Revenue Performance - Total revenue for the nine months ended September 30, 2024, was $440.72 million, a 114% increase from $205.68 million in the same period of 2023[14] - License revenue reached $120.12 million, up from $35.17 million year-over-year, representing a 241% increase[14] - Collaboration revenue increased to $314.56 million, compared to $170.37 million in the prior year, marking an 84% growth[14] - Total revenue for the nine months ended September 30, 2024, was $440.7 million, a significant increase of $235.0 million compared to $205.7 million for the same period in 2023[69] - License revenue increased to $120.1 million for the nine months ended September 30, 2024, up from $35.2 million in 2023, driven by $40.0 million from milestones under the Janssen Agreement and $45.0 million from the Novartis License Agreement[70][71] - Collaboration revenue rose to $314.6 million in 2024, compared to $170.4 million in 2023, primarily due to increased sales of CARVYKTI under the Janssen Agreement[72] Financial Loss and Improvement - The loss for the period was $203.31 million, a significant improvement from a loss of $373.44 million in the same period of 2023[14] - Basic and diluted loss per share improved to $0.56 from $1.07 year-over-year[14] - The loss for the nine months ended September 30, 2024, is $203.3 million, compared to a loss of $373.4 million for the same period in 2023, representing a 45.6% improvement[23] - Net loss for the period was $203.3 million, or ($0.56) per share, compared to a net loss of $373.4 million, or ($1.07) per share, for the same period in 2023, indicating improved financial performance[84] Assets and Liabilities - Total assets as of September 30, 2024, were $1.74 billion, down from $1.85 billion at the end of 2023[16] - Total liabilities increased to $619.72 million from $597.24 million at the end of 2023[16] - Total equity as of September 30, 2024, is $1,116.1 million, a decrease from $1,339.6 million as of September 30, 2023[19] - Cash and cash equivalents decreased to $459.28 million from $1.28 billion at the end of 2023[16] - Cash and cash equivalents as of September 30, 2024, totaled approximately $0.46 billion, with time deposits of approximately $0.76 billion, providing liquidity to fund operations into 2026[87][85] Cash Flow and Investment Activities - Cash used in operating activities for the nine months ended September 30, 2024, is $61.96 million, significantly reduced from $297.63 million in 2023[25] - Net cash used in investing activities for the nine months ended September 30, 2024, is $762.70 million, compared to $314.72 million in 2023, indicating increased investment activity[25] - Net cash provided by financing activities for the nine months ended September 30, 2024, was $6.0 million, a decrease from $790.6 million in 2023, reflecting reduced capital raising activities[95][96] Expenses - Research and development expenses rose to $309.11 million, compared to $276.54 million in the prior year, reflecting a 12% increase[14] - Administrative expenses increased to $102.58 million from $78.06 million year-over-year, a 31% rise[14] - The company recognized equity-settled share-based compensation expense of $55.55 million for the nine months ended September 30, 2024, compared to $35.09 million in 2023, reflecting increased compensation costs[25] - Research and development expenses for the nine months ended September 30, 2024, were $309.1 million, an increase of $32.6 million from $276.5 million in 2023, reflecting ongoing investment in cilta-cel and solid tumor programs[76] Inventory and Receivables - The company experienced a decrease in trade receivables of $99.34 million in the nine months ended September 30, 2024, compared to a minimal change in 2023[23] - The company reported a provision for inventory reserve of $6.83 million for the nine months ended September 30, 2024, compared to $1.34 million in 2023, indicating increased inventory risk management[23] - The reserve for inventory increased to $15.8 million as of September 30, 2024, compared to $8.9 million at the end of 2023, indicating higher expired materials[47] Shareholder and Financing Activities - The company issued ordinary shares resulting in a total increase in equity of $234.41 million from private placements and $349.28 million from registered direct offerings during the nine months ended September 30, 2023[19] - The weighted average number of ordinary shares in issue increased to 365,268,372 for the nine months ended September 30, 2024, from 348,293,363 in the prior year[40] - The company issued and fully paid 366,901,007 ordinary shares as of September 30, 2024, an increase from 363,822,069 shares as of December 31, 2023[55] Future Outlook and Plans - The company expects to incur significant capital expenditures in the coming years to ramp up manufacturing capabilities for CARVYKTI and advance clinical development programs[85] - The company expects expenses to increase due to ongoing research and development, clinical trials, and commercialization efforts for CARVYKTI, necessitating substantial additional funding[97] - Existing cash and cash equivalents are projected to fund operating expenses and capital expenditures for at least the next 12 months, despite potential fluctuations in cash requirements[98] - The company has a broad portfolio of earlier-stage product candidates, but may not generate necessary data for marketing approval, requiring continued reliance on additional financing[99] - Financing needs will be met through equity offerings, debt financings, collaborations, and licensing arrangements, which may dilute existing shareholders[100] Regulatory and Market Developments - The company received China's NMPA approval for CARVYKTI for the treatment of fourth-line plus multiple myeloma[66] - The company initiated commercial production at the Obelisc facility in Ghent, Belgium, and launched CARVYKTI in Switzerland during the third quarter[66] - The Novartis License Agreement, effective December 28, 2023, includes an upfront payment of $100 million and potential milestone payments of up to $1.01 billion[36] Economic and Risk Factors - The company has not experienced material impacts on its supply chain due to inflation and rising interest rates, maintaining robust sourcing strategies[67] - Inflation has not materially affected the company's financial condition or results of operations during the nine months ended September 30, 2024 and 2023[105] - The company does not believe it is exposed to any material foreign currency exchange rate risk[106]

