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- Citi has resumed its coverage of Ligand Pharmaceuticals (LGND) with a buy rating saying that its acquisition of XOMA Royalty adds a significant number of late-stage assets as well as a steady royalty stream.
- The acquisition, with an equity value of $739M, closed earlier in July.
- The bank has a price target of $387 (~32% return based on July 20 close).
- Analyst Yigal Nochomovitz noted that Ligand could significantly benefit from a contingent value right related to Johnson & Johnson's (JNJ) Tremfya (guselkumab) once ongoing litigation is resolved.
- He added that Ligand will also gain from Xoma's key commercial drivers, Roche (RHHBY) unit Genentech's Vabysmo (faricimab), Day One Biopharmaceuticals' Ojemda (tovorafenib), and Zevra Therapeutics (ZVRA) Miplyffa (arimoclomol).
More on Ligand Pharmaceuticals
- Ligand Pharma: Expect Bright And Exciting Future For This Growing Royalty Aggregator
- Ligand Pharmaceuticals: The Bull Case Is A Biotech ARM, The Bear Case Is Just Another Royalty Trust
- Ligand Pharmaceuticals Incorporated (LGND) Q1 2026 Earnings Call Transcript
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- Ligand prices proposed $550M convertible senior notes offering
