Recommendation: Speculative Buy
| Entry Date | Symbol | Recommendation | Entry Price (USD) | Target 1 (USD) | Target 2 (USD) | Holding Duration | Position Status | Return(%)* |
|---|---|---|---|---|---|---|---|---|
| 27 May, 26 | LGND | Speculative Buy | USD 235.33 | USD 247.0 | USD 260.0 | 18 days | Closed |
7.61%
|
*Return(%) represent the percentage change between the entry price and exit price of the recommendation.
Data Powered by EOD Historical Data (“EODHD”).
Ligand Pharmaceuticals Incorporated, a biopharmaceutical company, engages in the development and licensing of biopharmaceutical assets worldwide. Its commercial programs include Kyprolis and Evomela, which are used to treat multiple myeloma; Rylaze, a recombinant erwinia asparaginase for the treatment of acute lymphoblastic leukemia or lymphoblastic lymphoma in adult and pediatric patients; Filspari, a dual endothelin and angiotensin II receptor antagonist in development for rare kidney diseases and non-immunosuppressive treatment indicated for immunoglobulin A nephropathy; Teriparatide injection product for osteoporosis; Vaxneuvance for the prevention of invasive disease caused by streptococcus pneumoniae serotypes; and Pneumosil, a pneumococcal conjugate vaccine to help fight against pneumococcal pneumonia among children. The company also offers TZIELD, a CD3-directed antibody indicated to delay the onset of Stage 3 type 1 diabetes (T1D) in adults and children aged 8 years and older with Stage 2 T1D; Nexterone, a captisol-enabled formulation of amiodarone; Zulresso, a captisol-enabled formulation of brexanolone for the treatment of postpartum depression; and Veklury, an antiviral treatment for moderate or severe COVID-19. In addition, it provides Noxafil-IV, a captisol-enabled formulation of posaconazole for IV use; Duavee for the treatment of post-menopausal symptoms in women; Exemptia for autoimmune diseases; Vivitra for breast cancer; and Bryxta and Zybev for various indications. The company has alliances, licenses, and other business relationships with Amgen, Merck, Pfizer, Jazz, Takeda, Gilead Sciences, and Baxter International. Further, it sells Captisol materials. Ligand Pharmaceuticals Incorporated was incorporated in 1987 and is based in Jupiter, Florida.
Increase in Operating Income: USD 17.4 Mn in Q1FY26 vs Operating Loss of USD 36.2 Mn in Q1FY25
Increase in Royalty Revenue: USD 43.0 Mn in Q1FY26 vs USD 27.5 Mn in Q1FY25
Increase in General and Administrative Expenses: USD 20.8 Mn in Q1FY26 vs USD 18.8 Mn in Q1FY25
Decline in Contract Revenue: USD 0.1 Mn in Q1FY26 vs USD 4.4 Mn in Q1FY25
Ligand’s future revenue growth remains highly dependent on the commercial success, regulatory approvals, clinical progress, and execution capabilities of its biopharmaceutical partners, while integration risks associated with the pending XOMA acquisition could affect anticipated synergies and financial performance
| Entry Price | Support* | Target 1** | Target 2** |
|---|---|---|---|
| 235.33 | 212.0 | 247.0 | 260.0 |
Data Source: REFINITIV, Analysis: StockNextt
*Support can be considered as an indicative stop-loss, and if prices move below that level on closing basis individuals may evaluate exiting the position depending on their risk appetite, previous holdings, and other factors considered. The support and resistance levels may need to be re-evaluated within 4-6 weeks’ time frame depending on the stock price movements from the date of recommendation on the stock.
**Target prices may vary by ±0.5% depending on market volatility.
Royalty Revenue Growth Accelerates Performance: Ligand Pharmaceuticals Incorporated delivered a strong start to Q1FY26, supported by robust royalty revenue growth across its diversified portfolio. Total revenue and income increased 14% year-over-year to USD 51.7 million, while royalty revenue surged 56% to USD 43.0 million, driven primarily by Filspari, Ohtuvayre, and Qarziba.
XOMA Acquisition Expands Long-Term Growth Platform: The company announced a definitive agreement to acquire XOMA Royalty, a transaction expected to significantly strengthen its position as a leading biopharma royalty aggregator. The acquisition will add more than 120 commercial, clinical, and preclinical assets, diversify royalty streams, create operating synergies, and enhance long-term earnings potential.
