Ligand Pharma (LGND) AI Stock Analysis

• Market Cap: $3.73B
• Dividend Yield: N/A
• Average Volume (3M): 167.68K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.04
• 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: 19,596,560
• 10 Day Avg. Volume: 225,054
• 30 Day Avg. Volume: 167,684
• 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: 0.00
• Enterprise Value/Revenue: 0.00
• Enterprise Value/Gross Profit: 0.00
• Enterprise Value/Ebitda: 0.00
• 1Y Price Target: $238.33
• Price Target Upside: 17.71% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 6
• EPS Forecast (FY): 6.95
• Revenue Forecast (FY): $213.66M

• Rating: 64 Neutral
• Price Target: $223.00 ▲(10.13% Upside)

Ligand Pharma's stock score is driven by strong technical momentum and positive earnings call sentiment, despite significant profitability challenges and valuation concerns. The company's strategic investments and revenue growth are promising, but improving profitability remains critical.

Positive Factors

Revenue Growth

Strong royalty revenue growth indicates robust demand for Ligand's technologies and enhances the company's revenue stability and growth potential.

Strategic Partnerships

Strategic partnerships with leading companies can drive innovation and market expansion, supporting long-term growth and competitive positioning.

Strong Balance Sheet

A strong balance sheet with significant deployable capital provides financial flexibility to pursue strategic investments and withstand market fluctuations.

Negative Factors

Profitability Challenges

Ongoing profitability challenges with negative margins can hinder financial performance and shareholder returns, necessitating operational improvements.

Increased Operating Expenses

Rising operating expenses can pressure margins and reduce profitability, requiring careful management to ensure sustainable growth.

Tax Rate Concerns

Higher tax rates from increased foreign revenue can impact net income and earnings per share, affecting overall profitability.

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 several key streams, primarily focusing on licensing agreements and partnerships with other pharmaceutical companies. The company licenses its technologies and product candidates to partners, receiving upfront payments, milestone payments as development progresses, and royalties on any commercialized products. Significant partnerships with major pharmaceutical companies enhance Ligand’s earning potential, as these collaborations often involve large-scale drug development projects. Additionally, Ligand may receive funds from research and development services provided to partners. The recurring nature of royalty payments from successfully marketed drugs, combined with milestone payments from ongoing collaborations, forms the backbone of Ligand's revenue model.

Ligand Pharma Financial Statement Overview

Summary

Ligand Pharma shows strong revenue generation and a solid balance sheet with low leverage. However, significant profitability challenges are evident, with negative net income and declining margins. Improving operational efficiency and profitability is crucial.

Income Statement

Ligand Pharma's income statement reveals a mixed performance. The TTM data shows a slight revenue growth of 3.36%, but the company is facing profitability challenges with a negative net profit margin of -40.44% and a negative EBIT margin of -44.52%. The gross profit margin remains high at 88.81%, indicating strong core operations. However, the declining EBITDA margin suggests increasing operational inefficiencies.

Balance Sheet

The balance sheet shows a strong equity position with a low debt-to-equity ratio of 0.0069, indicating minimal leverage risk. However, the return on equity is negative at -9.21%, reflecting profitability issues. The equity ratio is robust, suggesting financial stability, but the company needs to improve its return on equity to enhance shareholder value.

Cash Flow

Cash flow analysis indicates a positive trend with a free cash flow growth rate of 12.58% in the TTM period. The operating cash flow to net income ratio is healthy at 0.82, showing good cash generation relative to net income. However, the free cash flow to net income ratio of 0.67 suggests room for improvement in converting earnings into free cash flow.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	187.58M	167.13M	131.31M	196.25M	277.13M	163.56M
Gross Profit	156.24M	156.06M	96.27M	143.42M	214.96M	156.00M
EBITDA	-45.53M	40.79M	100.84M	81.20M	133.16M	69.05M
Net Income	-75.86M	-4.03M	52.15M	-33.36M	57.14M	-2.98M
Balance Sheet
Total Assets	948.60M	941.77M	787.22M	762.67M	1.30B	1.36B
Cash, Cash Equivalents and Short-Term Investments	245.02M	256.17M	170.31M	211.87M	341.11M	411.19M
Total Debt	5.74M	7.11M	6.17M	87.75M	324.39M	454.53M
Total Liabilities	120.08M	111.33M	86.30M	165.18M	479.75M	652.76M
Stockholders Equity	828.53M	830.44M	700.91M	597.49M	821.63M	709.52M
Cash Flow
Free Cash Flow	39.97M	95.23M	46.06M	119.93M	70.04M	50.13M
Operating Cash Flow	55.35M	97.05M	49.58M	137.85M	78.80M	54.59M
Investing Cash Flow	-90.90M	-143.66M	-11.68M	163.62M	30.52M	231.65M
Financing Cash Flow	85.72M	97.57M	-59.95M	-275.99M	-137.76M	-310.55M

Ligand Pharma Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 202.48
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• 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 202.48 is above the 20-day moving average (MA) of 188.06, above the 50-day MA of 177.98, and above the 200-day MA of 132.94, indicating a bullish trend. The MACD of 6.07 indicates Negative momentum. The RSI at 68.84 is Neutral, neither overbought nor oversold. The STOCH value of 73.23 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	64 Neutral	$3.73B	―	5.42%	―	64.83%	-9.12%
CRNX	58 Neutral	$4.01B	―	-36.94%	―	―	-9.10%
KYMR	58 Neutral	$4.31B	―	-32.09%	―	-50.05%	-54.47%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
APLS	51 Neutral	$2.49B	64.87	14.10%	―	42.11%	―
SRRK	50 Neutral	$2.77B	―	-172.08%	―	―	-29.50%
MLTX	41 Neutral	$678.05M	―	-54.17%	―	―	-157.74%

Ligand Pharma Corporate Events

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.

Ligand Pharma Announces $400M Convertible Notes Offering

On August 11, 2025, Ligand Pharmaceuticals announced a proposed offering of $400 million in convertible senior notes due 2030, aimed at qualified institutional buyers. This financial move is expected to support Ligand’s strategic initiatives, including potential repurchases of its common stock and investments in complementary businesses, which could influence the market dynamics of its stock and overall financial positioning.

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 Reports Strong Q2 2025 Results

Ligand Pharmaceuticals Inc., a biopharmaceutical company, focuses on enabling scientific advancement by supporting the clinical development of high-value medicines through financing and technology licensing. The company operates primarily in the biotech and pharmaceutical sectors, leveraging a diversified portfolio of revenue streams and strategic partnerships.