Small Pharma Analyst
Growth, long/short equity, biotech, healthcare

Ligand Pharmaceuticals - Priced To Perfection Or More Room To Run?

Executive summary:

  • 85% compounded revenue growth rate over next 3 years, 5-fold through 2018, with earnings per share expected to double between 2014 and 2016.
  • Future revenue derived primarily from royalties from multiple products - margins on royalties are 100%, providing substantial bottom line growth given a near steady cost basis.
  • The large number of projects (90) greatly reduces risk, providing a steady and predictable income stream for the next decade.
  • Captisol platform provides new opportunities to partner with no risk.
  • Significantly beat consensus EPS estimates each of past 4 quarters.


Although the stock price of Ligand Pharmaceuticals has soared nearly 4-fold over the past year, the anticipated rapid EPS growth over the next 3 years, with limited downside...

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