BMO Capital Markets has sustained its optimistic stance on Legend Biotech Corp. (NASDAQ: LEGN), maintaining an Outperform rating and a $90.00 price target.
The endorsement comes following the release of updated clinical data for the company's Carvykti therapy.
Legend Biotech reported that its Carvykti treatment continues to show a statistically significant overall survival (OS) benefit in its 34-month Cartitude-4 study data.
The therapy, used for treating multiple myeloma (MM), demonstrated an OS benefit of over 76% at 30 months, compared to 64% for the standard of care.
The company's Carvykti has been noted for its strong, durable, and safe profile as a second-line or later treatment option for MM.
This favorable profile is further underscored by recent setbacks faced by competitors in the space, positioning Carvykti as a leading CAR-T therapy in the treatment of MM.
BMO Capital also highlighted Carvykti's unique attributes, such as the 7-day onset of cytokine release syndrome (CRS), which is particularly suited for outpatient dosing. These differentiating factors contribute to the therapy's potential to become the premier CAR-T treatment in MM, with the possibility of generating up to approximately $10 billion in peak sales, an achievement comparable to Darzalex, another therapy in the same therapeutic area.
In other recent news, Legend Biotech has been making significant strides in the biotech industry. The company reported strong second-quarter revenues of $186 million, primarily driven by its cancer treatment drug, Carvykti. This surpassed estimates, leading various firms including Piper Sandler, BMO Capital, Scotiabank, and H.C. Wainwright to maintain their respective positive ratings. Piper Sandler predicts Carvykti revenues will reach $918 million this year and potentially double to $1.75 billion by 2025.
The cancer treatment drug has shown impressive results in the Phase III CARTITUDE-4 study, reducing the risk of death by 45% in patients with relapsed or refractory multiple myeloma. Following these results, Legend Biotech received approval from China's National Medical Products Administration for Carvykti.
Despite speculations around potential mergers and acquisitions, Legend Biotech reassured investors that the Biosecure Act is not expected to significantly impact its operations. Analyst firms Scotiabank, TD Cowen, and BTIG have revised their price targets to $70.00, $67.00, and $91.00 respectively, all maintaining a positive outlook.
InvestingPro Insights
To complement BMO Capital's positive outlook on Legend Biotech Corp. (NASDAQ: LEGN), recent data from InvestingPro offers additional perspective on the company's financial position and market performance.
Legend Biotech's revenue growth has been impressive, with a 176.93% increase over the last twelve months as of Q2 2024, reaching $455.99 million. This substantial growth aligns with the company's promising Carvykti therapy and its potential in the multiple myeloma treatment market.
However, it's important to note that despite the strong revenue growth, Legend Biotech is not yet profitable. An InvestingPro Tip indicates that analysts do not anticipate the company will be profitable this year. This is not uncommon for biotech companies with promising therapies still in development or early commercialization stages.
On a positive note, another InvestingPro Tip reveals that Legend Biotech holds more cash than debt on its balance sheet, suggesting a solid financial foundation to support ongoing research and development efforts for Carvykti and other potential therapies.
For investors seeking a more comprehensive analysis, InvestingPro offers 6 additional tips for Legend Biotech, providing a deeper understanding of the company's financial health and market position.
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