Ligand Pharmaceuticals benefits from FDA approval of FILSPARI
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Sep 06 2024
0mins
Should l Buy LGND?
Ligand Pharmaceuticals Inc. shares rose by 9.79% as the stock reached a 52-week high.
The FDA approved Travere Therapeutics' FILSPARI for treating focal segmental glomerulosclerosis (FSGS), marking it as the first approved drug for this condition. Ligand is set to receive a 9% royalty on worldwide net sales, which is expected to significantly enhance its long-term revenue from this market. The approval is anticipated to solidify Ligand's position in the rare kidney disease market, as over 30,000 patients in the U.S. could benefit from this treatment.
This approval not only opens a new revenue stream for Ligand but also strengthens its competitive position in the biopharmaceutical industry, potentially leading to substantial growth in its royalty earnings.
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Analyst Views on LGND
Wall Street analysts forecast LGND stock price to rise
6 Analyst Rating
6 Buy
0 Hold
0 Sell
Strong Buy
Current: 210.330
Low
220.00
Averages
237.20
High
270.00
Current: 210.330
Low
220.00
Averages
237.20
High
270.00
About LGND
Ligand Pharmaceuticals Incorporated is a biopharmaceutical company enabling scientific advancement through supporting the clinical development of medicines. It does this by financing, licensing its technologies or both. It operates two infrastructure-light royalty-generating IP platform technologies. Its Captisol platform technology is a chemically modified cyclodextrin with a structure designed to optimize the solubility and stability of drugs. This technology has enabled FDA-approved products, including Gilead’s Veklury, Amgen’s Kyprolis, Baxter’s Nexterone, and Acrotech Biopharma’s Evomela. Its NITRICIL platform technology facilitates tunable dosing, permitting an adjustable drug release profile to allow proprietary formulations that target a range of indications. Its technologies also include HepDirect, LTP and BEPro Technology Platform, and Pelican Expression Technology. It has multiple alliances, licenses and other business relationships with various pharmaceutical companies.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Ligand Pharmaceuticals Q1 Earnings Announcement Scheduled
- Earnings Release Date: Ligand Pharmaceuticals is set to announce its Q1 2023 earnings on May 7 before market open, with consensus EPS estimate at $1.80 and revenue at $58.86 million, reflecting a 29.9% year-over-year growth, which could significantly impact the stock price.
- Performance Beat Record: Over the past two years, Ligand has exceeded EPS estimates 88% of the time and revenue estimates 100% of the time, demonstrating strong performance in profitability and market expectation management.
- Estimate Revision Trends: In the last three months, EPS estimates have seen one upward and one downward revision, while revenue estimates experienced three upward and one downward revision, indicating market divergence and adjustments regarding the company's future performance.
- Acquisition Activity: Ligand Pharmaceuticals plans to acquire XOMA Royalty for $39 per share in a $740 million all-cash deal, which will further enhance the company's market position and revenue streams.
See More
Investigation Alerts for Multiple Company Mergers
- XOMA Acquisition Deal: XOMA Royalty Corporation is set to be acquired by Ligand Pharmaceuticals for $39.00 per share, totaling approximately $739 million; however, this price is below its 52-week high of $42.38, raising concerns among shareholders about the fairness of the transaction.
- Organon Merger Case: Organon & Co. will be acquired by Sun Pharmaceutical for $14.00 per share, with an enterprise valuation of $11.75 billion, and the investigation focuses on whether the Organon Board failed to uphold fiduciary duties to ensure a fair process for shareholders.
- RE/MAX Merger Investigation: RE/MAX Holdings, Inc. is being acquired by The Real Brokerage Inc., allowing shareholders to choose between 5.152 shares of the new company or $13.80 in cash, with investigations looking into whether the Board adequately handled the transaction to protect shareholder interests.
- Soleno Acquisition Case: Soleno Therapeutics, Inc. will be acquired by Neurocrine Biosciences for $53.00 per share, representing a total equity value of approximately $2.9 billion, while the investigation questions whether the Board ensured the deal was fair to shareholders, given that the price is below its 52-week high of $90.32.
See More
Latest Developments in the Biotech Sector
- Regulatory Approvals: Crinetics received European Commission approval for PALSONIFY to treat acromegaly in adults, becoming the first once-daily oral therapy in Europe, covering 27 EU member states, which is expected to significantly enhance market share.
- Acquisition Expansion: Teva is acquiring Emalex Biosciences for $700 million, bolstering its neuroscience pipeline and potentially accelerating the NDA submission for Ecopipam, thereby strengthening Teva's competitive position in the CNS disorders market.
- Clinical Trial Progress: Biomea Fusion's Icovamenib showed a 52% increase in mean C-peptide AUC in its Phase 2 trial for Type 1 Diabetes, indicating potential efficacy in early-stage patients, which may drive further development efforts.
