On Wednesday, Cantor Fitzgerald adjusted its price target on Legend Biotech Corp. (NASDAQ:LEGN) shares to $83.00, up from the previous $82.00, while maintaining an Overweight rating on the stock. The firm's analyst highlighted the intense discussion surrounding the data from anito-cel's abstract at the recent American Society of Hematology (ASH) meeting, which had overshadowed Legend Biotech's third-quarter earnings call.
The Legend Biotech management team robustly defended the efficacy and safety profile of their product Carvykti, amidst market reactions to the competitor's data.
The analyst noted that the efficacy of anito-cel seems comparable to Carvykti, with a potentially better safety profile, as no signs of Parkinsonism or other delayed neurotoxicities were observed in the interim iMMagine-1 or updated Phase 1 data. Despite Legend Biotech's stock underperforming over the past week, the firm believes that both Legend Biotech and its competitor have potential for growth given the significant market opportunity for CAR-T therapies in treating multiple myeloma.
Legend Biotech anticipates that sales from the second-line and beyond (2L+) multiple myeloma (MM) market will increase over time, expecting to constitute two-thirds of Carvykti's revenue by the end of 2025. The analyst projects that Carvykti will not face meaningful competition from anito-cel in the 2-3L MM market until 2028/2029 due to its approximately four-and-a-half-year head start, allowing ample growth opportunity. Additionally, positive outcomes from the CARTITUDE-5 study and approval for use in newly diagnosed patients could further bolster Legend Biotech's growth prospects.
Cantor Fitzgerald has updated its revenue projections for Carvykti following Legend Biotech's recent 6-K filing. The firm now models $321 million in revenue for the fourth quarter of 2024, an increase from the prior estimate of $257 million. The projections for 2025 have been raised to $1.86 billion from $1.58 billion, and for 2026, the estimate is now $2.43 billion, up from the previous $2.08 billion. These updated figures have contributed to the revised price target for Legend Biotech's shares.
In other recent news, Legend Biotech reported a remarkable rise in net sales for its CARVYKTI treatment during a recent earnings call. The company revealed an 87.6% year-over-year growth, reaching nearly $286 million, a significant 53.2% increase from the previous quarter. However, Legend Biotech incurred a net loss of $125 million, attributed mainly to unrealized foreign exchange losses. Despite this, the company holds a strong financial position with $1.2 billion in cash and equivalents, ensuring operational funding into 2026.
In terms of corporate developments, Legend Biotech recently appointed Alan Bash as President of the CARVYKTI business unit and expanded its research facilities. The company has also been focusing on increasing its presence in Europe and the U.S., with the approval of the Obelisc facility's production and the establishment of new treatment centers.
Analysts anticipate sequential revenue growth for Legend Biotech in the fourth quarter of 2024. The company also plans to submit overall survival data to the FDA and EMA for potential label updates by the end of next year. This comes as Legend Biotech continues to see robust growth in CARVYKTI sales, demonstrating a 45% reduction in the risk of death in multiple myeloma patients.
InvestingPro Insights
To complement Cantor Fitzgerald's optimistic outlook on Legend Biotech Corp. (NASDAQ:LEGN), recent data from InvestingPro offers additional context for investors. Despite the company's strong revenue growth, with a remarkable 176.93% increase over the last twelve months as of Q2 2024, Legend Biotech is currently not profitable. This aligns with the InvestingPro Tip indicating that analysts do not anticipate the company to be profitable this year.
The stock's recent performance has been challenging, with InvestingPro data showing a 19.64% decline over the past month and trading near its 52-week low. However, this could present a potential opportunity for investors who share Cantor Fitzgerald's bullish view, especially considering the InvestingPro Fair Value of $45.12, which is above the current trading price.
It's worth noting that Legend Biotech holds more cash than debt on its balance sheet, which could provide financial flexibility as it continues to invest in its promising CAR-T therapies. For a more comprehensive analysis, InvestingPro offers 5 additional tips that could further inform investment decisions in this dynamic biotech company.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.