Legend Biotech (LEGN) AI Stock Analysis

• Market Cap: $5.87B
• Dividend Yield: N/A
• Average Volume (3M): 1.30M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.61
• Revenue Growth: 74.86%
• EPS Growth: -13.23%
• Country: US
• Employees: 2,600
• Sector: Healthcare
• Sector Strength: 45
• Industry: Biotechnology
• EPS (TTM): -0.05
• Shares Outstanding: 184,570,710
• 10 Day Avg. Volume: 974,240
• 30 Day Avg. Volume: 1,301,931
• PEG Ratio: 0.25
• Price to Book (P/B): 2.86
• Price to Sales (P/S): 4.74
• P/FCF Ratio: -18.81
• Enterprise Value/Market Cap: 1.01
• Enterprise Value/Revenue: 7.47
• Enterprise Value/Gross Profit: 12.08
• Enterprise Value/Ebitda: -22.87
• 1Y Price Target: $66.00
• Price Target Upside: 106.06% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 6
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 51 Neutral
• Price Target: $33.00 ▲(3.03% Upside)

Legend Biotech's overall stock score is driven by its financial performance challenges, particularly in profitability and cash flow, which weigh heavily on the score. Despite these issues, the positive sentiment from the recent earnings call, highlighting significant sales growth and strategic advancements, provides a counterbalance. Technical indicators suggest a bearish trend, and valuation metrics are unattractive due to negative earnings. The absence of corporate events does not impact the score.

Positive Factors

Revenue Growth

The significant sales growth of CARVYKTI demonstrates strong market demand and successful product adoption, indicating potential for sustained revenue expansion.

Regulatory Advancements

The removal of REMS by the FDA enhances patient access and simplifies treatment protocols, potentially increasing market penetration and sales.

Management Quality

The new CFO's experience is expected to strengthen financial discipline and support strategic goals, enhancing operational efficiency and profitability.

Negative Factors

Profitability Challenges

Ongoing net losses highlight profitability challenges, which may strain financial resources and delay achieving sustainable financial health.

Cash Flow Issues

Persistent negative cash flows indicate potential liquidity issues, which could limit investment in growth initiatives and operational flexibility.

Community Oncology Expansion Challenges

Challenges in expanding into community oncology could hinder market reach and slow down the adoption of therapies, impacting long-term growth.

Legend Biotech Business Overview & Revenue Model

Company Description

Legend 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 Money

Legend 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 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

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

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

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: Negative
• Last Price: 32.03
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LEGN, the sentiment is Negative. The current price of 32.03 is below the 20-day moving average (MA) of 32.24, below the 50-day MA of 32.93, and below the 200-day MA of 34.71, indicating a bearish trend. The MACD of -0.29 indicates Negative momentum. The RSI at 46.34 is Neutral, neither overbought nor oversold. The STOCH value of 33.21 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for LEGN.

Legend Biotech Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CYTK	58 Neutral	$7.36B	―	―	―	2609.26%	-17.08%
AXSM	54 Neutral	$6.96B	―	-275.50%	―	65.83%	28.50%
RNA	54 Neutral	$10.19B	―	-32.44%	―	106.27%	-43.90%
RYTM	52 Neutral	$6.69B	―	-240.36%	―	54.92%	28.47%
ABVX	52 Neutral	$8.24B	―	―	―	―	18.47%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
LEGN	51 Neutral	$5.87B	―	-29.71%	―	74.86%	-13.23%

Legend Biotech Corporate Events

Legend Biotech’s CARVYKTI® Receives FDA Approval for Label Update with New Survival Data

On October 10, 2025, Legend Biotech announced that the U.S. FDA approved a label update for its CARVYKTI® CAR-T cell therapy to include overall survival data from the Phase 3 CARTITUDE-4 study. This update highlights a significant improvement in overall survival for patients with relapsed, refractory multiple myeloma compared to standard care. Additionally, the label now includes warnings about immune effector cell-associated enterocolitis and the reactivation of the John Cunningham virus, which can lead to serious complications, emphasizing the need for careful management by prescribing physicians.

Legend Biotech Reports Strong CARVYKTI® Sales for Q3 2025

On October 14, 2025, Legend Biotech announced that its product CARVYKTI® achieved approximately $524 million in net trade sales for the quarter ending September 30, 2025. This announcement highlights the product’s significant market performance, although the sales figures are preliminary and subject to further financial review. The impact on Legend Biotech’s operations and industry positioning is notable, as it underscores the company’s growing influence in the biotechnology sector.

Legend Biotech and Janssen Forge Strategic Supply Agreement

On October 6, 2025, Legend Biotech USA Inc., a subsidiary of Legend Biotech Corporation, entered into a Component and Product Supply Agreement with Janssen Pharmaceuticals, Inc. This agreement, which supersedes a previous interim agreement from February 2022, involves the manufacturing and supply of ciltacabtagene autoleucel (cilta-cel) for clinical and commercial use globally, excluding Greater China. The agreement outlines the shared costs and responsibilities between Legend Biotech and Janssen, including the supply of raw materials and the handling of production costs. This strategic partnership is expected to enhance Legend Biotech’s operational capabilities and strengthen its position in the global biotechnology market.

Legend Biotech Appoints Carlos Santos as CFO to Drive Financial Strategy

Legend Biotech announced the appointment of Carlos Santos as Chief Financial Officer on August 18, 2025. Santos, who brings extensive experience from AstraZeneca and other major firms, will oversee financial operations to support the company’s strategic goals, including achieving profitability by 2026. His appointment is expected to strengthen Legend Biotech’s financial discipline and support the continued success of its CAR-T cell therapy franchise, CARVYKTI®.

Legend Biotech Reports Strong Q2 2025 Results and CARVYKTI® Success

Legend Biotech reported its second quarter 2025 financial results, highlighting significant achievements in its CAR-T cell therapy programs. The company revealed that CARVYKTI® net trade sales reached approximately $439 million, with positive long-term outcomes demonstrated in the CARTITUDE-1 study, where one-third of patients remained progression-free for over five years. The company also presented new data at the ASCO meeting and announced regulatory updates, including the FDA’s removal of certain monitoring requirements for CARVYKTI. Financially, Legend Biotech reported a cash position of $1.0 billion, which is expected to support operations into 2026, with a goal of achieving profitability by then. The company’s collaboration revenue increased significantly due to sales of CARVYKTI®, and it continues to expand its manufacturing capacity to support growing demand.