Legend Biotech (NasdaqGS:LEGN): Evaluating Valuation Following New Carvykti Agreement With Janssen Pharmaceuticals

Legend Biotech (LEGN) shares are moving after the company announced a new manufacturing and supply agreement with Janssen Pharmaceuticals for Carvykti, its CAR-T cell therapy. This agreement sets the stage for expanded global operations.

See our latest analysis for Legend Biotech.

The recent manufacturing and supply agreement with Janssen Pharmaceuticals for Carvykti seems to have renewed market focus on Legend Biotech, especially as management expresses confidence in overcoming current supply constraints through planned capacity expansions. While the latest share price closed at $32.21 and posted a 1-day gain of 2.55%, the 1-year total shareholder return is still down 34.05%. Although momentum has wavered, strategic moves like this partnership signal the company is working to reignite longer-term growth potential.

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With shares still trading well below analyst price targets, despite rapid revenue growth and new partnerships, is the market underestimating Legend Biotech’s recovery story or already reflecting all the future upside in today’s price?

Most Popular Narrative: 58.4% Undervalued

Legend Biotech’s prevailing narrative points to a fair value that is significantly higher than the last close, highlighting perceived upside if growth projections are achieved.

“Solid pipeline and regulatory tailwinds drive expanded patient access, wider adoption, and long-term revenue growth in multiple myeloma therapies. Global roll-out and scaling production enhance operating leverage, broaden market reach, and improve margins while maintaining competitive advantage with innovative CAR-T technologies.”

Read the complete narrative.

Want to know what revenue surge must materialize for this stock to deserve its lofty fair value? This narrative hinges on ambitious profit and margin projections, with a crucial earnings turning point approaching. Uncover which milestones and hyper-growth assumptions underpin the bullish outlook and see what numbers really drive the math.

Result: Fair Value of $77.46 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, future gains hinge on overcoming heavy reliance on Carvykti and successfully defending against emerging competition within advanced cell therapy markets.

Find out about the key risks to this Legend Biotech narrative.

Build Your Own Legend Biotech Narrative

If you want to dig into the numbers for yourself or see the story differently, it's simple to craft your own perspective in just a few minutes with the Do it your way.

A good starting point is our analysis highlighting 3 key rewards investors are optimistic about regarding Legend Biotech.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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