Ligand PharmaceuticalsFRA:LGDN +0.79%76 Gross Margin % is 93.67% as of Mar. 2026, which is 1% above its 10-year median of 92.68. GuruFocus rates FRA:LGDN with a GF Score™ of 76/100 and a GF Value™ of €147.69 (Significantly Overvalued). The stock has 5 warning signs investors should review. Among 735 Biotechnology companies, Ligand Pharmaceuticals ranks better than 93.47% on this metric.
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
Ligand Pharmaceuticals had a gross margin of 93.67% for the quarter that ended in Mar. 2026 => Durable competitive advantage
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
Ligand Pharmaceuticals Gross Margin % Related Terms
Ligand Pharmaceuticals Gross Margin % Historical Data
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The historical data trend for Ligand Pharmaceuticals's Gross Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
FRA:LGDN vs DFTX, CGON, XENE: Gross Margin % Comparison
For the Biotechnology subindustry, Ligand Pharmaceuticals's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Ligand Pharmaceuticals Gross Margin % vs Biotechnology Industry
For the Biotechnology industry and Healthcare sector, Ligand Pharmaceuticals's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Ligand Pharmaceuticals's Gross Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
Ligand Pharmaceuticals (FRA:LGDN) has a Gross Margin % of 93.67% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Ligand Pharmaceuticals and its competitors. This is near median its historical median of 92.68. Over the past decade, Ligand Pharmaceuticals' Gross Margin % has ranged from 73.08 to 97.48. According to the industry distribution chart, Ligand Pharmaceuticals ranks #48 out of 735 companies in the Biotechnology industry, placing it in the top 6.5%.
Is Ligand Pharmaceuticals' Gross Margin % too high?
Ligand Pharmaceuticals' current Gross Margin % of 93.67% is near median its 10-year median of 92.68. Over the past 10 years, this metric has ranged from a low of 73.08 to a high of 97.48. The Biotechnology industry median Gross Margin % is 60.90. Ligand Pharmaceuticals' value of 93.67% is 53.8% above this industry median. Based on the distribution chart, Ligand Pharmaceuticals ranks #48 out of 735 companies in the Biotechnology industry, which is in the top quartile — a strong position relative to peers. Overall, Ligand Pharmaceuticals has a GF Score™ of 76/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Ligand Pharmaceuticals' Gross Margin % compare to DFTX and CGON?
According to the Biotechnology industry distribution chart, Ligand Pharmaceuticals ranks #48 out of 735 companies for Gross Margin %. This places Ligand Pharmaceuticals in the top 7% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 60.90. Ligand Pharmaceuticals' value of 93.67% is 53.8% above this benchmark. Historically, Ligand Pharmaceuticals' own Gross Margin % has ranged from 73.08 to 97.48 over the past decade. While the company's 10-year median is 92.68 vs. the industry median of 60.90, Ligand Pharmaceuticals has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for a Biotechnology company?
The median Gross Margin % among Biotechnology companies is 60.90, based on 735 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Ligand Pharmaceuticals's current Gross Margin % of 93.67% is 53.8% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on Ligand Pharmaceuticals and its competitors. For the Biotechnology industry, the median Gross Margin % is 60.90 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Ligand Pharmaceuticals's current Gross Margin % is 93.67%, which is near median its own 10-year median of 92.68. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Ligand Pharmaceuticals stock overvalued right now?
Based on GuruFocus' analysis, Ligand Pharmaceuticals (FRA:LGDN) is currently considered Significantly Overvalued. The stock's GF Value™ is €147.69, compared to a current price of €254.00 — trading 72% above its estimated fair value. The current Gross Margin % is 93.67%, which is near median its 10-year median of 92.68 and 53.8% above the Biotechnology industry median of 60.90. Ligand Pharmaceuticals' overall GF Score™ is 76/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For Ligand Pharmaceuticals (FRA:LGDN), the current Gross Margin % is 93.67% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Ligand Pharmaceuticals (FRA:LGDN) Overvalued in 2026?
Based on GuruFocus' analysis, Ligand Pharmaceuticals stock appears to be overvalued.
The current stock price of €254.00 is trading 72% above its estimated GF Value™ of €147.69.
GuruFocus considers Ligand Pharmaceuticals to be Significantly Overvalued.
Key valuation signals for FRA:LGDN:
Gross Margin %: 93.67% (near median its 10-year median of 92.68)
GF Value™: €147.69 vs. price of €254.00 (72% above fair value)
Industry Position: 53.8% above the Biotechnology median (#48 of 735)
No single metric tells the full story. See the FRA:LGDN stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Ligand Pharmaceuticals Inc is a biopharmaceutical company focused on developing and acquiring technologies that aid in creating medicine. The company has partnerships and license agreements with various pharmaceutical and biotechnology companies. Ligand's business model is based on drug discovery, early-stage drug development, product reformulation, and partnerships. The company's revenue consists of three primary elements: royalties from commercialized products, license and milestone payments, and sale of its trademarked Captisol material.
76GF Score
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