Ligand is a biotech landlord: it licenses drug technologies (like Captisol) to pharma companies and collects royalties when their drugs sell, without doing its own R&D or marketing.
Money comes from royalties on partnered drugs like Kyprolis and Veklury, plus Captisol supply sales. Gross margin is 98.58%, and net margin 67.88% — highly recurring, asset-light income.
Its Captisol platform is patented and embedded in multiple approved drugs, making it hard for competitors like Catalent or Thermo Fisher to replicate. However, patent expirations on key partnered drugs could erode royalty streams over time.
Key events, in time order
Q2 shows higher royalty revenue; post-quarter closes XOMA deal with $700M financing
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Bullish on Ligand Pharmaceuticals (LGND) due to its former executive's success, highlighting a potential blockbuster drug royalty. The discussion is driven by a fundamental thesis and a recent partnership announcement.
Main discussion
bullish on $OABI - run by Matt Foehr who i dealt with almost 20 years ago at $LGND - Matt's built a really compelling company. announced a $LLY deal today, but the crown jewel is a royalty on ramantamig, which could be one of the biggest drugs of all time. price target: $15
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