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Legend Biotech Corporation (LEGN)
NASDAQ:LEGN
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Legend Biotech
(NASDAQ:LEGN)
Rating:53Neutral
Price Target:
$32.00
▼(-15.59%Downside)
Positive Factors
Market Demand
Patient demand for Carvykti remains high with operational capacity over 95% since approval.
Product Efficacy
Carvykti is identified as the key driver of Legend Biotech's stock due to its strong efficacy and safety profile.
Revenue Potential
Management reiterated confidence in securing a 10,000 slots per year capacity by YE25, potentially translating to over $3 billion in revenues annually.
Negative Factors
Product Competition
Despite the introduction of trispecific JNJ-5322, Carvykti's market share is not threatened due to its superior DoR/OS benefits and commercial experience.
Safety Concerns
Questions on safety and therapeutic window remain for the CLDN18.2 CAR-T asset LB1908 due to observed grade 3 gastritis/gastric mucosal injury.
Legend Biotech (LEGN) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$6.73B
Dividend YieldN/A
Average Volume (3M)1.97M
Price to Earnings (P/E)―
Beta (1Y)0.64
Revenue Growth112.46%
EPS Growth54.33%
CountryUS
Employees2,600
SectorHealthcare
Sector Strength55
IndustryBiotechnology
Share Statistics
EPS (TTM)-0.27
Shares Outstanding183,649,150
10 Day Avg. Volume2,455,483
30 Day Avg. Volume1,967,582
Financial Highlights & Ratios
PEG Ratio-6.96
Price to Book (P/B)10.67
Price to Sales (P/S)0.00
P/FCF Ratio-35.71
Enterprise Value/Market Cap1.10
Enterprise Value/Revenue3.19
Enterprise Value/Gross Profit15.59
Enterprise Value/Ebitda-9.17
Forecast
1Y Price Target
$79.00Price Target Upside108.39% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering15
Legend Biotech Business Overview & Revenue Model
Company DescriptionLegend Biotech Corporation is a global biotechnology company focused on developing, manufacturing, and commercializing novel cell therapies for oncology and other indications. The company operates in the highly specialized sector of cell therapy, with its core product being CAR-T cell therapies aimed at treating various forms of cancer. Legend Biotech is headquartered in Somerset, New Jersey, and it has a significant presence in both the United States and China.
How the Company Makes MoneyLegend Biotech generates revenue primarily through the development and commercialization of its proprietary cell therapy products, particularly its leading CAR-T therapy, ciltacabtagene autoleucel (cilta-cel), which is developed in collaboration with Janssen Pharmaceuticals. The company earns money through product sales, milestone payments, and royalties from its partnerships. Its collaboration with Janssen Pharmaceuticals, a subsidiary of Johnson & Johnson, is a significant revenue driver, as it involves co-development and commercialization agreements that include upfront payments, milestone achievements, and profit-sharing arrangements. Additionally, Legend Biotech may also receive funding through research grants and potential licensing agreements for its innovative therapies.
Legend Biotech Key Performance Indicators (KPIs)
Any
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.
Reflects the sales performance of Carvykti, a key product, indicating its market acceptance and contribution to the company’s revenue growth.
Data provided by:
Main Street Data
Main Street DataLegend Biotech Earnings Call Summary
Earnings Call Date:May 13, 2025
(Q1-2025)
| % Change Since: 17.08%|
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
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.45
Neutral
Balance Sheet
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.55
Neutral
Cash Flow
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.40
Negative
| Breakdown | |||||
| TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 728.30M | 627.24M | 285.14M | 117.00M | 89.79M | 75.68M | Gross Profit |
| 477.12M | 392.66M | 140.93M | 51.64M | -223.55M | -156.48M | EBIT |
| -236.64M | -303.24M | -439.49M | -455.83M | -393.02M | -313.35M | EBITDA |
| -153.44M | -113.16M | -477.87M | -416.54M | -392.38M | -294.14M | Net Income Common Stockholders |
| -218.15M | -177.03M | -518.25M | -446.35M | -386.21M | -303.48M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 1.01B | 1.12B | 1.31B | 1.03B | 882.39M | 505.69M | Total Assets |
| 1.62B | 1.67B | 1.85B | 1.33B | 1.12B | 721.01M | Total Debt |
| 362.81M | 350.60M | 328.67M | 284.53M | 122.97M | 3.37M | Net Debt |
| -78.89M | 63.85M | -949.04M | -501.50M | -565.97M | -452.32M | Total Liabilities |
| 597.90M | 629.61M | 597.24M | 586.65M | 647.16M | 440.75M | Stockholders Equity |
| 1.02B | 1.04B | 1.25B | 744.31M | 471.21M | 280.25M |
| 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 | -850.54M | 92.79M | -78.34M | -194.98M | -24.17M | Financing Cash Flow |
| 5.53M | 5.70M | 791.49M | 377.98M | 626.66M | 618.88M |
Legend Biotech Technical Analysis
Positive
37.91
Price Trends
31.92
Positive
34.15
Positive
38.57
Negative
Market Momentum
1.32
Negative
69.71
Neutral
89.80
Negative
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 37.91 is above the 20-day moving average (MA) of 30.87, above the 50-day MA of 31.92, and below the 200-day MA of 38.57, indicating a neutral trend. The MACD of 1.32 indicates Negative momentum. The RSI at 69.71 is Neutral, neither overbought nor oversold. The STOCH value of 89.80 is Negative, 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 (54)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
66 Neutral | $6.08B | 153.16 | 19.70% | ― | 33.54% | -6.13% | |
58 Neutral | $7.41B | ― | 35.68% | ― | -41.71% | -9.37% | |
56 Neutral | $3.72B | 19.61 | -23.61% | ― | 59.15% | -1881.09% | |
54 Neutral | $5.38B | 3.31 | -45.11% | 3.29% | 16.82% | 0.04% | |
53 Neutral | $6.73B | ― | -20.00% | ― | 112.46% | 54.33% | |
52 Neutral | $7.82B | ― | -36.68% | ― | -100.00% | 5.49% | |
50 Neutral | $8.27B | ― | -47.71% | ― | 99.19% | 48.43% |
* Healthcare Sector Average
Performance Comparison
LEGN
Legend Biotech
37.91
-4.54
-10.69%
SRPT
Sarepta Therapeutics
37.31
-85.53
-69.63%
TGTX
TG Therapeutics
37.37
20.82
125.80%
BPMC
Blueprint Medicines
128.21
22.66
21.47%
BBIO
BridgeBio Pharma
39.65
11.79
42.32%
RVMD
Revolution Medicines
41.11
2.49
6.45%
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.