On Tuesday, BMO Capital maintained its Outperform rating and $90.00 price target on Legend Biotech Corp. (NASDAQ:LEGN), a biotechnology company focused on developing novel therapies. The firm's positive stance is based on several key factors that position Legend Biotech favorably in the biotech industry.
Legend Biotech's pipeline includes what is considered a best-in-class Multiple Myeloma drug, which has successfully navigated through the regulatory process for second-line treatment and beyond. This drug is also shielded from the impact of the Inflation Reduction Act (IRA), suggesting a more stable path forward in terms of pricing and market access.
In addition to its promising pipeline, Legend Biotech has established a partnership with Johnson & Johnson, a leading company in the Multiple Myeloma (MM) market. This collaboration is seen as a significant endorsement of Legend Biotech's capabilities and prospects in the MM space.
Despite some investor skepticism regarding the market share potential of Carvykti, Legend Biotech's drug for Multiple Myeloma, BMO Capital is optimistic. The firm believes that the recent data, which includes a statistically and clinically significant overall survival benefit announced today, supports a meaningful market share of approximately 20% or more for Carvykti in second-line treatment and beyond.
BMO Capital's reiteration of its rating and price target reflects confidence in Legend Biotech's strategic position in the biotech market, backed by a strong product pipeline, strategic partnerships, and a knowledgeable management team. The firm remains optimistic about the company's prospects and its ability to capture a significant portion of the market with its Multiple Myeloma treatment.
In other recent news, Legend Biotech Corporation reported a significant survival benefit in a multiple myeloma study for its CAR-T cell therapy, CARVYKTI®. The Phase 3 trial, CARTITUDE-4, demonstrated a meaningful improvement in overall survival, with safety outcomes consistent with CARVYKTI®'s known safety profile. In addition, Legend Biotech received approval from the U.S. Food and Drug Administration for CARVYKTI® as a treatment for adult patients with relapsed or refractory multiple myeloma.
In terms of financial performance, Piper Sandler projects CARVYKTI's revenues to reach $900 million this year, with an increase to $1.75 billion by 2025. RBC Capital and Piper Sandler have maintained their Outperform and Overweight ratings respectively, while Truist Securities initiated coverage on Legend Biotech with a Buy rating. Citi also maintains a bullish stance, expecting a sales increase in the latter half of 2024 due to capacity expansion and upcoming product launches.
In other developments, Legend Biotech has initiated IND-enabling studies for two allogeneic therapies and ended the first quarter of 2024 with approximately $1.3 billion in cash reserves. These reserves are expected to sustain the company until it reaches operating profit in 2026. These recent developments reflect the analysts' confidence in Legend Biotech's strategic direction and the commercial prospects of CARVYKTI.
InvestingPro Insights
Legend Biotech Corp. (NASDAQ:LEGN) has been a topic of interest for investors looking for growth in the biotechnology sector. According to InvestingPro data, the company holds a market capitalization of $8.16 billion and has experienced a substantial revenue growth of 206.05% over the last twelve months as of Q1 2024. This impressive growth is further highlighted by a quarterly revenue increase of 158.67% in Q1 2024, demonstrating the company's expanding market presence.
InvestingPro Tips suggest that Legend Biotech's financial health is fortified by having more cash than debt on its balance sheet and liquid assets that exceed short-term obligations. This positions the company well for future investments and operational needs. Additionally, analysts are anticipating sales growth in the current year, which could be indicative of the company's potential to increase its market share, especially in the Multiple Myeloma drug segment. With a strong return over the last month of 15.02%, investors may find Legend Biotech's recent performance encouraging.
For those interested in deeper analysis and more InvestingPro Tips, Legend Biotech has a total of 10 additional tips available on InvestingPro. These insights could provide valuable context for investors considering this stock. To access these insights and more, use coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription.
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