Ligand Pharmaceuticals (LGND) experienced a significant pre-market decline of 7.33% on Thursday following the release of its first-quarter 2026 financial results.

The stock's decline appears to be a direct reaction to the company's quarterly report, which showed adjusted earnings per share of $1.63, missing the analyst consensus estimate of $1.82 by 10.44%. Furthermore, quarterly sales of $51.722 million fell short of the $58.696 million estimate by 11.88%. While the company narrowed its GAAP net loss year-over-year, the report also highlighted a widened non-operating expense, including a $49.2 million non-cash loss related to Pelthos investments, and a decline in Captisol sales.

Despite the quarterly miss, the company reaffirmed its full-year 2026 guidance for adjusted earnings and royalty revenue, and is targeting the completion of its acquisition of XOMA Royalty in the third quarter.