Ligand Pharmaceuticals Inc. (LGND) has agreed to acquire XOMA Royalty Corporation (XOMA) for $39.00 per share in cash, valuing the transaction at approximately $739 million. The deal significantly expands Ligand's royalty portfolio and strengthens its position as a leading biopharma royalty aggregator.
XOMA Royalty stockholders will also receive a non-transferable Contingent Value Right (CVR) tied to 75% of potential net proceeds from certain pending litigation. The cash offer represents a 14% premium to XOMA's 30-day volume-weighted average price as of April 24, 2026.
A major expansion of Ligand's royalty base
The acquisition adds more than 120 commercial, clinical, and preclinical assets to Lignad's portfolio, including seven marketed products. Key commercial programs include Roche's VABYSMO (faricimab-svoa), Day One Pharmaceuticals' OJEMDA (tovorafenib), and Zevra Therapeutics' MIPLYFFA (arimoclomol).
Expected to accelerate profit growth
The company expects the acquisition to be immediately accretive to adjusted earnings per share (EPS). Ligand raised its 2026 adjusted EPS guidance to $8.50-$9.50, compared with adjusted diluted EPS of $8.13 for full year 2025, and projects the deal will add $1.50 per share to adjusted EPS in 2027.
CEO Todd Davis said the acquisition provides a "compelling opportunity" to strengthen long-term growth and diversify Ligand's royalty streams through a single transaction.Strategic rationale
Ligand emphasized that the combined portfolio enhances its ability to support broader patient access and advance late-stage assets from Takeda's externalized portfolio, including mezagitamab, osavampator, volixibat and OHB-607.
Transaction details
The transaction is expected to close in the third quarter of 2026, subject to customary closing conditions, approval by XOMA Royalty stockholders and the receipt of certain regulatory approvals.
LGND has traded between $98.89 and $238.31 over the past year. The stock closed Friday's (April 24, 2026) trading at $231.27, up 1.22%. In pre-market trading, the stock is at $240.36, up 3.93%.
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