Ligand Sees 56% Royalty Surge, Reaffirms Guidance, Eyes XOMA Deal
Ligand reported Q1 revenues of $51.7 million, driven by a 56% year-over-year jump in royalty income to $43.0 million. The company reaffirmed its 2026 guidance, expecting the pending XOMA deal to add over 120 assets and roughly $25 million of royalties.
1. First Quarter Results
Ligand’s Q1 2026 total revenues reached $51.7 million, up 14% from $45.3 million a year earlier, with royalty revenue soaring 56% to $43.0 million on strong performance from Travere’s Filspari and Merck’s Ohtuvayre and Capvaxive. Captisol sales declined to $8.7 million from $13.5 million due to timing of customer orders.
2. Filspari Approval Strengthens Portfolio
The full FDA approval of Filspari for focal segmental glomerulosclerosis makes it the largest royalty contributor in Ligand’s commercial portfolio, positioning the drug as a key long-term growth driver for royalties in a rare kidney disease segment.
3. XOMA Acquisition and Guidance Update
Ligand reaffirmed its raised full-year 2026 guidance, reflecting the announced definitive agreement to acquire XOMA Royalty, which will add over 120 commercial, clinical and preclinical assets, including seven commercial products and 14 late-stage programs, and contribute approximately $25 million of incremental royalty revenue upon closing in Q3 2026.