Core Viewpoint - Shares of Legend Biotech Corporation (LEGN) have recently declined by 9.8% over the past week, but the formation of a hammer chart pattern suggests a potential trend reversal as buying interest may be emerging to counteract selling pressure [1] Group 1: Technical Analysis - The hammer chart pattern indicates that the stock may have found support, signaling a possible bottom and a reversal in trend [1] - A hammer pattern forms when there is a small candle body with a long lower wick, suggesting that bears may be losing control over the price during a downtrend [2] - This pattern can occur across various timeframes and is utilized by both short-term and long-term investors, although it should be used alongside other bullish indicators for confirmation [2] Group 2: Fundamental Analysis - Recent upward revisions in earnings estimates for LEGN serve as a bullish indicator, with the consensus EPS estimate increasing by 1.9% over the last 30 days, reflecting analysts' agreement on the company's improved earnings potential [3] - LEGN holds a Zacks Rank of 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks, which typically outperform the market [3] - The Zacks Rank is recognized as an effective timing indicator, suggesting that LEGN's prospects are beginning to improve, further supporting the case for a potential turnaround [3]

New data will showcase significantly increased and sustained minimal residual disease (MRD) negativity rates, reinforcing the potential of CARVYKTI to transform outcomes in refractory multiple myeloma MRD data to be featured in oral presentation at the 66th Annual American Society of Hematology (ASH) Annual Meeting SOMERSET, N.J., Nov. 05, 2024 (GLOBE NEWSWIRE) -- Legend Biotech Corporation (NASDAQ: LEGN) (Legend Biotech), a global leader in cell therapy, will present new data on minimal residual disease (M ...

