On Thursday, H.C. Wainwright maintained a positive stance on shares of Legend Biotech Corp. (NASDAQ:LEGN), reiterating a Buy rating and a $73.00 price target for the company's stock. The endorsement follows the announcement of second-quarter sales figures for CARVYKTI, a cancer treatment developed in partnership with Janssen, a division of Johnson & Johnson.
Legend's partner Janssen disclosed that CARVYKTI generated $186 million in sales for the second quarter of 2024, marking a 19% increase from the first quarter's $157 million. This growth reverses a previous 1% quarter-over-quarter decline observed from the fourth quarter of 2023 to the first quarter of 2024.
The reported sales not only represent a significant quarterly growth but also exceed the expectations set by H.C. Wainwright's model, which predicted $170 million, as well as the Street consensus estimates of $177 million.
The analyst's reaffirmed price target of $73 per share reflects confidence in the continued success of CARVYKTI. The therapy's recent performance suggests a robust demand and a positive trajectory for the product, which is crucial for Legend Biotech's revenue stream.
Legend Biotech, operating in the biotechnology sector, focuses on developing novel therapies for life-threatening diseases. The company's partnership with Janssen and the success of CARVYKTI are central to its growth strategy and market presence.
Investors and stakeholders in Legend Biotech may find the second-quarter sales figures for CARVYKTI reassuring, as the company continues to navigate the competitive landscape of the biotech industry. The reiterated Buy rating and price target signal a steady outlook for Legend's financial performance in the near term.
In other recent news, Legend Biotech has seen a flurry of analyst activity following significant developments in its multiple myeloma treatment, Carvykti. Scotiabank raised its price target on the company's shares to $70, following a notable sales beat by Carvykti.
The firm maintained its Sector Outperform rating, indicating optimism regarding Legend Biotech's future growth prospects. Meanwhile, TD Cowen revised its price target downwards, expecting slower growth for Carvykti but maintained its Buy rating.
H.C. Wainwright and BMO Capital have maintained their Buy and Outperform ratings respectively, with H.C. Wainwright setting a price target of $73.00 and BMO Capital at $90.00. They cited strong demand for Carvykti and improved manufacturing metrics.
Piper Sandler projects that Carvykti's revenues will reach $900 million this year, with a substantial increase to $1.75 billion by 2025. These projections reflect the analysts' confidence in Legend Biotech's strategic direction and the commercial prospects of Carvykti.
Legend Biotech's Carvykti demonstrated a significant survival benefit in a multiple myeloma study, according to recent trial results. The Phase 3 trial, CARTITUDE-4, demonstrated a meaningful improvement in overall survival, with safety outcomes consistent with CARVYKTI®'s known safety profile.
In addition, the company has initiated IND-enabling studies for two allogeneic therapies and ended the first quarter of 2024 with approximately $1.3 billion in cash reserves. These are significant developments that reflect the analysts' confidence in Legend Biotech's strategic direction and the commercial prospects of CARVYKTI.
InvestingPro Insights
Legend Biotech Corp. (NASDAQ:LEGN) has shown a robust performance with its second-quarter sales figures for CARVYKTI, and the positive outlook from analysts is reflected in the company's financial metrics. With a significant revenue growth of 206.05% in the last twelve months as of Q1 2024, Legend Biotech is demonstrating a strong upward trajectory.
The company's market capitalization stands at $10.68 billion, showcasing its substantial size within the biotech sector. Despite the challenges that come with negative gross profit margins, as indicated by the -63.84% from the same period, the company holds more cash than debt, which is a positive sign for financial stability.
Moreover, the strong price total returns of 13.4% over the last week, 35.87% over the last month, and 16.72% over the last three months highlight the positive investor sentiment towards Legend Biotech's stock.
InvestingPro Tips suggest that analysts are expecting sales growth in the current year, which may further bolster Legend's financial health. However, it's worth noting that the company is trading at a high revenue valuation multiple and a high Price/Book multiple of 8.77, which could indicate that the stock is priced optimistically relative to its book value.
For investors looking for deeper insights, there are additional InvestingPro Tips available, which can be accessed by visiting: https://www.investing.com/pro/LEGN. For those considering an InvestingPro subscription, use the coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription.
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