Ligand Reports Third Quarter 2026 Financial Results
| Qtorin rapamycin |
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| AVIM Therapy/VIRTUE SAB |
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| Zelsuvmi |
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| Lasofoxifene |
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| Ojemda |
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| Volixibat |
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| Ersodetug |
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| Soticlestat |
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| IV ganaxolone |
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Conference Call and Webcast
Ligand management will host a conference call today beginning at 8:30 a.m. Eastern Time (5:30 a.m. Pacific Time) to discuss its results and answer questions. To participate via telephone, please dial (833) 461-5787 using the conference ID 708822080. International participants outside of Canada may use the toll number +1(585) 542-9983. To participate via live or replay webcast, a link is available at
About Ligand Pharmaceuticals
Ligand is a leading royalty aggregator, partnering with biopharmaceutical companies to finance and advance late-stage clinical development programs. Ligand owns and manages one of the largest and most diversified portfolios of biopharmaceutical royalties in the industry, with economic interests in more than 200 development and commercial-stage assets. Ligand funds high-value programs in exchange for long-term economic interests, aligning capital with clinical and commercial success. Ligand's royalty portfolio is designed to deliver consistent and predictable revenue streams across a broad range of therapeutic assets. Ligand also licenses its proprietary technologies, Captisol® and NITRICILTM, to support drug development and formulation across its global partner network. For more information, visit or follow Ligand on X and LinkedIn.
Forward-Looking Statements
This press release contains forward-looking statements, as defined in Section 21E of the Securities Exchange Act of 1934, regarding Ligand's current expectations. All statements, other than statements of historical fact, could be deemed to be forward-looking statements. In some instances, words such as“plans,”“believes,”“expects,”“anticipates,” and“will,” and similar expressions, are intended to identify forward-looking statements. Readers are cautioned not to place undue reliance on these forward-looking statements, which reflect our good faith beliefs (or those of the indicated third parties) and speak only as of the date hereof. These forward-looking statements include, without limitation, Ligand's ability to expand its portfolio with life sciences royalty opportunities; the timing of clinical and regulatory events of Ligand's partners and other commercialization and marketing efforts; the timing of the initiation or completion of preclinical studies and clinical trials by Ligand and its partners; the timing of product launches by Ligand or its partners; and guidance regarding projected 2026 financial results. Actual events or results may differ from Ligand's expectations due to risks and uncertainties inherent in Ligand's business, including, without limitation: Ligand relies on collaborative partners for milestone payments, royalties, materials revenue, contract payments and other revenue projections and may not receive expected revenue; royalty revenue and income for partners that had not reported product sales as of the date of this press release are based on estimates that may differ from actual results and if such results differ they will be adjusted in future periods; Ligand may not receive expected revenue from Captisol material sales; Ligand and its partners may not be able to timely or successfully advance any product(s) in its internal or partnered pipeline or receive regulatory approval and there may not be a market for the product(s) even if successfully developed and approved; Ligand may not achieve its financial guidance for 2026; Ligand faces competition in acquiring royalties and locating suitable royalties to acquire; Ligand may not be able to create future revenues and cash flows through the acquisition of royalties or by developing innovative therapeutics; products under development by Ligand or its partners may not receive regulatory approval; the total addressable market for our partners' products may be smaller than estimated; Ligand faces competition with respect to its technology platforms which may demonstrate greater market acceptance or superiority; Ligand is currently dependent on a single source supplier for Captisol and failures by such supplier may result in delays or inability to meet the Captisol demands of its partners; Ligand's partners may change their development focus and may not execute on their sales and marketing plans for marketed products for which Ligand has an economic interest; Ligand's collaboration partners may become insolvent; Ligand's and its partners' products may not be proved to be safe and efficacious and may not perform as expected and uncertainty regarding the commercial performance of such products; Ligand or its partners may not be able to protect their intellectual property and patents covering certain products and technologies may be challenged or invalidated; cyber-attacks or other failures in telecommunications or information technology systems could result in information theft, data corruption and significant disruption to Ligand's business operations; Ligand's partners may terminate any of their agreements or the development or commercialization of any of its products; Ligand and its partners may experience delays in the commencement, enrollment, completion or analysis of clinical testing for its product candidates, or significant issues regarding the adequacy of its clinical trial designs or the execution of its clinical trials, challenges, costs and charges associated with integrating acquisitions with Ligand's existing businesses; Ligand may not be able to successfully implement its strategic growth plan and continue the development of its proprietary programs; restrictions under Ligand's credit agreement may limit its flexibility in operating its business and a default under the agreement could result in a foreclosure of the collateral securing such obligations; Ligand may not realize the anticipated benefits from investments in financing instruments such as convertible notes, including the 2031 Notes; Ligand may not successfully integrate the XOMA portfolio or realize the anticipated benefits of the XOMA acquisition; and changes in general economic conditions, including as a result of war, conflict, epidemic diseases, the imposition and/or announcement of tariffs and ongoing or future litigation could expose Ligand to significant liabilities and have a material adverse effect on the Company. The failure to meet expectations with respect to any of the foregoing matters may reduce Ligand's stock price. Additional information concerning these and other risk factors affecting Ligand can be found in prior press releases available at as well as in Ligand's public periodic filings with the Securities and Exchange Commission available at Ligand disclaims any intent or obligation to update these forward-looking statements beyond the date of this release, including the possibility of additional license fees and milestone revenues we may receive. This caution is made under the safe harbor provisions of the Private Securities Litigation Reform Act of 1995.
