Ligand Pharmaceuticals (NASDAQ:LGND) Issues Quarterly Earnings Results

Ligand Pharmaceuticals (NASDAQ:LGND) announced its earnings results on Thursday. The biotechnology company reported $2.02 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.46 by $0.56, FiscalAI reports. Ligand Pharmaceuticals had a return on equity of 5.71% and a net margin of 19.34%.The firm had revenue of $59.67 million during the quarter, compared to analyst estimates of $55.59 million. During the same period last year, the firm posted $1.27 EPS. The business’s revenue was up 39.5% compared to the same quarter last year. Ligand Pharmaceuticals updated its FY 2026 guidance to 8.000-9.000 EPS.

Here are the key takeaways from Ligand Pharmaceuticals’ conference call:

• Ligand delivered a breakout 2025 with adjusted EPS up 42% and royalty revenue up 48%, reporting core revenue of $240M (ex‑Pelthos) and ending the year with over $1 billion in deployable capital.
• Commercial royalties from FILSPARI, Ohtuvayre, CAPVAXIVE and QARZIBA were the primary growth drivers (FILSPARI US sales $322M; Ohtuvayre ~ $506M; CAPVAXIVE $755M FY), supporting continued royalty scaling into 2026.
• Palvella’s QTORIN rapamycin produced highly significant Phase 3 MLM results with strong tolerability, setting up an NDA in H2 2026 and a potential first‑in‑class approval that Ligand estimates could translate to roughly $100M–$300M peak annual royalties.
• Management reaffirmed 2026 guidance (adjusted EPS $8–$9; royalty revenue $200–$225M) but cautioned the midpoint growth is muted by a 2025 one‑time out‑license fee and a modest, risk‑adjusted $4M FSGS royalty assumption reflecting a delayed PDUFA.
• Ligand is accelerating business development and has launched a systematic portfolio‑management approach, adding late‑stage opportunities (e.g., lasofoxifene, Castle Creek D‑Fi) intended to drive further royalty growth and deal origination.

Ligand Pharmaceuticals Trading Up 1.0%

Ligand Pharmaceuticals stock traded up $1.99 during mid-day trading on Friday, reaching $198.16. 103,648 shares of the company traded hands, compared to its average volume of 210,766. The company has a debt-to-equity ratio of 0.47, a current ratio of 24.69 and a quick ratio of 24.30. Ligand Pharmaceuticals has a 52-week low of $93.58 and a 52-week high of $212.49. The firm has a market capitalization of $3.90 billion, a price-to-earnings ratio of 95.73 and a beta of 1.14. The firm’s 50 day moving average price is $193.50 and its 200 day moving average price is $185.01.

Insider Activity at Ligand Pharmaceuticals

In other Ligand Pharmaceuticals news, Director John W. Kozarich sold 467 shares of Ligand Pharmaceuticals stock in a transaction on Monday, February 2nd. The stock was sold at an average price of $195.91, for a total transaction of $91,489.97. Following the completion of the transaction, the director owned 43,187 shares in the company, valued at approximately $8,460,765.17. The trade was a 1.07% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, CFO Octavio Espinoza sold 1,804 shares of the business’s stock in a transaction on Friday, December 12th. The stock was sold at an average price of $188.31, for a total value of $339,711.24. Following the completion of the sale, the chief financial officer directly owned 26,186 shares in the company, valued at $4,931,085.66. This trade represents a 6.45% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Over the last ninety days, insiders have sold 3,205 shares of company stock worth $611,192. Insiders own 7.00% of the company’s stock.

