Ligand Pharmaceuticals Q3 royalty revenue jumps 51%

Overview

• Biopharma royalty aggregator's Q3 royalty revenue grew 51% yr/yr, driven by XOMA portfolio

• Adjusted EPS for Q3 beat analyst expectations

• Company raised 2026 adjusted EPS guidance, reaffirmed revenue guidance

Outlook

• Company raises 2026 adj EPS guidance to $9.50-$9.75 from $9.00-$9.50

• Company reaffirms 2026 total revenue guidance of $270 mln to $310 mln

• Company maintains 2026 royalty revenue guidance at $225 mln to $250 mln

Result Drivers

• XOMA ACQUISITION - Co said Q3 royalty revenue growth was driven by newly acquired XOMA assets and commercial momentum in key royalty assets such as Filspari

• HIGHER EXPENSES - Q3 general and administrative costs rose due to XOMA acquisition-related transaction and integration costs, share-based compensation, and increased headcount

• LOWER CAPTISOL SALES - Captisol sales declined in Q3, which the company attributed to timing of customer orders

Company press release:

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 11 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the pharmaceuticals peer group is "buy"

• Wall Street's median 12-month price target for Ligand Pharmaceuticals Incorporated is $345.00, about 8.2% above its October 28 closing price of $318.78

• The stock recently traded at 28 times the next 12-month earnings vs. a P/E of 31 three months ago

Reuters Recommended Reads

• Oct 29 - Bristol Myers raises 2026 revenue forecast, lowers EPS due to charge

• Oct 28 - Biogen tops quarterly estimates on rare-disease drug strength

• Oct 27 - Novartis books $2.2 billion hit from drug trial setbacks, but lifts guidance

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)