Filspari Approval Creates Significant Commercial Opportunity: A key milestone during the quarter was the FDA approval of Filspari for focal segmental glomerulosclerosis (FSGS), making it the first and only FDA-approved therapy for the condition. The approval expands Filspari beyond IgA nephropathy and increases its addressable patient population, supporting future royalty growth and strengthening one of Ligand’s most valuable commercial assets.
Pipeline Catalysts Strengthen Future Revenue Visibility: Ligand continued to benefit from multiple positive developments across its partnered portfolio. Qtorin rapamycin reported successful Phase 3 data in microcystic lymphatic malformations, while several late-stage programs, including Lasofoxifene, AVIM Therapy, Virtue SAB, and Bot/Bal, advanced through development. These programs provide multiple future royalty-generating opportunities.
Strong Liquidity Supports Capital Deployment Strategy: The company ended Q1FY26 with approximately USD 779.4 million in cash, cash equivalents, and short-term investments, providing substantial financial flexibility. Management reaffirmed its raised FY26 guidance, expecting royalty revenue of USD 225 million to USD 250 million and adjusted earnings per share of USD 8.50 to USD 9.50, reflecting confidence in continued portfolio expansion and growth.
Considering recent key business, financial updates, current trading levels, and key business risks, a ‘Buy’ recommendation has been given to Ligand Pharmaceuticals Incorporated (NASDAQ: LGND) at the closing market price of USD 235.33, as on 26 May,2026
Data Powered by EOD Historical Data (“EODHD”).
Sector: Healthcare Industry: Biotechnology
| Company | Change (USD) | Price (USD) | Trailing PE (x) | Forward PE (x) | Price Sales TTM (x) | Price to Book Value (x) | Enterprise Value to Revenue (x) | Enterprise Value to EBITDA (x) |
|---|---|---|---|---|---|---|---|---|
| LGND Ligand Pharmaceuticals Incorporated |
11.74 4.46% | 274.88 | 16.16 | 25.13 | 13.02 | 1.91 | 10.45 | 7.87 |
| NVO Novo Nordisk A/S |
-0.33 0.76% | 43.19 | 41.58 | 31.15 | 2.13 | 32.99 | 2.11 | 4.70 |
| NONOF Novo Nordisk A/S |
- -% | 43.40 | 41.06 | 31.25 | 2.08 | 33.11 | 2.11 | 4.70 |
| VRTX Vertex Pharmaceuticals Inc |
-7.36 1.60% | 451.63 | 29.67 | 24.33 | 10.38 | 5.83 | 9.33 | 20.00 |
| REGN Regeneron Pharmaceuticals Inc |
2.01 0.33% | 609.94 | 29.07 | 20.12 | 7.57 | 3.82 | 6.95 | 19.42 |
Data Powered by EOD Historical Data (“EODHD”).
Markets are trading in a highly volatile zone currently due to certain macro-economic issues and prevailing geopolitical tensions. Therefore, it is prudent to follow a cautious approach while investing.
Related Risks: This report may be looked at from high-risk perspective and recommendations are provided are for a short duration. Recommendations provided in this report are solely based on technical parameters, and the fundamental performance of the stocks has not been considered in the decision-making process. Other factors which could impact the stock prices include market risks, regulatory risks, interest rates risks, currency risks, social and political instability risks etc.
Note 1: Past performance is not a reliable indicator of future performance.
Note 2: The reference date for all price data, currency, technical indicators, support, and resistance levels as on May 27, 2026. The reference data in this report has been partly sourced from REFINITIV.
Note 3: Investment decisions should be made depending on an individual's appetite for upside potential, risks, holding duration, and any previous holdings. An 'Exit' from the stock can be considered if the Target Price mentioned has been achieved and is subject to the factors discussed above.
Note 4: StockNextt reports are prepared based on the stock prices captured either from REFINITIV or Trading View. Typically, REFINITIV or Trading View may reflect stock prices with a delay which could be a lag of 15-20 minutes. There can be no assurance that future results or events will be consistent with the information provided in the report. The information is subject to change without any prior notice.
Support: A level at which the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest. Support 1 refers to the nearby support level for the stock and if the price breaches the level, then Support 2 may act as the crucial support level for the stock.
Target: A level at which the stock prices tend to find resistance when they are rising, and an uptrend may take a pause due to profit booking or selling interest. Target 1 refers to the nearby resistance level for the stock and if the price surpasses the level, then Target 2 may act as the crucial resistance level for the stock.
Stop-loss: It is a level to protect further losses in case of unfavourable movement in the stock prices.
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