On Wednesday, H.C. Wainwright maintained its Buy rating and $73.00 price target for shares of Legend Biotech Corp. (NASDAQ:LEGN). This affirmation follows the recent approval by China's National Medical Products Administration (NMPA) of CARVYKTI for a specific multiple myeloma treatment.
CARVYKTI, also known as ciltacabtagene autoleucel or cilta-cel, has been authorized for adult patients with relapsed or refractory multiple myeloma (RRMM) who have not responded to at least three prior therapies, including a proteasome inhibitor and an immunomodulatory agent.
The Chinese approval is based on results from the ongoing Phase 2 CARTIFAN-1 clinical study conducted in China. The approved indication in China is more limited compared to the U.S. Food and Drug Administration's (FDA) broader label, which includes RRMM patients after two or more lines of therapy.
The potential market for CARVYKTI in China is significant, with an estimated 167,000 new cases of multiple myeloma expected in 2024, compared to approximately 36,000 annual cases in the U.S.
Despite the broader patient population in China, the market dynamics differ substantially from the U.S. In China, branded prescription drugs often have prices that are significantly lower, in some instances over 60% cheaper, than in the U.S. Additionally, the Chinese market is largely self-pay, as insurance coverage is not as common. These factors may moderate the speed of CARVYKTI's sales growth in China.
The continued endorsement of Legend Biotech's stock by H.C. Wainwright reflects the firm's view on the potential market uptake of CARVYKTI in China despite the current pricing and insurance coverage environment. The firm's position remains unchanged, with a 12-month price target of $73 on Legend Biotech's stock.
In other recent news, Legend Biotech has reported robust second-quarter revenues, primarily driven by the sales of its cancer treatment drug, Carvykti. BMO Capital reiterated their Outperform and Buy ratings respectively, demonstrating confidence in the company's performance. Carvykti sales for the quarter were reported at $186 million, a 19% increase from the previous quarter, exceeding the Street consensus estimates.
Scotiabank has revised its price target for Legend Biotech to $70.00, maintaining a Sector Outperform rating, following the significant sales beat. Meanwhile, TD Cowen has lowered its price target to $67, citing expected slower growth for Carvykti, but still maintains a Buy rating. BTIG also continues to hold a Buy rating, with a $91.00 price target, indicating a positive stance on the company's prospects.
The company also reassured investors regarding the potential impact of the Biosecure Act, with management asserting that the legislation is not expected to pose a significant threat to Legend Biotech's operations. Additionally, the company has been the subject of speculation regarding potential mergers and acquisitions, which could serve as a catalyst for further upside in the company's stock value.
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