Your Step-by-Step Guide to Millionaire Status

You’re probably familiar with the concept of royalties.

They’re basically payments you receive over and over again – usually on a song or a book.

But what most people don’t know is that there are all sorts of ways to collect royalties… And companies that collect these royalties can make a fortune.

Let me explain…

Royalty-based businesses are among the most profitable businesses you can invest in.

In fact, Frank Holmes, CEO of U.S. Global Investors, writes that these “companies have a history of rewarding their investors handsomely, even during economic downturns.”

And the company that I’ll recommend to you in this report is not only a royalty-based business… but also arguably the best investment you can make in the market today.

See, instead of collecting on oil… gold… or tech patents… this company collects royalties on pharmaceutical drugs – another one of the most lucrative industries in the world.

And drug royalties offer massive payouts.

Drug Royalty Companies: The Best Kept Investment Secret on the Market

Companies that own the rights to these royalties can make consistent fortunes simply by investing in a drug before it goes to market. Then the cash rolls in for years and years.

Best of all, these companies don’t have to spend millions on research and development… Food and Drug Administration (FDA) testing… or even marketing. They just sit back and collect the cash.

And here’s the thing…

The company I’m talking about today collects royalties as high as 20%!

Now, imagine how great life would be if you truly had access to the benefits of a drug royalty like that.

Fortunately, you don’t need to imagine. With the company I’m about to show you, you’ll have the chance to reap the benefits every single time somebody picks up a prescription all over the country.

In fact, this company is primed to be the No. 1 drug royalty company in the world.

The Best Royalty Stock to Own Right Now

Ligand Pharmaceuticals (Nasdaq: LGND) is an incredible and unique company in the biotechnology and pharmaceutical space.

Why? Because it doesn’t create drugs and bring them to market.

Rather, it acquires early-stage therapies and licenses them out to other companies that then develop them and try to get them approved.

The company currently has partnerships and license agreements with more than 100 biotechnology and pharmaceutical companies and more than 200 different programs under license in various stages of commercialization and development.

It also has more than 1,200 issued patents worldwide.

Ligand gets milestone payments and a royalty stream from products that are approved.

It currently has 29 approved licensed products, including both drugs and medical devices, and it works with some of the biggest pharmaceutical companies in the world…

Like Novartis (NYSE: NVS), Amgen (Nasdaq: AMGN) and many more.

Ligand earns milestones for successful accomplishments in clinical trials and then royalties once the drugs are approved.

The company’s partners are diverse: 58% of its partners are biotech companies, 14% are Big Pharma companies, 17% are specialty pharma companies and 11% are generic drugmakers.

And with such a large and diverse product portfolio, the company has many shots on goal – more than 200, according to CEO John Higgins. And the drugs that are already approved are doing well.

Ligand made a big decision in the second quarter of 2020 when it decided to significantly increase its production of Captisol.

Captisol is a compound that helps to improve the solubility of medications. Combining Captisol with a drug helps improve the digestibility and distribution in a patient’s body.

On average, Ligand has supplied about 20 metric tons of Captisol annually for the past five years. On June 1, the company announced that it plans to spend up to $60 million over the next year to increase annual manufacturing capacity for Captisol to 500 metric tons.

Why the big increase?

Because Captisol is being used in combination with several medications being developed to treat COVID-19 – in particular, Gilead Sciences’ remdesivir, the leading candidate to be approved for treatment. A large amount of Captisol is needed in remdesivir formulations.

In addition, Captisol is now playing a critical role in the formulation of many approved drugs. Captisol-enabled drugs are now being marketed in more than 70 countries. More than 40 biotech and pharmaceutical companies have Captisol-enabled drugs in development.

Ligand’s patents on Captisol extend to 2033. So there’s a long runway of growth ahead.

Now’s the Time

The increasing use of Captisol – and its tremendous potential – has created a great opportunity to buy a quality stock at a bargain price.

Although the stock has bounced back up from its March lows, there’s still plenty of upside to this stock. Here’s why…

After some initial setbacks from COVID-19, business is rapidly improving. Second quarter revenue was $41.4 million, a 66% increase from last year’s second quarter. Adjusted earnings per share (EPS) was $1, a 47% jump from the same quarter last year.

Management is expecting outstanding revenue performance driven by record revenue from Ligand’s Captisol and Kyprolis royalties. Management raised its 2020 guidance and is now anticipating revenue of $165 million, a 56% improvement from last year.

In addition, Ligand recently closed the acquisition of Icagen, a biotechnology company headquartered in Durham, North Carolina. Icagen is a profitable, cash flow-positive company that will add to this year’s earnings.

I expect EPS to be $4.10 this year (63% growth) and jump to $4.75 in 2021. These forecasts could end up being very conservative. I remain very bullish on the company’s outlook due to the potential for many significant streams of royalty income coming from its huge product portfolio.

Ligand is a rare company in the early-stage biotech and pharma space because it is profitable and cash flow positive.

Since it doesn’t spend much on development, its overhead is low and more than half of its revenue is turned into cash flow.

The Coming Royalty Tidal Wave

The company has dozens of upcoming catalysts over the next year, including FDA approvals, clinical trial data and future licensing deals.

It’s possible we could see an event every month that could move the stock higher.

Any COVID-19 treatment approvals that include Captisol would obviously be huge.

Here’s another example of a product that could get investors excited…

Ligand’s OmniAb therapeutic antibody platforms.

OmniAb is a unique therapeutic antibody platform that produces naturally optimized human antibodies. It’s also the only such platform in the industry that uses three separate species and multiple genetic backgrounds to develop human antibodies.

Antibody therapy uses an animal’s ability to make proteins that bind to specific molecules on cells, allowing the antibodies to kill targeted cells or impact how they function. For example, antibodies can be used to attack and destroy cancer cells in the body.

Worldwide sales of antibodies are forecast to reach $240 billion by 2024, making it a fast-growing treatment class. And Ligand’s OmniAb holds the potential to generate $500 million to $1 billion in future annual royalty revenue.

Currently, the stock is trading around $100… But I expect the stock to go much, much higher in the months and years to come.

You see, this company isn’t just primed for one Lightning Strike… but a whole storm of them.

As I already mentioned, Ligand has income streams established on not one or two but dozens of FDA-approved drugs… including drugs that treat major diseases like cancer… osteoporosis… bipolar disorder… epilepsy… and more.

However, Ligand has also already locked down royalties on drugs in the approval process. In total, it has 165 drug programs it’s set to collect on.

Once these drugs hit the market, revenue will explode… potentially reaching as much as $3 billion annually.

Each of these hundreds of drugs will initiate countless Lightning Strike moments for our royalty company, as clinical trials and FDA approvals are often the most powerful catalysts in the entire market.

That’s why I say this company is like a lightning rod. It has so many catalysts coming in the future.

You couldn’t have picked a better time to start profiting from this.

Action to Take: Buy shares of Ligand Pharmaceuticals (Nasdaq: LGND) at the market. Place a 25% trailing stop to protect your principal and profits.