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

Ligand Pharmaceuticals (NASDAQ:LGND) released its 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. Ligand Pharmaceuticals had a return on equity of 20.06% and a net margin of 67.88%. The firm had revenue of $78.75 million during the quarter, compared to analysts’ expectations of $77.00 million. During the same period in the previous year, the firm posted $3.09 EPS. Ligand Pharmaceuticals’s revenue for the quarter was down 31.8% on a year-over-year basis.

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 Stock Performance

LGND stock traded up $2.23 during midday trading on Friday, reaching $319.56. The company had a trading volume of 81,115 shares, compared to its average volume of 266,843. The firm has a market capitalization of $6.37 billion, a PE ratio of 34.12, a P/E/G ratio of 2.55 and a beta of 1.14. The stock has a 50 day moving average price of $295.68 and a 200 day moving average price of $251.72. Ligand Pharmaceuticals has a fifty-two week low of $175.89 and a fifty-two week 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.

Insider Activity

In other Ligand Pharmaceuticals news, insider Andrew Reardon sold 5,000 shares of the company’s stock in a transaction dated Thursday, September 3rd. The shares were sold at an average price of $286.09, for a total value of $1,430,450.00. Following the completion of the transaction, the insider owned 36,514 shares in the company, valued at approximately $10,446,290.26. This represents a 12.04% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Jason Haas sold 7,138 shares of Ligand Pharmaceuticals stock in a transaction on Wednesday, August 12th. The shares were sold at an average price of $292.81, for a total value of $2,090,077.78. Following the sale, the director directly owned 3,981 shares in the company, valued at $1,165,676.61. The trade was a 64.20% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders have sold a total of 54,979 shares of company stock worth $16,068,898 over the last ninety days. Insiders own 5.60% of the company’s stock.

Analyst Upgrades and Downgrades

Several brokerages have recently commented on LGND. Bank of America boosted their price target on Ligand Pharmaceuticals from $266.00 to $388.00 and gave the stock a “buy” rating in a research note on Thursday, July 9th. Barclays started coverage on Ligand Pharmaceuticals in a research report on Friday, September 25th. They set an “overweight” rating and a $345.00 price objective for the company. Royal Bank Of Canada increased their target price on Ligand Pharmaceuticals from $340.00 to $345.00 and gave the company an “outperform” rating in a report on Friday, August 7th. Citigroup upped their price objective on Ligand Pharmaceuticals from $390.00 to $397.00 and gave the company a “buy” rating in a research report on Wednesday, September 23rd. Finally, Leerink Partners began coverage on Ligand Pharmaceuticals in a research note on Friday, August 14th. They set an “outperform” rating and a $330.00 price objective on the stock. Ten equities research analysts have rated the stock with a Buy rating. Based on data from MarketBeat, Ligand Pharmaceuticals has an average rating of “Buy” and an average 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.