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Ligand Pharmaceuticals' $739 million acquisition of Xoma Royalty aims to deepen its reach across multiple therapeutic areas, says CEO Todd Davis.

Why it matters: Ligand is bulking up as royalty companies face mounting pressure over drug affordability and access. 

Behind the scenes: Ligand has monitored Xoma for about three years, but acquisition talks began in December, Davis says.

This interview has been lightly edited for length and clarity.

What's driving Ligand's acquisition of Xoma?

"We're buying contracts, and we already have a portfolio management system set up that we have scaled intentionally to absorb these types of asset portfolios. It's almost 100% synergies as we buy this company and all of their future economic rights.

"It does really strengthen our financial wherewithal. We're going to be generating close to $300 million a year in cash flow now."

Did Ligand consider Xoma a direct competitor?

"I don't really think so. They were quite a bit smaller than us."

How is Ligand different from other biopharma royalty businesses?

"We're the only ones that are really focused on the late-stage private to mid-cap area, and servicing that market for companies that need capital or liquidity on licensed assets. So it's a pretty low competition market right now."

At what clinical stage is Ligand usually making deals with biotech companies?

"We at Ligand focus on late-stage clinical development, so phase two and phase three assets. We're buying real risk. When and if those drugs are successful, we hold the royalty rights for the duration of the asset. So we're into these deals for 10 or 15 years."

Will Xoma help Ligand better compete with larger industry players like Royalty Pharma?

"I don't really look at it like that because … there's no reason that we would want to go compete with them. We like this smaller market arena that we're operating in."

What's your long-term pitch to investors?

"We're offering profitable, predictably compounding growth in biotech to generalist investors."

What's the biggest challenge facing biopharma royalty firms?

"The affordability of health care and access to drugs. There's going to be continued pricing pressure as people try to expand access."

Ligand CEO: Xoma buy fuels growth strategy

The deal expands Ligand's royalty pipeline.

Ligand Pharmaceuticals CEO Todd Davis. Photo: Courtesy of Ligand Therapeutics

Ligand Pharmaceuticals&#x27; <a class="gtmContentClick" data-vars-link-text="$739 million acquisition" data-vars-click-url="https://www.axios.com/pro/biotech-deals/2026/04/27/ligand-buys-xoma-739m-royalties" data-vars-content-id="f6139a2a-4496-4481-b21a-368c07286cff" data-vars-headline="Ligand CEO: Xoma buy fuels growth strategy" data-vars-event-category="story" data-vars-sub-category="story" data-vars-item="in_content_link" href="https://www.axios.com/pro/biotech-deals/2026/04/27/ligand-buys-xoma-739m-royalties" target="_self">$739 million acquisition</a> of Xoma Royalty aims to deepen its reach across multiple therapeutic areas, says CEO Todd Davis.Why it matters: Ligand is bulking up as royalty companies face mounting pressure over drug affordability and access.

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Ligand CEO: Xoma buy fuels growth strategy

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