Core Viewpoint - Legend Biotech Corporation has been upgraded to a Zacks Rank 2 (Buy) due to an upward trend in earnings estimates, indicating a positive outlook for the company's stock price [1][4]. Earnings Estimates and Ratings - The Zacks rating system is primarily driven by changes in a company's earnings picture, with the Zacks Consensus Estimate reflecting EPS estimates from sell-side analysts [2][3]. - The recent upgrade for Legend Biotech suggests an improvement in its earnings outlook, which could lead to increased buying pressure and a rise in stock price [4][6]. Impact of Earnings Estimates on Stock Prices - Changes in future earnings potential, as indicated by earnings estimate revisions, are strongly correlated with near-term stock price movements, influenced by institutional investors [5]. - Rising earnings estimates and the corresponding rating upgrade for Legend Biotech imply a positive trend in the company's underlying business, which should be reflected in its stock performance [6]. Zacks Rank System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with a strong historical performance, particularly for Zacks Rank 1 stocks, which have averaged a +25% annual return since 1988 [8]. - The upgrade of Legend Biotech to Zacks Rank 2 places it in the top 20% of Zacks-covered stocks, indicating a strong potential for market-beating returns in the near term [11]. Earnings Estimate Revisions for Legend Biotech - For the fiscal year ending December 2025, Legend Biotech is expected to earn -$0.64 per share, reflecting a year-over-year change of -23.1% [9]. - Over the past three months, the Zacks Consensus Estimate for Legend Biotech has increased by 8.9%, indicating a positive revision trend [9].

Core Viewpoint - Legend Biotech Corporation (LEGN) shows significant upside potential with a mean price target of $79.86, indicating a 135.2% increase from its current price of $33.96 [1] Price Targets - The average of 19 short-term price targets ranges from a low of $55 to a high of $95, with a standard deviation of $11.93, suggesting a variability in estimates [2] - The lowest estimate indicates a 62% increase, while the most optimistic estimate points to a 179.7% upside [2] Analyst Consensus - Analysts have shown strong agreement in revising earnings estimates higher, which is a positive indicator for potential stock upside [4][11] - Over the last 30 days, the Zacks Consensus Estimate for the current year has increased by 15.5%, with three estimates moving higher and no negative revisions [12] Zacks Rank - LEGN holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimates [13]

Company Overview - Legend Biotech Corporation is a global leader in cell therapy with over 2,500 employees, making it the largest standalone cell therapy company [3] - The company is pioneering treatments that aim to revolutionize cancer care, particularly through its CAR-T cell therapy [3] - CARVYKTI, a one-time treatment for relapsed or refractory multiple myeloma, is developed and marketed in collaboration with Johnson & Johnson [3] Upcoming Events - Legend Biotech will host a conference call for investors on May 13, 2025, at 8:00 am ET to review first-quarter 2025 results [1] - Senior leaders will provide an overview of the company's performance during the call [1] - A replay of the webcast and earnings news release will be available approximately two hours after the call concludes [2]

Group 1 - Legend Biotech Corporation's shares increased by 5.1% to close at $33.74, following a notable trading volume, despite a 15.4% loss over the past four weeks [1] - The surge in stock price is attributed to investor optimism regarding the strong sales of Carvykti, a treatment for relapsed or refractory multiple myeloma, developed in collaboration with Johnson & Johnson [2] - The company is expected to report a quarterly loss of $0.34 per share, reflecting a year-over-year change of -112.5%, while revenues are anticipated to reach $190.47 million, a 102.7% increase from the previous year [2] Group 2 - The consensus EPS estimate for Legend Biotech has been revised 4.6% higher in the last 30 days, indicating a positive trend that typically correlates with stock price appreciation [4] - Legend Biotech holds a Zacks Rank of 3 (Hold), while BioMarin Pharmaceutical, another company in the same industry, has a Zacks Rank of 2 (Buy) [4][5] - BioMarin's EPS estimate for the upcoming report has changed by -0.3% to $0.95, representing a year-over-year change of +33.8% [5]

