On Wednesday, BMO (TSX:BMO) Capital maintained a positive outlook on Legend Biotech Corp. (NASDAQ:LEGN) shares, reiterating an Outperform rating and a $90.00 price target. The firm's analysis of recent IQVIA sales data suggests that Legend Biotech's Carvykti worldwide sales for the third quarter of 2024 are estimated to be between $280 million and $295 million. This figure surpasses the consensus among LEGN analysts by approximately 12-18% and is 17-27% higher than the consensus among Johnson & Johnson analysts.
The analysis by BMO Capital indicates a robust quarter-over-quarter growth for Carvykti, estimating an increase of about 50-60%. This growth is seen as a confirmation of Carvykti's strong market potential. The firm's projections are based on an assumed net-to-gross discount of 11% and that 85-90% of total sales are attributed to the U.S. market, in line with historical data trends.
While BMO Capital acknowledges the lack of visibility regarding the accuracy of the IQVIA data, they note that the sales figures from previous quarters have been consistent with reported sales. This lends credence to their current sales projections for Carvykti.
Investor expectations are aligned with the analyst's projections, with a general anticipation that third-quarter sales of Carvykti will surpass consensus estimates. The positive sentiment is based on the strong performance indicated by the sales data analysis.
Legend Biotech's stock maintains its Outperform rating due to the encouraging sales performance of its product, Carvykti, as suggested by the third-quarter sales data. The $90.00 price target set by BMO Capital reflects the firm's confidence in the continued success and growth potential of the biotech company.
In other recent news, Legend Biotech has seen significant advancements with its product Carvykti, a therapy for the treatment of multiple myeloma. The drug has shown promising results, leading to a Buy rating from Redburn-Atlantic, with an $86.00 price target. Moreover, the company announced plans to establish a new research and development facility in Philadelphia, a move that H.C. Wainwright believes will enhance its cell therapy portfolio, maintaining a Buy rating and a $73.00 price target.
Scotiabank (TSX:BNS) reiterated a Sector Outperform rating on Legend Biotech, maintaining a steady price target of $76.00, following the announcement of positive clinical trial results for Carvykti. BMO Capital Markets also sustained its positive stance on the company, maintaining an Outperform rating and a $90.00 price target, highlighting the promising results from the company's Carvykti therapy.
Piper Sandler maintained its Overweight rating and $90.00 price target on Legend Biotech shares, following the presentation of Phase III CARTITUDE-4 data, which showed that Carvykti reduced the risk of death by 45% compared to alternative treatments.
The company's recent revenues of $186 million, primarily driven by Carvykti, exceeded estimates, leading various firms to maintain their respective positive ratings. These recent developments highlight the potential growth and success of Legend Biotech in the biotechnology sector.
InvestingPro Insights
To complement BMO Capital's positive outlook on Legend Biotech Corp. (NASDAQ:LEGN), recent data from InvestingPro provides additional context to the company's financial position and market performance.
InvestingPro data shows that Legend Biotech's revenue growth has been impressive, with a 176.93% increase over the last twelve months as of Q2 2024. This aligns well with BMO Capital's projections of strong Carvykti sales growth. The company's market capitalization stands at $8.86 billion, reflecting investor confidence in its potential.
However, it is important to note that despite the strong sales growth, Legend Biotech is not yet profitable. An InvestingPro Tip highlights that the company was not profitable over the last twelve months, and analysts do not anticipate profitability this year. This is not uncommon for biotech companies in growth phases, especially those with promising products like Carvykti.
Another InvestingPro Tip indicates that Legend Biotech holds more cash than debt on its balance sheet, which could provide financial flexibility as the company continues to invest in growth and product development.
For investors seeking a more comprehensive analysis, InvestingPro offers 8 additional tips for Legend Biotech, providing a deeper understanding of the company's financial health and market position.
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