Ligand Pharmaceuticals (Nasdaq: LGND) has completed its acquisition of XOMA Royalty Corporation for USD 739 million in cash, more than doubling its royalty portfolio to over 200 commercial, clinical, and preclinical-stage assets. The US-based transaction positions Ligand as one of the largest diversified biopharma royalty aggregators, adding seven commercial products and 14 late-stage development programs to its existing base.
Ligand paid USD 39.00 per share in cash, funded through existing cash on hand and borrowings under its credit facility, supplemented by a USD 700 million zero-coupon convertible notes offering closed in June 2026. XOMA Royalty stockholders also received one non-transferable Contingent Value Right per share, entitling holders to 75% of net proceeds from pending litigation against Janssen Biotech related to commercialization of guselkumab — though the company cautioned stockholders may receive no payment. The transaction closed on schedule within Ligand's original Q3 2026 timeline, and is expected to add approximately USD 0.50 and USD 1.50 per share to projected 2026 and 2027 adjusted earnings per share, respectively.
The three headline commercial assets acquired are Roche's vabysmo (faricimab-svoa), a bispecific antibody approved for neovascular age-related macular degeneration and diabetic macular edema; tovorafenib (Ojemda), a selective oral RAF kinase inhibitor approved for relapsed or refractory BRAF-altered pediatric low-grade glioma; and arimoclomol (Miplyffa), a small molecule approved for Niemann-Pick Disease Type C. The development portfolio includes Takeda's mezagitamab and externalized assets osavampator, volixibat, and OHB-607. Notably, Servier's USD 2.5 billion acquisition of Day One Biopharmaceuticals — the originator of tovorafenib — underscores the commercial value embedded in that royalty stream.