Ligand Pharmaceuticals Inc. ( LGND ) on Monday said it is expanding its royalty portfolio through the acquisition of XOMA Royalty Corporation ( XOMA ) .

Ligand Expands Portfolio With XOMA Royalty Acquisition

This move is expected to bolster Ligand’s long-term growth, adding new commercial products and enhancing its position as a leading biopharma royalty aggregator.

Deal consideration includes $39.00 per share in cash, for a total equity value of approximately $739 million.

XOMA Royalty ( XOMA ) stockholders are expected to separately receive one non-transferable Contingent Value Right per share entitling the holder to receive a portion of 75% of the net proceeds that may result from certain pending litigation at XOMA Royalty ( XOMA ). 

Updated Guidance Reflects Stronger Outlook

Ligand Pharmaceuticals ( LGND ) announced its acquisition of XOMA Royalty ( XOMA ), which is anticipated to be immediately accretive to adjusted earnings per share (EPS) and increase its 2026 adjusted EPS guidance to a range of $8.50 to $9.50.

The transaction is expected to contribute an additional $1.50 per share to adjusted EPS in 2027.

The biopharmaceutical royalty aggregator increased its fiscal 2026 revenue guidance from $245 million-$285 million to $270 million-$310 million, and adjusted earnings from $8.00-$9.00 to $8.50-$9.50 per share.

Analysts estimate sales of $266.71 million and earnings of $9.40 per share.

Analyst Consensus & Recent Actions: The stock carries a Buy Rating with an average price target of $247.29. Recent analyst moves include:

Citigroup: Buy (Raises Target to $282.00) (April 15)

HC Wainwright & Co.: Buy (Raises Target to $243.00) (April 14)

Citigroup: Buy (Raises Target to $276.00) (March 24)

How Ligand (LGND) Ranks On Value, Quality And Momentum

Below is the Benzinga Edge scorecard for Ligand Pharmaceuticals ( LGND ), highlighting its strengths and weaknesses compared to the broader market:

Value: 13.78 — The stock is trading at a premium relative to peers.

Quality: 69.5 — The balance sheet remains healthy.

Momentum: 89.8 — Stock is outperforming the broader market.

The Verdict: Ligand Pharmaceuticals’s Benzinga Edge signal reveals a momentum-driven story, with strong performance metrics indicating robust investor interest and confidence in its growth trajectory.

Price Action: Ligand Pharmaceuticals ( LGND ) shares were up 0.20% at $231.72 and XOMA Royalty ( XOMA ) shares were up 9.23% at $41.40 at the time of publication on Monday, according to Benzinga Pro data.