Ligand Pharmaceuticals (NASDAQ:LGND) Announces Quarterly Earnings Results, Beats Expectations By $0.56 EPS

Ligand Pharmaceuticals (NASDAQ:LGND) issued its quarterly earnings data on Thursday. The biotechnology company reported $2.02 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.46 by $0.56, FiscalAI reports. Ligand Pharmaceuticals had a net margin of 19.34% and a return on equity of 5.71%. The company had revenue of $59.67 million for the quarter, compared to the consensus estimate of $55.59 million. During the same period last year, the firm posted $1.27 EPS. Ligand Pharmaceuticals’s revenue for the quarter was up 39.5% on a year-over-year basis. 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 Price Performance

Shares of NASDAQ LGND traded up $4.78 on Thursday, hitting $196.17. The company’s stock had a trading volume of 256,576 shares, compared to its average volume of 171,359. The stock has a 50 day moving average of $193.50 and a 200-day moving average of $185.01. The company has a market capitalization of $3.86 billion, a price-to-earnings ratio of 94.77 and a beta of 1.14. Ligand Pharmaceuticals has a 12-month low of $93.58 and a 12-month high of $212.49. The company has a debt-to-equity ratio of 0.47, a current ratio of 24.69 and a quick ratio of 24.30.

Wall Street Analyst Weigh In

Several research firms have commented on LGND. Stifel Nicolaus upped their price objective on Ligand Pharmaceuticals from $220.00 to $230.00 and gave the company a “buy” rating in a research note on Wednesday, December 10th. Royal Bank Of Canada upped their price target on Ligand Pharmaceuticals from $234.00 to $235.00 and gave the stock an “outperform” rating in a research note on Wednesday, December 10th. Benchmark increased their price target on Ligand Pharmaceuticals from $175.00 to $220.00 and gave the stock a “buy” rating in a report on Friday, November 7th. Weiss Ratings reissued a “hold (c)” rating on shares of Ligand Pharmaceuticals in a research note on Monday, December 29th. Finally, Citigroup started coverage on shares of Ligand Pharmaceuticals in a research note on Tuesday, December 9th. They issued a “buy” rating and a $270.00 target price for the company. Six analysts have rated the stock with a Buy rating and one has given a Hold rating to the company’s stock. Based on data from MarketBeat, the company has an average rating of “Moderate Buy” and an average price target of $240.67.

Ligand Pharmaceuticals News Summary

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

• Positive Sentiment: Q4 results beat — Non‑GAAP EPS of $2.02 and revenue of $59.7M topped Street estimates, showing 39.5% Y/Y revenue growth and stronger margins; this supports upside to current valuation. Ligand Pharmaceuticals Non‑GAAP EPS of $2.02 beats
• Positive Sentiment: Very bullish FY‑2026 earnings guide — management reiterated guidance for adjusted EPS of $8.00–$9.00 (well above the prior consensus ~$4.85), signaling material profit growth ahead and likely driving buying interest. Ligand Reports Fourth Quarter and Full Year 2025 Financial Results
• Positive Sentiment: Analyst support — at least one sell‑side note flagged upside potential after the results and guide, reinforcing short‑term bullish momentum. Ligand Stock Expected to Rise, HC Wainwright Says
• Neutral Sentiment: Revenue guidance is a wide range ($245M–$285M) that spans below and above consensus (~$266M); while EPS guide is strong, the revenue band leaves execution uncertainty that could temper enthusiasm. Ligand: Q4 Earnings Snapshot
• Negative Sentiment: Intraday volatility / profit‑taking noted — some outlets highlighted a pullback (reported declines intraday) as investors digest the guidance range and rich valuation (LGND carries a high P/E), which could pressure the stock in the near term. Why LGND Stock Is Down 5.99%

Insider Activity at Ligand Pharmaceuticals

In related news, Director John W. Kozarich sold 467 shares of the company’s stock in a transaction that occurred on Monday, February 2nd. The stock was sold at an average price of $195.91, for a total value of $91,489.97. Following the sale, the director owned 43,187 shares of the company’s stock, valued at approximately $8,460,765.17. This represents a 1.07% decrease in their position. The transaction 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 firm’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 transaction, the chief financial officer directly owned 26,186 shares of the company’s stock, valued at $4,931,085.66. The trade was a 6.45% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders have sold a total of 3,205 shares of company stock valued at $611,192 over the last 90 days. Insiders own 7.00% of the company’s stock.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the company. State Street Corp grew its holdings in shares of Ligand Pharmaceuticals by 3.1% during the second quarter. State Street Corp now owns 749,754 shares of the biotechnology company’s stock worth $85,232,000 after buying an additional 22,629 shares in the last quarter. Invesco Ltd. boosted its position in Ligand Pharmaceuticals by 36.5% during the fourth quarter. Invesco Ltd. now owns 516,464 shares of the biotechnology company’s stock worth $97,648,000 after acquiring an additional 138,169 shares during the last quarter. Goldman Sachs Group Inc. boosted its position in Ligand Pharmaceuticals by 16.6% during the fourth quarter. Goldman Sachs Group Inc. now owns 429,004 shares of the biotechnology company’s stock worth $81,112,000 after acquiring an additional 61,209 shares during the last quarter. Victory Capital Management Inc. grew its stake in Ligand Pharmaceuticals by 0.6% in the 4th quarter. Victory Capital Management Inc. now owns 256,410 shares of the biotechnology company’s stock worth $48,479,000 after acquiring an additional 1,605 shares during the period. Finally, Franklin Resources Inc. raised its holdings in Ligand Pharmaceuticals by 23.5% in the 3rd quarter. Franklin Resources Inc. now owns 229,856 shares of the biotechnology company’s stock valued at $40,717,000 after acquiring an additional 43,757 shares during the last quarter. 91.28% of the stock is currently owned by hedge funds and other institutional investors.

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.