Ligand to Acquire XOMA Royalty for $739M, Raising 2026 EPS Outlook
LGND has more than doubled off its 52-week low of $98.89.
Summary
Ligand Pharmaceuticals has announced a definitive agreement to acquire XOMA Royalty Corporation for approximately $739 million in cash, or $39.00 per share, with XOMA stockholders also receiving a Contingent Value Right (CVR) tied to pending litigation. This strategic acquisition is expected to be immediately accretive to Ligand's adjusted EPS, prompting the company to raise its 2026 adjusted EPS guidance to $8.50-$9.50 and project an additional $1.50 per share accretion in 2027. The transaction significantly expands Ligand's royalty portfolio to over 200 assets, adding seven new commercial products and diversifying its long-term growth profile, aligning with its stated strategy of growing through royalty acquisitions as highlighted in its recent 10-K. Traders will be watching the integration of XOMA's portfolio and the performance of the newly acquired assets, as well as the outcome of the litigation tied to the CVRs.
At the time of this announcement, LGND was trading at $238.00 on NASDAQ in the Life Sciences sector, with a market capitalization of approximately $4.6B. The 52-week trading range was $98.89 to $238.31. This news item was assessed with positive market sentiment and an importance score of 9 out of 10. Source: GlobeNewswire.