On September 19, 2023, Ligand Pharmaceuticals Incorporated made a significant move by spinning out its subsidiary, Pelican Technology Holdings Inc. This subsidiary has now become a wholly owned subsidiary of Primrose Bio Inc, a private company that specializes in synthetic biology. In this transaction, Ligand retains the existing commercial royalties associated with the Pelican Expression Technology and will also hold a 49.9% ownership stake in Primrose Bio.
In addition to this, Ligand has entered into a Purchase and Sale Agreement with Primrose Bio, where they have contributed $15 million. In exchange for this contribution, Ligand will receive a portion of the economic rights from two contracts that were previously entered into by Primordial Genetics. Ligand will also have an economic interest in potential future revenues generated from PeliCRM197.
Despite the divestiture and the impact it may have on Ligand’s contract revenue, the company expects to see increased adjusted earnings. This is due to the unique profile of the Pelican business.
As a result of these recent developments, Ligand has updated its guidance for the future. The revised revenue range is now $124 million to $126 million, compared to the previous guidance of $124 million to $128 million. The consensus among analysts was $127.05 million.
The adjusted diluted EPS range has also been adjusted to $5.10 to $5.25, up from the previous range of $4.85 to $5.00. The consensus among analysts was $4.98.
Furthermore, Ligand now expects royalties to be in the range of $82 million to $84 million, up from the previous range of $78 million to $82 million.
Lastly, Ligand anticipates sales of Captisol to reach $25 million, up from the previous estimate of $24 million.
Ligand Pharmaceuticals Incorporated
Updated on: 19/09/2023
Debt to equity ratio: Neutral
Price to earnings ratio: Strong Buy
Price to book ratio: Strong Buy
DCF: Strong Buy
5:00 PM (UTC)
Date:19 September, 2023
|Analyst / firm||Rating|
LGND Stock Performance: Stable Trading with Positive Earnings Growth Expected
LGND stock had a mixed performance on September 19, 2023. The stock opened higher than its previous close, indicating some initial optimism among investors. The previous close was at $62.56, and the stock opened at $63.11.
Throughout the day, the stock traded within a range of $62.93 to $63.76. This range suggests that there was relatively stable trading activity, with minimal volatility. The volume for the day was 2,404 shares, which is significantly lower than the average volume of 100,202 shares over the past three months.
LGND has a market capitalization of $1.1 billion. The company has experienced negative earnings growth of -157.56% in the previous year. However, there is positive earnings growth of +75.96% expected for this year.
Looking ahead, LGND is projected to have earnings growth of +20.00% over the next five years. The revenue growth for the previous year was -29.19%.
The P/E ratio for LGND is 27.8. The price/sales ratio is 5.74. The price/book ratio is 1.76.
Overall, LGND’s stock performance on September 19, 2023, was relatively stable. The stock opened higher than its previous close, traded within a narrow range, and had lower-than-average trading volume. The company has experienced negative earnings and revenue growth in the past but is expected to see improvements in the near future. Investors should closely monitor LGND’s financial performance and industry trends to make informed investment decisions.
LGND Stock Shows Potential for Significant Growth: Analysts Offer Positive 12-Month Price Forecasts for Ligand Pharmaceuticals Inc
LGND stock has been performing well on September 19, 2023, according to the data provided by CNN Money. Analysts have offered 12-month price forecasts for Ligand Pharmaceuticals Inc, with a median target of 103.50. The high estimate is 144.00, while the low estimate is 95.00. This indicates a potential increase of 63.40% from the last price of 63.34.
The consensus among six polled investment analysts is to buy stock in Ligand Pharmaceuticals Inc, and this rating has remained steady since June. This suggests that the company has maintained a positive outlook and investor confidence.
In terms of financial performance, Ligand Pharmaceuticals Inc has reported earnings per share of $0.70 for the current quarter. Additionally, the company has generated sales of $28.2 million. These figures indicate a stable financial position and a positive trajectory for the company.
Investors can look forward to Ligand Pharmaceuticals Inc’s upcoming reporting date, which is scheduled for November 7. This will provide further insights into the company’s financial performance and may impact the stock’s future performance.
Overall, the data indicates that LGND stock has the potential for significant growth in the coming months. With a median target price of 103.50 and a consensus buy rating from analysts, investors may consider buying stock in Ligand Pharmaceuticals Inc. However, it is important to conduct thorough research and consider personal investment goals before making any investment decisions.