Goldman Sachs reiterates buy rating on Legend Biotech stock after strong Carvykti sales

Published 17/07/2025, 11:24
Goldman Sachs reiterates buy rating on Legend Biotech stock after strong Carvykti sales

Investing.com - Goldman Sachs has reiterated its Buy rating and $74.51 price target on Legend Biotech Corp . (NASDAQ:LEGN), a $7.3 billion market cap biotech company, following strong preliminary second-quarter sales of its cancer therapy Carvykti. According to InvestingPro data, the stock appears undervalued despite showing strong returns in recent months.

Carvykti generated $439 million in sales during Q2 2025, representing a 19% quarter-over-quarter increase and a 136% year-over-year jump. The results exceeded both the company-compiled consensus estimate of $415 million and Goldman Sachs’ own projection of $420 million. This performance aligns with Legend’s impressive revenue growth of 112% over the last twelve months, as reported by InvestingPro.

The U.S. market contributed $358 million to Carvykti’s sales, growing 13% quarter-over-quarter, while international markets (primarily Europe) showed stronger-than-expected growth at $51 million, up 59% from the previous quarter. This global performance reflects successful progress in manufacturing capacity expansion.

With first-half 2025 sales reaching $808 million, Goldman Sachs sees a clear growth path toward Legend Biotech management’s full-year target of $1.928 billion, which would represent 100% year-over-year growth. Additional tailwinds include encouraging long-term survival data presented at ASCO 2025, showing one-third of patients remaining progression-free for five years or longer.

The removal of Risk Evaluation and Mitigation Strategy (REMS) requirements for Carvykti could further boost its adoption beyond specialized hematology centers to broader community sites, according to Goldman Sachs, which highlighted Legend Biotech as a key name for the second half of 2025. With analyst targets ranging from $54 to $94 and a strong financial health score, the company shows promise despite current unprofitability. For deeper insights into Legend Biotech’s potential, including 8 additional ProTips and comprehensive analysis, check out the full research report on InvestingPro.

In other recent news, Legend Biotech has reported significant findings from the CARTITUDE-1 study, showcasing the long-term impact of its CARVYKTI therapy in treating relapsed/refractory multiple myeloma. The study revealed that one-third of patients remained progression-free for at least five years after a single infusion, with a median overall survival of 60.7 months. This development underscores the potential of CARVYKTI to alter treatment expectations for multiple myeloma. Additionally, the U.S. Food and Drug Administration has approved a supplemental Biologics License Application for CARVYKTI, removing certain risk evaluation requirements, which could expedite its launch in the U.S. market.

Analyst firms have weighed in on Legend Biotech’s prospects, with H.C. Wainwright reiterating a Buy rating and a $75 price target, suggesting that regulatory updates may boost CARVYKTI’s market presence. UBS, however, has lowered its price target to $54, citing modest growth concerns but maintaining a Buy rating. Meanwhile, RBC Capital and BMO Capital have both reaffirmed their Outperform ratings, with price targets of $78 and $90, respectively, highlighting the potential growth opportunities for CARVYKTI despite competitive pressures. These recent developments indicate a mixed but generally positive outlook for Legend Biotech among analysts.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers
© 2007-2025 - Fusion Media Limited. All Rights Reserved.