AnaptyBio’s Double Catalyst: Spin-Off Structure Plus a Buyback Signal- Buyback Wednesdays

In our September 2025 Special Situations Newsletter, I discussed three patterns in special situations that excite us the most. One of the patterns we discussed in that newsletter was multiple event-driven situations coming together serendipitously to create a unique situation.

An example was the merger arbitrage opportunity with the acquisition of Biohaven (BHVN) by Pfizer (PFE) that included a spin-off of Biohaven’s non-migraine related assets and an insider purchase by an independent director right before the deal closed.

When we came across Ligand Pharmaceuticals (LGND) last year, we were reminded of the company’s decision to
spinoff its drug development platform OmbiAb (OABI) and merge it into a SPAC through a Reverse Morris Trust transaction. A month after this transaction was completed, Ligand announced that it was appointing long-serving board member Todd Davis as its new CEO.

Since we cover spinoffs, SPACs and C-suite transitions, we have been reporting on each of these events as they relate to Ligand. However, the reason the name really struck a chord with us was on account of a flip-flopper insider transaction by the CFO, Octavio “Tavo” Espinoza, that we covered briefly in an article titled Three Recent Flip-Flopping Insiders. Ligand’s stock has nearly doubled since that flip-flopper insider transaction by Tavo.

I got a chance to meet Tavo twice since that transaction and also met with CEO Todd Davis at an IDEAS conference. A deeper understanding of their royalty business prompted me to write about them in the September newsletter and start a position for the model portfolio.

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