Ligand Pharma (LGND) AI Stock Analysis

• Market Cap: $2.68B
• Dividend Yield: N/A
• Average Volume (3M): 156.15K
• Price to Earnings (P/E): 48.0
• Beta (1Y): 1.09
• Revenue Growth: 53.40%
• EPS Growth: -230.86%
• Country: US
• Employees: 68
• Sector: Healthcare
• Sector Strength: 40
• Industry: Biotechnology
• EPS (TTM): 1.33
• Shares Outstanding: 19,294,168
• 10 Day Avg. Volume: 202,756
• 30 Day Avg. Volume: 156,146
• PEG Ratio: <0.01
• Price to Book (P/B): 3.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 67.48
• Enterprise Value/Market Cap: 0.88
• Enterprise Value/Revenue: 3.71
• Enterprise Value/Gross Profit: 15.68
• Enterprise Value/Ebitda: 22.42
• 1Y Price Target: $145.83
• Price Target Upside: 4.84% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 6

• Rating: 58 Neutral
• Price Target: $143.00 ▲(2.80%Upside)

Ligand Pharma's overall stock score is primarily influenced by its mixed financial performance, with strengths in technical analysis and positive earnings call sentiment. The recent corporate event also adds value; however, concerns about valuation and operational efficiency temper the overall score.

Positive Factors

Financial Performance

Ligand reported financial results including 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.

Investment Opportunities

LGND stands as an important source of differentiated capital through royalty-financing deals to mid–late stage biopharma companies looking for non-dilutive funding.

New Product Launches

Highlights for Ligand’s first quarter 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's financial performance is mixed. Strong equity position and low leverage indicate stability, but declining revenue and negative profitability margins present significant challenges. Volatility in free cash flow further complicates the outlook.

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	167.13M	131.31M	196.25M	277.13M	186.42M
Gross Profit	156.06M	96.27M	143.42M	214.96M	156.00M
EBITDA	40.79M	100.84M	54.41M	133.16M	69.05M
Net Income	-4.03M	52.15M	-5.22M	57.14M	-2.98M
Balance Sheet
Total Assets	941.77M	787.22M	762.67M	1.30B	1.36B
Cash, Cash Equivalents and Short-Term Investments	256.17M	170.31M	211.87M	341.11M	411.19M
Total Debt	7.11M	6.17M	87.75M	336.26M	454.53M
Total Liabilities	111.33M	86.30M	165.18M	479.75M	652.76M
Stockholders Equity	830.44M	700.91M	597.49M	821.63M	709.52M
Cash Flow
Free Cash Flow	95.23M	-4.27M	119.93M	70.04M	50.13M
Operating Cash Flow	97.05M	49.58M	137.85M	78.80M	54.59M
Investing Cash Flow	-143.66M	-11.68M	163.62M	30.52M	231.65M
Financing Cash Flow	97.57M	-59.95M	-275.99M	-137.76M	-310.55M

Ligand Pharma Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 139.10
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

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 139.1 is above the 20-day moving average (MA) of 120.14, above the 50-day MA of 111.73, and above the 200-day MA of 111.71, indicating a bullish trend. The MACD of 6.15 indicates Negative momentum. The RSI at 77.01 is Negative, neither overbought nor oversold. The STOCH value of 96.49 is Negative, 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
MIRM	60 Neutral	$2.57B	―	-33.06%	―	69.31%	57.12%
LGND	58 Neutral	$2.68B	48.01	-16.56%	―	53.40%	-230.86%
TARS	56 Neutral	$1.82B	―	-33.98%	―	449.03%	42.86%
Sector *	52 Neutral	$7.35B	-0.07	-63.71%	2.81%	16.17%	0.03%
APGE	49 Neutral	$2.34B	―	-27.85%	―	―	-94.92%
BLTE	43 Neutral	$1.98B	―	-33.43%	―	―	4.80%
BHVN	40 Underperform	$1.43B	―	-316.82%	―	―	-65.63%

Ligand Pharma Corporate Events

Ligand Pharma Completes Merger Forming Pelthos Therapeutics

On July 2, 2025, Ligand Pharmaceuticals completed a merger between its subsidiary LNHC, Inc. and Channel Therapeutics Corporation’s subsidiary, resulting in the formation of Pelthos Therapeutics Inc. Pelthos will trade on the NYSE American exchange under the ticker symbol ‘PTHS’ and plans to launch ZELSUVMI, a novel treatment for Molluscum contagiosum infections. Ligand invested $18 million in Pelthos and will receive a 13% royalty on worldwide sales of ZELSUVMI. The merger is seen as a transformative milestone, unlocking potential for innovation and long-term value for shareholders. Pelthos also raised $50.1 million in equity capital to support the commercial launch of ZELSUVMI and other development programs.

The most recent analyst rating on (LGND) stock is a Buy with a $130.00 price target. To see the full list of analyst forecasts on Ligand Pharma stock, see the LGND Stock Forecast page.

Ligand Pharma Elects Board Members at Annual Meeting

On June 6, 2025, Ligand Pharmaceuticals held its Annual Meeting of Stockholders where eight board members were elected for terms expiring in 2026. Additionally, the selection of Ernst & Young LLP as the company’s independent registered public accounting firm for 2025 was ratified, and a non-binding advisory resolution on executive compensation was approved.

The most recent analyst rating on (LGND) stock is a Buy with a $130.00 price target. To see the full list of analyst forecasts on Ligand Pharma stock, see the LGND Stock Forecast page.