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Legend Biotech Corporation (LEGN)
NASDAQ:LEGN
Top Page
Legend Biotech
(NASDAQ:LEGN)
57Neutral
Positive Factors
Financial Performance
Legend expects meaningful growth in the second and third quarters from manufacturing step-ups at the new Raritan, New Jersey, site and the Novartis site initiating commercial production.
Market Opportunity
The 2L launch will continue to catalyze CARVYKTI growth, significantly increasing the market opportunity.
Product Efficacy
Carvykti has shown an unprecedented overall survival benefit over standard of care therapies in relapsed refractory multiple myeloma.
Negative Factors
Competitive Landscape
Anito-cel's slightly shorter median progression-free survival compared to Carvykti suggests a higher early relapse risk and potentially lower durability.
Regulatory Risks
Commercial CARVYKTI story presents attractive buying opportunity amid risks associated with the changing FDA.
Safety Concerns
CRS remains the most concerning toxicity for BCMA-CART therapies like Carvykti.
Legend Biotech (LEGN) vs. S&P 500 (SPY)
Market Cap
$5.89B
Dividend YieldN/A
Average Volume (3M)1.25M
Price to Earnings (P/E)―
Beta (1Y)0.84
Revenue Growth119.97%
EPS Growth67.21%
CountryUS
Employees2,600
SectorHealthcare
Sector Strength74
IndustryBiotechnology
Share Statistics
EPS (TTM)-0.97
Shares Outstanding183,649,150
10 Day Avg. Volume1,434,896
30 Day Avg. Volume1,246,355
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)23.80
Price to Cash Flow (P/CF)N/A
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$83.36Price Target Upside159.85% 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 Financial Statement Overview
Summary
Legend Biotech shows strong revenue growth, but struggles with profitability and cash flow management. The balance sheet indicates financial stability with a strong equity position, though increasing leverage is a concern.Income Statement
Legend Biotech has demonstrated strong revenue growth over the years, with a significant increase from 2023 to 2024. However, the company continues to face challenges in achieving profitability, as evidenced by negative net income and EBITDA margins. The gross profit margin is positive, indicating some level of operational efficiency, but the inability to achieve EBIT profitability is concerning.30
Negative
Balance Sheet
The balance sheet shows a solid equity base with a favorable equity ratio, indicating financial stability. However, the debt-to-equity ratio has increased over time, suggesting rising leverage. The return on equity remains negative due to sustained losses, which is a risk factor for investors.45
Neutral
Cash Flow
The company's cash flow statements indicate ongoing challenges, with persistent negative free cash flow. While there has been some improvement in operating cash flow relative to net income, the overall cash flow situation remains precarious. The company continues to rely on financing activities to sustain operations.40
Negative
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 627.24M | 285.14M | 117.00M | 89.79M | 75.68M | Gross Profit |
| 392.66M | 140.93M | 51.64M | -223.55M | -156.48M | EBIT |
| 0.00 | -439.49M | -455.83M | -393.02M | -313.35M | EBITDA |
| -113.16M | -477.87M | -416.54M | -392.38M | -294.14M | Net Income Common Stockholders |
| -177.03M | -518.25M | -446.35M | -386.21M | -303.48M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 1.12B | 1.31B | 1.03B | 882.39M | 505.69M | Total Assets |
| 1.67B | 1.85B | 1.33B | 1.12B | 721.01M | Total Debt |
| 350.60M | 328.67M | 284.53M | 122.97M | 3.37M | Net Debt |
| 63.85M | -949.04M | -501.50M | -565.97M | -452.32M | Total Liabilities |
| 629.61M | 597.24M | 586.65M | 647.16M | 440.75M | Stockholders Equity |
| 1.04B | 1.25B | 744.31M | 471.21M | 280.25M |
| Cash Flow | Free Cash Flow | |||
| -158.14M | -416.00M | -222.30M | -245.58M | -272.78M | Operating Cash Flow |
| -144.03M | -393.28M | -200.03M | -198.47M | -223.00M | Investing Cash Flow |
| -850.54M | 92.79M | -78.34M | -194.98M | -24.17M | Financing Cash Flow |
| 5.70M | 791.49M | 377.98M | 626.66M | 618.88M |
Legend Biotech Technical Analysis
Negative
32.08
Price Trends
35.71
Negative
36.17
Negative
43.22
Negative
Market Momentum
-0.66
Positive
32.16
Neutral
15.75
Positive