Core Viewpoint - Investors are seeking companies with macroeconomic moats to protect against tariff exposure and regulatory uncertainty, with Legend Biotech Corporation being highlighted as having no material exposure to tariffs [1][3]. Company Overview - Legend Biotech's lead product, Carvykti, is a one-time treatment for relapsed or refractory multiple myeloma, developed in collaboration with Johnson & Johnson [1]. - The company manufactures 100% of the commercial Carvykti patients in the U.S. and Europe, having initiated commercial production at a Novartis facility in Q1 2025 [2]. Tariff and Regulatory Exposure - Legend Biotech does not import materials for CAR-T manufacturing, resulting in no material exposure to tariffs or transfer pricing [3]. - The absence of tariff exposure positions Legend as an attractive investment opportunity during unpredictable macroeconomic times [3]. Product Performance and Market Position - The performance of Carvykti as an earlier treatment for multiple myeloma is a significant factor driving Legend's stock [4]. - Analyst confidence in Carvykti's widespread adoption is based on its robust efficacy data, positioning it favorably compared to competitors [5][6]. - Carvykti is already approved for second-line treatment of relapsed/refractory multiple myeloma, which is advantageous for its market positioning [7]. Stock Performance - As of the last check, Legend Biotech's stock (LEGN) is up 1.86% at $30.81 [7].

Investment Rating - The report assigns a "Buy" rating for the company with a target price of $56.0, indicating a potential upside of 47.2% from the current stock price of $38.05 [4][3]. Core Insights - The company is experiencing rapid growth in its CAR-T therapy, CARVYKTI, with a projected revenue increase of 93% in 2024, reaching $963 million. The total revenue for the company is expected to grow significantly, with estimates of $1.07 billion, $1.70 billion, and $2.35 billion for the years 2025 to 2027 respectively [1][3][5]. - The company is expanding its production capacity, with new facilities in New Jersey and Belgium, and plans to reach an annual production of 10,000 doses by the end of 2025, increasing to 20,000 doses by 2027 [2]. - CARVYKTI is the first CAR-T therapy to demonstrate improved overall survival compared to standard treatment in multiple myeloma, with label updates expected in Europe and the U.S. in 2025 [3]. Financial Summary - The company reported a total revenue of $285 million for 2023, with projections of $627 million for 2024 and $1.068 billion for 2025, reflecting a growth rate of 143.7% and 70.2% respectively [5][6]. - The net profit is expected to improve from a loss of $518 million in 2023 to a profit of $392 million by 2027, indicating a significant turnaround in profitability [5][6]. - The gross margin is projected to improve from 49% in 2023 to 60% by 2027, while the SG&A expense ratio is expected to decrease from 70% to 23% over the same period [6].

交银国际研究 每日晨报 2025 年 3 月 13 日 今日焦点 | 传奇生物 | | | LEGN US | | --- | --- | --- | --- | | Carvykti 逐季放量能见度高，指引 | | 2Q26 经营层面 | 评级: 买入 | | 盈亏平衡，维持买入 | | | | | 收盘价: 美元 37.19 目标价: | 美元 | 72.00↓ | 潜在涨幅: +93.6% | | 丁政宁 | Ethan.Ding@bocomgroup.com | | | 2025 年指引强劲表现，维持买入评级：2025 年业绩指引包括：1）生命 科学业务收入增长 10-15%，毛利率保持在 50%以上；2）CDMO 业务收 入增长 15-20%，礼新项目首付款分成将全额确认为 2025 年收入；3）百 斯杰人民币计价收入增长 20-25%，毛利率提升至 45%左右。基于此，我 们调整公司 2025-26 年收入预测至 9.1 亿/7.9 亿美元、净利润预测至 2.4 亿/1.8 亿美元，扣除礼新交易影响后分別对应 14%/17%的 2025/26 年收 入增速。我们维持买入评级和 28.75 港元的 ...

