Legend Biotech (LEGN) AI Stock Analysis

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Legend Biotech

(NASDAQ:LEGN)

Rating:51Neutral

Price Target:

$37.00

▲(2.92% Upside)

Legend Biotech's overall stock score is primarily influenced by its financial performance challenges, including ongoing losses and cash flow issues. Despite these challenges, the positive sentiment from the latest earnings call, driven by strong sales growth and strategic partnerships, provides a counterbalance. Technical indicators suggest a bearish trend, and valuation metrics reflect the company's current focus on growth over profitability.

Positive Factors

Financial Performance

Cash and equivalents of $1 billion provide a financial runway to profitability in 2026, potentially reducing investor concerns.

Regulatory Changes

The recent removal of REMS requirement for CAR-T infusion could boost Carvykti's accessibility and ease of use.

Sales Growth

Carvykti's average weekly US sales are approximately 9% higher than the previous quarter, indicating strong growth momentum.

Negative Factors

Manufacturing Capacity

The expected expansion in Raritan in the second half of 2025 is necessary to enhance manufacturing capacity.

Market Competition

Despite strong sales, Carvykti continues to face competition in the CAR-T therapy market, which could impact its market position.

Reimbursement Changes

Texas removed Foundation for the Accreditation of Cellular Therapy accreditation as a reimbursement requirement, which could pose challenges if not managed properly.

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

Market Cap

$6.41B

Dividend YieldN/A

Average Volume (3M)1.06M

Price to Earnings (P/E)―

Beta (1Y)0.67

Revenue Growth75.01%

EPS Growth-13.20%

CountryUS

Employees2,600

SectorHealthcare

Sector Strength51

IndustryBiotechnology

Share Statistics

EPS (TTM)-0.34

Shares Outstanding184,570,710

10 Day Avg. Volume928,035

30 Day Avg. Volume1,063,625

Financial Highlights & Ratios

PEG RatioN/A

Price to Book (P/B)N/A

Price to Sales (P/S)N/A

P/FCF RatioN/A

Enterprise Value/Market Cap0.93

Enterprise Value/Revenue7.47

Enterprise Value/Gross Profit12.08

Enterprise Value/Ebitda-22.87

Forecast

1Y Price Target

$76.97

Price Target Upside114.10% Upside

Rating ConsensusStrong Buy

Number of Analyst Covering15

Legend Biotech Business Overview & Revenue Model

Company DescriptionLegend Biotech Corporation, a clinical-stage biopharmaceutical company, through its subsidiaries, engages in the discovery and development of novel cell therapies for oncology and other indications in the United States, China, and internationally. Its lead product candidate, LCAR- B38M, is a chimeric antigen receptor for the treatment of multiple myeloma (MM), as well as a comparison of the treatment with standard triplet therapy in revlimid-refractory multiple myeloma. The company also has a portfolio of earlier-stage autologous product candidates, which are in Phase I clinical trials for the treatment of gastric cancer and T cell lymphoma. In addition, it is developing CAR-T product candidates targeting CD20/CD22/CD19 for the treatment of non-hodgkins lymphoma, diffuse large B-cell lymphoma, and acute lymphoblastic leukemia. Further, the company has product candidates in early preclinical and clinical development for the treatment of solid tumors as well as infectious diseases. It has collaboration and license agreement with Janssen Biotech, Inc. for the development and commercialization of ciltacabtagene autoleucel. Legend Biotech Corporation was founded in 2014 and is based in Somerset, New Jersey. Legend Biotech Corporation is a subsidiary of Genscript Biotech Corporation.

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

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:Aug 11, 2025

(Q2-2025)

% Change Since: |

Next Earnings Date:Nov 24, 2025

Earnings Call Sentiment Positive

The earnings call reflects a predominantly positive sentiment with significant achievements in sales growth, regulatory advancements, and clinical trial results. The company's strategic expansion in global markets and operational improvements further bolster this positive outlook. However, challenges such as ongoing net losses and early-stage community oncology expansion temper the overall sentiment.

Q2-2025 Updates

Positive Updates

Record-Breaking CAR-T Sales

During the second quarter, CARVYKTI net trade sales were approximately $439 million, marking a 136% increase year-over-year. This surpasses the previous CAR-T industry record of $414 million in a single quarter.

Regulatory Advancements Improve Patient Experience

The FDA has removed risk evaluation and mitigation strategies (REMS) for CAR-T therapies, leading to updated CARVYKTI labels that improve patient experience by reducing monitoring requirements.

Positive Clinical Trial Results

Long-term survival data from CARTITUDE-1 shows 1/3 of patients remain progression-free for 5 years or more. New data from ASCO and EHA also highlighted promising results for other pipeline products like LB1908 and LB2102.

Operational and Financial Improvements

Operating loss reduced to $22 million during the second quarter from $41 million a year ago, driven by operational efficiency and disciplined expense management. The company's cash position stands strong at $1 billion.

Expansion in Global Markets

CARVYKTI has expanded into multiple global markets, showing 4x sales growth outside the U.S. compared to the previous year.

Negative Updates

Continued Net Loss

The company reported a $125 million net loss for the quarter, primarily due to a $111 million unrealized foreign exchange loss.

Challenges in Community Oncology Expansion

The expansion into smaller community practices is in early stages, with complex accreditation requirements posing potential hurdles.

