Ligand Pharmaceuticals has agreed to acquire Xoma in a deal valued at nearly $740 million. The transaction marks a significant consolidation within the niche sector of royalty aggregation.
Both companies focus on investing in drugs during their development stages. They collect royalties from future sales if those treatments reach the market.
Ligand’s acquisition of Xoma will expand its portfolio of partnered drug assets. The deal is structured primarily as a cash and stock transaction.
Xoma shareholders will receive a set price per share under the agreement. The offer represents a premium over Xoma’s recent trading value.
The combined company will hold rights to royalties from multiple approved and experimental drugs. This broadens the revenue streams for Ligand without taking on direct drug development risks.
Financial analysts noted the deal aligns with Ligand’s strategy of acquiring royalty streams rather than building drugs in-house. The purchase is expected to close later this year.
The acquisition underscores a growing trend of consolidation among royalty aggregators. Smaller firms like Xoma often become targets for larger companies seeking predictable, long-term income.
