Legend Biotech Corporation (NASDAQ:LEGN) is one of the best biotech stocks with high potential. On October 3, TD Cowen analyst Yaron Werber reiterated a Buy rating on Legend Biotech Corporation (NASDAQ:LEGN), keeping the price target at $62.00. Legend Biotech Corporation (LEGN): Among Takeover Rumors Hedge Funds Are Buying The analyst supported the optimistic rating with the company’s future growth potential and strategic positioning. He stated that while Legend Biotech Corporation (NASDAQ:LEGN) is expe ...

Group 1 - Legend Biotech Corporation (NASDAQ:LEGN) is considered a strong buy stock by Wall Street, with a Buy rating and a price target of $77.00 set by RBC Capital [1] - The company reported CARVYKTI net trade sales of approximately $439 million in fiscal Q2 2025, with positive long-term outcomes in the CARTITUDE-1 study, where one-third of patients remained progression-free for five years or more [2] - As of June 30, Legend Biotech had cash and cash equivalents, along with time deposits totaling $1.0 billion [2] Group 2 - Legend Biotech is a clinical-stage company focused on developing, discovering, manufacturing, and commercializing novel therapies for oncology and other indications [3] - The company operates advanced cell therapies across a variety of technology platforms and has a presence in the US, China, and other geographical segments [3]

Core Viewpoint - The stock price of Legend Biotech has been on a downward trend despite rumors of a secondary listing, with a significant drop of 25% over the past two months [1][2][4]. Stock Performance - Legend Biotech's stock reached a peak of $45.30 on July 23, but has since entered a downward adjustment phase, with an 11.11% decline in August, erasing all gains from July [1][2]. - Following the announcement of the secondary listing rumors, the stock experienced a brief upward movement but has not shown signs of a sustained recovery [2][4]. Market Sentiment - The market's reaction to the secondary listing rumors has been lukewarm, as investors remain cautious due to geopolitical factors affecting Chinese companies listed in the U.S. [2][4]. - Goldman Sachs categorized Legend Biotech as a company with a solid global presence, suggesting that the potential impact of U.S. policy changes on its stock price may be limited [4]. Financial Performance - Legend Biotech's stock has faced challenges since last year's failed acquisition attempt, dropping from a high of $58.90 to a low of $29.27 in April [5]. - Despite competitive pressures, the company reported strong sales performance for its core product, CARVYKTI, with a 136% year-over-year increase in sales for the first half of 2023 [6][8]. - The sales growth trajectory for CARVYKTI indicates a potential annual net sales of $963 million in 2024, marking a 92.7% increase [8]. Clinical Data Impact - The release of positive clinical data for CARVYKTI has significantly boosted market confidence, leading to a stock price increase of over 13% following the announcement [7]. - The long-term follow-up data presented at the ASCO conference demonstrated promising results, enhancing the company's market position [6][7].

Core Viewpoint - The Trump administration is drafting an executive order that will impose three major restrictions on commercial transactions involving Chinese innovative drug patents or rights, focusing on national security reviews by the Committee on Foreign Investment in the United States (CFIUS) [1][2]. Summary by Sections Executive Order Details - The draft includes three main provisions: 1. Inclusion of Chinese innovative drug BD transactions in the CFIUS mandatory review list, ending the previous "low-risk automatic exemption" practice [2]. 2. FDA will implement "racial sensitivity supplementary reviews" for drugs relying on Chinese clinical data, requiring at least 20% comparative data from non-Asian populations [2]. 3. Establishment of a "key drug domestic production fund" to provide production subsidies for 15 categories of drugs, including antibiotics and acetaminophen, while implementing a "domestic priority" principle in federal procurement [2]. Market Reaction - The market reacted swiftly to the policy risks, with the Hong Kong innovative drug index (HK1105) dropping 3.82% on September 11, 2025, and the A-share innovative drug sector (BK1106) declining 2.17%, with over 80% of stocks in the sector experiencing pullbacks [3]. - The following day, the indices showed signs of recovery, indicating investors' responses to policy uncertainties and rational corrections [3]. Globalization Trends - Despite the geopolitical risks, the trend of Chinese innovative drugs going global remains intact, with total license-out transactions to Europe and the U.S. reaching $9.43 billion as of September 2025 [3]. - Major transactions include a $950 million licensing deal between BeiGene and Royalty Pharma, and a $6 billion global licensing agreement between 3SBio and Pfizer, highlighting a shift towards milestone payments and regional licensing [3]. Industry Challenges - The domestic market faces challenges, with annual growth in medical insurance fund spending (approximately 12%) lagging behind the growth in innovative drug R&D investment (approximately 25%) [4]. - The average reduction in medical negotiations remains high at 54%, and commercial health insurance coverage for innovative drugs is below 15%, creating a supply-demand imbalance that necessitates going global [4]. Risk Resilience Assessment - Goldman Sachs has categorized Chinese innovative drug companies into three risk resilience tiers based on their sensitivity to policy changes and operational capabilities [4][5]. - Companies with mature global layouts exhibit the strongest resilience, while those heavily reliant on domestic markets show the weakest resilience [5][10]. Strategic Defense Framework - A three-dimensional defense system is proposed to address risks associated with the executive order, focusing on transaction review, data compliance, and supply chain security [13]. - Strategies include conducting national security risk pre-assessments for transactions over $50 million and establishing partnerships with U.S. law firms to navigate regulatory challenges [14][15]. Conclusion - The construction of a quantifiable "risk resilience index" is essential for Chinese innovative drugs in the global 2.0 era, emphasizing the need for companies to embed policy hedging clauses in transaction structures and consider racial diversity data in clinical stages [23].

