Ligand Pharma Receives Buy Rating from Joseph Pantginis Due to Strong Financial Performance and Strategic Positioning.

Joseph Pantginis from H.C. Wainwright reiterated a Buy rating on Ligand Pharma with a $157.00 price target due to the company's strong financial performance and strategic positioning. Ligand Pharma reported robust Q2 results, exceeded EPS expectations, and demonstrated consistent revenue growth driven by royalties. The company also raised its financial guidance and has significant financial leverage, enabling it to pursue strategic acquisitions and investments. Pantginis covers the Healthcare sector with a 34.96% success rate on recommended stocks.

Ligand Pharmaceuticals Incorporated (Nasdaq: LGND) reported robust financial results for the second quarter of 2025, with revenue and earnings exceeding expectations. The company also raised its full-year 2025 financial guidance, reflecting strong growth in its commercial-stage royalty portfolio [1].

Second Quarter 2025 Financial Results

Total revenues and other income for the second quarter of 2025 were $47.6 million, representing a 15% increase compared to the same period in 2024. The increase was primarily driven by a 57% growth in royalty revenue, reaching $36.4 million [1].

Captisol® sales, a key product for Ligand, increased to $8.3 million in the second quarter of 2025, up from $7.5 million in the same period last year, due to the timing of customer orders [1].

2025 Financial Guidance

Ligand has increased its 2025 full-year financial guidance. The company now expects total revenue of $200 million to $225 million, compared to its previous guidance of $180 million to $200 million. Adjusted earnings per diluted share are expected to be in the range of $6.70 to $7.00, up from the previous guidance of $6.00 to $6.25 [1].

Key Highlights

- Pelthos Therapeutics Transaction: Ligand completed its merger with CHRO Merger Sub Inc., forming Pelthos Therapeutics Inc. (PTHS) on July 2, 2025. The combined company operates under the name Pelthos Therapeutics Inc. and raised $50.1 million in equity capital [1].
- Zelsuvmi Commercial Launch: Pelthos commercially launched Zelsuvmi (berdazimer) topical gel 10.3% on July 10, 2025, the first and only U.S. Food and Drug Administration (FDA) approved at-home treatment for molluscum contagiosum. Ligand earned a $5 million milestone payment from Pelthos following the commercial launch [1].
- New Royalty Investment: Ligand invested $25 million in strategic capital to fund Orchestra BioMed's late-stage partnered cardiology programs on August 4, 2025 [1].

Analyst Perspective

Joseph Pantginis from H.C. Wainwright reiterated a Buy rating on Ligand Pharma with a $157.00 price target, citing the company's strong financial performance and strategic positioning. Pantginis covers the Healthcare sector with a 34.96% success rate on recommended stocks [2].

References

[1] Ligand Reports Second Quarter 2025 Financial Results and Raises Guidance [2] Joseph Pantginis from H.C. Wainwright Reiterates Buy Rating on Ligand Pharma