Other Disclaimers and Trademarks
The information in this press release regarding certain third-party products and programs, including Lasofoxifene, a LeonaBio product, AVIM Therapy and Virtue SAB, Orchestra products, Filspari, a Travere Therapeutics product, Ohtuvayre and Capvaxive, Merck products, Qtorin rapamycin, a Palvella Therapeutics product candidate, Vabysmo, a Roche product, Ojemda, a Servier and Ipsen product, Miplyffa, a Zevra Therapeutics product, mezagitamab, osavampator and OHB-607, Takeda product candidates, volixibat, a Mirum Pharmaceuticals product candidate, Ryjunea, a Santen product, AVC-201 and AVC-203, AvenCell Therapeutics product candidates, ersodetug, a Rezolute product candidate, soticlestat, an Ovid Therapeutics product candidate, and Zelsuvmi, a Pelthos Therapeutics product, comes from information publicly released by the owners of such products and programs. Ligand is not responsible for, and has no role in, the development of such products or programs.
Ligand owns or has rights to trademarks and copyrights that it uses in connection with the operation of its business including its corporate name, logos and websites. Other trademarks and copyrights appearing in this press release are the property of their respective owners. The trademarks Ligand owns include Ligand, Captisol, NITRICIL and Zelsuvmi. Solely for convenience, some of the trademarks and copyrights referred to in this press release are listed without the®,© andTM symbols, but Ligand will assert, to the fullest extent under applicable law, its rights to its trademarks and copyrights.
References to“Ligand,” the“Company,”“we,”“our” and similar expressions include Ligand Pharmaceuticals Incorporated and our wholly-owned subsidiaries.
Contacts:
Investors:
Melanie Herman
...
(858) 550-7761
Media:
Kellie Walsh
...
