Will Lower Short Interest Reshape Ligand Pharmaceuticals' (LGND) Sentiment Among Industry Peers?

• Ligand Pharmaceuticals recently reported a 7.23% decline in short interest, with 1.11 million shares now sold short, representing 6.8% of its float, according to exchange data as of November 2025.
• This level is below the peer group average, suggesting that investors appear less bearish compared to similar companies in the industry.
• We'll examine how the recent decrease in short interest could help support Ligand Pharmaceuticals' investment outlook moving forward.

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Ligand Pharmaceuticals Investment Narrative Recap

To be a shareholder in Ligand Pharmaceuticals, you generally need to believe in the company's platform of high-margin royalty streams, diversification across partnered drugs, and recurring revenue potential as new therapeutics reach the market. The recent decline in short interest signals reduced bearish sentiment but does not shift the most important short-term catalysts, such as the successful commercialization of partnered assets, or lessen the key risks around asset concentration and royalty durability, which remain material factors for the business.

The July 2025 launch of ZELSUVMI, Ligand’s topical treatment for molluscum contagiosum, stands out as a major recent development. While this adds a new revenue stream and aligns with the catalyst of broadening the royalty portfolio, short interest trends primarily reflect market sentiment, not immediate commercial uptake or regulatory outcomes for this or other key products. However, investors should remain mindful that...

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

Ligand Pharmaceuticals' outlook forecasts $315.6 million in revenue and $121.1 million in earnings by 2028. This scenario assumes 18.9% annual revenue growth and a $197 million increase in earnings from the current -$75.9 million.

Uncover how Ligand Pharmaceuticals' forecasts yield a $237.50 fair value, a 17% upside to its current price.

Exploring Other Perspectives

Community members on Simply Wall St have shared three fair value estimates for Ligand Pharmaceuticals ranging from US$38.77 to US$288.68 per share. While opinion varies widely, many are closely watching the pace of new royalty asset launches and what it might mean for Ligand’s long-term revenue consistency.

Explore 3 other fair value estimates on Ligand Pharmaceuticals - why the stock might be worth as much as 42% more than 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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