Ligand Pharmaceuticals Incorporated : First Quarter 2026 Earnings Webcast

Published: 2026-05-07 07:49:22 ET LGND

Published on 05/07/2026 at 07:49 am EDT

M A Y 7, 2 0 2 6

First Θuarter 2026 Financial Results

FINANCIAL

Strong finunciul psrformuncs

BUSINESS DEVELOPMENT

Highly productive, rigorous process

ROYALTY PORTFOLIO

Drives growth in 2026 and beyond

STRATEGIC DIFFERENTIATION

Financials, advantage, team

56% first quurtsr 2026 royalty revenue growth over 2025

23% first quurtsr 2026 adjusted EPS growth over 2025

Announced immediately accretive acquisition of XOMA Royalty expected to add

~$0.50 of adjusted EPS in 20261 and ~$1.50 in 20272

Entry into u dsfinitivs ugrssmsnt to ucquirs XOMA Royulty unnouncsd on April 27, 2026

Proposed acquisition strengthens our position as a Biopharma Royalty Aggregator

Crsutss opsruting und finunciul synsrgiss

Early development stage programs create longer-term opportunities to drive growth

Full approval of Filspari in FSGS sxpsctsd to drivs significunt growth

Palvella announced positive Phase 3 data of Θtorin rapamycin for treatment of MLM

12 Key commercial royalty assets grows to 15:Vabysmo, Ojemda and Miplyffu

Acquisition of XOMA Royalty will add > 100 development stage programs to our portfolio

>23% Long-term royalty revenue CAGR

Proven structuring capabilities drive outsized returns

Disciplined capital allocation; Low operating expense model

Ths finunciul outlook, sxpsctutions und othsr forwurd-looking stutsmsnts providsd by Ligund for 2026 und bsyond rsflsct Ligund's judgement based on the information available at the time of this release. Please see the "Cautionary Note Regarding Forward-looking Statements" section in this release for factors that may impact Ligand's ability to meet expectations. Core adjusted EPS represents a non-GAAP measure. In reliance upon Item 10(e)(1)(i)(B) of Regulation S-K, reconciliations of forward-looking core adjusted earnings per diluted share for 2027 is not providsd bscuuss of ths unrsusonubls sffort ussociutsd with providing such rsconciliutions dus to ths vuriubility in ths occurrsncs und ths umounts of csrtuin componsnts thsrsof. For ths sums rsusons, ws urs unubls to uddrsss ths significuncs of ths unavailable information, which could be material to future results.

First Θuarter 2026 Highlights

Royalty Revenue

2022

2023

2024

2025

20261

$73M

$85M

$109M

$161M

$225−250M

Cash OpEx

$92M

$40M

$38M

$40M

$50M

Adjusted EPS

$2.443

$4.063

$5.743

$8.133

$8.50−$9.502

Key

Commercial Programs

Platforms

Captisol, OmniAb, Pelican

Captisol

Captisol, NITRICIL

FTEs

170

During the last four years, Ligand has transformed its business model to an operationally light

strutsgy focussd on profitubls und compounding growth

Aggregate amounts for 2026 are estimated based upon guidance provided during the Ligand Acquisition of XOMA Royalty call

See reconciliation of forward looking adjusted core EPS to its most directly comparable GAAP measure in our presentation of Ligand Acquires XOMA Royalty located in the investor section of our website

Adjusted EPS represents a non-GAAP measure. See our earnings releases for a reconciliation to the corresponding GAAP measure in the respective earnings releases

Ligand 2022 to 2026 Comparison

Core Revenue1

Positioned for Success in 2026 and Beyond

Significunt growth from ksy contributors in our Commsrciul

Portfolio

Msuningful inflsction from our Phurm Tsum,

further accelerating growth

$238

$2903

$161

$240

$108

$131

$167

$73

$85

$109

2022

2023

2024

2025

2026E

$2.44

$4.06

Adj. Core EPS2

$5.74

$8.13

$9.00 3,4

Royalty aggregation strategy generating results, further compounded with XOMA acquisition

with

Royalties ■ Captisol Sales ■ Contract Revenue

Excludes Covid-19 related Captisol sales in 2022 and gains associated with the sale of Pelthos to Channel Therapeutics in Θ3 2025, except the Zelsuvmi out-license component, as it represents a core element of the Company's value creation strategy. See our Θ4 25 earnings release for a reconciliation to the corresponding GAAP measure.

