Ligand Pharmaceuticals (NASDAQ:LGND) Issues Earnings Results, Beats Expectations By $0.34 EPS

Key Points

• Ligand beat quarterly expectations, reporting adjusted EPS of $2.67 versus the $2.33 consensus and revenue of $78.75 million versus estimates of $77.00 million. However, revenue declined 31.8% year over year, partly due to the prior-year period’s one-time ZELSUVMI licensing income.
• Royalty revenue increased 51% year over year to $70.3 million, prompting Ligand to raise its 2026 adjusted EPS guidance to $9.50–$9.75 while reaffirming revenue guidance. The XOMA acquisition is expected to contribute about $0.50 to 2026 EPS and $1.50 to 2027 EPS.
• The company has multiple potential catalysts through 2027, including up to seven pivotal readouts, but insiders sold roughly $16.1 million of stock in the past 90 days. Analysts remain bullish, with a consensus “Buy” rating and an average price target of $337.89.

Ligand Pharmaceuticals (NASDAQ:LGND - Get Free Report) issued its quarterly earnings results on Thursday. The biotechnology company reported $2.67 EPS for the quarter, topping the consensus estimate of $2.33 by $0.34, FiscalAI reports. The company had revenue of $78.75 million during the quarter, compared to analyst estimates of $77.00 million. Ligand Pharmaceuticals had a net margin of 67.88% and a return on equity of 20.06%. The firm's revenue was down 31.8% compared to the same quarter last year. During the same quarter in the previous year, the firm earned $3.09 EPS.

Here are the key takeaways from Ligand Pharmaceuticals' conference call:

• Royalty revenue rose 51% year over year to $70.3 million, driven by FILSPARI, OHTUVAYRE and the newly acquired XOMA assets. Ligand raised its 2026 adjusted diluted EPS guidance to $9.50–$9.75 per share while reaffirming revenue guidance.
• The XOMA acquisition added three commercial assets and more than 100 pipeline programs, with management reporting that cost synergies are tracking slightly better than expected. Ligand expects XOMA to contribute approximately $0.50 to 2026 EPS and $1.50 to 2027 EPS.
• Ligand enters a catalyst-rich period, with up to seven pivotal readouts through 2027. Key opportunities include QTORIN rapamycin’s February 2027 PDUFA date, FILSPARI’s FSGS launch, and late-stage programs such as mezagitamab, volixibat and osavampator.
• The company has approximately $750 million of deployable capital and reviewed more than 180 investment opportunities in 2026, but management continues to emphasize selective deployment. Revenue and earnings timing remain uncertain because of Captisol orders, partner reporting, clinical milestones and regulatory events.
• Third-quarter GAAP results included a net loss of $28.5 million, or $1.43 per share, and adjusted EPS declined from $3.09 to $2.67 because the prior-year period included $24.5 million of one-time ZELSUVMI licensing income. Reported G&A also increased substantially due to $35 million of XOMA transaction and integration costs.

Ligand Pharmaceuticals Trading Down 0.5%

NASDAQ:LGND traded down $1.45 on Thursday, reaching $317.33. The company's stock had a trading volume of 299,327 shares, compared to its average volume of 230,170. Ligand Pharmaceuticals has a 12-month low of $175.89 and a 12-month high of $326.63. The company has a quick ratio of 30.96, a current ratio of 31.18 and a debt-to-equity ratio of 1.16. The firm has a market cap of $6.33 billion, a price-to-earnings ratio of 34.09, a price-to-earnings-growth ratio of 2.55 and a beta of 1.14. The stock has a 50 day moving average price of $295.15 and a 200 day moving average price of $251.17.

Insiders Place Their Bets

In other news, Director Martine Zimmermann sold 1,200 shares of the stock in a transaction on Thursday, September 10th. The stock was sold at an average price of $285.00, for a total transaction of $342,000.00. Following the completion of the transaction, the director directly owned 3,897 shares in the company, valued at approximately $1,110,645. This represents a 23.54% decrease in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, CFO Octavio Espinoza sold 31,641 shares of the stock in a transaction on Wednesday, August 12th. The stock was sold at an average price of $292.06, for a total value of $9,241,070.46. Following the transaction, the chief financial officer owned 27,696 shares of the company's stock, valued at approximately $8,088,893.76. This represents a 53.32% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last 90 days, insiders sold 54,979 shares of company stock worth $16,068,898. Company insiders own 5.60% of the company's stock.

Wall Street Analyst Weigh In

LGND has been the topic of several research analyst reports. Bank of America lifted their target price on shares of Ligand Pharmaceuticals from $266.00 to $388.00 and gave the company a "buy" rating in a research report on Thursday, July 9th. Weiss Ratings upgraded shares of Ligand Pharmaceuticals from a "buy (b-)" rating to a "buy (b)" rating in a research report on Monday, September 21st. Citigroup raised their price target on shares of Ligand Pharmaceuticals from $390.00 to $397.00 and gave the company a "buy" rating in a research note on Wednesday, September 23rd. HC Wainwright reiterated a "buy" rating and issued a $358.00 price objective on shares of Ligand Pharmaceuticals in a report on Thursday, September 24th. Finally, Barclays began coverage on Ligand Pharmaceuticals in a report on Friday, September 25th. They issued an "overweight" rating and a $345.00 price objective on the stock. Ten research analysts have rated the stock with a Buy rating. According to data from MarketBeat.com, the stock currently has a consensus rating of "Buy" and a consensus price target of $337.89.

Ligand Pharmaceuticals Company Profile

Ligand Pharmaceuticals Incorporated NASDAQ: LGND is a biopharmaceutical company that develops, acquires and licenses technologies intended to improve the development and commercialization of medicines. Rather than operating primarily as a traditional drug manufacturer, Ligand generally works with pharmaceutical and biotechnology partners, receiving licensing payments, royalties and other consideration tied to partnered products.

The company's principal technology is Captisol, a modified cyclodextrin designed to improve the solubility, stability and delivery of certain active pharmaceutical ingredients.

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