- Market Reactions: Despite multiple approvals, AstraZeneca and Novartis saw their stock prices decline by 0.79% and 1.76% respectively, reflecting a cautious investor sentiment towards the biotech sector.
See More
Investigation into XOMA Royalty Acquisition
- Investigation Launched: Rowley Law PLLC is investigating potential securities law violations by XOMA Royalty Corporation and its board regarding the acquisition proposal by Ligand Pharmaceuticals, indicating significant concerns over transaction compliance.
- Transaction Details Revealed: The acquisition is valued at approximately $739 million, with shareholders set to receive $39.00 per share plus a contingent value right, reflecting the market's potential reaction and the protection of shareholder interests.
- Expected Completion Timeline: The transaction is anticipated to close in the third quarter of 2026, with the clarity of the timeline potentially influencing shareholder confidence and subsequent decision-making.
- Legal Support Information: Rowley Law PLLC has provided contact details for shareholders seeking more information about the investigation, demonstrating the firm's commitment to offering legal support and enhancing representation in complex corporate litigation.
See More
Investigation Alerts for Multiple Mergers
- XOMA Acquisition Deal: XOMA Royalty Corporation is set to be acquired by Ligand Pharmaceuticals for $39.00 per share, totaling approximately $739 million; however, this price is below its 52-week high of $42.38, raising concerns among shareholders about the fairness of the transaction.
- Organon Merger Case: Organon & Co. will be acquired by Sun Pharmaceutical for $14.00 per share in cash, with an enterprise valuation of $11.75 billion, and the investigation focuses on whether the Organon Board failed to treat shareholders fairly, potentially impacting shareholder rights.
- RE/MAX Acquisition Proposal: RE/MAX Holdings, Inc. will be acquired by The Real Brokerage, allowing shareholders to choose between 5.152 shares of the new company or $13.80 in cash per share, with investigations into whether the Board failed to handle the transaction fairly, affecting shareholder interests.
- Soleno Acquisition Investigation: Soleno Therapeutics, Inc. will be acquired by Neurocrine Biosciences for $53.00 per share, representing a total transaction value of approximately $2.9 billion, but this price is below its 52-week high of $90.32, raising questions about the Board's fairness in the deal.
See More
Ligand Pharmaceuticals to Acquire XOMA Royalty for $739 Million
- Transaction Overview: Ligand Pharmaceuticals has agreed to acquire XOMA Royalty Corporation for $39.00 per share in cash, valuing the transaction at approximately $739 million, which significantly expands Ligand's royalty portfolio and solidifies its position as a leading biopharma royalty aggregator.
- Asset Portfolio Expansion: The acquisition adds over 120 commercial, clinical, and preclinical assets to Ligand's portfolio, including seven marketed products, with key commercial programs such as Roche's VABYSMO, Day One Pharmaceuticals' OJEMDA, and Zevra Therapeutics' MIPLYFFA, which are expected to drive future revenue growth for the company.
- Earnings Outlook Improvement: Ligand anticipates that the acquisition will be immediately accretive to adjusted earnings per share (EPS) and has raised its 2026 adjusted EPS guidance to $8.50-$9.50, compared to $8.13 for full year 2025, projecting the deal will add $1.50 per share to adjusted EPS in 2027.
- Strategic Importance: Ligand emphasized that the combined portfolio enhances its ability to support broader patient access and advance late-stage assets from Takeda's externalized portfolio, including mezagitamab, osavampator, volixibat, and OHB-607.
See More
Ligand Pharmaceuticals Q1 Earnings Announcement Scheduled
- Earnings Release Date: Ligand Pharmaceuticals is set to announce its Q1 2023 earnings on May 7 before market open, with consensus EPS estimate at $1.80 and revenue at $58.86 million, reflecting a 29.9% year-over-year growth, which could significantly impact the stock price.
- Performance Beat Record: Over the past two years, Ligand has exceeded EPS estimates 88% of the time and revenue estimates 100% of the time, demonstrating strong performance in profitability and market expectation management.
- Estimate Revision Trends: In the last three months, EPS estimates have seen one upward and one downward revision, while revenue estimates experienced three upward and one downward revision, indicating market divergence and adjustments regarding the company's future performance.
- Acquisition Activity: Ligand Pharmaceuticals plans to acquire XOMA Royalty for $39 per share in a $740 million all-cash deal, which will further enhance the company's market position and revenue streams.
See More
Investigation Alerts for Multiple Company Mergers
- XOMA Acquisition Deal: XOMA Royalty Corporation is set to be acquired by Ligand Pharmaceuticals for $39.00 per share, totaling approximately $739 million; however, this price is below its 52-week high of $42.38, raising concerns among shareholders about the fairness of the transaction.
- Organon Merger Case: Organon & Co. will be acquired by Sun Pharmaceutical for $14.00 per share, with an enterprise valuation of $11.75 billion, and the investigation focuses on whether the Organon Board failed to uphold fiduciary duties to ensure a fair process for shareholders.