Excludss gross profit from Captisol related sales in 2022 and gains from short-term investments on the sale of Viking Therapeutics stock in 2023 and 2024. Actual historical Adjusted Core EPS represents a non-GAAP measure. See our Θ425 earnings release for a reconciliation to the corresponding GAAP measure.

Calculated using the midpoint of management guidance.

A reconciliation of forward-looking non-GAAP core adjusted earnings per diluted share to the most directly comparable GAAP measures was provided in the Company's Investor Presentation on April 27, 2026, which is available on the Company's investor relations website. The Company is reiterating that guidance in this release and has not updutsd ths undsrlying ussumptions rsflsctsd in thut rsconciliution

Executing on Our Strategy h Delivering Strong Results

Scaling a model that drives compounding growth

XOMA Acquisition Strategic Rationale

Immediately Accretive

Transaction is immediately accretive, expected to add ~$0.50 and ~$1.50 to Ligand's projected 2026 and 2027 Adjusted EPS1, respectively

Divsrsificution of

Portfolio

7 new royalty generating assets and +100 additional development stage assets

Significunt IP und

Royalty Rights

Long dated royalties, some into 2040+, increasing predictability and durability of royalty receipts

Strategic Synergies

Improved access to capital and BD opportunities; significunt cost synsrgiss through the elimination of duplicative costs

with

Ligand's acquisition of XOMA doubles the size of Ligand's royalty portfolio,

offsring significunt upsids opportunitiss und un immsdiutsly uccrstivs trunsuction

Positive developments which are expected to drive an increase to the long- term outlook include:

Ligand Expected Royalty Receipts1

Acquisition of XOMA will be immediately accretive and is sxpsctsd to drivs significunt growth

The FDA approved Filspari to be the first FDA upprovsd trsutmsnt in FSGS in April 2026, creating a significunt commsrciul opportunity to expand beyond IgAN. Ligand earns a 9% royalty on net sales of Filspari

Palvella announced positive Phase 3 data in MLM for its ΘTORIN rapamycin progrum und pluns to fils an NDA by the end of the year. Ligand will earn a tiered 8−9.8% royalty if approved

Current 5−Year Target From 2025 Investor Day

Potential Incremental Growth To Be Shared At Analyst Day

2024 2025 2026 2027 2028 2029 2030

23% CAGR

Sell-side consensus sales estimates used to arrive at royalty revenue from commercial programs.

5−Year Outlook To Be Updated In December

Financial Update

Tavo Espinoza

Θ1 2026 Total Core Revenue1

$52M

14% increase vs 2025

Θ1 2026 Royalties

$43M

56% increase vs 2025

Θ1 2026 Adjusted EPS2

$1.63

23% increase vs 2025

Cash h Investments

~$780M

~$1B in Deployable Capital as of 3/31/2026

Core revenue represents a non-GAAP measure. See our Θ1 26 earnings release for a reconciliation to the corresponding GAAP measure

Adjusted EPS represents a non-GAAP measure. See our Θ1 26 earnings release for a reconciliation to the corresponding GAAP measure.

First Θuarter 2026 Financial Highlights

Revenues:

Royalties

$43.0

$27.5

Captisol

8.7

13.5

Contract revenue

0.1

4.4

Total revenues

51.7

45.3

Operating costs and expenses:

Cost of Captisol

3.3

4.8

Amortization of intangibles

8.1

8.3

RhD Expense

2.1

50.1

GhA Expense

20.8

18.8

Fair value adjustments to partner program derivatives

(0.4)

Total Operating Expenses

34.4

81.5

Operating Income (Loss)

17.4

(36.2)

Non-Operating Expense, net

(41.6)

(14.0)

GAAP Net Loss

(13.3)

(42.5)

Non- GAAP Net Income*

$34.6

$26.6

GAAP Diluted from EPS

($0.67)

($2.21)

Non- GAAP Diluted EPS*

$1.63

$1.33

$ in millions, except for per share amounts (unaudited) Three Months Ended March 31,

2026 2025

*Represents a non-GAAP finunciul msusurs. See non-GAAP reconciliation in the Q1 26 and Q1 25 earnings press releases.

