On Friday, TD Cowen maintained a positive outlook on shares of Legend Biotech Corp. (NASDAQ:LEGN), reasserting a Buy rating and a $67.00 price target for the company's stock. The firm's stance comes with an anticipation of robust third-quarter growth for the biotech company's Carvykti sales, which are projected to rise by 32%. This increase is attributed to a previous step-up at the Raritan facility and a price hike.
The analyst from TD Cowen expressed confidence in the projected $246 million in global sales for Carvykti, which closely aligns with the consensus estimate of $249 million. The third quarter is expected to demonstrate significant growth, largely due to the aforementioned factors.
However, it is anticipated that the fourth quarter will see more moderate growth. This is because the commencement of commercial production at the Ghent facility in the fourth quarter is not expected to contribute to revenue until the first quarter of 2025.
Management at Legend Biotech appears to be comfortable with the Q3 performance projections, which suggests a strong quarter ahead. Despite the anticipated slowdown in Q4, the firm's management is optimistic, likely buoyed by the expected Q3 results.
In addition to the financial projections, the analyst noted that data on Anito-cel, another product in Legend Biotech's pipeline, is likely to be presented early at the American Society of Hematology (ASH) meeting. However, the data is not expected to surpass that of Carvykti, the company's current leading product.
In summary, TD Cowen's analysis points to a strong third quarter for Legend Biotech, driven by sales growth of Carvykti, with more conservative expectations for the fourth quarter due to production timelines. The company's stock retains a Buy rating with a steady price target, as the firm anticipates continued performance and product development.
In other recent news, Legend Biotech has seen substantial growth due to robust sales of Carvykti, as indicated by the third-quarter sales data. Analysts from BMO Capital predicted worldwide sales for Carvykti to reach between $280 million and $295 million, surpassing consensus estimates. Moreover, Redburn-Atlantic initiated coverage on Legend Biotech with a Buy rating, citing the company's advancements with Carvykti, a therapy for the treatment of multiple myeloma.
Another significant development for Legend Biotech is the announcement of plans to establish a new research and development facility in Philadelphia. H.C. Wainwright maintains a Buy rating on the company, believing this move will enhance its cell therapy portfolio.
Scotiabank reiterated a Sector Outperform rating on Legend Biotech, following the announcement of positive clinical trial results for Carvykti. BMO Capital Markets also sustained its positive stance on the company, maintaining an Outperform rating.
Piper Sandler maintained its Overweight rating on Legend Biotech, following the presentation of Phase III CARTITUDE-4 data, which showed that Carvykti reduced the risk of death by 45% compared to alternative treatments.
The company's recent revenues of $186 million, primarily driven by Carvykti, exceeded estimates, leading various firms to maintain their respective positive ratings. These recent developments highlight the potential growth and success of Legend Biotech in the biotechnology sector.
InvestingPro Insights
To complement TD Cowen's positive outlook on Legend Biotech Corp. (NASDAQ:LEGN), recent data from InvestingPro provides additional context to the company's financial position and growth prospects.
InvestingPro data shows that Legend Biotech's revenue growth has been impressive, with a 176.93% increase over the last twelve months as of Q2 2024. This aligns well with TD Cowen's projection of robust Carvykti sales growth. The company's quarterly revenue growth of 154.36% in Q2 2024 further supports the analyst's optimistic stance on the upcoming Q3 results.
However, investors should note that despite strong top-line growth, Legend Biotech is not yet profitable. An InvestingPro Tip highlights that analysts do not anticipate the company will be profitable this year. This is reflected in the negative operating income margin of -81.89% over the last twelve months.
On a positive note, another InvestingPro Tip indicates that Legend Biotech holds more cash than debt on its balance sheet, which could provide financial flexibility as the company continues to invest in growth and product development.
For investors seeking a more comprehensive analysis, InvestingPro offers 8 additional tips for Legend Biotech, providing a deeper understanding of the company's financial health and market position.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.