Ligand Pharmaceuticals Incorporated's Financial Performance Analysis

Core Insights - Ligand Pharmaceuticals Incorporated (NASDAQ:LGND) is a biopharmaceutical company focused on developing and acquiring technologies for medicine discovery and development [1] - The company operates in a competitive landscape with peers including Neurocrine Biosciences, Incyte Corporation, Alkermes plc, Myriad Genetics, and United Therapeutics Corporation [1] Financial Performance - Ligand's Return on Invested Capital (ROIC) is -3.48%, which is below its Weighted Average Cost of Capital (WACC) of 7.60%, indicating insufficient returns to cover capital costs [2] - Neurocrine Biosciences has a ROIC of 9.78% and a WACC of 5.47%, resulting in a ROIC to WACC ratio of 1.79, demonstrating effective capital utilization [3] - Incyte Corporation and United Therapeutics Corporation also exhibit strong ROIC to WACC ratios of 2.50 and 2.28, respectively, indicating efficient capital management [3] - Alkermes plc has the highest ROIC to WACC ratio of 2.93, suggesting it generates returns significantly above its cost of capital, making it an attractive investment [4] - Myriad Genetics shows a negative ROIC of -71.95% against a WACC of 10.96%, resulting in a ROIC to WACC ratio of -6.57, highlighting severe inefficiencies in capital utilization [4]