On Wednesday, Jefferies maintained its Buy rating on Legend Biotech Corp . (NASDAQ:LEGN) but reduced the stock's price target from $94.00 to $91.00. The adjustment follows reports of Johnson & Johnson's $334 million worldwide sales of Carvykti, which exceeded quarterly expectations by approximately 2% and marked a significant 17% increase from the previous quarter. The strong performance of Carvykti, a CAR-T therapy, is characterized by Jefferies as the most successful launch in its category.
The analyst from Jefferies highlighted the impressive fiscal year 2024 sales of Carvykti, which soared to $963 million, indicating a year-over-year growth of 93%. This robust growth is anticipated to carry into 2025, driven by high demand for the therapy in earlier treatment lines, ongoing expansion of manufacturing capacity, and enhancements in manufacturing efficiency. InvestingPro data shows Legend Biotech's remarkable revenue growth of 123% over the last twelve months, with a strong financial health score of GOOD.
Legend Biotech has also reported new findings that could potentially improve patient outcomes. According to the analysis, using ALC-guided prophylactic steroid treatment may enhance tolerability and reduce the risk of delayed neurological toxicity in patients receiving CAR-T treatments in real-world applications.
The continued success of Carvykti is seen as a positive indicator for Legend Biotech's growth prospects. The company's recent research findings further bolster confidence in its ability to address and potentially mitigate side effects associated with CAR-T therapies, which could improve patient experiences and outcomes.
Jefferies' revised price target reflects the firm's ongoing optimism about Legend Biotech's market position and future performance, despite the slight decrease from the previous target. The Buy rating indicates that the firm continues to see Legend Biotech as an attractive investment opportunity within the biotechnology sector.
In other recent news, Legend Biotech Corp has been maintaining a strong position in the market, as evidenced by its robust Q3 2024 financial results. The company reported CARVICTI sales of $286 million and, despite a net loss of $125 million, it still holds a strong financial stance with $1.2 billion in cash reserves. Analyst firms H.C. Wainwright and Piper Sandler have both reaffirmed their confidence in Legend's future, maintaining their Buy and Overweight ratings respectively.
RBC (TSX:RY) Capital Markets also identified Legend Biotech as a promising prospect for 2025 in its "Biotech Outlook" report, giving it an Outperform rating with an $86 price target. On a different note, Lori Macomber, former CFO at Legend Biotech, has been appointed as Executive Vice President, Chief Financial Officer, and Treasurer at Karyopharm Therapeutics (NASDAQ:KPTI).
These are recent developments for Legend Biotech, highlighting the firm's continued financial growth and positive reception from market analysts.
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