Ligand Pharmaceuticals Acquires XOMA Royalty in a $739 Million Deal

Ligand Pharmaceuticals Incorporated (LGND) entered a merger agreement on April 27, 2026, to acquire XOMA Royalty Corporation (XOMA) in a deal valued at $739 million.

Deal Structure:

XOMA Royalty stockholders will receive $39 per share in cash, representing a premium of 2.9% from the stock’s last close.

The stockholders will also receive one non-transferable contingent value right (CVR) per share entitling the holder to receive a portion of 75% of the net proceeds from certain pending litigation with Janssen Biotech regarding the commercialization of TREMFYA.

Company Profile:

XOMA is a biotechnology royalty company that acquires rights to future payments from early- to mid-stage drug candidates licensed to pharmaceutical and biotech partners. It generates returns from a portfolio of royalty and milestone interests tied to the development and commercialization of these assets.

Ligand is a biopharmaceutical royalty company that acquires and manages economic interests in drug development programs and licenses its technologies to pharmaceutical partners. It generates revenue from royalties, milestone payments, and material sales tied to partnered therapeutic assets.

Deal Details and Timeline:

The cash portion of the deal is expected to be funded using Ligand’s existing cash and borrowings from its current credit facility.

XOMA Royalty’s Series X Convertible Preferred Stock will be converted into common shares at a fixed price before the deal closes, while the Series A and Series B Preferred shares will be redeemed.

The deal is expected to close in the third quarter of 2026.

XOMA was advised on financial matters by Leerink Partners and H.C. Wainwright, while Gibson, Dunn & Crutcher acted as its legal advisor. Ligand was advised financially by Stifel and Citigroup, with legal advice from Paul Hastings.

Deal Metrics:

For more details on this merger and acquisition transaction, please visit the Deal Metrics page here:
Deal Metrics for the acquisition of XOMA Royalty Corporation (XOMA) by Ligand Pharmaceuticals Incorporated (LGND)

The Deal Metrics page for each merger or acquisition includes:

– A spread history chart of the merger from announcement through eventual completion or failure.
– Every event as the merger progresses through the expiration of the HSR period, various regulatory approvals, shareholder votes, etc.
– News and SEC filings.
– A history of deal updates.
– And much more.

Disclaimer: Please conduct your own due diligence before buying or selling any securities mentioned in this article. The completeness or accuracy of the content or data provided in this article is not warranted.

Editor’s Note: Baranjot Kaur contributed to this article