Ligand Pharma (LGND) AI Stock Analysis

• Market Cap: $1.97B
• Dividend Yield: N/A
• Average Volume (3M): 108.56K
• Price to Earnings (P/E): 48.0
• Beta (1Y): 1.13
• Revenue Growth: 53.40%
• EPS Growth: -230.86%
• Country: US
• Employees: 68
• Sector: Healthcare
• Sector Strength: 41
• Industry: Biotechnology
• EPS (TTM): 1.33
• Shares Outstanding: 19,294,168
• 10 Day Avg. Volume: 97,744
• 30 Day Avg. Volume: 108,556
• PEG Ratio: <0.01
• Price to Book (P/B): 2.42
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 54.44
• Enterprise Value/Market Cap: 0.96
• Enterprise Value/Revenue: 2.98
• Enterprise Value/Gross Profit: 12.58
• Enterprise Value/Ebitda: -8.43
• 1Y Price Target: $149.17
• Price Target Upside: 43.18% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 7

• Rating: 55 Neutral
• Price Target: $103.00 ▼(-1.13%Downside)

Ligand Pharmaceuticals demonstrates a positive outlook due to strategic investments and revenue growth highlighted in the earnings call. However, financial performance and technical indicators show challenges with declining revenues, profitability, and bearish trends. Valuation concerns with a negative P/E ratio also weigh down the overall score.

Positive Factors

Financial Performance

Ligand reported financial results with revenues of $45.3 million, an increase of 46% year-over-year, and higher adjusted earnings of $1.33 per share, boosted by higher sales of Ligand's Captisol excipient and increased royalty revenues from licensed products.

Growth Prospects

Ligand investors can expect several catalysts including continued growth from new products and potential clinical progress from partners.

Strategic Developments

Highlights for Ligand included recent launches of new drugs and clinical progress in new therapeutic areas, along with the completion of the Pelthos Therapeutics spin-off into a new public company.

Negative Factors

Market Challenges

LGND focuses primarily on development-stage companies where capital needs are perpetual and allocation is highly inefficient.

Revenue Volatility

There is a long-term theme of choppiness in Captisol sales and contract revenue based on the timing of orders and milestone payments.

Ligand Pharma Business Overview & Revenue Model

Company Description

Ligand Pharmaceuticals Inc. (LGND) is a biopharmaceutical company focused on developing and acquiring technologies that aid pharmaceutical companies in the discovery and development of new drugs. Operating within the healthcare and biotechnology sectors, Ligand specializes in providing a diverse range of drug discovery technologies, including its proprietary Captisol technology, which enhances the solubility and stability of drugs. The company collaborates with a broad spectrum of pharmaceutical and biotechnology companies to develop innovative therapies across various therapeutic areas.

How the Company Makes Money

Ligand Pharmaceuticals generates revenue primarily through licensing agreements and royalties derived from its proprietary technologies and partnered programs. The company's Captisol technology is a significant revenue driver, as it is licensed to numerous pharmaceutical partners for use in drug formulation. Ligand earns royalties on the sales of drugs that incorporate its technologies, and it also receives milestone payments when specific developmental and commercial achievements are met by its partners. Additionally, the company engages in research and development collaborations, which can result in upfront payments, ongoing research fees, and potential royalties from successfully commercialized products. Strategic acquisitions and partnerships further enhance its revenue streams by expanding its portfolio of technologies and potential drug candidates.

Ligand Pharma Financial Statement Overview

Summary

Ligand Pharma shows a mixed financial picture with declining revenue and profitability, yet maintains a strong equity position. While cash flows are generally positive, volatility in free cash flow and revenue trends pose risks. Financial stability is supported by low leverage, but improving operational efficiency remains crucial.

Income Statement

The company's income statement shows a declining revenue trend with significant fluctuations in profitability. Gross profit margin is relatively high, but EBIT and net profit margins are negative, indicating operational challenges. Revenue has decreased significantly in recent periods, affecting overall financial performance.

