Ligand Pharmaceuticals Stock Earnings Reports

Ligand reported an exceptional Q3 2025 driven by strong royalty performance, strategic transactions and improved cash capacity. Key financial highlights: royalty revenue grew 47% YoY to $46.6M, adjusted EPS rose 68% YoY to $3.09, GAAP net income was $117.3M ($5.68/share), and adjusted core revenue for the quarter was $86.9M. Management raised full‑year 2025 guidance: core revenue to $225M–$235M and adjusted EPS to $7.40–$7.65. The company completed a $460M five‑year convertible note (75 bps coupon, 32.5% conversion premium) and ended the quarter with $665M cash and investments, giving approximately $1B of deployable capital (including undrawn credit facility and investable holdings). Recent strategic activity included the Pelthos spinout/merger (recognition of a $53M gain and $24.5M value attributed to the ZELSUVMI out‑license), investments/royalty commitments in Orchestra BioMed and Arecor, and the Castle Creek Phase III financing. Commercial launch momentum across several recently approved assets (Merck’s Ohtuvayre and CAPVAXIVE, Travere’s FILSPARI, Pelthos’ ZELSUVMI) is a primary driver of near‑term upside and management reiterated a multi‑year royalty receipts outlook targeting ~22% CAGR (existing portfolio supporting ~18% CAGR with future investments expected to add ~4%+). Management also emphasized a disciplined, diversified investment strategy (cap on exposure to binary risk per deal, use of royalties and equity tools) and plans to expand the deal team to handle strong origination activity (~130 opportunities reviewed YTD, ~32 active opportunities). Risks called out include typical development/commercial execution and FDA/regulatory uncertainty, but management noted recent FDA acceleration initiatives (e.g., commissioner’s priority voucher) as supportive for certain portfolio assets.