Ligand to Acquire Xoma Royalty for $739M, Adds Seven Marketed Products
Ligand Pharmaceuticals will acquire Xoma Royalty for $39 per share in a $739 million all-cash deal, boosting its royalty portfolio to over 200 assets and adding seven marketed drugs. It grants Xoma shareholders contingent value rights on TREMFYA litigation proceeds and raises Ligand’s 2026 revenue forecast to $270–$310 million.
1. Deal Terms
Ligand will acquire Xoma Royalty for $39 per share in an all-cash transaction valued at $739 million, to be funded through existing cash and borrowings under its credit facility. The boards of both companies have unanimously approved the deal, and major Xoma shareholder BVF Partners has agreed to vote in favor.
2. Portfolio Expansion
The acquisition expands Ligand’s royalty portfolio to more than 200 assets, adding seven marketed drugs and royalty interests in Roche’s Vabysmo, Day One’s Ojemda, and Zevra’s Miplyffa, along with 14 late-stage development programs. This broadens Ligand’s exposure in ophthalmology, oncology, central nervous system, and rare disease areas.
3. Financial Outlook and Closing
Xoma shareholders will also receive one Contingent Value Right per share entitling them to 75% of net proceeds from ongoing TREMFYA litigation. Ligand raised its full-year 2026 revenue guidance to $270–$310 million and adjusted EPS forecast to $8.50–$9.50, and expects the deal to add $1.50 per share in 2027, with closing targeted in Q3 2026.