Ligand Pharmaceuticals (LGND) investor relations material

Executive summary

• Achieved 56% year-over-year royalty revenue growth and 23% adjusted EPS growth in Q1 2026, driven by key assets like Filspari, Ohtuvayre, and Capvaxive, and reflecting the success of a strategic shift to royalty aggregation.

• Announced definitive agreement to acquire XOMA Royalty for $739 million in cash, expected to close in Q3 2026, adding over 120 assets and immediately diversifying and strengthening the royalty portfolio.

• Portfolio expanded from 7 to 15 commercial assets, with significant pipeline progress including FDA approval of FILSPARI in FSGS and positive phase III results for QTORIN™ rapamycin.

• Operating income improved to $17.4 million from a $36.2 million loss in Q1 2025, and net loss narrowed to $13.3 million despite non-cash losses from equity investments.

• Filspari became the largest royalty contributor, receiving full FDA approval for FSGS and expanding the addressable market to over 30,000 U.S. patients.

Financial highlights

• Q1 2026 total revenue was $52 million, up 14% year-over-year; royalty revenue was $43 million, up 56%; adjusted EPS was $1.63, up 23% year-over-year; GAAP net loss was $13.3 million, improved from $42.5 million.

• Non-GAAP net income for Q1 2026 was $34.6 million, up from $26.6 million in Q1 2025.

• Cash, cash equivalents, and short-term investments totaled $779.4 million as of March 31, 2026, with nearly $1 billion in available capital including undrawn credit.

• R&D expense was $2.1 million, down from $50.1 million due to a prior one-time charge; G&A expense rose to $21 million from $19 million.

• Captisol sales declined 36% to $8.7 million due to timing of customer orders; contract revenue dropped 97% to $0.1 million.

Outlook and guidance

• 2026 guidance: total revenue $270–$310 million, royalty revenue $225–$250 million, adjusted EPS $8.50–$9.50; guidance reflects anticipated partial-year contribution from XOMA.

• 2027 outlook: $1.50 per share incremental adjusted EPS from XOMA, $300 million combined operating cash flow, and $150–$250 million annual investment in new royalty opportunities.

• XOMA acquisition expected to add $0.50/share adjusted EPS in 2026 and $1.50 in 2027.

• NDA submission for Qtorin rapamycin expected in H2 2026; multiple late-stage clinical milestones anticipated.

• Long-term royalty revenue CAGR projected at over 23%.