Ligand Pharmaceuticals Inc. (NASDAQ:LGND) on Monday said it is expanding its royalty portfolio through the acquisition of XOMA Royalty Corporation (NASDAQ:XOMA).

Ligand Expands Portfolio With XOMA Royalty Acquisition

This move is expected to bolster Ligand’s long-term growth, adding new commercial products and enhancing its position as a leading biopharma royalty aggregator.

Deal consideration includes $39.00 per share in cash, for a total equity value of approximately $739 million.

XOMA Royalty stockholders are expected to separately receive one non-transferable Contingent Value Right per share entitling the holder to receive a portion of 75% of the net proceeds that may result from certain pending litigation at XOMA Royalty. 

Updated Guidance Reflects Stronger Outlook

Ligand Pharmaceuticals announced its acquisition of XOMA Royalty, which is anticipated to be immediately accretive to adjusted earnings per share (EPS) and increase its 2026 adjusted EPS guidance to a range of $8.50 to $9.50.

The transaction is expected to contribute an additional $1.50 per share to adjusted EPS in 2027.

The biopharmaceutical royalty aggregator increased its fiscal 2026 revenue guidance from $245 million-$285 million to $270 million-$310 million, and adjusted earnings from $8.00-$9.00 to $8.50-$9.50 per share.

Analysts estimate sales of $266.71 million and earnings of $9.40 per share.

Read Also: Ligand Pharmaceuticals Is A Low-Risk Way To Bet On Biopharma Growth: Analyst

Analyst Consensus & Recent Actions: The stock carries a Buy Rating with an average price target of $247.29. Recent analyst moves include:

  • Citigroup: Buy (Raises Target to $282.00) (April 15)
  • HC Wainwright & Co.: Buy (Raises Target to $243.00) (April 14)
  • Citigroup: Buy (Raises Target to $276.00) (March 24)

How Ligand (LGND) Ranks On Value, Quality And Momentum

Below is the Benzinga Edge scorecard for Ligand Pharmaceuticals, highlighting its strengths and weaknesses compared to the broader market:

  • Value: 13.78 — The stock is trading at a premium relative to peers.
  • Quality: 69.5 — The balance sheet remains healthy.
  • Momentum: 89.8 — Stock is outperforming the broader market.

The Verdict: Ligand Pharmaceuticals’s Benzinga Edge signal reveals a momentum-driven story, with strong performance metrics indicating robust investor interest and confidence in its growth trajectory.

Price Action: Ligand Pharmaceuticals shares were up 0.20% at $231.72 and XOMA Royalty shares were up 9.23% at $41.40 at the time of publication on Monday, according to Benzinga Pro data.

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