Ligand Pharmaceuticals Inc. reported fourth‑quarter 2025 revenue of $59.7 million, a 39% year‑over‑year increase driven by a 45% rise in royalty income that reached $50.5 million. Adjusted earnings per diluted share were $2.02, beating the consensus range of $1.49 to $1.59 by $0.46, or roughly 29%. The quarter’s earnings also surpassed the company’s own guidance by about 30%, and the Q4 2024 adjusted EPS of $1.27 provides a clear year‑over‑year improvement.
Full‑year 2025 revenue climbed to $268.1 million, up 60% from $167.1 million in 2024. Adjusted earnings per diluted share for the year were $8.13, a sharp turnaround from the GAAP net loss of $0.22 per share reported for 2024. The year‑over‑year growth is largely attributable to the expanding royalty portfolio and the company’s high‑margin business model.
The revenue surge is anchored by the performance of Ligand’s royalty assets. FILSPARI’s U.S. net sales grew 108% YoY, while Capvaxive, Ohtuvayre, and the newly launched Zelsuvmi contributed to a 48% increase in full‑year royalty revenue. CEO Todd Davis noted that the results were driven by “better‑than‑expected performance across several products in our royalty portfolio,” underscoring the strength of Ligand’s licensing strategy.
Ligand reaffirmed its 2026 outlook, maintaining revenue guidance of $245 million to $285 million and adjusted EPS guidance of $8.00 to $9.00. The unchanged guidance signals management’s confidence in sustaining growth momentum and preserving profitability, while also reflecting a cautious stance amid broader market volatility.
Investors approached the announcement with caution, citing Ligand’s high valuation multiples—its price‑to‑earnings ratio sits around 77. The strong earnings beat was tempered by concerns that the current valuation may be stretched, leading to a muted market reaction.
The results reinforce Ligand’s robust royalty model and its ability to generate high‑margin income. With approximately $1 billion in deployable capital, the company is well positioned to pursue new investment opportunities. Insider selling activity has been noted, but institutional interest remains strong, suggesting that the market views Ligand’s long‑term prospects favorably despite short‑term valuation concerns.
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