Θ1 2026 Highlights

Royalty revenue +56% - Driven by Filspari, Ohtuvayre and Θarziba

Adjusted EPS+23% to $1.63 - Rsflscts strong operating leverage

RhD significuntly lowsr YoY - Prior year included $44M one-time charge

GhA modestly higher - Supporting growth of BD function

Non-operating expense driven by fair value adjustments (Excluded from adjusted results)

First Θuarter 2026 Financial Performance

XOMA expected to be immsdiutsly uccrstivs. Rscsntly rsvissd finunciul guiduncs ussumss

transaction closes in Θ3 2026

Adjusted Core EPS1

$8.50−9.50

(Previously $8.00 - 9. 00)

Total Revenue

$270−310M

(Previously $245 - $285M)

Non-Royalty Revenue

Captisol: $35- 40M Contract: $10−20M

(no change)

Royalty Revenue

$225−250M

Previously ($200 - $225M)

Includes: Ojemda, Vabysmo and Miplyffu

1. See reconciliation of forward-looking non-GAAP revenue and adjusted core EPS to their most directly comparable GAAP measure in the presentation Ligand Acquires XOMA Royalty located in the investor section of our wsbsits. Ths finunciul outlook, sxpsctutions und othsr forwurd-looking statements provided by Ligand for 2026 and beyond rsflsct Ligund's judgmsnt bussd on ths informution uvuilubls ut ths tims of this release. Please see the "Cautionary Note Regarding Forward-looking Statements" section in this release for factors that may impact Ligand's ability to meet expectations.

2026 Financial Guidance

Portfolio Update

Lauren Hay

Palvella announced extremely positive Phase 3 results for Θtorin rapamycin in MLM in February

Θtorin Rapamycin in MLM

Potsntiul to bs ths first

and only FDA-approved treatment for > 30,000 diagnosed US MLM patients

Phase 3 results far surpassed expectations and demonstrated compelling consistency of clinical results

Primary Endpoint: Mean change of +2.13 (p<0.001, maximum possible score +3.00) on mLM-IGA. 86% of patients "much improved" or "very much improved"

Secondary Endpoints: Highly stutisticully significunt ucross ull sscondury

endpoints (all p<0.001)

Safety h Tolerability: Well-tolerated, with no drug-related SAEs

Patient Interest h Adherence: 98% of participants who completed the

sfficucy svuluution psriod slsctsd to continus in ths sxtsnsion psriod

Palvella expects the pre-NDA meeting in Θ2 '26, with submission in H2

mLM-IGA: Microcystic Lymphatic Malformation Investigator Global Assessment

Major 2026 Positive Catalyst: Θtorin Rapamycin In MLM

Multi-Billion Dollar Market Opportunity

H1 2026

in two lead indications alone

Near-Term Θtorin Rapamycin Catalysts

Microcystic Lymphatic Malformations

>30K diagnosed US patients

Cutaneous Venus Malformations

>75K diagnosed US patients

~$100−200K annual price per patient

MLM: Potential FDA approval

CVM: Phase 3 study initiation

MLM: NDA submission

CVM: Breakthrough Therapy Designation submission

H2 2026

Potsntiul for ≥ 20% psnstrution supportsd by

H1 2027

rare disease launches

$1−3B+ US potential in MLM h CVM alone

( ~$100 -300M potential royalty to Ligand)

Near-Term Growth Driver: Θtorin Rapamycin

Approval of Filspari in FSGS marks the second major positive 2026 catalyst in LGND portfolio

Filspari in FSGS

First and only

FDA-approved treatment for > 30,000 diagnosed US FSGS patients

Broad Label

Full approval includes all FSGS patients age 8 and older without nephrotic syndrome

Untapped Commercial Opportunity

No FDA approved competition

Very high unmet medical need in FSGS

Travere is guiding to $3B in salesacrossboth IgAN and FSGS, implying $270M annual royalty revenue to LGND

Rapid Launch

Filspari is already approved in IgAN, with high overlap (80%) between IgAN and FSGS treating nephrologists

