Ligand 2025 Q3 Earnings Record Net Income Surges 1735%

Ligand Pharmaceuticals (LGND) delivered a record-breaking performance in Q3 2025, with revenue surging 122.8% to $115.46 million and net income turning from a $7.17 million loss to $117.27 million. The company raised full-year 2025 revenue guidance to $225–$235 million and EPS to $7.40–$7.65, reflecting robust demand for its royalty assets and strategic transactions.

Revenue

Royalties led the charge with $46.59 million, driven by Travere Therapeutics’ Filspari, Merck/Verona Pharma’s Ohtuvayre, and Recordati’s Qarziba. Income from intangible royalty assets added $40.16 million, while financial royalty assets contributed $6.42 million. Captisol sales rose to $10.67 million, and contract revenue and other income totaled $58.20 million, reflecting the Pelthos business sale and Zelsuvmi out-license. Total revenue and other income reached $115.46 million, a 122.8% year-over-year increase.

Earnings/Net Income

Ligand returned to profitability with EPS of $5.99, reversing a $0.39 loss in Q3 2024 (1635.9% positive change). Net income soared to $117.27 million, a 1735.2% increase from a $7.17 million loss. This dramatic turnaround underscores the company’s strong royalty portfolio and operational execution.

Post-Earnings Price Action Review

Ligand’s stock edged down 1.45% on the latest trading day but gained 5.84% during the prior week and 9.75% month-to-date. The post-earnings rally aligns with raised guidance and strong royalty performance, though volatility remains tied to asset concentration risks. Analysts note the stock’s 25x forward P/E, up from 20x three months ago, reflects heightened optimism.

CEO Commentary

CEO Todd Davis highlighted disciplined execution, emphasizing the strength of Ligand’s royalty portfolio and strategic partnerships. “Our Q3 results reflect disciplined execution, with revenue growth outpacing industry benchmarks,” he stated. The company plans to expand its product portfolio, boost R&D investments, and leverage collaborations to scale efficiently in 2026.

Guidance

Ligand reaffirmed Q3 results as full-year 2025 guidance, projecting $225–$235 million in revenue and $7.40–$7.65 in adjusted EPS. Royalties are expected to reach $147–$157 million, with Captisol sales targeting $40 million.

Additional News

Recent strategic moves include the $460 million convertible debt offering in August 2025, financing for share repurchases and capital investments. Ligand also acquired global royalty rights to AT220 and AT292 from Arecor Therapeutics and invested $25 million in Orchestra BioMed’s cardiology programs. The Pelthos transaction and Zelsuvmi out-license further diversified revenue streams.

Ligand’s stock price action and revised guidance have intensified investor focus on its royalty-driven model, though risks remain concentrated in key assets. Analysts maintain a “buy” rating, with a median 12-month price target of $180.00, 5.8% below the current price.

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