Ligand Pharmaceuticals

LGND on Nasdaq. Ligand Pharmaceuticals sells investors a share of royalties on medicines. Market value $6.1bn.

Watch this stockFree. We tell you when something changes.

Price checks use the past 12 months to June 2026. Some use the latest annual report instead, as marked. Quality checks use five annual reports, the latest for the year to December 2025.

We can't read total debt from the filing, so debt is left out.

Should I look at this?

Good business, but not cheap right now

See cheaper Health care stocks on the list

This is not advice. Check the numbers below.

Compare with another stock

Cash yield
annual report to December 2025
0.8%low

For every $100 of what the whole company costs, it produced $0.83 of spare cash last year. A savings account pays about $4.

Price to profit
past 12 months to June 2026
63.8×full

You pay 63.8 years of operating profit for the business. The average large US company costs around 18.

Return on capital
five annual reports to December 2025
n/a

The filings do not give us enough to work this out.

Quality score: 72 of 100. Price score: 23 of 100. Our list needs 70 on quality and 60 on price.

$296.94 a share, 69% above its 1-year low

Over the past year the price has ranged from $175.89 to $326.63.

Pays no dividend

Prices from Tuesday’s close (6 October).

Five years of cash, in billions

0.1
0.1
0.0
0.1
0.0
20212022202320242025
Revenue
$242m$196m$131m$167m$268m
Operating margin
43.0%1.5%9.1%-13.5%15.3%
Debt to equity
n/an/an/an/an/a
Shares outstanding
0.02bn0.02bn0.02bn0.02bn0.02bn

Health checks

  • Free cash flow positive5 of 5 years
  • Accounting looks honest (Beneish)Not enough data
  • Financial strength (Piotroski)4 of 7 checks we could run
  • Profit backed by cash (accruals)Yes
  • DebtUnknown
  • Revenue growth, five yearsStrong, 10.4% a year
  • Buying back its own sharesNo, 18% more shares since 2021

The quarter to June 2026

How the business did, compared with the same quarter a year earlier.

  • Sales: $64 million last quarter, up 34% on a year ago.
  • Profit: $49 million, up 901% on a year ago.
  • It keeps 33 cents of each $1 of sales as operating profit, after losing 18 cents a year earlier.
  • 10% more shares than a year ago. Each share owns a bit less of the company.
  • Sales grew on a year ago in each of the last 4 quarters.
Sales by quarter
Sales by quarter
Quarter toAmount
September 2024$52m
December 2024$43m
March 2025$45m
June 2025$48m
September 2025$115m
December 2025$60m
March 2026$52m
June 2026$64m
Profit by quarter
Profit by quarter
Quarter toAmount
September 2024-$7m
December 2024-$31m
March 2025-$42m
June 2025$5m
September 2025$117m
December 2025$45m
March 2026-$13m
June 2026$49m

From the company's quarterly reports to the SEC.

Dates

Next results (estimated)
n/a
Last annual report (10-K)
27 February 2026
Next quarterly (estimated, 10-Q)
6 November 2026

Who owns it

1 long-term investor we follow owns it, unchanged from 1 last quarter. 415 funds in all.

Jun '25
Dec '25
Jun '26
Largest holders overall

From 13F filings for the quarter ended 30 June 2026.

Big holders and activists

5 investors own more than 5%.

From Schedule 13D and 13G filings: anyone owning more than 5% must file one.

What insiders did

No insider bought shares on the open market in the last 12 months. 9 sold $35m, $24m of it under preset trading plans.

  • Reardon Andrew
    CLO & Secretary
    Sold
    under a preset trading plan
    Date
    2 October 2026
    Shares
    5,000
    Price
    $304.07
    Value
    $2m
  • Zimmermann Martine
    Director
    Sold
    Date
    10 September 2026
    Shares
    1,200
    Price
    $285.00
    Value
    $342,000
  • Reardon Andrew
    CLO & Secretary
    Sold
    under a preset trading plan
    Date
    3 September 2026
    Shares
    5,000
    Price
    $286.09
    Value
    $1m
  • Espinoza Octavio
    Chief Financial Officer
    Sold
    under a preset trading plan
    Date
    12 August 2026
    Shares
    31,641
    Price
    $292.06
    Value
    $9m
  • Haas Jason
    Director
    Sold
    Date
    12 August 2026
    Shares
    7,138
    Price
    $292.81
    Value
    $2m
  • Reardon Andrew
    CLO & Secretary
    Sold
    under a preset trading plan
    Date
    3 August 2026
    Shares
    5,000
    Price
    $288.99
    Value
    $1m
  • Reardon Andrew
    CLO & Secretary
    Sold
    under a preset trading plan
    Date
    1 July 2026
    Shares
    5,000
    Price
    $313.28
    Value
    $2m
  • Sabba Stephen L
    Director
    Sold
    Date
    16 June 2026
    Shares
    2,145
    Price
    $254.00
    Value
    $544,830
  • Haas Jason
    Director
    Sold
    Date
    12 June 2026
    Shares
    6,461
    Price
    $255.58
    Value
    $2m
  • Aryeh Jason
    Director
    Sold
    Date
    11 June 2026
    Shares
    4,500
    Price
    $250.00
    Value
    $1m

From Form 4 filings: insiders must report trades in their own company's shares within two days.

Warning signs in its filings

Problems the company itself reported to the SEC, in its own words.

None of the warning signs we check for were found.

We look for five warning signs: doubt it can keep going, weak checks on its own accounts, a notice that its past accounts can't be relied on, a change of auditor, and one customer bringing in a big share of sales. We don't check lawsuits, investigations or debt yet.

We checked the auditor's report, internal controls, restatement notices, auditor changes and big customers in the 10-K filed 27 Feb 2026, plus the 10-Q filed 7 Aug 2026 and 11 later 8-Ks.

A 10-K is the yearly report every US company files with the SEC. An 8-K is a short notice of a big event.

What could go wrong

  • It isn't cheap on profits: 63.8× operating profit.

Whether the price already reflects the risks is what the deep dive is for.

The deep dive

Everything above is arithmetic on public filings. The deep dive reads the last ten years of annual reports, the proxy statements, and the earnings calls, then argues the case the way Buffett, Klarman, and Hohn would, and checks every claim against the source.

  • What the business is worth, as a range, and the margin of safety at today’s price
  • Prices to start buying, buy, and buy hard
  • The three things that would make this a mistake
  • Every number footnoted to the filing it came from
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What a finished deep dive looks like

Not advice. Numbers on this page come from SEC filings and are updated each night; prices are updated again after the US market closes. The five-year figures are rounded.