Core Viewpoint - Ligand Pharmaceuticals is hosting its Investor Day to present its strategy, investment activities, royalty portfolio, and long-term financial outlook, highlighting a strong business outlook and advancements in its royalty portfolio [1][2]. Financial Overview and Outlook - Ligand reiterates its 2025 guidance and introduces its 2026 guidance, projecting full-year revenue of $245 million to $285 million, which represents an approximately 15% increase in core revenue growth over 2025 [3]. - The company expects royalty revenue to be between $200 million and $225 million, indicating a 40% increase over 2025, with core adjusted earnings per diluted share projected at $8.00 to $9.00 [3]. - A five-year outlook anticipates a compound annual growth rate (CAGR) of at least 23% for royalty receipts, driven by products like Filspari, Ohtuvayre, and Zelsuvmi [3][4]. Key Financial Performance - In 2025, Ligand's financial performance is expected to show a 40% increase in royalty revenue and a 30% increase in core adjusted earnings per share [4]. - Total core revenue is projected to be between $225 million and $235 million, with royalty revenue contributing $147 million to $157 million, alongside $40 million in Captisol sales and $38 million in core contract revenue [4]. Investment Activity - The company committed $130 million across six investments in 2025, with a robust pipeline heading into 2026 [4]. - Ligand has $1 billion in deployable capital aimed at driving long-term royalty revenue growth through disciplined allocation [4]. Royalty Revenue Drivers - Key drivers for royalty revenue in 2026 include Filspari (Travere Therapeutics), Ohtuvayre (Merck), Capvaxive (Merck), Qarziba (Recordati S.p.A.), and Zelsuvmi (Pelthos Therapeutics) [4]. Business Model and Technology Platforms - Ligand operates a business model focused on generating value through a diversified portfolio of biotech and pharmaceutical product revenue streams, supported by an efficient corporate cost structure [7]. - The company utilizes royalty-generating technology platforms, including Captisol® and NITRICIL™, which are designed to optimize drug solubility and stability, and facilitate tunable dosing, respectively [7].