Group 1 - Chinese pharmaceutical stocks rebounded on Thursday, with Zai Lab (ZLAB.US) rising over 14% to $32.5, BeiGene (ONC.US) up over 6% to $333.25, Hutchison China MediTech (HCM.US) increasing over 3.5% to $16.265, and Legend Biotech (LEGN.US) gaining over 2% to $34.14 [1] - Goldman Sachs reported that the Trump administration is discussing restrictions on Chinese pharmaceuticals and drafting an executive order aimed at limiting the entry of innovative Chinese drugs into the U.S. market [1] - The potential short-term stock price risk is expected to have a limited impact on companies like BeiGene and Legend Biotech, which have established a solid foundation in the U.S. and other markets, with low expectations for new transactions [1]

Strategic Priorities - The company aims to achieve operational breakeven on CARVYKTI by the end of this year and profitability by 2026 [1] - Maximizing the market potential for CARVYKTI is identified as the top strategic priority [2] Clinical Data and Market Potential - Recent data presented at ASCO indicates that up to one-third of patients in the CARTITUDE-1 study, who are heavily pretreated, can achieve a 5-year treatment-free cancer remission [2] - This data is considered unprecedented in the context of multiple myeloma, which has historically been viewed as an incurable cancer [2] - The concept of a "functional cure" is being discussed among some doctors regarding the treatment outcomes for these patients [2]

Strategic Priorities - The company aims to maximize the market potential for CARVYKTI, particularly following recent data presented at ASCO, which indicates that up to one-third of patients in the CARTITUDE-1 study, who are heavily pretreated, can achieve a 5-year treatment-free cancer remission [2] - This data is significant as it suggests a potential "functional cure" for multiple myeloma, a condition historically viewed as incurable, where patients typically cycle through various therapies before succumbing to the disease [2]

Summary of Legend Biotech Conference Call Company Overview - **Company**: Legend Biotech - **Product**: CARVYKTI, a CAR-T therapy for multiple myeloma Strategic Priorities 1. **Maximizing Market Potential for CARVYKTI** - Aim to achieve operational breakeven by the end of 2023 and profitability by 2026 [2][1] - Recent data from ASCO indicates that up to one-third of heavily pretreated patients can achieve five-year treatment-free remission, a significant milestone in myeloma treatment [2][2] - CARVYKTI is the only CAR-T therapy with a second-line label and demonstrated survival benefit [7][7] 2. **Funding Internal Proprietary Pipeline** - Focus on three research areas: solid tumors, allogeneic therapies, and in vivo CAR-T [4][4] - Recent data presented on DLL3 targeting CAR-T for small cell lung cancer and gastric cancer trials [4][4] Financial Performance - **Q2 Results**: CARVYKTI generated global net sales of $439 million, making it the largest selling CAR-T product globally [7][7] - **Market Size**: In the U.S., there are approximately 190,000 diagnosed multiple myeloma patients, with a total addressable market of about 100,000 patients annually for second-line therapy [7][7] Growth Drivers - **U.S. Market**: Anticipated FDA label update for survival data and ongoing global phase 3 trials for frontline patients [3][3] - **International Expansion**: Generated $81 million in revenue from ex-U.S. markets, with plans for further launches in Europe [9][9] Community Oncology Strategy - **Outpatient Treatment**: Over 50% of CARVYKTI treatments are now administered in outpatient settings, which is expected to increase with community oncology expansion [17][17] - **Education Initiatives**: Direct-to-patient campaigns and physician education to increase awareness and referrals for CARVYKTI [21][21] Clinical Trials and Future Outlook - **CARTITUDE Trials**: Ongoing trials (CARTITUDE-5 and CARTITUDE-6) are expected to provide data by 2026 and beyond, focusing on progression-free survival as the primary endpoint [39][39][46][46] - **MRD as an Endpoint**: Engaging with FDA regarding the use of minimal residual disease (MRD) as a potential endpoint for future approvals [46][46] Research and Development - **In Vivo CAR-T and Allogeneic Therapies**: Active phase 1 programs in both areas, with a focus on dual-targeting CAR-T for non-Hodgkin's lymphoma [52][52] - **Safety and Efficacy**: Emphasis on understanding the performance of allogeneic therapies in cancer before applying them to autoimmune indications [56][56] Conclusion - Legend Biotech is strategically positioned to expand CARVYKTI's market presence while advancing its research pipeline. The company is focused on outpatient treatment models and community oncology to enhance patient access and education, with promising clinical trial data expected in the coming years.

Core Viewpoint - Legend Biotech (LEGN.US) is considering a secondary listing outside the United States due to strong investor interest in the pharmaceutical sector [1] Group 1: Listing Considerations - Potential locations for the secondary listing include Hong Kong, Singapore, and London, with Hong Kong being particularly noted for potentially enhancing the company's valuation [1] - The company is still in the consideration phase and may ultimately decide against pursuing a secondary listing [1] Group 2: Company Background - Legend Biotech was founded in 2014 and went public on NASDAQ in 2020 [1] - The company specializes in CAR-T cell immunotherapy for cancer treatment, with its flagship product, ciltacabtagene autoleucel, having received FDA approval in the United States [1]

Core Viewpoint - Legendary Pharmaceuticals (LEGN.US) is considering a secondary listing outside the United States due to strong investor interest in the pharmaceutical sector [1] Group 1: Listing Considerations - Potential locations for the secondary listing include Hong Kong, Singapore, and London, with a particular emphasis on Hong Kong as it may enhance the company's valuation [1] - The company is still in the consideration phase and may ultimately decide against pursuing a secondary listing [1] Group 2: Company Background - Legendary Pharmaceuticals was founded in 2014 and went public on NASDAQ in 2020 [1] - The company specializes in CAR-T cell immunotherapy for cancer treatment, with its flagship product, Sidakio-lunase, already approved by the FDA in the United States [1]