 Ligand Pharmaceuticals has entered into an agreement to buy Pfenex in an all-stock deal for a total consideration of 513 million.As part of the deal, Ligand LGND, a revenue-generating biopharmaceutical company, will buy all outstanding shares of Pfenex at 12 per share in cash for 438 million, which represents a 57 premium to Pfenexs closing share price on Aug. 10. Pfenex surged 59 to 12.20 in extended market trading on Monday.In addition, Ligand, will pay 2 per share or 78 million as a Contingent Value Right CVR in the event a predefined regulatory milestone is achieved by the end 2021. The deal, which is subject to customary conditions, is expected to close in the fourth quarter.Pfenex PFNX is a development and licensing biotechnology company focused on the production of enzymes, peptides, antibody derivatives and engineered non-natural proteins.Pfenex is an ideal strategic, business and cultural fit with Ligand. The acquisition holds potential to have a significantly positive scientific and financial impact on our business in the short and long term, said Ligand CEO John Higgins. Pfenex will add an established, proven protein expression platform to Ligand that is highly complementary to our essential, proprietary drug discovery and formulation technologies.Ligand expects the deal will be modestly dilutive to 2020 adjusted diluted EPS and will add 0.10 to 0.30 of adjusted diluted EPS accretion in 2021. Thereafter the biopharma company estimates that the transaction will generate significant annual adjusted diluted EPS accretion with the current forecast of 0.60 to 0.80 in 2022 and 1.25 to 1.50 in 2023.Ligand shares have advanced 14 so far this year. Whats more, the 179.75 average analyst price target implies another promising 52 upside potential might be lying ahead over the coming 12 months.Five-star analyst Joseph Pantginis at H.C. Wainwright last week reiterated a Buy rating on the stock with a 229 price target 93 upside potential, saying that shares continue to be undervalued.We highlight that Ligands assets, both in-house and from partners, are positively advancing towards the clinic, pivotal inflection points, and may reach a certain investment verdict promptly, Pantginis wrote in a note to investors. Ligand continues to deliver on its promise of building future revenue streams and value for shareholders via the advancement of the shots-on-goal business strategy in hand, which includes acquiring healthy and potentially highly valuable companies, and securing key partnerships to collect royalty and milestone payments.Overall, the rest of the Street shares Pantginis bullish outlook. The Strong Buy analyst consensus boast 4 unanimous Buy ratings. See LGND stock analsys on TipRanksRelated News: MGM Spikes 14 As IAC Makes 1B Investment Amid Online Gambling Bet Roper Looking To Snap Up Vertafore For 5.5 Billion- Report Tilray Plunges 10 As Canadian Cannabis Market Remains Under Pressure More recent articles from Smarter Analyst: IBM Inks Multiyear Hybrid Cloud Deal With Coca-Cola European Enterprises RBC Capital: Why Shopify Deserves To Move Even Higher Occidental Petroleum Posts 8.4 Billion Loss in 2Q Amid Oil Price Crisis Royal Caribbean Rises In Pre-Market On Higher Demand For 2021 Cruises 