Ligand Pharma slips after upsized $625 mln convertible debt offering

Ligand Pharmaceuticals Incorporated

23/06/2026 13:42

** Ligand Pharmaceuticals' LGND.O shares down 1.3% to $258.79 before the bell on Tues after amassing more capital than targeted
** Biopharmaceutical royalty aggregator early Tues announces pricing private offering of $625 mln 0% convertible bonds (CBs) due Sept 15, 2031
** Initial conversion price of $334.27 is 27.5% above stock's last sale of $262.17 on Mon
** LGND stock fell 4.6% on Mon after co announced $550 mln offering to invest in complementary businesses, companies, products and technologies
** Co expects to use approx $72.9 mln of net offering proceeds to pay cost of hedge transactions and $60 mln to repurchase 228,859 shares from investors in the CBs
** At Mon close, stock up ~39% YTD and well outperforming ~13% advance in the Nasdaq Composite .IXIC 
** All 7 analysts covering the stock rate it "strong buy" or "buy"; median PT $275, per LSEG data

(Lance Tupper is a Reuters market analyst. The views expressed are his own)
((lance.tupper@tr.com 1-646-279-6380))