In a challenging year for biotech firms, Legend Biotech Corp (LEGN) stock has touched a 52-week low, dipping to $38.59. The company, known for its innovative approaches in the biotechnology sector, has faced a tough market environment, contributing to a significant 1-year change with a decline of 38.9%. Investors have shown concern as the stock struggles to regain momentum amidst a broader industry downturn, reflecting a cautious stance towards biotech investments during the period. Despite the current lows, market watchers are closely monitoring Legend Biotech for any signs of a turnaround that could provide a silver lining for the stock's future performance.
In other recent news, Legend Biotech reported substantial growth in net sales for its CARVYKTI treatment during a recent earnings call. The firm recorded an 87.6% year-over-year growth, reaching nearly $286 million, a significant 53.2% increase from the previous quarter. Despite incurring a net loss of $125 million mainly due to unrealized foreign exchange losses, the company maintains a robust financial position with $1.2 billion in cash and equivalents, ensuring operational funding into 2026.
In addition, Cantor Fitzgerald adjusted its price target on Legend Biotech's shares to $83.00, up from the previous $82.00, while maintaining an Overweight rating on the stock. This adjustment came after an intense discussion surrounding the data from anito-cel's abstract at the recent American Society of Hematology (ASH) meeting. Despite market reactions to the competitor's data, the Legend Biotech management team robustly defended the efficacy and safety profile of their product Carvykti.
The firm also updated its revenue projections for Carvykti following Legend Biotech's recent 6-K filing. The firm now models $321 million in revenue for the fourth quarter of 2024, an increase from the prior estimate of $257 million. The projections for 2025 have been raised to $1.86 billion from $1.58 billion, and for 2026, the estimate is now $2.43 billion, up from the previous $2.08 billion.
In terms of corporate developments, Legend Biotech recently appointed Alan Bash as President of the CARVYKTI business unit and expanded its research facilities. The company has also been focusing on increasing its presence in Europe and the U.S., with the approval of the Obelisc facility's production and the establishment of new treatment centers.
InvestingPro Insights
Legend Biotech's recent stock performance aligns with the challenging landscape for biotech firms, as reflected in its current market valuation of $7.11 billion. Despite the stock's 52-week low, InvestingPro data reveals some promising aspects of the company's financial health. Legend Biotech's revenue growth is noteworthy, with a 122.96% increase over the last twelve months as of Q3 2024, and a 66.86% quarterly growth in Q3 2024. This robust top-line expansion suggests that the company's innovative approaches are gaining traction in the market.
However, profitability remains a concern. InvestingPro Tips highlight that Legend Biotech is not profitable over the last twelve months, with a negative gross profit margin. This is not uncommon for biotech companies investing heavily in research and development. On a positive note, the company holds more cash than debt on its balance sheet, providing financial flexibility during this challenging period.
Analysts maintain a bullish outlook on Legend Biotech's potential, with a fair value estimate of $84 per share, significantly above its current trading price. This suggests that despite current market skepticism, there may be untapped value in the stock. For investors considering Legend Biotech, InvestingPro offers 8 additional tips to provide a more comprehensive analysis of the company's prospects.
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