flow	31.91M	97.05M	49.58M	137.85M	78.80M	54.59M
Investing Cash Flow	-378.82M	-143.66M	-11.68M	163.62M	30.52M	231.65M
Financing Cash Flow	20.46M	97.14M	-59.95M	-275.99M	-137.76M	-310.55M

Ligand Pharma Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 206.16
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: 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 206.16 is above the 20-day moving average (MA) of 200.76, above the 50-day MA of 188.00, and above the 200-day MA of 138.64, indicating a bullish trend. The MACD of 5.04 indicates Positive momentum. The RSI at 60.18 is Neutral, neither overbought nor oversold. The STOCH value of 57.26 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for LGND.

Ligand Pharma Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
LGND	72 Outperform	$4.06B	99.23	5.42%	―	64.83%	-9.12%
CRNX	65 Neutral	$4.24B	―	-44.42%	―	―	-21.96%
KYMR	54 Neutral	$4.75B	―	-32.09%	―	-50.05%	-54.47%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
APLS	51 Neutral	$2.73B	72.72	14.10%	―	42.11%	―
SRRK	50 Neutral	$4.40B	―	-218.04%	―	―	-31.71%
MLTX	41 Neutral	$971.39M	―	-54.17%	―	―	-157.74%

Ligand Pharma Corporate Events

Ligand Pharmaceuticals’ Earnings Call Highlights Strong Growth

Ligand Pharmaceuticals Inc. recently held its earnings call, revealing a strong financial performance and a positive outlook for the future. The general sentiment during the call was optimistic, with significant growth in core revenue and earnings per share (EPS), alongside an increase in full-year guidance. However, there were some concerns about rising operating expenses and limited details on the ZELSUVMI launch.

Ligand Pharmaceuticals Reports Strong Q3 Results and Raises Guidance

Ligand Pharmaceuticals Inc., a biopharmaceutical company, specializes in enabling scientific advancements through financing and licensing technologies, primarily focusing on royalty revenue from biotech and pharmaceutical products. In its latest earnings report, Ligand Pharmaceuticals announced a significant increase in third-quarter revenues, driven by a 47% growth in royalty revenue and strategic transactions, including the out-license of Zelsuvmi and the sale of the Pelthos business. The company reported total revenues of $115.5 million for the quarter, a 123% increase from the previous year, and raised its full-year revenue guidance to between $225 million and $235 million.

Ligand Pharma Amends Credit Agreement for Stability

On September 12, 2025, Ligand Pharmaceuticals amended its Credit Agreement to extend the maturity date to September 12, 2028, and adjusted the minimum consolidated EBITDA covenant. This amendment is expected to impact the company’s financial operations by ensuring liquidity and stability, which may influence its market positioning and reassure stakeholders about its financial health.

The most recent analyst rating on (LGND) stock is a Buy with a $190.00 price target. To see the full list of analyst forecasts on Ligand Pharma stock, see the LGND Stock Forecast page.

Ligand Pharma Completes $460M Convertible Notes Offering

On August 14, 2025, Ligand Pharmaceuticals completed a private offering of $460 million in convertible senior notes due 2030, including an additional $60 million purchased by initial buyers. The notes, which are unsecured and bear a 0.75% interest rate, are part of Ligand’s strategy to manage potential stock dilution and fund corporate purposes, including stock repurchases and convertible note hedge transactions. These financial maneuvers are expected to impact Ligand’s stock market activity and provide flexibility in managing its capital structure.

The most recent analyst rating on (LGND) stock is a Buy with a $140.00 price target. To see the full list of analyst forecasts on Ligand Pharma stock, see the LGND Stock Forecast page.

Ligand Pharmaceuticals Inc. Reports Strong Q2 Earnings

The recent earnings call for Ligand Pharmaceuticals Inc. reflected a generally positive sentiment, underscored by strong revenue growth and successful strategic investments. The company reported increased financial guidance, which was tempered by challenges such as rising operating expenses, tax impacts, and cautious expectations for new product launches.