Revenue: As of FY2026 Q1, the actual value is USD 51.72 M, missing the estimate of USD 58.86 M.EPS: As of FY2026 Q1, the actual value is USD -0.67, missing the estimate of USD 0.9783.EBIT: As of FY2026 Q1, the actual value is USD 12.46 M.Ligand Pharmaceuticals Incorporated (Ligand 制药) operates as a single segment focused on investing in the clinical development and commercialization of high-value medicines.<h4>Total Revenues and Income</h4>Total revenues and income for Ligand Pharmaceuticals Incorporated (Ligand 制药) increased by $6.4 million, or 14%, reaching $51.7 million in Q1 2026 compared to $45.3 million in Q1 2025.<ul><li>Revenue from intangible royalty assets: Increased by $11.3 million, or 53%, to $32.9 million in Q1 2026 from $21.6 million in Q1 2025.<ul><li>Filspari royalty revenue was $11.3 million in Q1 2026, up from $5.3 million in Q1 2025, an increase of $6.0 million.</li><li>Kyprolis royalty revenue was $6.7 million in Q1 2026, up from $4.7 million in Q1 2025, an increase of $2.0 million.</li><li>Rylaze royalty revenue was $3.2 million in Q1 2026, up from $3.1 million in Q1 2025, an increase of $0.1 million.</li><li>Ohtuvayre royalty revenue was $3.0 million in Q1 2026, up from $1.4 million in Q1 2025, an increase of $1.6 million.</li><li>Capvaxive royalty revenue was $2.0 million in Q1 2026, up from $0.9 million in Q1 2025, an increase of $1.1 million.</li><li>Vaxneuvance royalty revenue was $1.6 million in Q1 2026, up from $1.3 million in Q1 2025, an increase of $0.3 million.</li><li>Teriparatide injection royalty revenue was $1.3 million in Q1 2026, up from $1.2 million in Q1 2025, an increase of $0.1 million.</li><li>Other intangible royalty assets revenue was $3.8 million in Q1 2026, up from $3.7 million in Q1 2025, an increase of $0.1 million.</li></ul></li><li>Income from financial royalty assets: Increased by $4.1 million, or 70%, to $10.0 million in Q1 2026 from $5.9 million in Q1 2025.<ul><li>Qarziba income was $6.3 million in Q1 2026, up from $5.4 million in Q1 2025, an increase of $0.9 million.</li><li>Ohtuvayre inventors income was $3.0 million in Q1 2026, up from $0 million in Q1 2025, an increase of $3.0 million.</li><li>Other financial royalty assets income was $0.7 million in Q1 2026, up from $0.5 million in Q1 2025, an increase of $0.2 million.</li></ul></li><li>Captisol sales: Decreased by $4.8 million, or -36%, to $8.7 million in Q1 2026 from $13.5 million in Q1 2025, primarily due to timing of customer orders.</li><li>Contract revenue and income: Decreased by $4.3 million, or -97%, to $0.1 million in Q1 2026 from $4.4 million in Q1 2025, primarily due to a regulatory milestone in Q1 2025.</li></ul><h4>Operating Costs and Expenses</h4>Total operating costs and expenses decreased by $47.2 million, or -58%, to $34.4 million in Q1 2026 compared to $81.5 million in Q1 2025.<ul><li>Cost of Captisol: Decreased by $1.6 million, or -33%, to $3.3 million in Q1 2026 from $4.8 million in Q1 2025.</li><li>Amortization of intangibles: Decreased by $0.2 million, or -2%, to $8.1 million in Q1 2026 from $8.3 million in Q1 2025.</li><li>Research and development: Decreased by $47.9 million, or -96%, to $2.1 million in Q1 2026 from $50.1 million in Q1 2025, mainly due to the absence of a $44.3 million funding payment for D-Fi royalty rights and $2.7 million in expenses related to the former Pelthos business in Q1 2026.</li><li>General and administrative: Increased by $2.0 million, or 11%, to $20.8 million in Q1 2026 from $18.8 million in Q1 2025, reflecting higher employee-related costs and share-based compensation.</li><li>Fair value adjustments to partner program derivatives: Was $0 million in Q1 2026 compared to - $0.4 million in Q1 2025.</li></ul><h4>Operating Income (Loss)</h4>Operating income was $17.4 million in Q1 2026, an improvement of $53.6 million from an operating loss of - $36.2 million in Q1 2025. This improvement was driven by the non-recurrence of the $44.3 million R&amp;D funding charge and continued royalty revenue growth.<h4>Non-operating Income and Expenses</h4>Total non-operating expenses, net, increased by $27.7 million, or 198%, to - $41.6 million in Q1 2026 compared to - $14.0 million in Q1 2025.<ul><li>Gain (loss) from short-term investments: Was a gain of $3.9 million in Q1 2026 compared to a loss of - $12.4 million in Q1 2025.</li><li>Loss from change in fair value of equity-method investments and other investments: Was - $49.2 million in Q1 2026, compared to $0 million in Q1 2025, primarily due to fair value changes of Pelthos common stock and Series A convertible preferred stock.</li><li>Interest income: Increased by $4.9 million, or 276%, to $6.7 million in Q1 2026 from $1.8 million in Q1 2025 due to higher average investment balances from the 2030 Notes issuance.</li><li>Interest expense: Increased by $0.9 million, or 101%, to - $1.7 million in Q1 2026 from - $0.9 million in Q1 2025, mainly due to interest on the 2030 Notes.</li><li>Other non-operating expense, net: Decreased by $1.3 million, or -53%, to - $1.2 million in Q1 2026 compared to - $2.5 million in Q1 2025.</li></ul><h4>Net Loss and Tax</h4>Net loss was - $13.3 million in Q1 2026, an improvement of $29.1 million compared to - $42.5 million in Q1 2025. The income tax benefit was $10.9 million in Q1 2026, up from $7.7 million in Q1 2025. The effective tax rate was 45.0% in Q1 2026, compared to 15.4% in Q1 2025.<h4>Cash Flow Summary</h4><ul><li>Net cash provided by operating activities: Was $48.7 million in Q1 2026 compared to net cash used in operating activities of - $25.4 million in Q1 2025.</li><li>Net cash used in investing activities: Was - $94.3 million in Q1 2026 compared to net cash provided by investing activities of $4.9 million in Q1 2025.</li><li>Net cash used in financing activities: Was - $14.1 million in Q1 2026 compared to - $4.7 million in Q1 2025.</li></ul><h4>Strategic Summary and Outlook</h4>Ligand Pharmaceuticals Incorporated (Ligand 制药) plans to acquire XOMA Royalty Corporation for $39.00 per share in cash, with the transaction expected to close in Q3 2026, aiming to diversify its royalty portfolio. The company intends to fund the acquisition using cash on hand and its existing revolving credit facility, while maintaining capital for its strategy of investing $150 million to $250 million annually in high-value royalty assets. Ligand Pharmaceuticals Incorporated (Ligand 制药) also terminated the TR-Beta Program with Viking Therapeutics, Inc. to regain control of the technology and pursue alternative development strategies.

Ligand Pharmac-B | 10-Q: FY2026 Q1 Revenue Misses Estimate at USD 51.72 M