{"id":1015069,"date":"2026-10-29T10:39:21","date_gmt":"2026-10-29T14:39:21","guid":{"rendered":"https:\/\/www.marketnewsdesk.com\/index.php\/ligand-reports-third-quarter-2026-financial-results\/"},"modified":"2026-10-29T10:39:21","modified_gmt":"2026-10-29T14:39:21","slug":"ligand-reports-third-quarter-2026-financial-results","status":"publish","type":"post","link":"https:\/\/www.marketnewsdesk.com\/index.php\/ligand-reports-third-quarter-2026-financial-results\/","title":{"rendered":"Ligand Reports Third Quarter 2026 Financial Results"},"content":{"rendered":"
\n

\n Third-quarter royalty revenue up\u00a0<\/em>
\n 51%<\/em>
\n year-over-year to $70.3 million<\/em>\n <\/p>\n

\n Raises Full-Year 2026 Adjusted Diluted EPS Guidance to $9.50 to $9.75, from $9.00 to $9.50<\/em>
\n
\n 1<\/em>
\n <\/sup>
\n ; Reaffirms Revenue Guidance<\/em>\n <\/p>\n

\n Conference call begins at 8:30 a.m. Eastern Time today<\/em>\n <\/p>\n

JUPITER, Fla., Oct. 29, 2026 (GLOBE NEWSWIRE) — Ligand Pharmaceuticals Incorporated (Nasdaq: LGND) today reported financial results for the three and nine months ended September 30, 2026, and provided an operating forecast and business update. Ligand management will host a conference call and webcast today at 8:30 a.m. Eastern Time to discuss the results and answer questions.<\/p>\n

\u201cLigand delivered another strong quarter, with royalty revenue growing 51% year-over-year, driven by contribution from the XOMA portfolio and continued commercial momentum across our key royalty assets, including Filspari,\u201d said Todd Davis, CEO of Ligand. \u201cWe also continued to put capital to work in differentiated assets, acquiring a royalty interest in Santen\u2019s Ryjunea and entering into a structured financing agreement with AvenCell Therapeutics to advance its next-generation CAR-T pipeline. With a strong balance sheet and a portfolio of over 200 assets, we are well positioned to continue executing our royalty aggregation strategy, and we look forward to sharing an updated five-year outlook at our investor day on December 8th.\u201d<\/p>\n

\n
\n Financial Results<\/u>
\n <\/strong>\n <\/p>\n

\n Third Quarter 2026 Financial Results<\/strong>\n <\/p>\n

Third-quarter 2026 results reflect continued strength in the royalty business, with royalty revenue increasing 51% year-over-year to $70.3 million, compared with $46.6 million for the prior-year period. Royalties accounted for 89% of total revenues and income in the quarter, with growth driven by the newly acquired XOMA assets and continued momentum across Ligand\u2019s key commercial portfolio, including Travere Therapeutics\u2019 Filspari and Merck\u2019s Ohtuvayre.<\/p>\n

Total revenues and income for the third quarter of 2026 were $78.7 million, compared with $115.5 million for the prior-year period, representing a decrease of 32%. The prior-year period included $53.1 million of Pelthos divestiture-related income (see Pelthos note below). Excluding that income, total revenues and income increased 26%. Captisol\u00ae<\/sup> sales were $7.9 million, compared with $10.7 million, reflecting the timing of customer orders. Contract revenue and income were $0.5 million, compared with $58.2 million, with the decrease primarily due to the prior-year Pelthos divestiture-related income.<\/p>\n

