Legend Biotech keeps stock at Buy rating on strong position

Tuesday, H.C. Wainwright reaffirmed its Buy rating on shares of Legend Biotech Corp . (NASDAQ:LEGN) shares, maintaining a $73.00 price target. According to InvestingPro data, analysts' price targets range from $53.12 to $95, suggesting significant upside potential from the current price of $32.66.

The firm's analyst addressed concerns regarding the competitive landscape for Legend's CARVYKTI, particularly in the context of its coexistence with Arcellx’s ddBCMA. Analyst underscored the absence of non-ICANS delayed neurotoxicity in over 150 patients treated with Legend's anito-cel across Phase 1 and 2 studies, a notable distinction given the neurotoxicity discussions surrounding CARVYKTI.

Legend Biotech is anticipated to present real-world data on the management of neurotoxicities with steroids and the absolute lymphocyte count (ALC) from sites actively handling such cases.

The company is also planning a prospective study within the year to further evaluate steroid management effectiveness in neurotoxicity instances with elevated ALC. The company's strong financial position is evident in its healthy current ratio of 4.98 and impressive revenue growth of 123% over the last twelve months.

Addressing the speculation around treatment sequencing, analyst dispelled the notion that physicians might delay using CARVYKTI as a second-line (2L) therapy to save a different CAR-T treatment for the fourth-line (4L) setting. The analyst believes CARVYKTI's efficacy profile is hard to surpass and noted that its established role in multiple myeloma (MM) has showcased a profile with low rates of adverse events (AEs).

Conversations with high-volume MM key opinion leaders (KOLs) at the last American Society of Hematology (ASH) conference confirmed comfort with CARVYKTI's profile and expectations of neurotoxicity rates emerging for all B-cell maturation antigen (BCMA) CAR-T therapies as more data is collected over time.

In summary, H.C. Wainwright's stance on Legend Biotech remains positive, with the firm's analyst reiterating confidence in CARVYKTI's competitive position in the market and its safety profile, as well as the potential for effective management of associated neurotoxicities.

InvestingPro analysis indicates the stock is currently undervalued, with a strong overall financial health score of 2.6. Discover more insights and detailed valuation metrics with InvestingPro's comprehensive research report, available alongside 1,400+ other top US stocks.

In other recent news, Karyopharm Therapeutics (NASDAQ:KPTI) announced the appointment of Lori Macomber as Executive Vice President, Chief Financial Officer, and Treasurer. Macomber brings extensive financial leadership experience, having previously served as CFO at Legend Biotech Corporation. She will lead the financial operations of Karyopharm, focusing on the strategic management of its finances.

Legend Biotech reported robust Q3 2024 financial results, with CARVICTI sales reaching $286 million. Despite a net loss of $125 million, the company maintains a strong financial position with $1.2 billion in cash reserves. Piper Sandler reiterated its Overweight rating on Legend Biotech, reflecting confidence in the long-term revenue of CARVYKTI.

RBC Capital Markets released its "Biotech Outlook" report, identifying several biotech companies with promising prospects for 2025, including Legend Biotech and Regeneron (NASDAQ:REGN) Pharmaceuticals. Legend Biotech was rated "Outperform" with an $86 price target, while Regeneron Pharmaceuticals received an "Outperform" rating with a $1,215 price target.

These are recent developments for Karyopharm Therapeutics, Legend Biotech, and Regeneron Pharmaceuticals.

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