Legend Biotech an attractive takeover target for biopharma, says Daiwa

Daiwa says that while no bidder name was disclosed in Friday’s report of takeover interest in Legend Biotech (LEGN), the firm believes the company represents an attractive takeover target for biopharma. Legend’s key asset Carvykti, which is a de-risked, best-in-class BCMA-directed CAR-T therapy and its “currently undemanding” valuation make it an attractive target, the analyst tells investors in a research note. On potential bidders, Daiwa thinks Legend’s current partner Johnson & Johnson (JNJ) is possible as well as other biopharma companies with existing cell therapy assets in other areas, such as Novartis (NVS), Merck (MRK), AstraZeneca (AZN), Pfizer (PFE) and BioNTech (BNTX). Financial investors could also be attracted by the implied upside potential, adds Daiwa. The firm has a Buy rating on Legend Biotech with a $74 price target. The stock closed Friday up 8% 12% to $54.37.