07:47 AM EDT, 04/27/2026 (MT Newswires) -- Ligand Pharmaceuticals ( LGND ) said Monday it has agreed to purchase biotechnology peer Xoma Royalty ( XOMA ) in an all-cash deal valued at roughly $739 million.

Under the deal, Ligand will acquire all the outstanding shares of Xoma for $39 per share in cash. Xoma shareholders will also receive one contingent value right per share. The CVRs are linked to potential proceeds from ongoing legal disputes.

The deal will add more than 120 commercial, clinical and preclinical stage assets to Ligand's portfolio. It is also expected to increase the company's long-term growth profile.

Ligand expects fiscal 2026 adjusted earnings to be between $8.50 to $9.50 per share. Analysts surveyed by FactSet expect $8.64.

The company also said the merger is projected to boost adjusted profits by $1.50 per share during 2027.

Shares of Ligand were up 3.9%, while shares of Xoma rose by 1.5% in Monday premarket activity.