Cost of Captisol was $2.7 million for the third quarter of 2026, compared with $3.8 million for the prior-year period, with the decrease primarily attributable to lower Captisol sales. Amortization of intangibles was $10.2 million, compared with $8.1 million for the prior-year period, with the increase attributable to the intangibles acquired from the XOMA acquisition. Research and development expense was $2.8 million, compared with $21.0 million for the prior-year period, with the decrease primarily attributable to a $17.8\u00a0million charge recognized in the prior-year period related to the research and development funding arrangement associated with the AVIM Therapy royalty rights acquired in the Orchestra BioMed transaction. General and administrative expense was $72.6 million, compared with $28.4 million for the prior-year period. The increase primarily reflects transaction and integration costs and share-based compensation associated with the XOMA acquisition, as well as higher employee-related costs from the expansion of Ligand\u2019s portfolio management and origination platform to scale its royalty portfolio. Fair value adjustments to contingent liabilities resulted in a $6.3 million loss in the third quarter of 2026, compared with a $0.5 million gain in the prior-year period. The change was primarily driven by fair value adjustments related to contingent liabilities assumed in the XOMA acquisition.<\/p>\n

Net non-operating expense was $28.3 million for the third quarter of 2026, compared with net non-operating income of $85.8 million for the prior-year period. The change was primarily attributable to non-cash mark-to-market losses on equity-method investments and other investments, as well as net loss from short-term investments during the third quarter of 2026, compared with gains in the prior-year period.<\/p>\n

GAAP net loss was $28.5 million, or $1.43 per share, for the third quarter of 2026, compared with GAAP net income of $117.3 million, or $5.68 per diluted share, for the prior-year period. Results for the third-quarter of 2026 included $39.5 million of pre-tax losses, consisting of a $35.7 million loss from changes in the fair value of equity-method and other investments and a $3.8 million net loss on short-term investments.<\/p>\n

Adjusted net income was $57.5 million, or $2.67 per diluted share, compared with $63.8 million, or $3.09 per diluted share, for the prior-year period, representing decreases of 10% and 14%, respectively. The decreases were primarily attributable to the $24.5 million of Pelthos out-license income recognized in the prior-year period (see Pelthos note below) and higher general and administrative expense excluding share-based compensation and transaction and integration costs, partially offset by the 51% increase in royalty revenue. Adjusted net income is a non-GAAP financial measure. See the table below for a reconciliation of GAAP net (loss) income to adjusted net income.<\/p>\n

\n Pelthos note: <\/strong>Prior-year results included $53.1 million of income related to Pelthos. Of that, $24.5 million was attributable to the Zelsuvmi out-license and was included in core revenues, and the $28.6 million gain on the sale was excluded. Growth rates that exclude this income compare the periods on a like-for-like basis.<\/p>\n

\n Year-to-Date Financial Results<\/strong>\n <\/p>\n

Royalty revenue for the nine months ended September\u00a030, 2026 increased 46% to $161.3 million, compared with $110.5 million for the prior-year period, and accounted for 83% of total revenues and income. Royalty growth was primarily driven by the newly acquired XOMA assets and continued momentum across Ligand\u2019s key commercial portfolio, including Travere Therapeutics\u2019 Filspari and Merck\u2019s Ohtuvayre. Total revenues and income were $194.2 million, compared with $208.4 million, representing a decrease of 7%. The prior-year period included $53.1 million of Pelthos divestiture-related income (see Pelthos note above). Excluding that income, total revenues and income increased 25%. Captisol sales were $24.6 million, compared with $32.4 million, reflecting the timing of customer orders. Contract revenue and income were $8.3 million, compared with $65.5 million, with the decrease primarily due to the prior-year Pelthos divestiture-related income.<\/p>\n

Cost of Captisol for the nine months ended September\u00a030, 2026 was $9.1 million, compared with $11.6 million for the prior-year period, with the decrease primarily attributable to lower Captisol sales. Amortization of intangibles was $26.4 million, compared with $24.6 million for the prior-year period, with the increase attributable to the intangibles acquired from the XOMA acquisition. Research and development expense was $19.6 million, compared with $77.7\u00a0million for the prior-year period, reflecting several prior-year charges: $44.3 million for the research and development funding arrangement associated with the D-Fi royalty rights acquired in the Castle Creek transaction, $17.8\u00a0million for the arrangement associated with the AVIM Therapy royalty rights acquired in the Orchestra BioMed transaction, and $6.4 million related to Ligand\u2019s former Pelthos business. This was partially offset by $12.3\u00a0million of research and development funding arrangement expense recognized in the current-year period related to Orchestra BioMed. General and administrative expense was $122.6\u00a0million, compared with $67.4\u00a0million for the prior-year period. The increase primarily reflects transaction and integration costs and share-based compensation associated with the XOMA acquisition, as well as higher employee-related costs, including increased headcount, from the expansion of Ligand\u2019s portfolio management and origination platform to scale its larger royalty portfolio.<\/p>\n

