Legend Biotech (NasdaqGS:LEGN): Valuation Spotlight After FDA Label Update and Strong CARVYKTI Sales

Legend Biotech (LEGN) attracted investor attention after the FDA approved a label update for its CARVYKTI therapy, highlighting improved overall survival in a key Phase 3 multiple myeloma study. The update also introduces additional safety warnings, which shape future risk considerations.

See our latest analysis for Legend Biotech.

Legend Biotech’s recent momentum appears to be building after publicizing $524 million in third-quarter sales for CARVYKTI and securing a favorable regulatory update from the FDA. Despite this progress, the past year’s total shareholder return stands at -23.4%, reflecting a challenging biotech market and ongoing operational hurdles. However, recent positive stock moves suggest that sentiment could be turning.

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With shares down sharply over the past year, but a robust sales update and a major regulatory milestone now in hand, investors face a familiar dilemma: is the upside from here undervalued, or has the market already priced in future growth?

Most Popular Narrative: 55.6% Undervalued

With the most widely followed narrative setting fair value far above Legend Biotech’s last close, the stock’s potential upside stands out as unusually high. This value hinges on blockbuster expansion and execution that could reshape the company’s financial trajectory.

“Significant expansion potential in both earlier lines of therapy and frontline settings for multiple myeloma, driven by strong survival data, ongoing clinical trials (CARTITUDE-5 and 6), and label updates that increase patient access, setting up long-term revenue acceleration as the patient pool widens.”

Read the complete narrative.

Want to know the catalyst behind this aggressive valuation? The narrative rests on explosive growth forecasts and bolder profit assumptions than the market. Intrigued which financial leaps transform sentiment? Jump into the full narrative for the surprising drivers behind analysts’ bold fair value calculation.

Result: Fair Value of $75.99 (UNDERVALUED)

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

However, Legend Biotech's high reliance on CARVYKTI, along with the rapid rise of competing cell therapies, remain real risks that could challenge future growth assumptions.

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

Another View: What Do Market Multiples Say?

Looking at Legend Biotech’s price-to-sales ratio of 7.8x, it is lower than the US Biotechs industry average of 10.5x and well below the peer average of 22.4x. However, it is higher than the fair ratio of 4.3x, indicating a mix of both opportunity and risk. Will the market move closer to that fair ratio as growth unfolds, or is current pricing justified?

See what the numbers say about this price — find out in our valuation breakdown.

Build Your Own Legend Biotech Narrative

If you see things differently or want to dig into the numbers yourself, it's quick and easy to craft your own view in minutes. Do it your way

A good starting point is our analysis highlighting 2 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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