Ligand Pharmaceuticals Secures $244 Target, Projects 23% Royalty CAGR
Bank of America initiated coverage of Ligand Pharmaceuticals with a Buy rating and $244 price target, citing its royalty-focused model and portfolio of over 100 assets. Analysts forecast a 23% annual growth in royalty receipts through 2030 and noted Captisol generated $40 million in 2025 royalties, up 30%.
1. Analyst Coverage Initiation
Bank of America initiated coverage of Ligand Pharmaceuticals with a Buy rating and set a $244 price target, highlighting the company’s diversified royalty model and potential for continued earnings growth.
2. Royalty Business Model and Portfolio
Ligand provides capital and technology to drug and medical device developers in exchange for royalties on a portfolio exceeding 100 commercial and development-stage assets, generating high-margin returns while preserving shareholder equity.
3. Growth Forecast and Valuation
Analysts project a 23% compound annual growth rate in royalty receipts through 2030, and Ligand trades at roughly 25 times projected 2026 earnings, indicating room for valuation multiple expansion.
4. Captisol Technology Contribution
The Captisol drug formulation platform, included in 17 approved therapies, generated about $40 million in royalties in 2025—a 30% increase year over year—with further gains expected as new Captisol-based drugs secure approvals.