AcquisitionsApr 27, 2026, 08:24 AM
Ligand to Acquire XOMA Royalty for $739M; XOMA Holders Get CVR
AI Summary
Ligand Pharmaceuticals Incorporated will acquire XOMA Royalty Corporation for $39.00 per share in cash, totaling approximately $739 million. XOMA Royalty stockholders will also receive one non-transferable Contingent Value Right (CVR) per share, entitling them to 75% of net proceeds from certain pending litigation. The acquisition is expected to expand Ligand's royalty portfolio to over 200 assets, add seven new commercial products, and be immediately accretive to Ligand's adjusted EPS, with a projected $1.50 per share accretion in 2027. The transaction is expected to close in Q3 2026.
Key Highlights
- Ligand to acquire XOMA Royalty for $39.00 per share in cash.
- Total equity value of the acquisition is approximately $739 million.
- XOMA Royalty stockholders to receive one CVR per share for 75% of net litigation proceeds.
- Acquisition price represents a ~14% premium to XOMA Royalty's 30-day VWAP as of April 24, 2026.
- Ligand increases 2026 adjusted EPS guidance to $8.50-$9.50 (previously $8.00-$9.00).
- Ligand expects the transaction to be accretive by $1.50 per share to adjusted EPS in 2027.
- Ligand's 2026 revenue guidance raised to $270 million-$310 million (previously $245 million-$285 million).
- Transaction expected to close in the third quarter of 2026.