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H.C. Wainwright has reaffirmed a Buy rating with a $73.00 price target on Legend Biotech Corp (NASDAQ: LEGN), following the announcement of positive clinical trial results.
The company reported late-breaking three-year follow-up data from the Phase 3 CARTITUDE-4 study at the International Myeloma Society (IMS) Annual Meeting in Rio de Janeiro, Brazil.
The study data indicated that CARVYKTI, a single infusion therapy developed by Legend Biotech, significantly improved overall survival in patients with relapsed or lenalidomide-refractory multiple myeloma (MM).
These patients had previously received at least one line of therapy, including a proteasome inhibitor (PI) and an immunomodulatory agent (IMiD). The treatment reduced the risk of death by 45% compared to standard regimens.
CARVYKTI stands out as the first and only cell therapy to demonstrate an improvement in overall survival versus standard treatments for patients with lenalidomide-refractory MM as early as second-line therapy. This marks a significant milestone for the treatment of this condition.
The results from the CARTITUDE-4 study were presented as a late-breaking oral presentation at the IMS Annual Meeting, under the abstract number OA-65. The data has garnered attention for its potential impact on the treatment of multiple myeloma.
In other recent news, Legend Biotech reported robust second-quarter revenues, largely driven by sales of its cancer treatment drug, Carvykti. Sales for the quarter reached $186 million, surpassing Street consensus estimates. The positive performance has led to several analyst firms, including BMO Capital, Scotiabank, and H.C. Wainwright, reiterating their respective Outperform and Buy ratings.
Legend Biotech also received approval from China's National Medical Products Administration for CARVYKTI, a treatment for multiple myeloma. Despite differing market dynamics in China, H.C. Wainwright maintains its Buy rating, reflecting confidence in the potential uptake of CARVYKTI in the region.
Furthermore, Legend Biotech has been the subject of speculation regarding potential mergers and acquisitions, which could influence its stock value. However, the company reassured investors that the Biosecure Act is not expected to significantly impact its operations.
Analysts' future expectations for the company include Scotiabank's revised price target of $70.00 and TD Cowen's lowered price target of $67.00, both maintaining a positive outlook. BTIG continues to hold a Buy rating, with a $91.00 price target.
InvestingPro Insights
Legend Biotech's promising clinical trial results for CARVYKTI are reflected in the company's financial metrics and market performance. According to InvestingPro data, Legend Biotech has shown impressive revenue growth, with a 176.93% increase in the last twelve months as of Q2 2024. This strong growth aligns with the positive reception of their innovative multiple myeloma treatment.
Despite the encouraging clinical results, it's important to note that Legend Biotech is currently not profitable, with a negative operating income margin of -81.89%. This is not uncommon for biotech companies in the development stage of breakthrough therapies. An InvestingPro Tip highlights that analysts do not anticipate the company to be profitable this year, which is consistent with the current financial picture.
Another InvestingPro Tip reveals that Legend Biotech holds more cash than debt on its balance sheet, indicating a strong financial position to support ongoing research and development efforts. This financial stability is crucial as the company continues to advance CARVYKTI and potentially bring it to market.
For investors seeking a more comprehensive analysis, InvestingPro offers additional tips and insights on Legend Biotech. The platform currently lists 8 more tips that could provide valuable context for investment decisions in this promising biotech company.
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