{"id":991145,"date":"2026-08-06T08:16:31","date_gmt":"2026-08-06T12:16:31","guid":{"rendered":"https:\/\/www.marketnewsdesk.com\/index.php\/ligand-reports-second-quarter-2026-financial-results\/"},"modified":"2026-08-06T08:16:31","modified_gmt":"2026-08-06T12:16:31","slug":"ligand-reports-second-quarter-2026-financial-results","status":"publish","type":"post","link":"https:\/\/www.marketnewsdesk.com\/index.php\/ligand-reports-second-quarter-2026-financial-results\/","title":{"rendered":"Ligand Reports Second Quarter 2026 Financial Results"},"content":{"rendered":"
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\n Second quarter performance driven by strong year-over-year royalty revenue growth of 32%<\/em>\n <\/p>\n

\n Raises Low End of 2026 Adjusted EPS Guidance; Revenue Guidance Unchanged<\/em>\n <\/p>\n

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

JUPITER, Fla., Aug. 06, 2026 (GLOBE NEWSWIRE) — Ligand Pharmaceuticals Incorporated (Nasdaq: LGND) today reported financial results for the three and six months ended June 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.\u00a0<\/p>\n

\u201cLigand delivered another strong quarter, with royalty revenue growing 32% year-over-year and continued momentum from Filspari following its FSGS approval by the FDA,\u201d said Todd Davis, CEO of Ligand. \u201cDuring the quarter, we also completed a $700 million convertible debt financing at a 0% interest rate, giving us access to low cost capital while maintaining a disciplined capital structure. Shortly after quarter-end, we closed our acquisition of XOMA Royalty, adding more than 120 commercial, clinical and preclinical-stage assets to our portfolio and further diversifying our royalty base across therapeutic areas, development stages, and partners. This transaction meaningfully strengthens our position as a leading biopharma royalty aggregator and, combined with our broadened portfolio, positions Ligand for a strong second half of 2026 and beyond.\u201d<\/p>\n

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

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

Second-quarter 2026 results reflect continued strong momentum in the royalty business, with royalty revenue increasing 32% year-over-year.<\/p>\n

Total revenues and income for the second quarter of 2026 were $63.7 million, compared with $47.6 million for the same period in 2025. The 34% increase was primarily driven by higher royalty revenue. Royalties totalled $48.0 million, compared with $36.4 million in the prior-year period, with the 32% increase primarily attributable to royalties earned on Travere Therapeutics\u2019 Filspari, Pelthos Therapeutics\u2019 Zelsuvmi, and Merck\u2019s Ohtuvayre. Captisol\u00ae<\/sup> sales were $8.0 million, compared with $8.3 million in the second quarter of 2025. Contract revenue and income were $7.7 million compared with $2.9 million in the prior-year period, with the increase primarily attributable to the timing of milestone events under partner agreements.<\/p>\n

Cost of Captisol was $3.2 million for the second quarter of 2026, compared with $2.9 million in the same period of 2025, reflecting lower gross margins due to\u00a0 changes in customer mix. Amortization of intangibles was $8.1 million, compared with $8.3 million in the prior-year period. Research and development expense was $14.7 million, compared with $6.6 million in the second quarter of 2025. The increase was primarily driven by the $12.3\u00a0million research and development funding arrangement with Orchestra BioMed, partially offset by the absence of research and development expenses associated with our former Pelthos business following the deconsolidation of LNHC, Inc. on July 1, 2025. General and administrative expense was $29.1 million compared with $20.2 million in the prior-year period. The increase was primarily attributable to transaction costs associated with the XOMA Acquisition, as well as higher employee-related costs, including increased headcount and share-based compensation, reflecting the Company\u2019s continued investment in its origination and portfolio management functions.<\/p>\n

Net non-operating income was $55.7 million for the second quarter of 2026, compared with $2.8 million in the same period of 2025. The increase was primarily driven by a $35.7 million non-cash gain related to changes in the fair value of the Company\u2019s investments in Pelthos Therapeutics\u2019 common stock and Series A convertible preferred stock, a $10.8 million increase in gains on short-term investments, and a $5.1 million increase in net interest income.<\/p>\n

GAAP net income was $48.5 million, or $2.22 per diluted share for the second quarter of 2026, compared with\u00a0 $4.8 million, or $0.24 per diluted share, for the same period in 2025. Adjusted net income for the second quarter of 2026 was $50.8 million, or $2.37 per diluted share, compared with $32.0 million, or $1.60 per diluted share, for the same period in 2025, representing year-over-year growth of 59% and 48%, respectively. The increase was primarily driven by the 32% year-over-year growth in royalty revenue. Adjusted net income is a non-GAAP financial measure. See the table below for a reconciliation of GAAP net income to adjusted net income.<\/p>\n

