Ligand Pharma (LGND)
NASDAQ:LGND
Top Page
Ligand Pharma
(NASDAQ:LGND)
Select Model
Select Model
Rating:63Neutral
Price Target:
$208.00
▲(6.40% Upside)
Action:DowngradedDate:03/29/26
The score is primarily supported by strong recent financial performance (2025 profitability and positive free cash flow). It is held back by weaker near-term technicals (below key short-term averages with subdued momentum) and a relatively high P/E with no dividend yield provided.
Positive Factors
Asset-light licensing model
Ligand’s asset-light business model (licensing, royalties, milestones) creates durable high-margin revenue potential without heavy commercialization capex. This structure scales as partners commercialize drugs, reduces balance-sheet capital intensity, and aligns revenue to partner sales over multi-year horizons.
Negative Factors
Rising leverage
Leverage increased materially in 2025, reducing financial flexibility. Higher debt raises interest and refinancing risk and constrains the company’s ability to acquire accrual-rich royalty assets or fund inorganic growth, making it more sensitive to partner payment timing and business-cycle shocks.
Read all positive and negative factors
Positive Factors
Negative Factors
Asset-light licensing model
Ligand’s asset-light business model (licensing, royalties, milestones) creates durable high-margin revenue potential without heavy commercialization capex. This structure scales as partners commercialize drugs, reduces balance-sheet capital intensity, and aligns revenue to partner sales over multi-year horizons.
Read all positive factors
Ligand Pharma (LGND) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$3.90B
Dividend YieldN/A
Average Volume (3M)210.87K
Price to Earnings (P/E)29.4
Beta (1Y)0.95
Revenue Growth64.83%
EPS Growth-9.12%
CountryUS
Employees68
SectorHealthcare
Sector Strength45
IndustryBiotechnology
Share Statistics
EPS (TTM)2.02
Shares Outstanding19,941,141
10 Day Avg. Volume240,264
30 Day Avg. Volume210,873
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 Cap1.07
Enterprise Value/Revenue15.57
Enterprise Value/Gross Profit15.96
Enterprise Value/Ebitda21.30
Forecast
1Y Price Target
$250.17Price Target Upside27.98% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering7
EPS Forecast (FY)8.54
Revenue Forecast (FY)$266.79M
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:Nov 06, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:May 06, 2026
Earnings Call Sentiment Positive
The earnings call reflects a strong financial performance with significant growth in core revenue and EPS, an increase in full-year guidance, and successful financial transactions. However, there are some concerns related to increased operating expenses and limited information on the ZELSUVMI launch.Positive Updates
Strong Financial Performance
Core revenue grew 68% year-over-year to $86.9 million, and adjusted EPS increased 68% to $3.09. Royalty revenue rose 47% year-over-year to $46.6 million.
Negative Updates
Increased Operating Expenses
G&A expenses increased to $28.4 million, and R&D expenses rose significantly due to a $17.8 million one-time charge tied to an investment in Orchestra BioMed.
Read all updates
Q3-2025 Updates
Positive
Negative
Strong Financial Performance
Core revenue grew 68% year-over-year to $86.9 million, and adjusted EPS increased 68% to $3.09. Royalty revenue rose 47% year-over-year to $46.6 million.
Read all positive updates
Company Guidance
During Ligand's Third Quarter 2025 Earnings Call, the company announced an increase in full-year guidance due to strong performance in their commercial royalty portfolio. Royalty revenue increased by 47% compared to the same quarter last year, driven by the successful launches of Merck's Ohtuvayre and CAPVAXIVE, and the growth of Travere's FILSPARI. Ligand's adjusted earnings per share rose by 68%, reflecting the robust performance of their portfolio. The company also reported a strong balance sheet, with approximately $1 billion in deployable capital, which will support their business development pipeline. Ligand expects their long-term royalty growth to achieve or exceed a compound annual growth rate of 22% by 2029, with the existing portfolio supporting an 18% CAGR, and future investments adding at least 4% more.Ligand Pharma Financial Statement Overview
Summary
Income Statement
73
Positive
Balance Sheet
62
Positive
Cash Flow
67
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 268.09M | 167.13M | 131.31M | 196.25M | 241.54M |
| Gross Profit | 261.50M | 156.06M | 96.27M | 143.42M | 179.37M |
| EBITDA | 192.74M | 40.79M | 100.84M | 81.20M | 142.77M |
| Net Income | 124.45M | -4.03M | 52.15M | -33.36M | 57.14M |
Balance Sheet | |||||
| Total Assets | 1.56B | 941.77M | 787.22M | 762.67M | 1.30B |
| Cash, Cash Equivalents and Short-Term Investments | 733.52M | 256.17M | 170.31M | 211.87M | 341.11M |
| Total Debt | 451.49M | 7.11M | 6.17M | 87.75M | 324.39M |
| Total Liabilities | 543.42M | 111.33M | 86.30M | 165.18M | 476.43M |
| Stockholders Equity | 1.02B | 830.44M | 700.91M | 597.49M | 821.16M |
Cash Flow | |||||
| Free Cash Flow | 48.91M | 77.41M | -4.27M | 119.93M | 70.04M |
| Operating Cash Flow | 49.36M | 97.05M | 49.58M | 137.85M | 78.80M |
| Investing Cash Flow | -377.32M | -143.66M | -11.68M | 163.62M | 30.52M |
| Financing Cash Flow | 428.22M | 97.14M | -59.95M | -275.99M | -137.76M |
Ligand Pharma Technical Analysis
Negative
195.48
Price Trends
197.99
Negative
197.44
Negative
174.90
Positive
Market Momentum
1.15
Positive
43.46
Neutral
31.90
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LGND, the sentiment is Negative. The current price of 195.48 is below the 20-day moving average (MA) of 206.47, below the 50-day MA of 197.99, and above the 200-day MA of 174.90, indicating a neutral trend. The MACD of 1.15 indicates Positive momentum. The RSI at 43.46 is Neutral, neither overbought nor oversold. The STOCH value of 31.90 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 |
|---|---|---|---|---|---|---|---|
63 Neutral | $3.90B | 29.38 | 13.86% | ― | 64.83% | -9.12% | |
59 Neutral | $6.38B | -21.09 | -29.08% | ― | -50.05% | -54.47% | |
56 Neutral | $2.17B | 141.40 | 8.20% | ― | 42.11% | ― | |
55 Neutral | $3.53B | -8.91 | -41.46% | ― | ― | -21.96% | |
55 Neutral | $1.24B | -3.74 | -67.12% | ― | ― | -157.74% | |
54 Neutral | $4.89B | -13.37 | -145.91% | ― | ― | -31.71% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% |
* Healthcare Sector Average
LGND
Ligand Pharma
195.48
90.34
85.92%
APLS
Apellis Pharmaceuticals
16.97
-4.90
-22.41%
SRRK
Scholar Rock Holding
42.60
10.45
32.50%
CRNX
Crinetics Pharmaceuticals
33.67
0.13
0.39%
KYMR
Kymera Therapeutics
78.16
50.79
185.57%
MLTX
MoonLake Immunotherapeutics
17.32
-21.75
-55.67%
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.