Ligand Pharmaceuticals (LGND) Is Up 8.8% After Raising 2025 Guidance on Strong Q3 Results – Has The Bull Case Changed?

• Ligand Pharmaceuticals reported third quarter 2025 results on November 6, showing a large year-over-year increase in revenue to US$115.46 million and net income of US$117.27 million, along with improved earnings per share figures.
• An unusually strong quarterly performance was paired with a raised full-year 2025 guidance, highlighting increased expectations across all core revenue segments, including royalties and product sales.
• We'll explore how Ligand Pharmaceuticals' upward revision to annual guidance amplifies its investment narrative built on recurring royalty revenue growth.

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Ligand Pharmaceuticals Investment Narrative Recap

To be a Ligand Pharmaceuticals shareholder, you need to believe in the compounding power of its royalty-driven business model and its ability to broaden high-margin streams across multiple partnered drugs. The recent strong quarterly results and raised full-year guidance bolster confidence in accelerating revenue growth, while the most important short term catalyst remains continued performance of the key royalty assets. However, over-reliance on a concentrated set of assets is still the biggest risk, and that risk remains material despite this quarter’s record earnings.

The November 6 announcement raising full-year 2025 guidance is especially relevant, since it underscores management’s improved outlook for core revenues and royalties. With higher projections across all segments, Ligand has highlighted demand strength in royalties and Captisol sales, both key levers for future cash flows and near-term earnings momentum. For investors focused on short term upside, the new guidance directly addresses the primary catalyst for stock performance.

But while top-line momentum is strong, investors should also be aware that concentrated royalty streams make the company vulnerable if any single partnered product faces unexpected setbacks…

Read the full narrative on Ligand Pharmaceuticals (it's free!)

Ligand Pharmaceuticals' narrative projects $315.6 million in revenue and $121.1 million in earnings by 2028. This requires 18.9% yearly revenue growth and a $197 million earnings increase from -$75.9 million today.

Uncover how Ligand Pharmaceuticals' forecasts yield a $183.12 fair value, a 12% downside to its current price.

Exploring Other Perspectives

Community fair value estimates for Ligand Pharmaceuticals from Simply Wall St range from US$38.77 to US$291.45, showing wide variation across three views. This diversity of opinion stands in contrast to ongoing risks around asset concentration, highlighting why you may want to consider several perspectives before forming your own outlook.

Explore 3 other fair value estimates on Ligand Pharmaceuticals - why the stock might be worth less than half the current price!

Build Your Own Ligand Pharmaceuticals Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Ligand Pharmaceuticals research is our analysis highlighting 2 key rewards and 3 important warning signs that could impact your investment decision.
• Our free Ligand Pharmaceuticals research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Ligand Pharmaceuticals' overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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