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
Metric | Beat/Miss | Actual | Consensus Estimate |
Q3 Revenue | $78.75 mln | ||
Q3 Adjusted EPS | Beat | $2.67 | $2.38 (10 Analysts) |
Q3 Loss Per Share | $1.43 | ||
Q3 Net Loss | $28.49 mln | ||
Q3 Loss Per Basic Share | $1.43 | ||
Q3 Operating Income | -$15.76 mln | ||
Q3 Pretax Loss | $44.09 mln |
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
For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.
(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.)