H.C. Wainwright Reiterates Buy Rating on Ligand Pharma (LGND)

H.C. Wainwright analyst Joseph Pantginis reiterated a Buy rating and $144.00 price target on Ligand Pharma (NASDAQ: LGND).

The analyst commented: "Ligand's partner, Verona Pharma (VRNA; Buy; Selvaraju), announced on June 26 that its nebulized phosphodiesterase 3 and 4 dual inhibitor, Ohtuvayre (ensifentrine), that combines bronchodilator and anti-inflammatory activities for the treatment of chronic obstructive pulmonary disease (COPD), was approved by the FDA. The approval of Ohtuvayre was based on extensive data from the Phase 3 ENHANCE trials. These trials demonstrated that Ohtuvayre provided clinical benefits both on its own and when combined with other maintenance therapies. Importantly, Ligand has earned a $5.8 million milestone payment upon FDA approval of Ohtuvayre and will receive an additional $13.8 million upon its commercial launch, scheduled for 3Q24. Likewise, Ligand is entitled to a low single-digit royalty on worldwide net sales of Ohtuvayre. We believe the current label supports broad use in COPD patients. With approximately 8.6 million maintenance-treated COPD patients in the U.S. and over 390 million people worldwide affected by COPD, the market potential is substantial. This positions Ligand to benefit significantly from its royalty agreement, guaranteeing ongoing revenue from global sales. This FDA approval marks an important milestone for Ligand, being the second FDA approval within its royalty portfolio in two weeks and the eighth regulatory approval since 2023. These successive approvals highlight Ligand’s effective strategy of acquiring and managing a diverse portfolio of royalties, which has proven to be a strong model for sustained growth. By securing royalties from multiple sources, Ligand has built a strong revenue base that supports the company's royalty-based business model. Reiterate Buy rating and $144 PT."

For an analyst ratings summary and ratings history on Ligand Pharma click here. For more ratings news on Ligand Pharma click here.

Shares of Ligand Pharma closed at $82.33 yesterday.

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