Net non-operating expense was $14.7\u00a0million for the nine months ended September\u00a030, 2026, compared with net non-operating income of $76.5\u00a0million for the prior-year period. The change was primarily attributable to non-cash mark-to-market losses on equity-method investments and other investments during the nine months ended September\u00a030, 2026, compared with non-cash gains recognized in the prior-year period, partially offset by higher gains on short-term investments and higher net interest income.<\/p>\n

GAAP net income was $6.7\u00a0million, or $0.31 per diluted share, for the nine months ended September\u00a030, 2026, compared with $79.7\u00a0million, or $3.95 per diluted share, for the prior-year period. Results for the nine months ended September\u00a030, 2026 included a $49.2\u00a0million pre-tax, non-cash loss from change in fair value of equity-method investments and other investments.<\/p>\n

Adjusted net income was $142.9\u00a0million, or $6.67 per diluted share, compared with $122.4\u00a0million, or $6.07 per diluted share, for the prior-year period, representing year-over-year increases of 17% and 10%, respectively. The increase was primarily attributable to the 46% increase in royalty revenue, higher net interest income and realized gains on short-term investments, partially offset by higher general and administrative expense. Adjusted net income is a non-GAAP financial measure. See the table below for a reconciliation of GAAP net (loss) income to adjusted net income.<\/p>\n

\n Adjusted Financial Measures<\/strong>\n <\/p>\n

Ligand reports adjusted net income and adjusted earnings per diluted share in addition to, and not as a substitute for, financial measures calculated in accordance with GAAP, and does not consider such measures superior to GAAP results. The Company also reports \u201ccore\u201d versions of these measures, which exclude any gains on the sale of the Pelthos business.<\/p>\n

Adjusted earnings per diluted share is a key component of the financial metrics utilized by the Company\u2019s board of directors to evaluate management performance and determine certain elements of management compensation. GAAP results include items such as share\u2011based compensation expense, amortization of acquisition\u2011related and intangible assets, changes in contingent liabilities, mark\u2011to\u2011market adjustments on investments in public companies, transaction\u2011related costs and related tax effects, which are excluded from adjusted results and are detailed in the reconciliations included at the end of this press release.<\/p>\n

This press release includes adjusted total revenues and income, which excludes all $53.1 million of Pelthos-related income recognized in the prior-year period, including the portion attributed to out-license fees. Ligand believes the adjusted total revenues and income is a more meaningful indicator of its business performance than the GAAP total revenues and income.<\/p>\n

\n
\n Liquidity and Capital Resources<\/u>
\n <\/strong>\n <\/p>\n

As of September\u00a030, 2026, Ligand had cash, cash equivalents, and short-term investments of $447.4 million, compared with $733.5 million at December 31, 2025. The decrease was primarily driven by cash used for the XOMA acquisition, partially offset by the proceeds from the Company\u2019s issuance of its convertible senior notes due 2031. As of September\u00a030, 2026, including its equity investments and availability under its credit facility, Ligand has approximately $750 million of deployable capital available to pursue additional royalty acquisitions and strategic investments.<\/p>\n

\n
\n 2026 Financial Guidance<\/u>
\n <\/strong>\n <\/p>\n

Ligand is raising its 2026 full year adjusted earnings per diluted share guidance and reaffirming its 2026 revenue guidance. Ligand now expects the following:<\/p>\n