At a Glance
- Acquirer: Ligand Pharmaceuticals (LGND)
- Target: XOMA Royalty (XOMA)
- Deal value: $739M cash ($39/share + CVR)
- Impact: +120 assets, 7 commercial products
- Next steps: Close Q3 2026
What happened?
Ligand Pharmaceuticals announced on 27 April 2026 it will acquire fellow royalty aggregator XOMA Royalty for $39 per share in cash, valuing XOMA at $739 million. XOMA shareholders also receive a non-transferable CVR for 75% of net litigation proceeds from Janssen dispute.
Why does it matter?
Deal creates a leading biopharma royalty aggregator with 200+ assets across stages/therapeutics, diversifying Ligand’s portfolio (e.g., Vabysmo, Ojemda, Miplyffa). Immediately accretive to EPS; Ligand raises 2026 guidance to $270-310M revenue, $8.50-9.50 adjusted EPS (+$1.50/share in 2027).
Who’s behind it?
Ligand (Jupiter, FL) focuses on royalties; XOMA (Emeryville, CA) adds complementary assets like Takeda’s mezagitamab, volixibat. BVF Partners (21% XOMA owner) supports; unanimous board approval.
How was it achieved?
~14% premium to XOMA’s 30-day VWAP; funded by cash/credit. Adds 7 marketed products, 14 late-stage programmes, enhancing oncology/CNS/rare disease exposure. Funded by cash and credit line.
What’s next?
Expected Q3 2026 close pending approvals. Ligand to integrate portfolios for compounding growth; XOMA preferred stock converted/redeemed.
What are people saying?
Todd Davis, Ligand CEO: “Expands our royalty portfolio… bolsters long-term compounding growth.” XOMA: “Clear value realisation… retains litigation upside.”