Ligand Pharma (LGND)
NASDAQ:LGND
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Ligand Pharma
(NASDAQ:LGND)
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Rating:66Neutral
Price Target:
$245.00
▲(5.69% Upside)
Action:ReiteratedDate:04/01/26
Score is driven primarily by improving financial performance in 2025 but tempered by higher leverage and historical volatility. The latest earnings call was notably positive with reaffirmed growth guidance and strong long-term targets, while technical indicators are mixed/soft and valuation (P/E ~29) is not cheap with no dividend support.
Positive Factors
Asset-light royalty/licensing model
Ligand's asset-light business model generates recurring royalties, milestone and license fees without the capital intensity of commercial R&D and sales. Over 2–6 months this supports scalable revenue growth, lower fixed-cost leverage, and faster ROI on business development investments.
Negative Factors
Rising leverage in 2025
Higher debt materially reduces financial flexibility compared with prior low-leverage years. Over the medium term this increases fixed obligations and sensitivity to cash-flow timing, making the company more exposed to partner delays or one-time revenue variability when funding BD or supporting portfolio assets.
Read all positive and negative factors
Positive Factors
Negative Factors
Asset-light royalty/licensing model
Ligand's asset-light business model generates recurring royalties, milestone and license fees without the capital intensity of commercial R&D and sales. Over 2–6 months this supports scalable revenue growth, lower fixed-cost leverage, and faster ROI on business development investments.
Read all positive factors
Ligand Pharma (LGND) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$4.56B
Dividend YieldN/A
Average Volume (3M)247.37K
Price to Earnings (P/E)29.4
Beta (1Y)0.97
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. Volume257,535
30 Day Avg. Volume247,371
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 Cap1.06
Enterprise Value/Revenue18.03
Enterprise Value/Gross Profit18.48
Enterprise Value/Ebitda24.66
Forecast
1Y Price Target
$252.43Price Target Upside8.89% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering7
EPS Forecast (FY)8.63
Revenue Forecast (FY)$267.08M
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:Feb 26, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 07, 2026
Earnings Call Sentiment Positive
The call conveyed strong, broad-based financial and operational momentum driven by a rapidly scaling royalty portfolio, sizeable deployable capital and multiple late-stage clinical and commercial catalysts (notably Palvella QTORIN, FILSPARI, Ohtuvayre and CAPVAXIVE). Key 2025 metrics showed high double-digit growth across royalties, revenue and adjusted EPS, and management provided a robust multi-year outlook (23% royalty CAGR to 2030). Headwinds are largely timing and accounting-related: an FDA review extension for FILSPARI FSGS, increased R&D/G&A due to specific investments and some 2025 one-time items that temper 2026 year-over-year comparisons. Overall, the positives materially outweigh the negatives, leaving a constructive outlook.Positive Updates
Strong Royalty and Revenue Growth
Full-year royalty revenue grew 48% year-over-year to $161M; core revenue (ex-Pelthos gain) was $240M, up 43% YoY; GAAP revenue was $268M (vs $167M in 2024). Q4 total revenue was $59.7M, up 39% YoY, with Q4 royalty revenue of $50.5M, up 45% YoY.
Negative Updates
FILSPARI sNDA Review Extended for FSGS
FDA extended review timeline for FILSPARI's sNDA in FSGS, delaying potential royalties and commercialization timing. Management modeled a modest, risk-adjusted $4M contribution from FSGS in 2026, indicating limited near-term impact but delayed upside.
Read all updates
Q4-2025 Updates
Positive
Negative
Strong Royalty and Revenue Growth
Full-year royalty revenue grew 48% year-over-year to $161M; core revenue (ex-Pelthos gain) was $240M, up 43% YoY; GAAP revenue was $268M (vs $167M in 2024). Q4 total revenue was $59.7M, up 39% YoY, with Q4 royalty revenue of $50.5M, up 45% YoY.
Read all positive updates
Company Guidance
Ligand reaffirmed 2026 guidance of adjusted EPS of approximately $8–$9 per share, royalty revenue of $200–$225 million (about 32% growth at the midpoint), Captisol revenue of $35–$40 million, contract revenue of $10–$20 million and total revenue of $245–$285 million (implying core revenue of roughly $265 million at the midpoint). Management noted the 2026 EPS midpoint is modestly impacted by a one‑time ZELSUVMI out‑license fee in 2025 and included a modest $4 million risk‑adjusted assumption for FSGS royalties; they expect 2026 royalty growth to be driven by FILSPARI, Ohtuvayre, CAPVAXIVE and ZELSUVMI. They also highlighted a strong balance sheet with $734 million in cash/cash equivalents and short‑term investments (and over $1 billion of deployable capital including equity holdings and credit capacity) and reiterated longer‑term targets of >$430 million (core revenue) by 2030, visibility to >$13.50 adjusted EPS by 2030, and a 23% CAGR in royalty receipts from 2025–2030.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
Positive
231.82
Price Trends
201.76
Positive
198.68
Positive
181.60
Positive
Market Momentum
6.34
Negative
67.36
Neutral
78.65
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 231.82 is above the 20-day moving average (MA) of 207.77, above the 50-day MA of 201.76, and above the 200-day MA of 181.60, indicating a bullish trend. The MACD of 6.34 indicates Negative momentum. The RSI at 67.36 is Neutral, neither overbought nor oversold. The STOCH value of 78.65 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 |
|---|---|---|---|---|---|---|---|
66 Neutral | $4.56B | 29.38 | 13.86% | ― | 64.83% | -9.12% | |
59 Neutral | $7.12B | -21.09 | -29.08% | ― | -50.05% | -54.47% | |
56 Neutral | $5.23B | 141.40 | 8.20% | ― | 42.11% | ― | |
56 Neutral | $5.45B | -13.37 | -145.91% | ― | ― | -31.71% | |
55 Neutral | $4.03B | -8.91 | -41.46% | ― | ― | -21.96% | |
54 Neutral | $1.21B | -3.74 | -67.12% | ― | ― | -157.74% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% |
* Healthcare Sector Average
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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.