Hedge Funds Weigh In On Ligand Pharmaceuticals

A number of hedge funds have recently bought and sold shares of LGND. Invesco Ltd. lifted its holdings in Ligand Pharmaceuticals by 36.5% during the fourth quarter. Invesco Ltd. now owns 516,464 shares of the biotechnology company’s stock valued at $97,648,000 after purchasing an additional 138,169 shares in the last quarter. Corient Private Wealth LLC raised its position in shares of Ligand Pharmaceuticals by 339.3% during the 4th quarter. Corient Private Wealth LLC now owns 12,388 shares of the biotechnology company’s stock valued at $2,342,000 after purchasing an additional 9,568 shares during the period. Summit Global Investments lifted its stake in shares of Ligand Pharmaceuticals by 67.6% during the 4th quarter. Summit Global Investments now owns 2,417 shares of the biotechnology company’s stock valued at $457,000 after buying an additional 975 shares in the last quarter. XTX Topco Ltd purchased a new position in shares of Ligand Pharmaceuticals during the 4th quarter valued at $1,459,000. Finally, Voloridge Investment Management LLC boosted its holdings in Ligand Pharmaceuticals by 40.0% in the 4th quarter. Voloridge Investment Management LLC now owns 12,038 shares of the biotechnology company’s stock worth $2,276,000 after buying an additional 3,442 shares during the period. Hedge funds and other institutional investors own 91.28% of the company’s stock.

Ligand Pharmaceuticals News Summary

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

• Positive Sentiment: Company raised FY‑2026 adjusted EPS guidance to $8.00–$9.00 (consensus ~$4.85) and reiterated revenue guidance of $245M–$285M — the wide EPS beat materially lifts earnings expectations and supports valuation upside. GlobeNewswire: Ligand Reports Fourth Quarter and Full Year 2025 Financial Results
• Positive Sentiment: Q4 results topped estimates — non‑GAAP EPS $2.02 vs. $1.46 expected and revenue $59.7M vs. $55.6M expected; revenue rose ~39.5% y/y, indicating accelerating royalty and revenue mix strength. Seeking Alpha: Earnings Beat
• Positive Sentiment: Management outlined a long‑term royalty portfolio growth target — a projected ~23% CAGR through 2030 — supporting sustained royalty income and long‑term EPS upside. Seeking Alpha: 23% CAGR Royalty Growth Outlook
• Positive Sentiment: Oppenheimer raised its price target to $277 with an “outperform” rating, implying meaningful upside vs. the current share price — a catalyst for bullish flows and sentiment. Benzinga: Oppenheimer Price Target Raise
• Positive Sentiment: HC Wainwright and other brokers reiterated bullish views, with commentary expecting further upside after the results/guidance. Analyst momentum can amplify buying interest. AmericanBankingNews: HC Wainwright Analyst Note
• Neutral Sentiment: Transcripts and call highlights are available — useful for details on royalty drivers, cadence of partner payments, and buyback/dividend commentary but not a direct price catalyst by themselves. Seeking Alpha: Q4 2025 Earnings Call Transcript
• Negative Sentiment: Some commentary and coverage noted the stock fell earlier (profit‑taking / reaction volatility) despite the beats — indicates potential short‑term churn and that not all investors immediately accept the stretched FY‑26 EPS range. AAII: Why LGND Stock Is Down

Analysts Set New Price Targets

Several brokerages have commented on LGND. Stifel Nicolaus raised their price target on Ligand Pharmaceuticals from $220.00 to $230.00 and gave the company a “buy” rating in a report on Wednesday, December 10th. Benchmark boosted their price target on shares of Ligand Pharmaceuticals from $175.00 to $220.00 and gave the stock a “buy” rating in a research note on Friday, November 7th. Weiss Ratings restated a “hold (c)” rating on shares of Ligand Pharmaceuticals in a research report on Monday, December 29th. Oppenheimer lifted their price objective on shares of Ligand Pharmaceuticals from $275.00 to $277.00 and gave the stock an “outperform” rating in a report on Friday. Finally, Citigroup initiated coverage on Ligand Pharmaceuticals in a research note on Tuesday, December 9th. They issued a “buy” rating and a $270.00 target price on the stock. Six research analysts have rated the stock with a Buy rating and one has given a Hold rating to the company. According to data from MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and a consensus target price of $245.17.

About Ligand Pharmaceuticals

Ligand Pharmaceuticals, Inc is a biopharmaceutical company that acquires, develops and out-licenses proprietary technologies designed to help pharmaceutical and biotechnology companies discover and develop novel medicines. Operating primarily through its research services and royalty-generating businesses, Ligand focuses on building a diversified portfolio of technology platforms and partnering with industry leaders to advance therapeutic candidates across multiple disease areas.

The company’s product offerings center around several core platforms.