Ligand Pharmaceuticals to Acquire XOMA Royalty in $739 Million Deal

Ligand Pharmaceuticals (LGND) announced on Monday its agreement to acquire XOMA Royalty Corporation (XOMA) in a transaction valued at approximately $739 million. The deal, priced at $39 per share, is expected to close in the third quarter of 2026. The acquisition significantly expands Ligand's footprint in the biotechnology royalty space, adding more than 120 commercial, clinical, and preclinical stage assets. Key additions to the portfolio include Roche's VABYSMO, Day One Pharmaceuticals' OJEMDA, and Zevra Therapeutics' MIPLYFFA, alongside several late-stage programs from Takeda, including mezagitamab and osavampator. Ligand expects the transaction to be immediately accretive to adjusted earnings per share. Consequently, the company has revised its fiscal 2026 guidance upward. Adjusted EPS is now projected between $8.50 and $9.50, compared to the previous range of $8.00 to $9.00. Revenue guidance has also been increased to a range of $270 million to $310 million, up from the prior outlook of $245 million to $285 million. Under the terms of the agreement, XOMA stockholders are expected to receive a non-transferable Contingent Value Right (CVR) per share, entitling them to a portion of the net proceeds from certain pending litigation. Ligand intends to fund the cash consideration using existing cash reserves and borrowings from its current credit facility. Market reaction was positive in pre-market trading, with LGND shares rising 3.93% to $240.36 and XOMA shares climbing 4.49% to $39.60.