Ligand Pharmaceuticals Completes Acquisition of XOMA Royalty in $739 Million Deal
The all-cash transaction expands Ligand's royalty portfolio to more than 200 assets and adds seven commercial products.
Ligand Pharmaceuticals Incorporated (LGND) has completed its acquisition of XOMA Royalty Corporation (XOMA) in an all-cash transaction. The deal valued XOMA Royalty at an equity value of approximately $739 million.
Under the terms of the agreement, XOMA Royalty stockholders received $39.00 in cash for each share of common stock owned. This price represented an approximately 14% premium to the 30-trading day volume-weighted average price as of April 24, 2026. Additionally, stockholders and equity award holders received one non-transferable contingent value right (CVR) per share, entitling them to a portion of 75% of the net proceeds from certain pending litigation at XOMA Royalty.
The acquisition was intended to strengthen and diversify Ligand's portfolio across all stages of clinical development and accelerate long-term profitable growth. The transaction added seven marketed products and nearly doubled Ligand's portfolio of Phase 2 and Phase 3 assets. "The XOMA Royalty team has built a robust portfolio of complementary biopharmaceutical assets, and this acquisition will enable us to further grow and diversify in areas such as ophthalmology, oncology, CNS and rare diseases," said Todd Davis, CEO of Ligand.
XOMA Royalty operated as a biotechnology royalty aggregator, acquiring future economics from pre-commercial and commercial therapeutic candidates licensed to pharmaceutical or biotechnology companies. The company had assembled a portfolio of over 120 partnered programs, providing non-dilutive funding to sellers to advance internal drug candidates.
Ligand expected the transaction to be immediately accretive to its adjusted earnings per share (EPS). The company increased its 2026 adjusted EPS guidance to a range of $8.50 to $9.50 and projected the acquisition would be accretive by $1.50 per share to adjusted EPS in 2027.
As a result of the completion, XOMA Royalty's common stock no longer trades on the Nasdaq stock exchange. The closing followed a holding company reorganization and a CVR spin involving the conversion of the company into a Delaware limited liability company.