On Wednesday, Legend Biotech Corp. (NASDAQ: LEGN) maintained its Buy rating and $91.00 stock price target from BTIG, following a report on Johnson & Johnson's second-quarter sales of CARVYKTI.
The sales figures for CARVYKTI, a product partnered with Legend Biotech, were $186 million, surpassing the consensus estimate of $177 million. This represents an 18% growth from the previous quarter and a 59% increase from the same period last year.
The positive sales performance is attributed to consistent execution and increased production capacity. Expectations are set for even higher growth in the second half of 2024, propelled by the commencement of commercial production at the Raritan facility in the United States and the Obelisc site in Belgium.
Legend Biotech's stock experienced approximately a 14% surge following a report last Friday by Street Insider, which mentioned a potential takeover bid for the company. The source of the information was not disclosed, and Legend Biotech has not issued any statements regarding the matter.
BTIG's stance on Legend Biotech remains positive, with the firm reiterating its confidence in the company's prospects. The forecasted growth and the recent market reaction to the takeover rumor underscore the firm's outlook for the biotech company's stock.
Investors and market watchers are keeping a close eye on Legend Biotech's performance and potential developments, especially in light of the recent M&A speculation. The reiterated price target of $91 reflects BTIG's anticipation of Legend Biotech's continued progress and success in the market.
In other recent news, Legend Biotech has been the focus of multiple analyst firms following its earnings and revenue results. TD Cowen lowered its price target for Legend Biotech shares to $67 from $71, citing a more conservative estimate for the ramp-up of Carvykti, a cancer treatment drug.
Despite this, the firm remains optimistic about Legend Biotech's long-term performance, projecting an exit from the 2025 fiscal year with the capability to produce 10,000 doses of Carvykti.
In contrast, H.C. Wainwright maintained a Buy rating with a $73.00 price target, highlighting the significant survival benefits in a Phase 3 trial for CARVYKTI. BMO Capital also maintained an Outperform rating and a $90.00 price target, emphasizing Legend Biotech's strong product pipeline and strategic partnerships.
RBC Capital reiterated its Outperform rating, expressing confidence in the demand for CARVYKTI and improvements in manufacturing metrics. Piper Sandler projects that CARVYKTI's revenues will reach $900 million this year, with a substantial increase to $1.75 billion by 2025. These recent developments reflect the analysts' confidence in Legend Biotech's strategic direction and the commercial prospects of CARVYKTI.
InvestingPro Insights
As Legend Biotech Corp. (NASDAQ: LEGN) garners attention with its recent sales success and M&A speculation, investors might be curious about the company's financial health and market performance. According to InvestingPro data, Legend Biotech holds a market cap of approximately $10.07 billion USD.
Despite the challenges of being unprofitable over the last twelve months, the company has demonstrated impressive revenue growth of 206.05% in the same period. This growth momentum is further substantiated by a remarkable 34.7% return on the stock price over the last month.
InvestingPro Tips suggest that Legend Biotech's balance sheet is in a favorable position, holding more cash than debt, which could provide financial flexibility in its operations and growth strategies. While analysts are not expecting profitability this year, they do anticipate sales growth, which could be a driving force behind the company's future performance.
For those interested in deeper analysis, InvestingPro offers more tips and insights, with a total of 12 additional tips available for Legend Biotech at InvestingPro. Investors considering this biotech player may find value in these insights, especially when evaluating the company's long-term potential in the context of the current market dynamics.
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