Buy Rating Affirmed for Legend Biotech on CARVYKTI Growth and Positive Clinical Developments

Analyst Justin Zelin of BTIG reiterated a Buy rating on Legend Biotech (LEGN – Research Report), retaining the price target of $91.00.

Justin Zelin has given his Buy rating due to a combination of factors related to Legend Biotech’s operational advancements and market prospects. The primary factor is the anticipated growth in CARVYKTI revenues, driven by the company’s strategic manufacturing expansions. Legend Biotech aims to double CARVYKTI capacity by the end of 2024 compared to the end of 2023, thanks to ramp-ups at the Raritan facility and the expected commencement of commercial production at new facilities in Belgium. This increased capacity, coupled with an expanded manufacturing agreement with Novartis, positions the company to meet a target dose capacity by 2025. Furthermore, operational improvements, such as the FDA’s broadening of manufacturing specifications, are projected to enhance yields and reduce out-of-spec rates, providing additional revenue tailwinds in the latter half of 2024.

Moreover, Zelin’s Buy rating is bolstered by promising clinical data and regulatory developments that may expedite timelines and de-risk Legend Biotech’s product pipeline. The company is set to present data from its CARTITUDE-2 Cohort D study at an upcoming ASCO meeting, which could strengthen the case for CARVYKTI’s use in patients with multiple myeloma who have sub-optimal responses to transplants. Additionally, the FDA’s positive stance on using minimal residual disease as an accelerated endpoint could accelerate the CART-6 study’s timeline. These clinical and regulatory milestones, along with plans to expand into autoimmune indications, offer potential catalysts for the company’s growth. Zelin’s valuation of Legend Biotech also incorporates a discounted cash flow analysis, reflecting his confidence in the company’s future financial performance.

In another report released on May 9, H.C. Wainwright also reiterated a Buy rating on the stock with a $87.00 price target.

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Legend Biotech (LEGN) Company Description:

Legend Biotech Corp is a clinical-stage biopharmaceutical company. It is engaged in the discovery and development of novel cell therapies for oncology and other indications. The firm’s lead product candidate, LCAR-B38M/JNJ-4528, is a chimeric antigen receptor, or CAR, T cell therapy is for the treatment of multiple myeloma. Its other pipeline products include LB1910, LB1909, LB1903, and others. Geographically, the company generates a majority of its revenue from North America.