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Legend Biotech Corporation (LEGN)
NASDAQ:LEGN

Legend Biotech (LEGN) AI Stock Analysis

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Legend Biotech

(NASDAQ:LEGN)

Rating:56Neutral
Price Target:
$36.00
▼(-0.80%Downside)
Legend Biotech's strong revenue growth and positive earnings call outlook are offset by ongoing profitability challenges and cash flow issues. The technical momentum is favorable, but valuation concerns persist due to the negative P/E ratio. The company’s strategic initiatives and solid cash position support a promising long-term outlook, but short-term risks remain.
Positive Factors
Market Position
Carvykti is identified as the key driver of Legend Biotech's stock due to its strong efficacy and safety profile.
Regulatory Approval
The FDA approved a supplemental BLA for CARVYKTI that removes the language around risk evaluation and mitigation strategy, indicating that a REMS is no longer necessary to ensure that the benefits outweigh its risks.
Negative Factors
Product Uncertainty
Questions on safety and therapeutic window remain for the CLDN18.2 CAR-T asset LB1908 due to observed grade 3 gastritis/gastric mucosal injury.
Safety Concerns
The European Medicines Agency recommended adding a warning about immune-mediated enterocolitis, which may emerge several months after CARVYKTI infusion and could be refractory to treatment with corticosteroids.

Legend Biotech (LEGN) vs. SPDR S&P 500 ETF (SPY)

Legend Biotech Business Overview & Revenue Model

Company DescriptionLegend Biotech Corporation is a global biotechnology company focused on the discovery, development, and commercialization of novel cell therapies for oncology and other indications. With its headquarters in Somerset, New Jersey, Legend Biotech operates in the healthcare sector, specializing in the development of chimeric antigen receptor T-cell (CAR-T) therapies. The company's flagship product is CARVYKTI™ (ciltacabtagene autoleucel), a CAR-T therapy targeting multiple myeloma, which is developed in collaboration with Janssen Biotech, a subsidiary of Johnson & Johnson.
How the Company Makes MoneyLegend Biotech generates revenue primarily through the commercialization of its CAR-T cell therapies, particularly CARVYKTI™, which is produced and marketed in collaboration with Janssen Biotech. The company earns money through product sales, milestone payments, and royalties as part of its collaboration agreements. Legend Biotech's strategic partnership with Janssen Biotech enables the company to leverage Janssen's extensive commercialization capabilities and global reach, contributing significantly to its revenue stream. In addition to direct sales of its therapies, Legend Biotech may also engage in research and development collaborations, which can provide additional funding and milestone payments, further bolstering its financial position.

Legend Biotech Key Performance Indicators (KPIs)

Any
Any
Carvykti Net Trade Sales
Carvykti Net Trade Sales
Reflects the sales performance of Carvykti, a key product, indicating its market acceptance and contribution to the company’s revenue growth.
Chart InsightsCarvykti's net trade sales have surged, reflecting a 135% year-over-year increase, driven by strong global market expansion and operational efficiencies. The recent earnings call highlights this momentum, with over 6,000 patients treated and significant growth in collaboration revenue. Legend Biotech aims for operational breakeven by the end of 2025, supported by strategic investments in manufacturing and a robust cash position. Despite challenges like net loss and exchange rate impacts, the company is on track for profitability in 2026, signaling a promising outlook for retail investors.
Data provided by:Main Street Data

Legend Biotech Earnings Call Summary

Earnings Call Date:May 13, 2025
(Q1-2025)
|
% Change Since: 12.08%|
Next Earnings Date:Aug 29, 2025
Earnings Call Sentiment Positive
The earnings call reflects a strong positive momentum with significant sales growth, operational efficiency, and strategic expansions in global markets. While there are challenges related to net loss and exchange rate impacts, the overall outlook is optimistic with a solid financial position and promising developments in the CAR-T space.
Q1-2025 Updates
Positive Updates
CARVYKTI Net Trade Sales Surge
Net trade sales for CARVYKTI reached approximately $369 million, marking a 135% increase year-over-year.
Expansion in Global Markets
Strong performance outside the U.S. with sales reaching $51 million, more than double compared to the same period last year, driven by expansion in Germany, Switzerland, Austria, and Brazil.
Operational Efficiency Improvements
Operating loss reduced by more than half from $118 million to $51 million year-over-year due to operational efficiency and disciplined expense management.
Manufacturing Success Rate
Achieved a 97% manufacturing success rate and 95% timely delivery, with a decreasing median turnaround time now at 30 days.
Cash Reserves and Financial Health
Maintained a strong cash position of approximately $1 billion, supporting operations until profitability anticipated in 2026.
Regulatory Approvals and Clinical Advancements
CARVYKTI was approved in Australia for second line plus setting, and overall survival was added to the EMA label.
Negative Updates
Net Loss for the Quarter
Reported a net loss of $101 million, though adjusted net loss was $27 million after excluding non-core business items.
Exchange Rate Impact
Experienced a $52 million unrealized foreign exchange loss due to treasury operations based in Ireland.
Outpatient Setting Adoption
While over half of CARVYKTI usage is in outpatient settings, progress is slow with growth in single-digit percentage points.
Company Guidance
During Legend Biotech's Q1 2025 earnings call, the company provided several key metrics and guidance. Net trade sales for CARVYKTI reached approximately $369 million, reflecting a 135% year-over-year increase. The company treated over 6,000 patients with CARVYKTI, maintaining its status as the strongest CAR-T launch to date. Legend Biotech aims for CARVYKTI to achieve operational breakeven by the end of 2025 and anticipates company-wide profitability in 2026, excluding unrealized foreign exchange gains or losses. The first quarter also saw a significant 137% year-over-year growth in collaboration revenue. With a cash position of approximately $1 billion, Legend continues to invest in expanding manufacturing capacities in Belgium and New Jersey and advancing its pipeline programs. The company reported an adjusted net loss of $27 million, down from an operating loss of $118 million in the prior year, and noted a 63% gross margin on net product sales. These efforts align with Legend's strategic priorities to enhance operational efficiency and achieve long-term growth.

