About LIGAND PHARMACEUTICALS INC
Ligand Pharmaceuticals Incorporated, a biopharmaceutical company, focuses on developing or acquiring technologies that help pharmaceutical companies to discover and develop medicines worldwide. Its commercial programs include Kyprolis and Evomela, which are used to treat multiple myeloma; Veklury for the treatment of moderate or severe COVID-19; Teriparatide injection product for osteoporosis; Vaxneuvance for the prevention of invasive disease caused by Streptococcus pneumoniae; and Pneumosil, a pneumococcal conjugate vaccine to help fight against pneumococcal pneumonia among children. The company also offers Rylaze, a recombinant erwinia asparaginase for the treatment of acute lymphoblastic leukemia or lymphoblastic lymphoma in adult and pediatric patients; and Nexterone, a captisol-enabled formulation of amiodarone; and Zulresso, a captisol-enabled formulation of brexanolone for the treatment of postpartum depression. In addition, it provides Noxafil-IV, a captisol-enabled formulation of posaconazole for IV use; Duavee for the treatment of postmenopausal osteoporosis; Aziyo portfolio of commercial pericardial repair and CanGaroo envelope extracellular matrix products; Exemptia for autoimmune diseases; Vivitra for breast cancer; Bryxta and Zybev for various indications; and Minnebro for the treatment of hypertension.
The company's partners and licenses programs, which are in clinical development used for the treatment of cancer, seizure, diabetes, cardiovascular disease, muscle wasting, liver and kidney disease, and other diseases. Further, it sells Captisol materials. The company was incorporated in 1987 and is headquartered in Emeryville, California.
LGND operates in the Manufacturing | Pharmaceutical Products | headquartered in San Diego, California | approximately 80 employees | led by CEO John L. Higgins.
The $3.5B question: What happens when a company this good becomes this expensive?
In the alphabet soup of healthcare investing, few stories capture the tension between innovation and regulation quite like LIGAND PHARMACEUTICALS INC. The company stands at the intersection of scientific possibility and market reality.
At $3.5B in market capitalization, LIGAND PHARMACEUTICALS INC (LGND) currently ranks #164 in our quantitative model, with a composite score of 77.0/100. That places it firmly in "Strong Buy" territory — our highest conviction rating.
But here's the thing about stocks priced for perfection: They leave no room for error.
The Numbers That Matter
Let's start with what's undeniably true. Our 6-factor model gives LGND the following scores:
| Factor | Score | Weight | Assessment |
|---|---|---|---|
| Quality | 92/100 | 30% | Exceptional |
| Value | 83/100 | 15% | Attractive |
| Momentum | 83/100 | 25% | Accelerating |
| Investment | 32/100 | 10% | Low |
| Stability | 59/100 | 10% | Volatile |
| Short Interest | 57/100 | 10% | Normal |
The quality score of 92/100 is the headline here. It reflects profitability metrics that would make most CFOs weep with envy:
- ROE: 19.1%
- Net Margin: 1.0%
- Gross Margin: 96.7%
These aren't just good numbers. They're the kind of numbers that make LGND a "must-own" stock for institutional portfolios.
The Bull Case
"If you could design a business in a laboratory, it would look something like LGND."
The bull case writes itself:
- Quality is persistent. Academic research shows high-quality stocks outperform by 4-6% annually over long periods. LGND is quality defined.
- Momentum is real. With a momentum score of 83/100, the stock has been recognized by the market — and momentum tends to persist.
- The moat is deep. Companies with these margins don't lose them easily. The competitive position is entrenched.
The Bear Case
But here's what keeps value investors up at night:
- Valuation compression risk. At current levels, the stock is priced for continued perfection. Any stumble — a missed quarter, a competitive threat, a macro slowdown — could compress the multiple from 71.5x to the low 20s. That's a 20-30% decline without anything fundamentally "wrong."
- The crowded trade problem. When everyone owns a stock, who's left to buy? Momentum works until it doesn't.
- Mean reversion. Trees don't grow to the sky. At some point, growth decelerates.
The Valuation Framework
| Scenario | Assumption | Fair Value | Upside/Downside |
|---|---|---|---|
| Bear | Multiple compression to 20x | -20% | Downside |
| Base | Current trajectory continues | +10-15% | Modest upside |
| Bull | Momentum accelerates | +30-40% | Significant upside |
The risk-reward is ... fine. Not exceptional. Not terrible. Just fine.
The Bottom Line
LIGAND PHARMACEUTICALS INC is exactly what it appears to be: a high-quality business with strong momentum trading at a premium price. Whether that's attractive depends entirely on what kind of investor you are.
For long-term, buy-and-hold investors, LGND is a core holding. For value investors or short-term traders, look elsewhere.
The company is priced for perfection — and in markets, as in life, perfection is a fragile thing.
⭐⭐⭐⭐⭐ Rating: 5-Star Strong Buy
Score: 77.0/100 | Rank: #164 of 3,571 stocks
Sector: Healthcare
This analysis reflects the views of Blank Capital Research as of February 16, 2026. It is not investment advice. Past performance does not guarantee future results.