AcquisitionsApr 27, 2026, 09:33 AM
LGND to Acquire XOMA Royalty for $739M; Raises 2026 EPS Guidance
AI Summary
Ligand Pharmaceuticals Incorporated announced a definitive agreement to acquire XOMA Royalty Corporation for $39.00 per share in cash, valuing the transaction at approximately $739 million. XOMA Royalty stockholders will also receive one Contingent Value Right (CVR) per share, entitling them to 75% of net proceeds from certain pending litigation. The acquisition is expected to be immediately accretive to Ligand's adjusted EPS and is projected to add $1.50 per share to adjusted EPS in 2027. Ligand has raised its 2026 adjusted EPS guidance to $8.50-$9.50 and revenue guidance to $270 million-$310 million, reflecting the strategic expansion of its royalty portfolio with over 120 new assets and seven commercial products.
Key Highlights
- Ligand to acquire XOMA Royalty for $39.00 per share in cash, totaling approximately $739 million.
- XOMA Royalty stockholders to receive one non-transferable Contingent Value Right (CVR) per share.
- The cash purchase price represents an approximately 14% premium to XOMA Royalty's 30-day VWAP.
- Acquisition expected to be immediately accretive to Ligand adjusted EPS.
- Ligand increases 2026 adjusted EPS guidance to $8.50-$9.50, up from $8.00-$9.00.
- Ligand raises 2026 revenue guidance to $270 million-$310 million, from $245 million-$285 million.
- Transaction expected to be accretive by $1.50 per share to adjusted EPS in 2027.
- The acquisition expands Ligand's royalty portfolio by over 120 assets and adds seven new commercial products.