Ligand to acquire XOMA Royalty in $739 million deal

Ligand Pharmaceuticals has announced plans to acquire XOMA Royalty in an all cash transaction valued at approximately $739 million. The move brings together two established players in the biotech royalty sector, both known for funding drug development in exchange for future revenue streams.

The acquisition is expected to significantly expand Ligand’s portfolio, adding more than 120 assets and seven commercial products. Following completion, Ligand will oversee a portfolio exceeding 200 programs across various stages of development.

Company leadership indicated the deal will strengthen long term growth by diversifying revenue sources and increasing exposure to late stage and marketed therapies. The combined portfolio is also expected to enhance earnings potential and provide broader access to royalty generating opportunities.

The transaction is anticipated to close in the third quarter of 2026, subject to customary approvals. Industry observers note that the deal reflects ongoing consolidation within the royalty financing space as companies seek scale and more predictable income streams.