Core Insights - Legend Biotech Corporation has appointed Alan Bash as the President of CARVYKTI®, a newly created role aimed at managing the growth of the CARVYKTI® franchise [1][2] - The appointment follows recent successes for CARVYKTI®, including approvals from the U.S. FDA and European Commission for label expansion [2] - Alan Bash brings extensive experience in oncology, having previously served as CEO for two biotech companies and held leadership roles at Bristol Myers Squibb [2][3] Company Overview - Legend Biotech is a global biotechnology company focused on developing advanced cell therapies for life-threatening diseases [4] - The company operates from its headquarters in Somerset, New Jersey, and has three R&D sites worldwide [4] - Legend Biotech is engaged in various technology platforms, including CAR-T cell therapies and other immunotherapies [4] Leadership and Strategy - Alan Bash's role will encompass overseeing commercial, technical operations, and quality functions related to CARVYKTI® [1][2] - The company aims to leverage Bash's operational knowledge to strengthen its leadership in multiple myeloma treatment [2] - CARVYKTI® is noted as the fastest launched CAR-T product on the market, indicating strong market momentum [3] Future Outlook - The company expresses confidence in CARVYKTI®'s potential to transform treatment paradigms for multiple myeloma [3] - Collaboration with Johnson & Johnson is highlighted as a key partnership in fulfilling CARVYKTI®'s potential [3]

Legend Biotech Corporation Sponsored ADR (LEGN) closed the last trading session at $43.95, gaining 0.9% over the past four weeks, but there could be plenty of upside left in the stock if short-term price targets set by Wall Street analysts are any guide. The mean price target of $83.87 indicates a 90.8% upside potential.The average comprises 19 short-term price targets ranging from a low of $60 to a high of $95, with a standard deviation of $9.51. While the lowest estimate indicates an increase of 36.5% fro ...

Investment Rating - The report maintains a "Buy" rating for the company, Legend Biotech (LEGN US), with a target price of $76, indicating a potential upside of 53% from the current price of $49.68 [4]. Core Insights - The sales of CARVYKTI® (cilta-cel) in Q3 2024 exceeded expectations, recording $286 million, a year-on-year increase of 88% and a quarter-on-quarter increase of 54%. This performance surpassed market consensus expectations of $241 million and the report's own forecast of $274 million [1]. - The significant growth in sales is attributed to the increasing treatment demand following the approval of early relapsed multiple myeloma indications, improved clinical data driving market share gains, and the gradual release of new production capacity [1]. - The report anticipates that the momentum in sales will continue into Q4 2024, with a projected sales figure of $322 million for that quarter, representing a 13% increase from Q3 2024 [1]. - CARVYKTI® was approved for sale in China in August 2024, which is expected to contribute significantly to future sales growth [1]. - The report maintains its full-year sales forecast for CARVYKTI® at $951 million, with a peak sales expectation exceeding $7 billion [1]. Summary by Sections - **Sales Performance**: Q3 2024 sales of CARVYKTI® reached $286 million, up 88% year-on-year and 54% quarter-on-quarter, driven by increased demand and market share gains [1]. - **Production Capacity**: The report notes that production capacity is steadily being released, with Johnson & Johnson confirming the approval of commercial production capacity in Ghent, Belgium [1]. - **Future Outlook**: The report expresses confidence in the continued outperformance of CARVYKTI® sales, supported by strong clinical data and the recent approval in China, projecting a robust long-term market potential [1].

SOMERSET, N.J., Oct. 03, 2024 (GLOBE NEWSWIRE) -- Legend Biotech Corporation (NASDAQ: LEGN) (Legend Biotech), announced it is establishing a new, state-of-the-art research and development (R&D) facility in Philadelphia, Pennsylvania, to advance its portfolio of next-generation cell therapies. "This new facility underscores Legend's commitment to R&D, as we make key investments that will advance our pipeline and strengthen our leadership position in cell therapy innovation," said Ying Huang, Ph.D., Chief Exe ...

Landmark CARTITUDE-4 study results show CARVYKTI® reduced the risk of death by 45 percent after three-year follow-up Late-breaking data featured in an oral presentation at the 21st International Myeloma Society Annual Meeting SOMERSET, N.J., Sept. 27, 2024 (GLOBE NEWSWIRE) -- Legend Biotech Corporation (NASDAQ: LEGN) (Legend Biotech), a global leader in cell therapy, today announced late-breaking three-year follow-up data from the Phase 3 CARTITUDE-4 study that shows a single infusion of CARVYKTI® (ciltacab ...

