Ligand Pharmaceuticals: The Highly Profitable License Powerhouse of the Biotech Industry

Thanks to a business model solely based on licenses and royalty fees, Ligand Pharmaceuticals filters out the extreme development risks of the industry and operates as a highly profitable cash machine. Strategic milestones such as the billion-dollar XOMA acquisition and key product approvals drive projected royalty revenue to increase by over 23% annually over the next five years. Fundamentally, the stock is an excellent quality investment, but following a strong price rally to over $320, it already reflects this success in an ambitious valuation,...