Legend Biotech(US:LEGN) First Shanghai Securities·2026-02-25 12:18Investment Rating - The report assigns a "Buy" rating to the company with a target price of $46.41, indicating a potential upside of 138% from the current stock price of $19.5 [2][4][31]. Core Insights - CARVYKTI sales are experiencing significant growth, with projected revenues of $1.887 billion in 2025, reflecting a year-over-year increase of 95.9%. The company is expected to achieve profitability at the company level in 2026 [3][7]. - The company has made substantial investments in production capacity, with four global manufacturing facilities. Approval for commercial production at the Raritan facility is anticipated by the end of Q1 2026, which would increase annual production capacity to 10,000 doses [8][9]. - Competitive analysis shows that while Johnson & Johnson's MajesTEC-3 trial has strong data, the patient demographics differ significantly from those in the CART-4 trial, suggesting that CART-4 patients may have more severe conditions, which could impact treatment outcomes [10][11]. Summary by Sections Financial Performance - The company reported total revenues of $285 million for 2023, with projections of $1.412 billion for 2026 and $1.863 billion for 2027, indicating substantial growth rates of 143.7% and 39.7% respectively [6][32]. - The company is expected to achieve a net profit of $418 million by 2027, with earnings per share projected to reach $1.13 [6][31]. Production Capacity - The company has invested nearly $1 billion in production facilities, with plans to expand the Gent facility in Belgium, which is expected to increase capacity to 20,000 doses by 2028 [8][9]. - The anticipated FDA approval for the Raritan facility will significantly enhance production capabilities, allowing for rapid scaling in response to market demand [9][10]. Clinical Pipeline - The company is advancing its clinical trials, with the Cartitude-5 trial for first-line non-transplant patients completed and plans to negotiate with the FDA regarding MRD negativity as a potential endpoint for Cartitude-6 [4][27]. - The Cartitude-6 trial is the only ongoing Phase III trial directly comparing CAR-T therapy with autologous stem cell transplantation for newly diagnosed multiple myeloma [28]. Market Position - The report highlights that if the company captures 15-20% of the 2-4 line patient market, it could translate to approximately 10,000 treatments annually, emphasizing the potential for Carvykti as a preferred treatment option [15]. - The competitive landscape indicates that Carvykti's efficacy data provides a significant advantage, particularly for patients seeking long-term remission and potential cures [15][20].