Legend Biotech’s (LEGN) shares have surged over 10% in the past few days, spurred by the company’s latest earnings report, thanks to expectation-beating growth in revenues, primarily driven by their key product, CARVYKTI. This has been a remarkable year for Legend Biotech, with CARVYKTI nearly achieving blockbuster status as it has helped thousands of multiple myeloma patients. Legend Biotech is now focused on broadening CARVYTKI’s reach while improving commercial, manufacturing, regulatory, and clinical endeavors. Despite some challenges, such as supply constraints in Europe and neurotoxicity issues with CARVYKTI, the company seems to be on a positive path, with substantial cash reserves and a bullish outlook.
Blockbuster Growth
Legend Biotech is a clinical-stage biopharmaceutical company primarily focused on discovering and developing innovative cell therapies for oncology and other diseases. Their lead product is LCAR-B38M/JNJ-4528, a CAR T cell therapy to treat multiple myeloma. The company also has other products in their pipeline such as LB1910, LB1909, and LB1903.
Legend’s Q4 revenue surpassed expectations at $186.5 million, compared to the predicted $179 million. This growth was driven by CARVYKTI, generating around $334 million.
Expanding its market presence, Legend is gaining traction in Europe, evidenced by CARVYKTI’s approved reimbursement in Spain. However, the demand outstrips production capabilities, indicating a need to enhance capacity. Steps towards this include FDA-approved operations at the Novartis New Jersey facility and plans to initiate commercial production in Belgium. Another focus is ongoing research and development, especially addressing CARVYKTI’s neurotoxicity issues.
The company aims to achieve operational breakeven by the end of 2025 and profitability at the company-wide level by 2026. The company’s cash and cash equivalents and time deposits valued at $1.1 billion are projected to provide a stable financial runway until the second quarter of FY 2026.
Analysts Bullish
Analysts following the company continue to maintain a bullish outlook. H.C. Wainwright analyst Mitchell Kapoor has raised the price target on shares of LEGN to $75 while maintaining a Buy rating. Kapoor predicts that Legend will meet the 2025 consensus estimate of $1.9B in revenue for its product Carvykti, as supply is expected to exceed demand by year’s end.
Meanwhile, Jefferies analyst Kelly Shi has reiterated a Buy rating on LEGN while keeping the price target at $91, citing Carvykti’s strong launch projection and robust demand as crucial factors.
Legend Biotech is rated a Strong Buy overall, based on the recent recommendations of 15 analysts. The average price target for LEGN stock is $83.11, which represents a potential upside of 117.34% from current levels.