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 32.08 is below the 20-day moving average (MA) of 34.51, below the 50-day MA of 35.71, and below the 200-day MA of 43.22, indicating a bearish trend. The MACD of -0.66 indicates Positive momentum. The RSI at 32.16 is Neutral, neither overbought nor oversold. The STOCH value of 15.75 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 (48)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
66 Neutral | $5.40B | 23.35 | 19.71% | ― | 52.97% | ― | |
58 Neutral | $5.63B | 256.81 | 12.21% | ― | 40.80% | 100.62% | |
57 Neutral | $5.89B | ― | -15.45% | ― | 119.97% | 67.21% | |
52 Neutral | $5.24B | ― | -31.26% | ― | 104.04% | 87.80% | |
50 Neutral | $6.53B | ― | -29.33% | ― | -100.00% | 5.49% | |
48 Neutral | $6.36B | 1.28 | -45.04% | 2.64% | 19.24% | 1.69% | |
46 Neutral | $6.25B | ― | 35.68% | ― | 2285.27% | 27.90% |
* Healthcare Sector Average
Performance Comparison
LEGN
Legend Biotech
31.28
-23.73
-43.14%
SRPT
Sarepta Therapeutics
50.31
-74.14
-59.57%
TGTX
TG Therapeutics
35.98
21.22
143.77%
BPMC
Blueprint Medicines
80.27
-11.98
-12.99%
BBIO
BridgeBio Pharma
32.31
3.95
13.93%
RVMD
Revolution Medicines
33.67
-3.74
-10.00%
Legend Biotech Earnings Call Summary
Earnings Call Date: Mar 11, 2025 | % Change Since: -5.73% | Next Earnings Date: May 14, 2025
Earnings Call Sentiment Positive
The earnings call highlighted strong revenue growth, market expansion, and improved financial performance for CARVYKTI. There were also significant advancements in manufacturing and pipeline development. However, some challenges remain, including supply constraints in Europe and ongoing efforts to address neurotoxicity. Overall, the positive aspects significantly outweigh the challenges.Highlights
Significant Revenue Growth for CARVYKTI
Net trade sales of CARVYKTI were approximately $334 million in Q4, a 110% increase year-over-year and a 17% increase from Q3.
European Expansion and Reimbursement
CARVYKTI recently received approval for reimbursement in Spain, with ongoing capacity expansion in Europe to meet increasing demand.
Manufacturing Expansion
FDA approved the Novartis facility for commercial production of CARVYKTI in New Jersey, with plans to initiate commercial production at Tech Lane in Belgium later this year.
Strong Demand and Market Penetration
CARVYKTI's market share is increasing with 60% usage in the second through fourth line population, supported by community and academic outreach.
Positive Financial Performance
Net profit for Q4 was $26 million, compared to a net loss of $145 million in the same period last year. The increase was driven by an unrealized foreign exchange gain of $110 million.
Pipeline and Research Expansion
Legend Biotech is building out its pipeline with new programs in blood cancers, solid tumors, and autoimmune diseases, supported by a new research facility in Philadelphia.
Lowlights
Supply Constraints in Europe
There is still a supply constraint environment in Europe despite the new Ghent facilities. Demand is growing faster than current supply capabilities.
Mitigation Strategies for Neurotoxicity
Ongoing efforts are required to address neurotoxicity with CARVYKTI, with studies and new mitigation strategies being implemented to manage these side effects.
Company Guidance
During the Legend Biotech earnings call for the fourth quarter and full-year 2024, the company provided detailed guidance on its financial and operational outlook. Legend Biotech reported net trade sales of $334 million for CARVYKTI in Q4, reflecting a 110% increase year-over-year and a 17% increase from the third quarter. The company aims to achieve operational breakeven for CARVYKTI by the end of 2025 and company-wide profitability in 2026. The FDA's approval of the Novartis facility for commercial production in New Jersey and the anticipated initiation of clinical production at Tech Lane in Belgium are expected to support capacity expansion. Legend Biotech is targeting to double CARVYKTI's supply by 2025, driven by these expansions. Ex-U.S. sales in Q4 reached $31 million, marking a 138% increase year-over-year. Additionally, the company emphasized the growing adoption of outpatient administration, which accounted for over 50% of CARVYKTI's volume, and the expectation for this to become the majority by the end of the year. The company reiterated its commitment to bringing CARVYKTI to eligible patients in the U.S. and Europe, while also highlighting the ongoing clinical trials and pipeline developments aimed at long-term growth.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
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.