First Shanghai Securities·2026-02-25 12:03Company Overview - Legend Biotech (LEGN) is rated as a "Buy" with a target price of $46.41, representing a potential upside of 138% from the current price of $19.5[5] - The company is expected to achieve profitability in 2026, driven by the sales growth of its product CARVYKTI[5] Financial Performance - CARVYKTI generated $1.887 billion in revenue for 2025, with a year-on-year growth of 95.9%[10] - The company forecasts total revenue of $1.412 billion for 2026, reflecting a growth rate of 39.7%[9] - Legend Biotech's earnings per share (EPS) is projected to turn positive at $0.28 in 2026, after losses in previous years[9] Production Capacity - The company has four global production facilities, with an expected annual capacity of 10,000 doses upon FDA approval in Q1 2026[5] - A $200 million investment is planned to expand the production capacity in Ghent, Belgium, aiming for 20,000 doses by 2028[5] Competitive Landscape - Legend Biotech's CART-4 trial includes a higher percentage of more severe patients compared to Johnson & Johnson's MajesTEC-3 trial, indicating a competitive edge in clinical data[6] Valuation Metrics - A discounted cash flow (DCF) analysis assumes a weighted average cost of capital (WACC) of 10% and a perpetual growth rate of 0%, leading to a target price of $46.41[8]