Ligand Pharmaceuticals Incorporated has reported a robust financial performance for the fourth quarter and full year of 2025, driven by significant growth in royalty revenue. In the fourth quarter of 2025, total revenues and income were $59.7 million, representing a 39% increase from the same period in 2024. Royalties for the fourth quarter totaled $50.5 million, a 45% increase from the same period in 2024. The company's GAAP net income for the fourth quarter of 2025 was $44.8 million, compared to a net loss of $31.1 million for the same period in 2024. Adjusted net income for the fourth quarter of 2025 was $42.7 million, a significant increase from $25.2 million for the same period in 2024.
For the full year 2025, Ligand reported total revenues and income of $268.1 million, compared to $167.1 million for the full year 2024. Royalties for the full year 2025 were $161.0 million, a substantial increase from $108.8 million for the full year 2024. The company's GAAP net income for the full year 2025 was $124.5 million, a significant turnaround from a net loss of $4.0 million for the full year 2024. Core adjusted net income for the full year 2025 was $165.1 million, compared to $108.5 million for the full year 2024.
Looking ahead, Ligand has reaffirmed its 2026 financial guidance, expecting adjusted earnings per diluted share of approximately $8.00 to $9.00, with royalty revenue projected to be in the range of $200 million to $225 million, revenue from sales of captisol in the range of $35 million to $40 million, and contract revenue in the range of $10 million to $20 million, resulting in total revenue of $245 million to $285 million.
The company's strong performance was attributed to better-than-expected results across several products in its royalty portfolio, coupled with successful out-licensing and partner launches. Ligand's CEO, Todd Davis, expressed confidence in the company's ability to continue driving growth and creating long-term shareholder value.
The financial results reflect Ligand's successful execution of its business strategy and its ability to capitalize on high-value assets in addressing significant unmet clinical needs. The company's strong balance sheet and broad pipeline of investment opportunities position it well for continued growth in the future. The market has reacted to these announcements by moving the company's shares -1.59% to a price of $192.97. Check out the company's full 8-K submission here.