Company Guidance

During Legend Biotech's second quarter 2025 earnings call, significant achievements and future guidance were highlighted. The company reported CARVYKTI net trade sales of approximately $439 million, marking a 136% increase year-over-year, and treated over 7,500 patients, underscoring the strength of their CAR-T launch. They anticipate achieving operational breakeven for CARVYKTI by the end of 2025 and company-wide profitability in 2026, excluding unrealized foreign exchange gains or losses. Regulatory updates included the FDA's removal of risk evaluation and mitigation strategies for certain CAR-T therapies, enhancing patient access. The company also discussed positive data from ASCO on CARVYKTI's survival rates and safety improvements, with a focus on expanding its reach in community settings and increasing manufacturing capacity. Legend Biotech's robust pipeline and strategic partnerships, including those with Novartis, were emphasized as key drivers for future growth. With a strong cash position of approximately $1 billion, the company remains committed to investing in cell therapy innovations.

Legend Biotech Financial Statement Overview

Summary

Legend Biotech is experiencing revenue growth, but profitability remains a significant challenge with consistent losses. The balance sheet shows moderate leverage, but negative returns on equity highlight profitability issues. Cash flow remains a concern, with negative operating and free cash flows, although there are signs of improvement. The company needs to focus on improving operational efficiency and profitability to enhance its financial health.

Income Statement

Neutral

Legend Biotech shows a positive revenue growth trend, with a TTM revenue growth rate of 9.53%. However, the company is struggling with profitability, as indicated by negative net profit margins and EBIT margins over the years. The gross profit margin is relatively strong at 61.77% TTM, but the consistent negative net income suggests ongoing operational challenges.

Balance Sheet

Neutral

The company's debt-to-equity ratio is moderate at 0.37 TTM, indicating a balanced approach to leveraging. However, the return on equity is negative, reflecting the company's inability to generate profit from shareholders' equity. The equity ratio is stable, suggesting a solid asset base relative to equity.

Cash Flow

Negative

Legend Biotech has a negative operating cash flow and free cash flow, although there is a slight improvement in free cash flow growth. The operating cash flow to net income ratio is negative, indicating cash flow challenges. However, the free cash flow to net income ratio is above 1, suggesting some efficiency in converting net income to free cash flow.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	797.73M	627.24M	285.14M	117.00M	89.79M	75.68M
Gross Profit	492.79M	392.66M	140.93M	51.64M	-223.55M	-156.48M
EBITDA	-260.44M	-113.16M	-477.87M	-416.54M	-392.38M	-294.14M
Net Income	-325.77M	-177.03M	-518.25M	-446.35M	-386.21M	-303.48M
Balance Sheet
Total Assets	1.69B	1.67B	1.85B	1.33B	1.12B	721.01M
Cash, Cash Equivalents and Short-Term Investments	967.64M	1.12B	1.31B	1.03B	882.39M	505.69M
Total Debt	387.92M	350.60M	328.67M	284.53M	122.97M	3.37M
Total Liabilities	647.50M	629.61M	597.24M	586.65M	647.16M	440.75M
Stockholders Equity	1.04B	1.04B	1.25B	744.31M	471.21M	280.25M
Cash Flow
Free Cash Flow	-290.37M	-158.14M	-416.00M	-222.30M	-245.58M	-253.29M
Operating Cash Flow	-274.70M	-144.03M	-393.28M	-200.03M	-198.47M	-223.00M
Investing Cash Flow	332.35M	-850.54M	92.79M	-78.34M	-194.98M	-24.17M
Financing Cash Flow	3.59M	5.70M	791.49M	377.98M	626.66M	618.88M

Legend Biotech Technical Analysis

Technical Analysis Sentiment

Neutral

Last Price35.95

Price Trends

50DMA

37.81

Negative

100DMA

35.06

Positive

200DMA

35.65

Positive

Market Momentum

MACD

-0.97

Positive

RSI

46.58

Neutral

STOCH

29.37

Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LEGN, the sentiment is Neutral. The current price of 35.95 is below the 20-day moving average (MA) of 36.09, below the 50-day MA of 37.81, and above the 200-day MA of 35.65, indicating a neutral trend. The MACD of -0.97 indicates Positive momentum. The RSI at 46.58 is Neutral, neither overbought nor oversold. The STOCH value of 29.37 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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 (51)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TGTX	64 Neutral	$4.65B	79.45	26.63%	―	30.96%	-38.30%
BBIO	58 Neutral	$9.56B	―	35.68%	―	7.62%	-55.29%
RVMD	52 Neutral	$7.39B	―	-46.61%	―	-100.00%	-23.49%
Sector *	51 Neutral	$7.90B	-0.33	-41.69%	2.23%	23.45%	-1.99%
LEGN	51 Neutral	$6.41B	―	-29.70%	―	75.01%	-13.20%
BPMC	50 Neutral		―		―	99.19%	48.43%
SRPT	47 Neutral	$1.78B	19.61	-4.76%	―	64.89%	-221.56%

* Healthcare Sector Average

Performance Comparison

LEGN

Legend Biotech

35.95

-18.10

-33.49%

SRPT

Sarepta Therapeutics

18.95

-114.82

-85.83%

TGTX

TG Therapeutics

31.71

10.25

47.76%

BPMC

Blueprint Medicines

129.46

38.05

41.63%

BBIO

BridgeBio Pharma

51.84

20.54

65.62%

RVMD

Revolution Medicines

39.77

-3.47

-8.02%

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: Aug 20, 2025