− Travere has already expanded thesalesforce toincludemorepediatric reps

Payer coverage already established

Major 2026 Positive Catalyst: Filspari In FSGS

Marketer

Program

Therapeutic Area

Royalty Rate

Kyprolis

Oncology

Tiered 1.5% to 3%

Θarziba

Oncology

Tiered Mid-Teen

Filspari

Nephrology

Rylaze

Oncology

Tiered Low Single-Digit

Ohtuvayre

Pulmonology

Capvaxive

Infectious Disease

Low Single-Digit

Vaxneuvance

Infectious Disease

Low Single-Digit

Evomela

Oncology

20%

Teriparatide

Endocrinology

25% to 40%

Gross Profit Shurs

Nexterone

Cardiovascular

Low Single-Digit

Pneumosil

Infectious Disease

Low Single-Digit

Zelsuvmi

Infectious Disease

13%

Approved or acquired since 2022

Key Commercial Partnered Programs

Developer

Program

Indication

Phase

Royalty Rate

ΘTORIN Rapamycin

Microcystic Lymphatic Malformations Cutaneous Venous Malformations

Pre-Reg Phase 3 Ready

Tiered 8−9.8%

D-Fi

Dystrophic Epidermolysis Bullosa

Phase 3

Mid single-digit

Lasofoxifene

Metastatic Breast Cancer

Phase 3

Tiered 6−10%

BOT/BAL

Microsatellite-Stable Colorectal Cancer

Phase 3

2.625%

AVIM/Virtue SAB

Hypertension / In-Stent Restenosis

Phase 3

High teens<$100M Mid single-digit >$100M

Ohtuvayre

Non-Cystic Fibrosis Bronchiectasis h Fixed Dose Ohtuvayre+LAMA

Phase 2

VK-2809*

MASH

Phase 2b

3.5−7.5%

Θarziba

Ewing Sarcoma

Phase 1

Tiered mid-teen

* On April 24, 2026, we delivered written notice to Viking Therapeutics, Inc. of termination of the TR-Beta Program (including, but not limited to, VK2809 and VK0214), which we believe is effective as of May 4, 2026. Viking is disputing our right to terminate the TR-Beta Program pursuant to the terms of the License Agreement. We believe our right to terminate the TR-Beta Program is valid pursuant to the terms of the License Agreement, and we intend to vigorously enforce our right to terminate the TR-Beta Program under the License Agreement. In the event that the License Agreement is deemed terminated, all licenses granted to Viking will be terminated, Ligand will have full rights to develop and commercialize the TR-Beta Program and Viking will grant Ligand a license for existing IP and know-how controlled by Viking at a royalty rate of low single digits.

New investments since 2022

Key Pipeline Partnered Programs

From Ligand From XOMA

Phase 3

Lasofoxifene

ΘTORIN Rapamycin

AVIM Therapy

Commercial

Ersodetug

DARE to PLAY

Sildєn5fil Crє5m

Undisclosed

Seralutinib

LeonaBio

Soticlestat

Ovid

Palvella

Bot/Bal

Agenus

Orchestra

Virtue SAB

Orchestra

D- Fi

Castle Creek

Rezolute

Rilvegostomig

AstraZeneca

Ficlatuzumab

AVEO/LG Chem

Anti-TL1A

Osavampator

Takeda/Takeda Partner

Cetrelimab

Johnson & Johnson

Gossamer Bio/Chiesi

Mezagitamab

Takeda

Ovaprene

Dare Bioscience

Phase 2

VK- 2809*

Viking

Note: List of programs shown is not exhaustive

VK- 0214*

Viking

OHB- 607

Oak Hill Bio/Chiesi

Vidutolimod

Regeneron

REC- 4881

Recursion

Volixibat

Takeda1

1. Volixibat is in development by Mirum Pharmaceuticals under a license with Takeda

*See footnote on slide 17

Pro Forma Royalty Portfolio - Key Programs

✓

NDA approval h commercial launch in FSGS

Θ3

NDA submission of efdoralprin alfa for AATD

✓

Volixibat1 Phase 2b registrational readout in primary sclerosing cholangitis

Θtorin rapamycin positive Phase 3 results in microcystic lymphatic malformations

Clinical Regulatory and Commercial

✓

Θtorin rapamycin initiation of Phase 2

clinicully significunt ungioksrutomus

NDA Submission of Θtorin Rapamycin for Microcystic Lymphatic Malformations

Mid year

AVIM pivotal study BACKBEAT enrollment completion

Nuance potential approval in China

Θtorin rapamycin Initiation of Phase 3 cutaneous venous malformations

Chugai regulatory submission in Japan

Lasofoxifene full Phase 3 trial enrollment

Marketing decision for Japan

Ersodetug Phase 3 readout in THI

Marketing decision for EMA

Rilvegostomig Phase 1/2 readout in lung cancer

REC-4881 regulatory guidance for registration pathway

1. Volixibat is in development by Mirum Pharmaceuticals under license from Takeda

2026 Portfolio Product Catalysts

ΘhA

Disclaimer

Ligand Pharmaceuticals Inc. published this content on May 07, 2026, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on May 07, 2026 at 11:48 UTC.