Legend Biotech (LEGN) AI Stock Analysis

• Market Cap: $4.96B
• Dividend Yield: N/A
• Average Volume (3M): 1.56M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.63
• Revenue Growth: 74.91%
• EPS Growth: 31.54%
• Country: US
• Employees: 2,600
• Sector: Healthcare
• Sector Strength: 45
• Industry: Biotechnology
• EPS (TTM): -0.11
• Shares Outstanding: 184,570,710
• 10 Day Avg. Volume: 2,123,764
• 30 Day Avg. Volume: 1,562,797
• 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: 1.10
• Enterprise Value/Revenue: 5.98
• Enterprise Value/Gross Profit: 9.88
• Enterprise Value/Ebitda: -29.67
• 1Y Price Target: $73.75
• Price Target Upside: 174.78% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 9
• EPS Forecast (FY): -0.81
• Revenue Forecast (FY): $1.03B

• Rating: 47 Neutral
• Price Target: $27.00 ▲(0.60% Upside)

Legend Biotech's strong revenue growth and positive earnings call sentiment are overshadowed by significant profitability and cash flow challenges. The technical indicators suggest bearish momentum, and the valuation is unattractive due to ongoing losses. While there are growth opportunities, the company must address these financial and operational issues to improve its stock attractiveness.

Positive Factors

Revenue Growth

The significant increase in CARVYKTI sales indicates strong market adoption and growth potential, solidifying Legend Biotech's position in the CAR-T therapy market.

Regulatory Approval

The FDA's approval for a label update enhances CARVYKTI's marketability by highlighting its survival benefits, potentially increasing its adoption and sales.

Strategic Partnerships

The strategic supply agreement with Janssen strengthens Legend Biotech's operational capabilities and market presence, supporting long-term growth and product distribution.

Negative Factors

Profitability Challenges

Ongoing losses highlight the challenge of achieving profitability, which may impact financial stability and investor confidence in the near term.

Cash Flow Issues

Negative cash flows indicate potential liquidity issues, which could constrain Legend Biotech's ability to invest in growth and manage operational expenses.

Neurotoxicity Concerns

Neurotoxicity concerns may limit CARVYKTI's adoption and require additional resources to address safety issues, impacting its long-term market potential.

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 development and commercialization of its CAR T-cell therapies. The company engages in partnerships with larger pharmaceutical firms to facilitate research, development, and commercialization of its products. These collaborations often include upfront payments, milestone payments based on development progress, and royalties on future sales. Additionally, the company may receive funding from government grants or venture capital investments to support its research initiatives. As the company advances its therapies through clinical trials and towards potential regulatory approval, it aims to create significant revenue streams from product sales and licensing agreements.

Legend Biotech Financial Statement Overview

Summary

Legend Biotech shows strong revenue growth but struggles with profitability and cash flow management. The balance sheet indicates moderate leverage, yet negative return on equity and cash flow issues highlight significant challenges.

Income Statement

Legend Biotech shows a strong revenue growth rate of 14.06% TTM, indicating positive momentum. However, the company struggles with profitability, as evidenced by negative net profit margins and EBIT margins. The gross profit margin is relatively healthy at 61.77% TTM, but the persistent negative net income highlights ongoing challenges in achieving profitability.

Balance Sheet

The company's debt-to-equity ratio of 0.37 TTM suggests moderate leverage, which is manageable. However, the return on equity is negative, indicating that the company is not generating sufficient returns on shareholders' equity. The equity ratio is not explicitly provided, but the balance sheet shows a stable equity base relative to assets.

Cash Flow

Legend Biotech's cash flow situation is concerning, with negative operating and free cash flows. The free cash flow growth rate is negative, and the operating cash flow to net income ratio is below 1, indicating cash flow challenges. The free cash flow to net income ratio is slightly above 1, suggesting some efficiency in converting net income to free cash flow, but overall cash flow health remains weak.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	908.96M	627.24M	285.14M	117.00M	68.83M	75.00M
Gross Profit	550.40M	392.66M	140.93M	51.64M	68.83M	75.00M
EBITDA	-183.33M	-113.16M	-477.87M	-416.54M	-392.38M	-298.16M
Net Income	-239.70M	-177.03M	-518.25M	-446.35M	-403.58M	-266.37M
Balance Sheet
Total Assets	1.71B	1.67B	1.85B	1.33B	1.12B	722.09M
Cash, Cash Equivalents and Short-Term Investments	992.59M	1.12B	1.31B	1.03B	882.39M	506.07M
Total Debt	410.24M	350.60M	328.67M	284.53M	122.97M	3.70M
Total Liabilities	701.69M	629.61M	597.24M	586.65M	353.52M	122.27M
Stockholders Equity	1.01B	1.04B	1.25B	744.31M	765.94M	597.77M
Cash Flow
Free Cash Flow	-188.68M	-158.14M	-416.00M	-223.56M	-243.87M	-253.29M
Operating Cash Flow	-170.07M	-144.03M	-393.28M	-201.28M	-198.47M	-223.00M
Investing Cash Flow	-16.73M	-850.54M	92.79M	-77.09M	-194.98M	-24.17M
Financing Cash Flow	14.00K	5.70M	791.49M	377.98M	626.66M	618.88M

Legend Biotech Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 26.84
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• 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 26.84 is below the 20-day moving average (MA) of 29.83, below the 50-day MA of 31.42, and below the 200-day MA of 34.20, indicating a bearish trend. The MACD of -1.36 indicates Positive momentum. The RSI at 29.82 is Positive, neither overbought nor oversold. The STOCH value of 33.37 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
ABVX	60 Neutral	$9.60B	-39.66	―	―	―	18.47%
CYTK	58 Neutral	$8.33B	―	―	―	2609.26%	-17.08%
RNA	56 Neutral	$10.80B	―	-32.44%	―	106.27%	-43.90%
AXSM	55 Neutral	$7.64B	―	-275.50%	―	65.83%	28.50%
RYTM	52 Neutral	$7.28B	―	-240.36%	―	54.92%	28.47%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
LEGN	47 Neutral	$4.96B	―	-22.60%	―	74.91%	31.54%

Legend Biotech Corporate Events

Legend Biotech Reports Strong Q3 2025 Results and CARVYKTI® Progress

On November 12, 2025, Legend Biotech reported its unaudited financial results for the third quarter of 2025, highlighting significant growth in CARVYKTI® sales, with net trade sales reaching approximately $524 million. The company also announced regulatory updates, including FDA and European Commission label updates for CARVYKTI® to reflect its overall survival benefit. Legend Biotech has treated over 9,000 patients to date and initiated commercial production at its Tech Lane facility in Belgium. Financially, the company reported a net loss of $39.7 million for the quarter, a significant improvement from the $125.3 million loss in the same period of 2024. The company holds approximately $1.0 billion in cash and equivalents, providing a financial runway beyond 2026, with expectations of achieving company-wide profitability in 2026.

Legend Biotech to Showcase Key Research at ASH 2025

On November 3, 2025, Legend Biotech announced its participation in the 67th American Society of Hematology Annual Meeting, where it will present research on CARVYKTI® and a novel therapy, Lucar-G39D. These presentations highlight the company’s ongoing innovation in cell therapy and its efforts to expand treatment options for multiple myeloma and B-cell non-Hodgkin lymphoma, potentially impacting clinical practices and patient outcomes.

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.