- RE/MAX Merger Investigation: RE/MAX Holdings, Inc. is being acquired by The Real Brokerage Inc., allowing shareholders to choose between 5.152 shares of the new company or $13.80 in cash, with investigations looking into whether the Board adequately handled the transaction to protect shareholder interests.
- Soleno Acquisition Case: Soleno Therapeutics, Inc. will be acquired by Neurocrine Biosciences for $53.00 per share, representing a total equity value of approximately $2.9 billion, while the investigation questions whether the Board ensured the deal was fair to shareholders, given that the price is below its 52-week high of $90.32.
See More
Latest Developments in the Biotech Sector
- Regulatory Approvals: Crinetics received European Commission approval for PALSONIFY to treat acromegaly in adults, becoming the first once-daily oral therapy in Europe, covering 27 EU member states, which is expected to significantly enhance market share.
- Acquisition Expansion: Teva is acquiring Emalex Biosciences for $700 million, bolstering its neuroscience pipeline and potentially accelerating the NDA submission for Ecopipam, thereby strengthening Teva's competitive position in the CNS disorders market.
- Clinical Trial Progress: Biomea Fusion's Icovamenib showed a 52% increase in mean C-peptide AUC in its Phase 2 trial for Type 1 Diabetes, indicating potential efficacy in early-stage patients, which may drive further development efforts.
- Market Reactions: Despite multiple approvals, AstraZeneca and Novartis saw their stock prices decline by 0.79% and 1.76% respectively, reflecting a cautious investor sentiment towards the biotech sector.
See More
Investigation into XOMA Royalty Acquisition
- Investigation Launched: Rowley Law PLLC is investigating potential securities law violations by XOMA Royalty Corporation and its board regarding the acquisition proposal by Ligand Pharmaceuticals, indicating significant concerns over transaction compliance.
- Transaction Details Revealed: The acquisition is valued at approximately $739 million, with shareholders set to receive $39.00 per share plus a contingent value right, reflecting the market's potential reaction and the protection of shareholder interests.
- Expected Completion Timeline: The transaction is anticipated to close in the third quarter of 2026, with the clarity of the timeline potentially influencing shareholder confidence and subsequent decision-making.
- Legal Support Information: Rowley Law PLLC has provided contact details for shareholders seeking more information about the investigation, demonstrating the firm's commitment to offering legal support and enhancing representation in complex corporate litigation.
See More
Investigation Alerts for Multiple Mergers
- XOMA Acquisition Deal: XOMA Royalty Corporation is set to be acquired by Ligand Pharmaceuticals for $39.00 per share, totaling approximately $739 million; however, this price is below its 52-week high of $42.38, raising concerns among shareholders about the fairness of the transaction.
- Organon Merger Case: Organon & Co. will be acquired by Sun Pharmaceutical for $14.00 per share in cash, with an enterprise valuation of $11.75 billion, and the investigation focuses on whether the Organon Board failed to treat shareholders fairly, potentially impacting shareholder rights.
- RE/MAX Acquisition Proposal: RE/MAX Holdings, Inc. will be acquired by The Real Brokerage, allowing shareholders to choose between 5.152 shares of the new company or $13.80 in cash per share, with investigations into whether the Board failed to handle the transaction fairly, affecting shareholder interests.
- Soleno Acquisition Investigation: Soleno Therapeutics, Inc. will be acquired by Neurocrine Biosciences for $53.00 per share, representing a total transaction value of approximately $2.9 billion, but this price is below its 52-week high of $90.32, raising questions about the Board's fairness in the deal.
See More
Ligand Pharmaceuticals to Acquire XOMA Royalty for $739 Million
- Transaction Overview: Ligand Pharmaceuticals has agreed to acquire XOMA Royalty Corporation for $39.00 per share in cash, valuing the transaction at approximately $739 million, which significantly expands Ligand's royalty portfolio and solidifies its position as a leading biopharma royalty aggregator.
- Asset Portfolio Expansion: The acquisition adds over 120 commercial, clinical, and preclinical assets to Ligand's portfolio, including seven marketed products, with key commercial programs such as Roche's VABYSMO, Day One Pharmaceuticals' OJEMDA, and Zevra Therapeutics' MIPLYFFA, which are expected to drive future revenue growth for the company.
- Earnings Outlook Improvement: Ligand anticipates that the acquisition will be immediately accretive to adjusted earnings per share (EPS) and has raised its 2026 adjusted EPS guidance to $8.50-$9.50, compared to $8.13 for full year 2025, projecting the deal will add $1.50 per share to adjusted EPS in 2027.
- Strategic Importance: Ligand emphasized that the combined portfolio enhances its ability to support broader patient access and advance late-stage assets from Takeda's externalized portfolio, including mezagitamab, osavampator, volixibat, and OHB-607.
See More
