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

Ligand Pharmaceuticals (NASDAQ:LGND) posted its earnings results on Thursday. The biotechnology company reported $2.67 EPS for the quarter, beating the consensus estimate of $2.33 by $0.34, FiscalAI reports. The company had revenue of $78.75 million for the quarter, compared to the consensus estimate of $77.00 million. Ligand Pharmaceuticals had a return on equity of 5.22% and a net margin of 20.27%. The firm’s revenue for the quarter was down 31.8% on a year-over-year basis. During the same quarter in the prior year, the business earned $3.09 earnings per share.

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 Up 1.7%

Shares of LGND stock traded up $5.42 on Friday, hitting $322.75. The company had a trading volume of 344,299 shares, compared to its average volume of 226,438. The firm has a market cap of $6.43 billion, a P/E ratio of 144.08, a P/E/G ratio of 2.54 and a beta of 1.14. The stock’s 50-day moving average is $296.39 and its two-hundred day moving average is $252.30. The company has a debt-to-equity ratio of 1.17, a quick ratio of 30.96 and a current ratio of 13.35. Ligand Pharmaceuticals has a twelve month low of $175.89 and a twelve month high of $326.63.

Key Ligand Pharmaceuticals News

Here are the key news stories impacting Ligand Pharmaceuticals this week:

• Positive Sentiment: Third-quarter adjusted EPS was $2.67, exceeding the $2.33 analyst consensus, while revenue of $78.75 million also topped the $77 million estimate. Ligand Q3 earnings flash
• Positive Sentiment: Royalty revenue rose 51% year over year to $70.3 million, highlighting the strength of Ligand’s royalty-based business and supporting investor optimism about recurring revenue growth. Ligand third-quarter financial results
• Positive Sentiment: Management raised its full-year 2026 adjusted diluted EPS guidance to $9.50-$9.75 from $9.00-$9.50 and reaffirmed its revenue outlook, providing a stronger earnings outlook. Ligand third-quarter guidance update
• Positive Sentiment: Royal Bank of Canada raised its price target to $357 from $345 and maintained an “outperform” rating, signaling continued analyst confidence in LGND’s outlook. Royal Bank of Canada rating update
• Neutral Sentiment: The quarterly report was mixed: revenue declined 31.8% year over year and EPS fell from $3.09 in the prior-year quarter, but the results still exceeded expectations because of the company’s royalty performance and earnings mix. Ligand third-quarter earnings results

Insider Activity

In other news, Director Jason Haas sold 7,138 shares of the stock in a transaction on Wednesday, August 12th. The shares were sold at an average price of $292.81, for a total transaction of $2,090,077.78. Following the completion of the sale, the director directly owned 3,981 shares in the company, valued at $1,165,676.61. This represents a 64.20% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available through the SEC website. Also, CFO Octavio Espinoza sold 31,641 shares of the business’s stock in a transaction on Wednesday, August 12th. The shares were sold at an average price of $292.06, for a total transaction of $9,241,070.46. Following the completion of the transaction, the chief financial officer owned 27,696 shares in the company, valued at approximately $8,088,893.76. The trade was a 53.32% decrease in their position. The disclosure for this sale is available in the SEC filing. 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 valued at $16,068,898. Company insiders own 5.60% of the company’s stock.

Analyst Ratings Changes

A number of equities research analysts have weighed in on LGND shares. Citigroup raised their target price on Ligand Pharmaceuticals from $390.00 to $397.00 and gave the company a “buy” rating in a report on Wednesday, September 23rd. Oppenheimer reissued an “outperform” rating and issued a $326.00 target price (up from $285.00) on shares of Ligand Pharmaceuticals in a report on Monday, August 3rd. Stifel Nicolaus raised their target price on shares of Ligand Pharmaceuticals from $255.00 to $332.00 and gave the company a “buy” rating in a research report on Wednesday, July 8th. Leerink Partners began coverage on shares of Ligand Pharmaceuticals in a research note on Friday, August 14th. They set an “outperform” rating and a $330.00 target price on the stock. Finally, Royal Bank Of Canada raised their price objective on Ligand Pharmaceuticals from $345.00 to $357.00 and gave the company an “outperform” rating in a report on Friday. Ten analysts have rated the stock with a Buy rating. According to data from MarketBeat.com, Ligand Pharmaceuticals currently has a consensus rating of “Buy” and an average price target of $339.22.

About Ligand Pharmaceuticals

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.