Ligand Pharmaceuticals (LGND) Soars 2.11% on ZELSUVMI Launch, Milestone Payment

Ligand Pharmaceuticals (LGND) shares surged 2.11% today, marking the third consecutive day of gains and a 9.86% increase over the past three days. The stock price reached its highest level since December 2024, with an intraday gain of 3.14%.

The strategy of buying LGND shares after they reached a recent high and selling them one week later delivered moderate returns but came with significant volatility and risk. The strategy’s CAGR was 36.90%, trailing the benchmark by 19.81 percentage points. With a maximum drawdown of -32.27% and a Sharpe ratio of 1.00, the strategy indicated a challenging risk-return profile, highlighting the importance of risk management in such a volatile scenario.

In July 2025, Ligand Pharmaceuticals experienced several significant developments that could influence its stock price. The most notable event was the commercial launch of ZELSUVMI by its partner Pelthos Therapeutics, which resulted in Ligand receiving a $5 million milestone payment. This launch is particularly significant as Ligand owns a 56% stake in Pelthos following a merger with Channel Therapeutics.

Additionally, Ligand reported substantial financial growth for the first quarter of 2025. The company saw a 46% increase in top-line revenue and an 11% growth in adjusted earnings per share (EPS). These financial results, combined with a 26% compound annual growth rate (CAGR) over the past three years, indicate a strong and positive trajectory for Ligand.

The FDA approval of ZELSUVMI is considered a major breakthrough, with projections of $150 million in annual sales by 2027. This approval supports a buy recommendation for Ligand, with a target price range of $60–$70. The positive developments and financial performance suggest a bullish outlook for Ligand Pharmaceuticals.