LGNDZ · Ligand Pharmaceuticals, Inc.

Ligand Pharmaceuticals delivered strong Q1 2026 results, with royalty revenue surging 56% year-over-year to $43.0 million, primarily from royalties on Travere Therapeutics’ Filspari, Merck’s Ohtuvayre, and Capvaxive, underscoring the resilience and growth potential of its core royalty portfolio. Total revenues rose 14% to $51.7 million, though Captisol sales declined to $8.7 million due to order timing. Operating expenses improved significantly, with R&D dropping to $2.1 million from $50.1 million, reflecting the absence of a $44.3 million one-time charge related to the Castle Creek Biosciences royalty financing and wind-down of the Pelthos business. G&A rose modestly to $20.8 million amid investments in business development. A $49.2 million non-cash loss on the Pelthos equity investment drove non-operating expenses higher, resulting in a GAAP net loss of $13.3 million ($0.67/share), narrower than the prior year's $42.5 million loss. Adjusted net income grew 30% to $34.6 million ($1.63/share), highlighting underlying profitability. Cash position strengthened to $779.4 million, supporting strategic initiatives. Management reaffirmed full-year guidance, incorporating a partial-year boost from the pending XOMA Royalty acquisition, expected to close in Q3 2026 and add $25 million in royalties from assets like Vabysmo and Ojemda. CEO Todd Davis emphasized the transformative XOMA deal and Filspari's full FDA approval in FSGS as key growth drivers. Portfolio updates include positive Phase 3 data for Palvella’s Qtorin rapamycin and progress in other partners' programs like LeonaBio’s lasofoxifene.