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Narrative Update on Legend Biotech

The analyst price target for Legend Biotech has edged slightly lower to $75.99 from $77.46, as analysts reassess long-term earnings and revenue growth forecasts while maintaining optimism around the commercial trajectory of Carvykti.

Analyst Commentary

Recent research has highlighted both the substantial opportunities and potential risks in Legend Biotech’s outlook, particularly in relation to the trajectory of Carvykti and long-term business execution.

Bullish Takeaways

• Bullish analysts have raised price targets, citing considerable upside potential from current levels due to rapid commercial growth of Carvykti.
• Carvykti has established itself as the most successful CAR T-cell therapy on the market, reinforcing expectations for strong product demand and market share.
• There is confidence that Carvykti could evolve into a multi-billion-dollar franchise, significantly strengthening Legend Biotech’s long-term revenue and earnings growth profile.
• Forward-looking valuation assumes ongoing momentum in product adoption and execution, which puts the company in a favorable position for continued outperformance.

Bearish Takeaways

• Bearish analysts remain cautious about the ability to sustain high growth rates as competition in the CAR T-cell market intensifies.
• Long-term earnings visibility depends heavily on Carvykti’s continued success and expansion into new indications, creating a concentration risk to overall strategy.
• Execution risk remains around scaling manufacturing and ensuring reliable supply, which could affect near-term revenue trajectories if not carefully managed.

What's in the News

• Legend Biotech is in discussions for a potential second stock listing outside the U.S., with venues under consideration including Hong Kong, Singapore, and London. This could increase the company's valuation if realized (Bloomberg).
• The U.S. FDA has approved a label update for CARVYKTI^® to include new overall survival data from the Phase 3 CARTITUDE-4 study, showing a statistically significant improvement versus standard of care in certain relapsed multiple myeloma patients.
• The recent CARVYKTI label update introduces new safety information, including warnings for immune effector cell-associated enterocolitis and reactivation of the John Cunningham (JC) virus. Both of these have been linked to serious or fatal outcomes in some cases.
• Legend Biotech has entered a new supply agreement with Janssen Pharmaceuticals, formalizing joint manufacturing and global supply of cilta-cel for clinical and commercial use outside Greater China, and establishing shared costs for production and raw materials.
• Carlos Santos was appointed as the new Chief Financial Officer, bringing experience from previous financial leadership roles at AstraZeneca, Novartis, and Intel. He will oversee efforts to strengthen the company’s balance sheet.

Valuation Changes

• Consensus Analyst Price Target has decreased slightly from $77.46 to $75.99.
• Discount Rate has risen modestly from 6.78% to 6.90%.
• Revenue Growth forecast has edged down from 42.25% to 41.87%.
• Net Profit Margin projection has dipped marginally from 27.58% to 27.56%.
• Future P/E ratio has declined slightly from 27.87x to 27.69x.