Ligand Pharma (LGND) AI Stock Analysis

• Market Cap: $2.90B
• Dividend Yield: N/A
• Average Volume (3M): 181.68K
• Price to Earnings (P/E): 48.0
• Beta (1Y): 1.13
• Revenue Growth: 40.54%
• EPS Growth: -264.26%
• Country: US
• Employees: 68
• Sector: Healthcare
• Sector Strength: 38
• Industry: Biotechnology
• EPS (TTM): 1.60
• Shares Outstanding: 19,294,168
• 10 Day Avg. Volume: 179,998
• 30 Day Avg. Volume: 181,683
• 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: 0.70
• Enterprise Value/Revenue: 11.16
• Enterprise Value/Gross Profit: 13.49
• Enterprise Value/Ebitda: -16.59
• 1Y Price Target: $163.14
• Price Target Upside: 8.72% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 7

• Rating: 61 Neutral
• Price Target: $158.00 ▲(5.29% Upside)

Ligand Pharma's overall stock score is driven by strong earnings call results and positive corporate events, indicating strategic growth potential. However, financial performance and valuation concerns, such as declining revenue and a negative P/E ratio, weigh down the score. Technical analysis shows bullish momentum, but caution is advised due to overbought signals.

Positive Factors

Financial Performance

Ligand Pharma reported better-than-expected financial results, fueled by higher royalty revenues.

Guidance and Future Performance

Company management increased financial guidance for full-year 2025, reflecting higher royalties from new products.

Portfolio Diversification

LGND holds one of the most diversified portfolios of royalty revenues across therapeutic areas for de-risked exposure to the biopharma development landscape.

Strategic Positioning

LGND uniquely positions itself as a strategic partner, providing not just royalty capital but serving as a technology partner and biopharma incubator for innovative treatments.

Negative Factors

Market Volatility

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

Revenue Stability Concerns

Choppiness in Captisol sales and contract revenue raises concerns about stability based on the timing of orders and milestone payments.

Ligand Pharma Business Overview & Revenue Model

Company Description

Ligand Pharmaceuticals Incorporated (LGND) is a biopharmaceutical company focused on developing and acquiring technologies that assist in the discovery and development of new therapeutics. The company operates primarily within the pharmaceutical sector, providing a range of services including drug discovery, development partnerships, and licensing agreements. Ligand's core products and services are centered around its proprietary technologies and platforms, such as the Captisol® technology, which enhances the solubility and bioavailability of pharmaceutical compounds, as well as its extensive library of small molecules for drug discovery.

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 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
EBITDA	-122.11M	40.79M	100.84M	54.41M	133.16M	69.05M
Net Income	-132.62M	-4.03M	52.15M	-5.22M	57.14M	-2.98M
Balance Sheet
Total Assets	905.43M	941.77M	787.22M	762.67M	1.30B	1.36B
Cash, Cash Equivalents and Short-Term Investments	208.90M	256.17M	170.31M	211.87M	341.11M	411.19M
Total Debt	4.45M	7.11M	6.17M	87.75M	336.26M	454.53M
Total Liabilities	109.90M	111.33M	86.30M	165.18M	479.75M	652.76M
Stockholders Equity	795.53M	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: Positive
• Last Price: 150.06
• 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 150.06 is above the 20-day moving average (MA) of 135.57, above the 50-day MA of 121.70, and above the 200-day MA of 114.24, indicating a bullish trend. The MACD of 6.15 indicates Negative momentum. The RSI at 71.83 is Negative, neither overbought nor oversold. The STOCH value of 89.59 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
LGND	61 Neutral	$2.90B	48.01	-9.46%	―	40.54%	-264.26%
Sector *	60 Neutral	HK$18.08B	4.77	-4.00%	3.35%	9.59%	-23.62%
MIRM	58 Neutral	$3.01B	―	-24.19%	―	62.33%	48.34%
TARS	56 Neutral	$2.02B	―	-31.46%	―	254.45%	48.06%
APGE	49 Neutral	$2.11B	―	-27.85%	―	―	-72.82%
BLTE	43 Neutral	$2.27B	―	-33.43%	―	―	-15.56%
BHVN	40 Underperform	$1.51B	―	-316.82%	―	―	-37.00%

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.