(914) 315-6072
[Tables Follow]
| LIGAND PHARMACEUTICALS INCORPORATED | |||||||||||||||
| CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | |||||||||||||||
| (Unaudited, in thousands, except per share amounts) | |||||||||||||||
| Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||
| Revenues and income: | |||||||||||||||
| Revenue from intangible royalty assets | $ | 47,427 | $ | 40,161 | $ | 117,720 | $ | 91,832 | |||||||
| Income from financial royalty assets | 22,857 | 6,425 | 43,554 | 18,640 | |||||||||||
| Royalties | 70,284 | 46,586 | 161,274 | 110,472 | |||||||||||
| Captisol | 7,946 | 10,672 | 24,578 | 32,419 | |||||||||||
| Income from Pelthos transaction - Zelsuvmi out-license | - | 24,503 | - | 24,503 | |||||||||||
| Income from Pelthos transaction - gain on the sale of the Pelthos business | - | 28,569 | - | 28,569 | |||||||||||
| Other | 516 | 5,131 | 8,309 | 12,458 | |||||||||||
| Contract revenue and income | 516 | 58,203 | 8,309 | 65,530 | |||||||||||
| Total revenues and income | 78,746 | 115,461 | 194,161 | 208,421 | |||||||||||
| Operating costs and expenses: | |||||||||||||||
| Cost of Captisol | 2,650 | 3,801 | 9,137 | 11,557 | |||||||||||
| Amortization of intangibles | 10,205 | 8,097 | 26,399 | 24,612 | |||||||||||
| Research and development | 2,766 | 21,019 | 19,582 | 77,671 | |||||||||||
| General and administrative | 72,616 | 28,446 | 122,575 | 67,422 | |||||||||||
| Fair value adjustments to contingent liabilities | 6,267 | (456 | ) | 5,775 | 1,475 | ||||||||||
| Fair value adjustments to partner program derivatives | - | (833 | ) | - | - | ||||||||||
| Total operating costs and expenses | 94,504 | 60,074 | 183,468 | 182,737 | |||||||||||
| Operating (loss) income | (15,758 | ) | 55,387 | 10,693 | 25,684 | ||||||||||
| Non-operating income and expenses: | |||||||||||||||
| (Loss) gain from short-term investments | (3,817 | ) | 7,798 | 11,806 | (3,630 | ) | |||||||||
| (Loss) gain from change in fair value of equity-method investments and other investments | (35,727 | ) | 75,887 | (49,229 | ) | 75,887 | |||||||||
| Interest income, net | 2,594 | 2,964 | 13,052 | 4,336 | |||||||||||
| Other non-operating expense, net | 8,614 | (899 | ) | 9,629 | (97 | ) | |||||||||
| Total non-operating (expenses) income, net | (28,336 | ) | 85,750 | (14,742 | ) | 76,496 | |||||||||
| (Loss) income before income taxes | (44,094 | ) | 141,137 | (4,049 | ) | 102,180 | |||||||||
| Income tax benefit (expense) | 15,609 | (23,864 | ) | 10,727 | (22,511 | ) | |||||||||
| Net (loss) income | $ | (28,485 | ) | $ | 117,273 | $ | 6,678 | $ | 79,669 | ||||||
| Basic net (loss) income per share | $ | (1.43 | ) | $ | 5.99 | $ | 0.33 | $ | 4.11 | ||||||
| Shares used in basic per share calculation | 19,962 | 19,578 | 19,970 | 19,367 | |||||||||||
| Diluted net (loss) income per share | $ | (1.43 | ) | $ | 5.68 | $ | 0.31 | $ | 3.95 | ||||||
| Shares used in diluted per share calculation | 19,962 | 20,629 | 21,822 | 20,170 | |||||||||||
| LIGAND PHARMACEUTICALS INCORPORATED | |||||||
| SELECTED BALANCE SHEET DATA | |||||||
| (unaudited, in thousands) | |||||||
| September 30, 2026 | December 31, 2025 | ||||||
| Cash, cash equivalents and short-term investments | $ | 447,395 | $ | 733,521 | |||
| Accounts receivable, net | 83,221 | 59,601 | |||||
| Total current and non-current financial royalty assets, net | 800,114 | 219,669 | |||||
| Goodwill and intangible assets, net | 509,899 | 326,979 | |||||
| Equity method investments | 48,445 | 46,500 | |||||
| Other investments | 94,479 | 121,451 | |||||
| Deferred income taxes, net | 104,117 | 8,345 | |||||
| Total assets | 2,237,462 | 1,560,637 | |||||
| Accounts payable and accrued liabilities | 39,760 | 34,691 | |||||
| Total current and non-current contingent liabilities | 38,867 | 3,221 | |||||
| Convertible senior notes, net | 1,128,217 | 446,192 | |||||
| Total liabilities | 1,275,699 | 543,425 | |||||
| Total stockholders' equity | $ | 961,763 | $ | 1,017,212 |
LIGAND PHARMACEUTICALS INCORPORATED
ADJUSTED FINANCIAL MEASURES
(Unaudited, in thousands, except per share amounts)
| Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||
| Net (loss) income | $ | (28,485 | ) | $ | 117,273 | $ | 6,678 | $ | 79,669 | ||||||