Editor's note: Seeking Alpha is proud to welcome Susan Chai as a new contributing analyst. You can become one too! Share your best investment idea by submitting your article for review to our editors. Get published, earn money, and unlock exclusive SA Premium access. I have worked in the securities investment industry for 15 years, from a mutual fund researcher to an equity fund manager, and later also a private equity fund manager. I have a master's degree and am very interested in research in the field of ...

Investment Rating - The report maintains a **Buy** rating for Legend Biotech (LEGN US) with a target price of **$76.00**, representing a potential upside of **33.5%** [1][5] Core View - The report highlights that the current stock price does not fully reflect the global commercialization potential of Carvykti in multiple myeloma (MM) treatment lines [1] - Legend Biotech's 2Q24 performance exceeded expectations, leading to an upward revision of the 2024 financial forecasts and target price [1] - The company is expected to achieve breakeven by 2026, driven by strong revenue growth and improving cost efficiency [1] Financial Performance - **2Q24 Revenue**: Total revenue increased by **154% YoY** to **$187 million**, with product revenue at **$93 million** and licensing revenue at **$91 million** [1] - **Gross Margin**: Product gross margin exceeded **50%** for the first time, reaching **51.4%** [1] - **Net Loss**: 2Q24 net loss narrowed significantly to **$18 million** (2Q23: **$199 million**), at the lower end of the loss guidance range [1] - **2024 Forecast**: Revenue and net profit forecasts for 2024 are revised to **$630 million** and **-$264 million**, respectively [1] Carvykti Sales and Capacity Expansion - **Carvykti Sales**: 2Q24 sales grew **60% YoY** and **18% QoQ** to **$186 million** [1] - **Hospital Coverage**: The number of US hospitals offering Carvykti treatment increased to **77** (from **71** in 1Q24), with a target of **100** by year-end [1] - **Outpatient Treatment**: The proportion of outpatient treatment reached **45%** (up from **35%** in 1Q24) [1] - **Capacity Expansion**: Key capacity expansions include: - Novartis initiated clinical production in July, releasing additional commercial capacity in New Jersey [1] - Belgium Phase 1 capacity expected to be approved in 2H24, with Phase 2 and New Jersey expansions set for 2025 [1] - Out-of-stock (OOS) rates for 2-4L MM indications decreased slightly in 2Q24, with further reductions of **5-10%** expected, improving production efficiency and gross margins [1] Financial Model Updates - **Revenue Forecasts**: 2024E revenue revised to **$630 million** (up **5.0%** from previous forecast), with 2025E and 2026E forecasts unchanged at **$1,051 million** and **$1,382 million**, respectively [2] - **Gross Profit**: 2024E gross profit revised to **$360 million** (up **7.3%**), with 2025E and 2026E forecasts at **$604 million** and **$849 million**, respectively [2] - **Net Profit**: 2024E net loss revised to **-$264 million** (from **-$366 million**), with 2026E net profit forecast at **$78 million** [2] Valuation and DCF Model - **DCF Model**: The DCF model's starting year rolled forward to 2025, with a target price of **$76.00** [1] - **Free Cash Flow**: Free cash flow is projected to turn positive in 2025, reaching **$334 million**, and growing to **$1,419 million** by 2033 [3] - **Enterprise Value**: Estimated at **$12,475 million**, with equity value of **$13,853 million** and a per-share value of **$76.00** [4] Industry Comparison - Legend Biotech is part of the **Biotech** sub-sector, with a **Buy** rating and a **33.5%** potential upside [5] - Other notable companies in the Biotech sub-sector include **BeiGene (6160 HK)** with a **41.9%** potential upside and **Hutchmed (13 HK)** with a **29.7%** potential upside [5]