Ligand Pharmaceuticals Incorporated (LGND) and XOMA Royalty Corporation (XOMA), both biotechnology royalty aggregators, Monday, announced that Ligand will acquire XOMA Royalty for $39 per share for a total equity value of around $739 million.
Ligand expects the transaction to be immediately accretive to its adjusted earnings per share. In view of this the company is increasing its fiscal 2026 guidance and is now expecting adjusted EPS in the range of $8.50 to $9.50 as opposed to the previous view of $8 to $9. Revenue guidance is now expected to be in the range of $270 million to $310 million compared to the prior outlook of $245 million to $285 million.
With this agreement, Ligand adds over 120 commercial, clinical, and preclinical stage assets to its broad and growing royalty portfolio highlighted by Roches VABYSMO (faricimab-svoa), Day One Pharmaceuticals OJEMDA (tovorafenib), Zevra Therapeutics MIPLYFFA (arimoclomol), and 14 programs in late-stage development, highlighted by Takedas mezagitamab and certain assets from Takedas externalized asset portfolio, including osavampator, volixibat and OHB-607, the company said in a statement.
Further, XOMA Royalty stockholders are expected to separately receive a non-transferable Contingent Value Right or CVR per share entitling the holder to receive a portion of 75 percent of the net proceeds that may result from certain pending litigation at XOMA Royalty.
The cash consideration of the transaction is surmised to be funded with Ligand's existing cash and borrowings from under Ligand's existing credit facility.
The deal is expected to close in the third quarter of 2026.
In pre-market activity, LGND shares were trading at $240.36, up 3.93% and XOMA shares were trading at $39.60, up 4.49% on the Nasdaq.
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