Balance Sheet

The balance sheet reveals a strong equity position with a low debt-to-equity ratio, suggesting financial stability. However, total assets have been decreasing, and liabilities are relatively high compared to assets. Return on equity has been inconsistent, indicating fluctuating profitability.

Cash Flow

The company's cash flow statement indicates adequate operating cash flow; however, free cash flow has been volatile, with a significant decline recently. The operating cash flow to net income ratio is favorable, but fluctuations in free cash flow present challenges.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
181.49M	167.13M	131.31M	196.25M	277.13M	186.42M
	Gross Profit
150.14M	156.06M	96.27M	143.42M	214.96M	156.00M
	EBIT
-61.81M	-22.61M	11.94M	-25.50M	78.89M	8.55M
	EBITDA
-122.11M	40.79M	101.73M	54.41M	133.16M	69.05M
	Net Income Common Stockholders
-132.62M	-4.03M	52.15M	-5.22M	57.14M	-2.98M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
256.17M	256.17M	170.31M	211.87M	341.11M	411.19M
	Total Assets
941.77M	941.77M	787.22M	762.67M	1.30B	1.36B
	Total Debt
7.11M	7.11M	6.17M	87.75M	336.26M	454.53M
	Net Debt
-65.20M	-65.20M	-16.79M	87.70M	316.74M	406.91M
	Total Liabilities
111.33M	111.33M	86.30M	165.18M	479.75M	652.76M
	Stockholders Equity
830.44M	830.44M	700.91M	597.49M	821.63M	709.52M
Cash Flow		Free Cash Flow
35.51M	95.23M	-4.27M	119.93M	70.04M	50.13M
	Operating Cash Flow
52.81M	97.05M	49.58M	137.85M	78.80M	54.59M
	Investing Cash Flow
-135.00M	-143.66M	-11.68M	163.62M	30.52M	231.65M
	Financing Cash Flow
80.39M	97.57M	-59.95M	-275.99M	-137.76M	-310.55M

Ligand Pharma Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 104.18
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LGND, the sentiment is Neutral. The current price of 104.18 is above the 20-day moving average (MA) of 103.23, below the 50-day MA of 104.75, and below the 200-day MA of 109.58, indicating a neutral trend. The MACD of -0.88 indicates Negative momentum. The RSI at 51.09 is Neutral, neither overbought nor oversold. The STOCH value of 84.35 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for LGND.

Ligand Pharma Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
LGND	55 Neutral	$1.97B	48.01	-16.56%	―	53.40%	-230.86%
TARS	54 Neutral	$1.84B	―	-33.98%	―	449.03%	42.86%
Sector *	54 Neutral	$5.28B	3.29	-45.38%	2.80%	16.77%	-0.08%
MIRM	53 Neutral	$2.24B	―	-33.06%	―	69.31%	57.12%
APGE	49 Neutral	$2.17B	―	-27.85%	―	―	-94.92%
BLTE	43 Neutral	$2.12B	―	-33.43%	―	―	4.80%
BHVN	40 Underperform	$1.61B	―	-316.82%	―	―	-65.63%

Ligand Pharma Corporate Events

Ligand Pharma Announces Merger to Enhance ZELSUVMI Sales

On April 17, 2025, Ligand Pharmaceuticals announced a merger agreement between its subsidiaries, Pelthos Therapeutics and LNHC, Inc., and Channel Therapeutics Corporation. The merger, supported by $50 million in equity capital, aims to enhance the commercialization of ZELSUVMI, an FDA-approved topical gel for Molluscum contagiosum, and will see the combined company operate under the name Pelthos Therapeutics Inc. The transaction is expected to close in the summer of 2025, with Ligand entitled to a 13% royalty on worldwide sales of ZELSUVMI. This strategic move is anticipated to deliver significant value to shareholders and advance Channel’s existing NaV 1.7 programs.