| Adjustments: | |||||||||||||||
| Share-based compensation expense(1) | 29,026 | 14,746 | 53,275 | 32,579 | |||||||||||
| Non-cash interest expense(2) | 1,393 | 447 | 2,209 | 2,263 | |||||||||||
| Amortization of intangible assets | 10,205 | 8,097 | 26,399 | 24,612 | |||||||||||
| Amortization of financial royalty assets(3) | 4,411 | 4,327 | 6,857 | 11,069 | |||||||||||
| Change in contingent liabilities(4) | 6,267 | (456 | ) | 5,775 | 1,475 | ||||||||||
| Pelthos operating loss | - | - | - | 13,212 | |||||||||||
| Loss (gain) from short-term investments | 3,817 | (7,798 | ) | (11,806 | ) | 3,630 | |||||||||
| Realized gain (loss) from short-term investments | 2,904 | (2 | ) | 13,635 | (22 | ) | |||||||||
| Transaction and integration costs(5) | 23,900 | 4,815 | 28,911 | 4,815 | |||||||||||
| Provision for current expected credit losses on financial royalty assets | 6,641 | 26 | 6,440 | (724 | ) | ||||||||||
| R&D funding expenses | - | 18,659 | 12,328 | 64,686 | |||||||||||
| (Gain) loss from derivative assets | (8,544 | ) | (111 | ) | (9,076 | ) | 134 | ||||||||
| Loss (gain) from change in fair value of equity-method investments and other investments(6) | 35,727 | (75,887 | ) | 49,229 | (75,887 | ) | |||||||||
| Income from Pelthos transaction - gain on the sale of the Pelthos business(7) | - | (28,569 | ) | - | (28,569 | ) | |||||||||
| Other | (307 | ) | 166 | (277 | ) | (1,612 | ) | ||||||||
| Income tax effect of adjusted reconciling items above | (28,178 | ) | 9,359 | (39,832 | ) | (6,862 | ) | ||||||||
| Excess tax benefit from share-based compensation(8) | (1,325 | ) | (1,260 | ) | (7,890 | ) | (2,073 | ) | |||||||
| Adjusted net income | $ | 57,452 | $ | 63,832 | $ | 142,855 | $ | 122,395 | |||||||
| Total revenues and income | $ | 78,746 | $ | 115,461 | $ | 194,161 | $ | 208,421 | |||||||
| Less: Income from Pelthos transaction – gain on the sale of the Pelthos business(7) | - | (28,569 | ) | - | (28,569 | ) | |||||||||
| Core revenues and income | $ | 78,746 | $ | 86,892 | $ | 194,161 | $ | 179,852 | |||||||
| Diluted per-share amounts attributable to common stockholders: | |||||||||||||||
| Diluted net (loss) income per share | $ | (1.43 | ) | $ | 5.68 | $ | 0.31 | $ | 3.95 | ||||||
| Adjustments: | |||||||||||||||
| Share-based compensation expense(1) | 1.35 | 0.71 | 2.49 | 1.62 | |||||||||||
| Non-cash interest expense(2) | 0.06 | 0.02 | 0.10 | 0.11 | |||||||||||
| Amortization of intangible assets | 0.47 | 0.39 | 1.23 | 1.22 | |||||||||||
| Amortization of financial royalty assets(3) | 0.20 | 0.21 | 0.32 | 0.55 | |||||||||||
| Change in contingent liabilities(4) | 0.29 | (0.02 | ) | 0.27 | 0.07 | ||||||||||
| Pelthos operating loss | - | - | - | 0.66 | |||||||||||
| Loss (gain) from short-term investments | 0.18 | (0.38 | ) | (0.55 | ) | 0.18 | |||||||||
| Realized gain (loss) from short-term investments | 0.13 | - | 0.64 | - | |||||||||||
| Transaction and integration costs(5) | 1.11 | 0.23 | 1.35 | 0.24 | |||||||||||
| Provision for current expected credit losses on financial royalty assets | 0.31 | - | 0.30 | (0.04 | ) | ||||||||||
| R&D funding expenses | - | 0.90 | 0.58 | 3.21 | |||||||||||
| (Gain) loss from derivative assets | (0.40 | ) | (0.01 | ) | (0.42 | ) | 0.01 | ||||||||
| Loss (gain) from change in fair value of equity-method investments and other investments(6) | 1.66 | (3.68 | ) | 2.30 | (3.76 | ) | |||||||||
| Income from Pelthos transaction - gain on the sale of the Pelthos business(7) | - | (1.38 | ) | - | (1.42 | ) | |||||||||
| Other | (0.01 | ) | 0.02 | (0.01 | ) | (0.08 | ) | ||||||||
| Income tax effect of adjusted reconciling items above | (1.30 | ) | 0.46 | (1.88 | ) | (0.35 | ) | ||||||||
| Excess tax benefit from share-based compensation(8) | (0.06 | ) | (0.06 | ) | (0.37 | ) | (0.10 | ) | |||||||
| Adjustment for shares excluded due to anti-dilution effect on GAAP net loss | 0.11 | - | 0.01 | - | |||||||||||
| Adjusted earnings per diluted share | $ | 2.67 | $ | 3.09 | $ | 6.67 | $ | 6.07 | |||||||
| GAAP - weighted average number of common shares - diluted | 19,962 | 20,629 | 21,822 | 20,170 | |||||||||||
| Diluted effect of the convertible senior notes | - | - | (420 | ) | - | ||||||||||