Investment Rating - The report maintains a "Buy" rating for the company, Legend Biotech (LEGN US), with a target price of $72.00, indicating a potential upside of 93.6% from the current price of $37.19 [1][2][10]. Core Insights - The company is expected to achieve positive net profit of $0.26 million in Q4 2024, aligning with previous expectations, and has sufficient cash reserves of $1.1 billion to support operations until Q2 2026, when it is projected to reach operational breakeven [2][6]. - The current stock price does not fully reflect the long-term market potential of Carvykti, the company's key product, and has already incorporated expectations regarding competitive landscape changes [2][6]. - The report highlights significant sales growth for Carvykti, with Q4 2024 sales increasing by 17% and 15% in the U.S. and internationally, respectively, reaching $304 million and $31 million [6]. Financial Projections - Revenue projections for 2025 are updated to $1.061 billion, a 0.9% increase from previous estimates, with further growth expected to $1.480 billion in 2026 and $1.830 billion in 2027 [5][11]. - Gross profit is projected to be $676 million in 2025, with a gross margin of 63.8%, and is expected to improve to $951 million and 64.2% in 2026 [5][11]. - The net profit forecast for 2025 is revised to a loss of $55 million, improving to a profit of $131 million in 2026 and $315 million in 2027, reflecting a significant turnaround [5][11]. Market and Product Insights - The report emphasizes the importance of new production capacity and market penetration strategies for Carvykti, with expectations of sales reaching $1.92 billion in 2025 and $2.85 billion in 2026 [6][7]. - The company is focusing on expanding its market presence by increasing the number of hospitals offering Carvykti treatment and enhancing education for primary care physicians [6][7]. - The report also suggests monitoring early data releases for other CAR-T therapies, such as DLL-3 and Claudin 18.2, which could provide additional growth opportunities [6].

Investment Rating - The report maintains a "Buy" rating for the company, Legend Biotech (LEGN US), with a target price of $72.00, indicating a potential upside of 93.6% from the current price of $37.19 [1][2][10]. Core Insights - The company is expected to achieve positive net profit in Q4 2024, reaching $26 million, aligning with previous expectations after accounting for a $111 million foreign exchange gain. Management indicates that the cash on hand of $1.1 billion is sufficient to support operations until Q2 2026, when the company anticipates reaching operational breakeven [2][6]. - The sales of Carvykti are projected to continue growing, with Q4 2024 sales increasing by 17% and 15% in the U.S. and internationally, respectively. The product has already treated over 5,000 patients, and the number of hospitals offering Carvykti treatment has increased to 104 [6][11]. - The report suggests that the current stock price does not fully reflect the long-term market potential of Carvykti, and the target price has been slightly adjusted downwards to $72 [2][6]. Financial Forecasts - Revenue projections for 2025 are set at $1.061 billion, with a slight increase from the previous forecast of $1.051 billion, representing a 0.9% change. For 2026, revenue is expected to rise to $1.48 billion, up 7.1% from the prior estimate of $1.382 billion [5][11]. - The gross profit for 2025 is forecasted at $676 million, with a gross margin of 63.8%. By 2026, gross profit is expected to increase to $951 million, maintaining a gross margin of 64.2% [5][11]. - The net profit for 2025 is projected to be a loss of $55 million, improving to a profit of $131 million in 2026, reflecting a significant turnaround [5][11]. Market Performance - The stock has shown a year-to-date increase of 14.29%, with a 52-week high of $68.01 and a low of $31.53 [5][10]. - The report highlights the importance of new production capacity and market penetration strategies, particularly in the 2L+ multiple myeloma market, which is expected to drive sales growth significantly [6][11].

Core Viewpoint - The article discusses the potential of bispecific antibodies to replace CAR-T therapies in the treatment of multiple myeloma, highlighting insights from Dr. Syed Abbas Ali of Johns Hopkins University [3][4][6]. Group 1: Bispecific Antibodies vs. CAR-T Therapies - Dr. Ali emphasizes that bispecific antibodies, particularly those targeting BCMA and CD3, may surpass CAR-T therapies in efficacy and safety, especially as physicians learn to manage toxicity better [6][7]. - The total response rate for Gilead-Arcellx's Anito-cel is reported at 100%, with lower toxicity compared to Johnson & Johnson's Carvykti, which is primarily used for high-risk patients [4][5]. - The safety profile of Anito-cel shows significant advantages, with a median onset of cytokine release syndrome (CRS) at 2 days and a duration of 3 days, compared to Carvykti's 7 days onset and 4 days duration [5]. Group 2: Market Dynamics and Competitive Landscape - The article notes that Blenrep from GlaxoSmithKline faces challenges in regaining market trust after its previous withdrawal, with analysts expressing concerns over its sales growth potential [8]. - Sanofi's Sarclisa is seen as a competitor to Johnson & Johnson's Darzalex, but the latter's ease of use as a monthly subcutaneous injection poses a significant challenge for Sarclisa [9]. - The article highlights the increasing accessibility of blood component apheresis for CAR-T therapy, which has improved patient treatment options [4].