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

Total revenues and income for the six months ended June\u00a030, 2026 were $115.4 million, compared with $93.0 million for the same period in 2025. The 24% increase was primarily driven by higher royalty revenue. Royalties for the six months ended June\u00a030, 2026 were $91.0 million, compared with $63.9 million for the prior year period, with the 42% increase primarily attributable to royalties earned on Travere Therapeutics\u2019 Filspari, Pelthos Therapeutics\u2019 Zelsuvmi, and Merck\u2019s Ohtuvayre and Capvaxive. Captisol sales were $16.6 million, compared with $21.7 million for the same period in 2025, with the decrease primarily reflecting the timing of customer orders.<\/p>\n

Cost of Captisol for the six months ended June\u00a030, 2026 was $6.5 million, compared with $7.8 million for the same period in 2025, primarily due to lower Captisol sales. Research and development expenses were $16.8 million for the six months ended June\u00a030, 2026, compared with $56.7\u00a0million for the same period in 2025. The decrease was primarily driven by the absence of the $44.3 million research and development funding charge recognized in the first quarter of 2025 in connection with the D-Fi royalty rights acquired in the Castle Creek Transaction, as well as the absence of $6.4 million of research and development expense associated with our former Pelthos business following the deconsolidation of LNHC, Inc. on July 1, 2025. These decreases were partially offset by the $12.3\u00a0million research and development funding arrangement expense recognized in the second quarter of 2026 related to Orchestra BioMed. General and administrative expense were $50.0\u00a0million for the six months ended June\u00a030, 2026, compared with $39.0\u00a0million for the same period in 2025. The increase was primarily attributable to transaction costs associated with the XOMA Acquisition, as well as higher employee-related costs, including increased headcount and share-based compensation, reflecting the Company\u2019s continued investment in its origination and portfolio management functions.<\/p>\n

Non-operating income, net, was $14.1\u00a0million for the six months ended June\u00a030, 2026, compared with non-operating expense, net, of $11.2\u00a0million for the same period in 2025. The $25.3\u00a0million year-over-year improvement was primarily driven by a $27.1\u00a0million increase in gains on short-term investments and a $9.1\u00a0million increase in net interest income, partially offset by a $13.5\u00a0million non-cash loss related to changes in the fair value of the Company\u2019s investments in Pelthos Therapeutics common stock and Series A convertible preferred stock.<\/p>\n

GAAP net income was $35.2\u00a0million, or $1.63 per diluted share for the six months ended June\u00a030, 2026, compared with GAAP net loss of\u00a0 $37.6\u00a0million, or $1.95 per share, for the same period in 2025. Adjusted net income for the six months ended June\u00a030, 2026 was $85.4\u00a0million, or $4.00 per diluted share, compared with $58.6\u00a0million, or $2.94 per diluted share, for the same period in 2025, representing year-over-year growth of 46% and 36%, respectively. The increase was primarily driven by the 42% year-over-year growth in royalty revenue. Adjusted net income is a non-GAAP financial measure. See the table below for a reconciliation of GAAP net income (loss) to adjusted net income.<\/p>\n

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

As of June\u00a030, 2026, Ligand had cash, cash equivalents, and short-term investments of $1.36 billion, compared with $733.5 million at December 31, 2025. The increase was primarily driven by the proceeds from the Company\u2019s issuance of its convertible senior notes due 2031.<\/p>\n

Following the completion of the XOMA Acquisition, Ligand has approximately $700 million of deployable capital available to pursue additional royalty acquisitions and strategic investments.<\/p>\n

\n 2031 Convertible Debt Financing<\/strong>\n <\/p>\n

On June 25, 2026, Ligand completed its offering of $700 million aggregate principal amount of 0.00% convertible senior notes due 2031, including the full exercise of the initial purchasers\u2019 option to purchase additional notes.<\/p>\n

Net proceeds from the offering were approximately $679 million, after deducting fees and expenses. Ligand used approximately $82 million of the net proceeds to enter into a call spread overlay, consisting of convertible note hedge and warrant transactions, and approximately $60 million to repurchase 228,859 shares of its common stock at a price of approximately $262 per share.<\/p>\n

The convertible note hedge transactions are intended to reduce the potential for dilution to Ligand\u2019s common stock upon conversion of the notes. The warrant transactions increase the effective conversion price such that the warrants will not result in dilution unless Ligand\u2019s common price exceeds $524.34 per share.<\/p>\n

Ligand expects to use the remaining net proceeds from the offering for general corporate purposes, including potential royalty acquisitions, strategic investments, and other growth initiatives.<\/p>\n

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

Ligand is reaffirming its 2026 full-year revenue guidance and is raising the low end of its adjusted earnings per diluted share guidance range, reflecting stronger than previously anticipated cost synergies from the XOMA Acquisition, incremental net interest income resulting from proceeds of the 2031 Notes, and reduced share count following the Company\u2019s share repurchase in connection with the convertible debt financing. Ligand continues to expect the following:<\/p>\n