On Monday, Piper Sandler maintained its Overweight rating and $90.00 price target on Legend Biotech Corp. shares (NASDAQ:LEGN), following the presentation of Phase III CARTITUDE-4 data. The study results, which were shared at the International Myeloma Society meeting, indicated that CARVYKTI, a treatment developed by Legend Biotech, reduced the risk of death by 45% compared to the PVd/DPd treatment in patients with relapsed or refractory multiple myeloma (r/rMM).
The hazard ratio was reported at 0.55 with a p-value of 0.0009, demonstrating a significant improvement in survival, with 76% of patients treated with CARVYKTI alive at 30 months versus 64% on the alternative treatments.
The firm highlighted CARVYKTI as the leading autologous BCMA CAR-T therapy, with current demand surpassing supply. Analysts from Piper Sandler predict revenues from CARVYKTI will reach $918 million in the current year and are expected to nearly double to $1.75 billion by 2025. This projection is based on the anticipation that supply will increase to 10,000 autologous doses by the end of 2025.
Further developments in Legend Biotech's pipeline were also noted, with the CARTITUDE-5 trial now fully enrolled and the CARTITUDE-6 trial enrolling at a rapid pace. These advancements could potentially position CARVYKTI as a first-line therapy for multiple myeloma.
The company's financial standing was cited as well, with approximately $1.3 billion in cash at the end of the second quarter of 2024, which is expected to fund the company through to operating profit in 2026. Moreover, Legend Biotech has an outstanding obligation to Janssen of $292 million.
The reiterated Overweight rating and $90 price target reflect the analyst's confidence in Legend Biotech's continued success and the promising future of its CARVYKTI therapy.
In other recent news, Legend Biotech has been making significant strides with its cancer treatment drug, Carvykti. The company reported robust second-quarter revenues of $186 million, surpassing estimates and largely driven by Carvykti sales.
This has resulted in several analyst firms, including BMO Capital, Scotiabank, and H.C. Wainwright, reiterating their respective Outperform and Buy ratings. Furthermore, Legend Biotech announced positive clinical trial results for CARVYKTI, indicating a significant improvement in overall survival for patients with relapsed or lenalidomide-refractory multiple myeloma.
The company also received approval from China's National Medical Products Administration for CARVYKTI, leading H.C. Wainwright to maintain its Buy rating. Despite potential mergers and acquisitions speculation, Legend Biotech reassured investors that the Biosecure Act is not expected to significantly impact its operations.
Looking forward, Scotiabank has revised its price target to $70.00, TD Cowen to $67.00, and BTIG holds a Buy rating with a $91.00 price target, all maintaining a positive outlook. These recent developments underscore Legend Biotech's strong position in the biotechnology sector.
InvestingPro Insights
Legend Biotech's recent clinical success with CARVYKTI aligns with several key financial metrics and analyst insights from InvestingPro. The company's revenue growth is particularly noteworthy, with InvestingPro data showing a substantial 176.93% increase in the last twelve months as of Q2 2024. This robust growth supports Piper Sandler's optimistic revenue projections for CARVYKTI.
An InvestingPro Tip highlights that analysts anticipate sales growth in the current year, which corroborates the positive outlook for CARVYKTI's market performance. Moreover, the company's strong liquidity position, with liquid assets exceeding short-term obligations, aligns with the article's mention of Legend Biotech's $1.3 billion cash reserve.
However, it's important to note that Legend Biotech is currently not profitable, as indicated by another InvestingPro Tip. This is consistent with the company's focus on research and development, particularly in advancing CARVYKTI and other pipeline products.
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.
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