Legend Biotech Financial Statement Overview

Summary
Legend Biotech shows strong revenue growth but remains unprofitable with negative EBIT and net income margins. The balance sheet is solid with a good equity position, but cash flow challenges due to negative operating cash flow are concerning.
Income Statement
45
Neutral
Legend Biotech shows a substantial increase in total revenue, growing from $117M in 2022 to $728M in TTM. However, the company remains unprofitable with negative EBIT and net income margins, indicating ongoing operational challenges. The gross profit margin is positive, showing some efficiency in managing direct costs, but the high net losses are concerning.
Balance Sheet
55
Neutral
The company maintains a solid equity position with a debt-to-equity ratio of approximately 0.36, demonstrating prudent debt management. Stockholders' equity has increased over the years, providing a cushion. However, the overall financial stability is impacted by significant liabilities relative to assets, which could pose risks if not managed carefully.
Cash Flow
40
Negative
Legend Biotech faces challenges with negative free cash flow and operating cash flow, highlighting cash management issues. The free cash flow has deteriorated further in the TTM period, and the cash flow ratios indicate that the company is not generating sufficient cash from operations to cover its net losses.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue728.30M627.24M285.14M117.00M89.79M75.68M
Gross Profit477.12M392.66M140.93M51.64M-223.55M-156.48M
EBITDA-153.44M-113.16M-477.87M-416.54M-392.38M-294.14M
Net Income-218.15M-177.03M-518.25M-446.35M-386.21M-303.48M
Balance Sheet
Total Assets1.62B1.67B1.85B1.33B1.12B721.01M
Cash, Cash Equivalents and Short-Term Investments1.01B1.12B1.31B1.03B882.39M505.69M
Total Debt362.81M350.60M328.67M284.53M122.97M3.37M
Total Liabilities597.90M629.61M597.24M586.65M647.16M440.75M
Stockholders Equity1.02B1.04B1.25B744.31M471.21M280.25M
Cash Flow
Free Cash Flow-273.17M-158.14M-416.00M-222.30M-245.58M-253.29M
Operating Cash Flow-263.31M-144.03M-393.28M-200.03M-198.47M-223.00M
Investing Cash Flow-197.76M-850.54M92.79M-78.34M-194.98M-24.17M
Financing Cash Flow5.53M5.70M791.49M377.98M626.66M618.88M

Legend Biotech Technical Analysis

Technical Analysis Sentiment
Positive
Last Price36.29
Price Trends
50DMA
32.62
Positive
100DMA
33.88
Positive
200DMA
37.33
Negative
Market Momentum
MACD
0.90
Negative
RSI
59.23
Neutral
STOCH
79.85
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LEGN, the sentiment is Positive. The current price of 36.29 is above the 20-day moving average (MA) of 34.87, above the 50-day MA of 32.62, and below the 200-day MA of 37.33, indicating a neutral trend. The MACD of 0.90 indicates Negative momentum. The RSI at 59.23 is Neutral, neither overbought nor oversold. The STOCH value of 79.85 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for LEGN.

Legend Biotech Risk Analysis

Legend Biotech disclosed 115 risk factors in its most recent earnings report. Legend Biotech reported the most risks in the "Legal & Regulatory" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Legend Biotech Peers Comparison

Overall Rating
UnderperformOutperform
Sector (46)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
64
Neutral
$5.62B148.7319.70%33.54%-6.13%
60
Neutral
$8.12B35.68%-41.71%-9.37%
56
Neutral
$6.68B-20.00%112.46%54.33%
53
Neutral
$1.74B19.61-23.61%59.15%-1881.09%
52
Neutral
$6.87B-36.68%-100.00%5.49%
50
Neutral
$8.30B-47.71%99.19%48.43%
46
Neutral
C$192.85M-4.28-8.56%2.83%13.52%-1.74%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
LEGN
Legend Biotech
35.91
-10.39
-22.44%
SRPT
Sarepta Therapeutics
18.20
-133.53
-88.01%
TGTX
TG Therapeutics
36.29
17.28
90.90%
BPMC
Blueprint Medicines
128.20
16.50
14.77%
BBIO
BridgeBio Pharma
42.83
17.07
66.27%
RVMD
Revolution Medicines
37.19
-0.34
-0.91%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jun 28, 2025