Update shared on13 Sep 2025
Fair value Increased 2.81%Ligand Pharmaceuticals’ consensus price target was raised from $178.12 to $183.12, reflecting analysts’ confidence in its strengthened capital position following a successful $460M convertible debt offering, robust revenue and earnings guidance, and a track record of prudent capital allocation and royalty portfolio wins.
Analyst Commentary
- Market enthusiasm following Ligand's successful $460M convertible debt offering, which provided $385M in net capital and included a $45M bond hedge mitigating dilution up to $294/share, as well as a $15M share repurchase.
- Improved capital position enables Ligand to be more opportunistic in deploying capital for royalty monetization and project financing, without altering its prudent capital allocation strategy.
- Bullish analysts cite Ligand outperforming sector benchmarks post-capital raise, supported by investor appetite for the company’s business model and a lowered discount rate from new debt terms.
- Upward revisions to revenue and earnings guidance for FY25 following better-than-expected Q2 results, with expected revenue growth of 29% year-over-year and adjusted EPS projected to rise to $6.85 from $5.72.
- Strong investor sentiment and confidence in management’s conservative forecasts and recent portfolio wins, including royalty investments such as Ohtuvayre, successful asset spins, and significant royalty streams (e.g., Qarziba’s $20M+ annualized payout for a $100M investment).
What's in the News
- Citigroup, Stifel, and BofA Securities were added as co-lead underwriters for a $400 million fixed-income offering.
- The company reported no share repurchases from April to June 2025 under its existing buyback program.
- Ligand raised 2025 total revenue guidance to $200 million–$225 million, up from $180 million–$200 million.
- ZELSUVMI, the first FDA-approved at-home treatment for molluscum contagiosum, was commercially launched by partner Pelthos; Ligand earned a $5 million milestone, owns 56% of Pelthos, earns 13% royalties, and is eligible for up to $5 million in additional milestones.
- Ligand Pharmaceuticals was added to multiple Russell growth and small/mid-cap benchmark indices.
Valuation Changes
Summary of Valuation Changes for Ligand Pharmaceuticals
- The Consensus Analyst Price Target has risen slightly from $178.12 to $183.12.
- The Net Profit Margin for Ligand Pharmaceuticals has risen slightly from 38.37% to 39.75%.
- The Future P/E for Ligand Pharmaceuticals remained effectively unchanged, moving only marginally from 37.61x to 37.33x.
Disclaimer
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