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Ligand to Acquire XOMA Royalty, Further Accelerating Profit Growth and Strengthening Ligand's Position as a Leading Biopharma Royalty Aggregator

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  • Ligand Pharmaceuticals has entered a definitive agreement to acquire XOMA Royalty for $39.00 per share in cash, resulting in a total equity value of approximately $739 million.
  • XOMA Royalty stockholders will receive one non-transferable Contingent Value Right (CVR) per share, entitling them to a portion of 75% of net proceeds from pending litigation against Janssen Biotech.
  • The cash offer represents a 14% premium to XOMA Royalty's 30-day volume-weighted average price as of April 24, 2026.
  • The acquisition expands Ligand's royalty portfolio to over 200 assets and adds seven new commercial products, including Roche's VABYSMO® and Day One Pharmaceuticals' OJEMDA™.
  • Ligand's portfolio of Phase 2 and 3 assets is expected to nearly double, adding over 120 commercial, clinical, and preclinical stage assets across therapeutic areas such as ophthalmology, oncology, CNS, and rare diseases.
  • The transaction is expected to close in the third quarter of 2026, subject to regulatory approvals and XOMA Royalty stockholder consent.
  • Ligand has increased its 2026 adjusted EPS guidance to $8.50-$9.50 and raised 2026 revenue guidance to $270 million-$310 million, with the deal expected to be immediately accretive.
  • Ligand anticipates the transaction to be accretive by $1.50 per share to adjusted EPS in 2027.
  • BVF Partners, holding approximately 21% of XOMA Royalty's common stock, has agreed to convert preferred shares and voted in support of the transaction.
  • Ligand plans to fund the acquisition using existing cash on hand and borrowings under its existing credit facility.
  • Ligand will host an investor conference call at 8:00 a.m. ET on April 27, 2026, to discuss the announcement.