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Legend Biotech Corporation (LEGN)
:LEGN
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Legend Biotech
(NASDAQ:LEGN)
Rating:52Neutral
Price Target:
$38.00
▲(0.77% Upside)
Positive Factors
Financial Outlook
Cash and equivalents of $1 billion at the end of the second quarter provide a financial runway to profitability in 2026, potentially reducing investor concerns.
Market Position
CARVYKTI continues to solidify its position as the go-to CAR-T in myeloma, rapidly becoming entrenched as standard-of-care.
Regulatory Changes
The FDA’s removal of REMS requirements for autologous BCMA/CD19 CAR-Ts has led to a U.S. label update shortening monitoring to two weeks and driving restrictions to two weeks, which is expected to improve patient experience and access.
Sales Growth
Carvykti's average weekly US sales during late June to early August are approximately 9% higher than the previous quarter, indicating strong growth momentum.
Negative Factors
Geographical Expansion
Ex-U.S. Carvykti growth was 59% quarter-over-quarter, driven by expansion in Germany, Switzerland, Austria, and Brazil, with additional growth expected following recent launches in Spain, Denmark, Sweden, Belgium, Portugal, and the private markets of Israel and the U.K., which might lead to overextension concerns.
Manufacturing Capacity
Management has reiterated guidance of manufacturing 10,000 doses by year-end with an expansion to its Raritan facility and initiation of commercial production at Tech Lane Belgium Facility coming online in 2H25, which might raise concerns about execution risks.
Legend Biotech (LEGN) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$6.96B
Dividend YieldN/A
Average Volume (3M)1.26M
Price to Earnings (P/E)―
Beta (1Y)0.69
Revenue Growth75.01%
EPS Growth-13.20%
CountryUS
Employees2,600
SectorHealthcare
Sector Strength43
IndustryBiotechnology
Share Statistics
EPS (TTM)-0.34
Shares Outstanding183,649,150
10 Day Avg. Volume1,127,852
30 Day Avg. Volume1,263,626
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 Cap0.86
Enterprise Value/Revenue7.47
Enterprise Value/Gross Profit12.08
Enterprise Value/Ebitda-22.87
Forecast
1Y Price Target
$74.89Price Target Upside98.59% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering16
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
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:Aug 11, 2025
(Q2-2025)
| % Change Since: 1.92%|
Next Earnings Date:Nov 24, 2025
Earnings Call Sentiment Positive
The earnings call was largely positive, with significant achievements in CARVYKTI sales and advancements in regulatory and manufacturing capacities. Despite reporting a net loss, the company's financials showed improvement compared to the previous year. The positive aspects of growth, regulatory advancements, and manufacturing success outweigh the financial lowlights.Q2-2025 Updates
Positive Updates
Record CAR-T Sales
CARVYKTI net trade sales were approximately $439 million, marking a 136% increase year-over-year and surpassing the previous CAR-T industry record of $414 million in sales in a single quarter.
Long-Term Survival Data
CARVYKTI demonstrated a median overall survival of 5 years for patients with heavily pretreated relapsed, refractory multiple myeloma, setting a new benchmark in this population.
Regulatory Advancements
The FDA removed risk evaluation and mitigation strategies (REMS) for currently approved BCMA- and CD19-directed autologous CAR-T therapies, potentially improving patient access and experience.
Manufacturing Success
The manufacturing success rate for CARVYKTI remains at 97%, which is believed to be the highest in the CAR-T industry.
Global Expansion
CARVYKTI's sales grew significantly outside the U.S., with sales of $81 million, which is 4x the amount over the same period a year ago and represents a 59% increase quarter-over-quarter.
Negative Updates
Net Loss
The company reported a $125 million net loss for the quarter, though this was adjusted to $10 million in net income excluding items not representative of core business.
Dependency on Regulatory Approvals
Future growth and profitability are contingent upon upcoming regulatory approvals, such as the anticipated approval for manufacturing expansions in Raritan and the Tech Lane facility.
Operational Loss
The company reported an operating loss of $22 million during the second quarter, though it was an improvement from $41 million in the same period a year ago.
Company Guidance
During the Legend Biotech's Second Quarter 2025 Earnings Call, significant guidance was provided on various metrics. The net trade sales of CARVYKTI reached approximately $439 million, marking a 136% year-over-year increase. Over 7,500 patients have been treated with CARVYKTI, with more than half of the utilization now in the earlier line setting in the U.S. The company anticipates achieving operational breakeven for CARVYKTI by the end of 2025 and company-wide profitability by 2026. Regulatory updates include the FDA's removal of risk evaluation and mitigation strategies (REMS) for certain CAR-T therapies, which led to reduced monitoring requirements for CARVYKTI. In terms of safety, the real-world data from a recent blood paper highlighted favorable neurotoxicity profiles when using strong bridging therapies. The company's manufacturing success rate stands at 97%, with a 30-day turnaround time. Additionally, international expansion continues with recent launches in multiple countries. The call also emphasized the strategic focus on moving CARVYKTI into frontline settings and highlighted ongoing investments in solid tumor programs and new research facilities, supported by a cash position of approximately $1 billion.Legend Biotech Financial Statement Overview
Summary
Legend Biotech shows revenue growth but struggles with profitability, as indicated by negative net profit margins and EBIT margins. The balance sheet is moderately leveraged, 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.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.45
Neutral
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.50
Neutral
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.40
Negative
| 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
Positive
37.71
Price Trends
37.65
Positive
34.77
Positive
36.14
Positive
Market Momentum
-0.37
Positive
46.05
Neutral
47.23
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 37.71 is below the 20-day moving average (MA) of 39.86, above the 50-day MA of 37.65, and above the 200-day MA of 36.14, indicating a neutral trend. The MACD of -0.37 indicates Positive momentum. The RSI at 46.05 is Neutral, neither overbought nor oversold. The STOCH value of 47.23 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 (51)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
62 Neutral | $4.30B | 74.48 | 26.63% | ― | 30.96% | -38.30% | |
53 Neutral | $9.78B | ― | 35.68% | ― | 7.62% | -55.29% | |
52 Neutral | $6.96B | ― | -29.70% | ― | 75.01% | -13.20% | |
52 Neutral | $6.59B | ― | -46.61% | ― | -100.00% | -23.49% | |
51 Neutral | $7.44B | -0.20 | -46.00% | 2.27% | 22.80% | -2.27% | |
50 Neutral | $8.37B | ― | -47.71% | ― | 99.19% | 48.43% | |
46 Neutral | $1.98B | 19.61 | -4.76% | ― | 64.89% | -221.56% |
* Healthcare Sector Average
Performance Comparison
LEGN
Legend Biotech
37.71
-19.18
-33.71%
SRPT
Sarepta Therapeutics
20.30
-113.16
-84.79%
TGTX
TG Therapeutics
27.77
5.69
25.77%
BPMC
Blueprint Medicines
129.46
35.97
38.47%
BBIO
BridgeBio Pharma
51.18
26.78
109.75%
RVMD
Revolution Medicines
36.02
-6.83
-15.94%
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.