| Shares excluded due to anti-dilutive effect on GAAP net loss | 1,593 | - | - | - | |||||||||||
| Adjusted weighted average number of common shares - diluted | 21,555 | 20,629 | 21,402 | 20,170 |
(1) Amounts include a $10.8 million of share-based compensation expense recognized during the three and nine months ended September 30, 2026, related to the cash settlement of XOMA equity awards, which represents the portion attributable to the post-combination service period.
(2) Amounts represent (a) non-cash interest expense in connection with the royalty and milestone payments purchase agreement assumed as part of the Novan acquisition in September 2023; (b) non-cash debt related costs that are calculated in accordance with the authoritative accounting guidance for our convertible debt instruments that may be settled in cash and revolving credit facility; and (c) non-cash interest income from notes receivable.
(3) Amounts represent a portion of the contract payments and royalty receipts that are applied to reduce the carrying balance of our financial royalty assets.
(4) Amounts represent fair value adjustments to contingent liabilities assumed in the XOMA acquisition and those related to the CyDex and Metabasis transactions.
(5) Amounts represent (a) costs of $14.2 million and $19.1 million for the three and nine months ended September 30, 2026, respectively, related to the acquisition of XOMA, consisting primarily of advisory, legal and accounting fees; (b) severance costs and other integration related costs associated with the XOMA acquisition; and (c) costs related to other business development transactions.
(6) Amounts represent gains or losses from changes in the fair value of the Pelthos equity-method investment and Pelthos Series A Preferred Shares.
(7) During the third quarter of 2025, the Company recognized $53.1 million of income related to the divestiture of its Pelthos subsidiary, consisting of $24.5 million associated with the out-license of Zelsuvmi and a $28.6 million gain on the sale of the business. The full $53.1 million was recognized in contract revenue and income. For purposes of adjusted net income, management included the $24.5 million attributable to the out-license of Zelsuvmi and excluded the $28.6 million gain on the sale of the business. Management believes this presentation enhances transparency and comparability by reflecting the license-related component within ongoing operating results while excluding the gain associated with the sale of the business.
(8) Excess tax benefit from share-based compensation is recorded as a discrete item within the provision for income taxes on the consolidated statements of operations as a result of the adoption of an accounting pronouncement (ASU 2016-09) on January 1, 2017. Prior to the adoption, the amount was recognized in additional paid-in capital on the consolidated statement of stockholders' equity.
1 A reconciliation of forward-looking non-GAAP adjusted earnings per diluted share to the most directly comparable GAAP measure is not available without unreasonable effort, as certain items cannot be reasonably predicted because of their high variability, complexity and low visibility. Specifically, non-cash adjustments that could be made for changes in contingent liabilities, changes in the market value of its investments in public companies, share-based compensation expense and the effects of any discrete income tax items, directly impact the calculation of our core adjusted earnings per diluted share.
2 A reconciliation of forward-looking non-GAAP adjusted earnings per diluted share to the most directly comparable GAAP measure is not available without unreasonable effort, as certain items cannot be reasonably predicted because of their high variability, complexity and low visibility. Specifically, non-cash adjustments that could be made for changes in contingent liabilities, changes in the market value of its investments in public companies, share-based compensation expense and the effects of any discrete income tax items, directly impact the calculation of our core adjusted earnings per diluted share.
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