Legend Biotech: J.P. Morgan Maintains Overweight, PT Raised to $78

Legend Biotech: J.P. Morgan Maintains Overweight, PT Raised to $78

J.P. Morgan has maintained its Overweight rating on Legend Biotech Corporation (NASDAQ:LEGN) and raised the firm's price target to $78 from $76, according to a recent research note. The upgrade reflects the investment bank's confidence in the company's growth prospects and the continued success of its CAR-T cell therapy franchise, CARVYKTI [1].

Legend Biotech, a clinical-stage biopharmaceutical company, has been making strides in the development of advanced cell therapies for various oncology indications. The company's lead product candidate, ciltacabtagene autoleucel (cilta-cel), an autologous chimeric antigen receptor (CAR-T) cell therapy targeting the B-cell maturation antigen (BCMA), has shown promising results in clinical trials. The appointment of Carlos Santos as the Chief Financial Officer (CFO) further underscores the company's commitment to financial discipline and strategic planning, aiming to achieve profitability by 2026 [2].

The analyst at J.P. Morgan noted that the Q2 beat by Legend Biotech suggests continuing strong demand and successful manufacturing for CARVYKTI, supporting sustainable growth for the franchise. The firm anticipates growth in the US and additional acceleration ex-US, with several tailwinds including the pull-through of 5-year OS data. Despite wider losses year over year, the company's outlook has benefited from positive long-term clinical data and strong commercial momentum for CARVYKTI [3].

Legend Biotech's narrative projects $2.2 billion in revenue and $600.3 million in earnings by 2028, requiring 45.0% yearly revenue growth and an $818.4 million earnings increase from the current earnings of $-218.1 million. The appointment of Carlos Santos, who brings extensive experience from major pharmaceutical firms, is expected to strengthen the company's financial operations and support the continued success of its CAR-T cell therapy franchise [3].

In conclusion, J.P. Morgan's positive outlook and price target raise reflect the investment bank's confidence in Legend Biotech's growth prospects and the potential of its CAR-T cell therapy franchise. The company's strategic appointments and strong clinical data suggest a promising future, positioning it as a key player in the biotech industry.

References:
[1] https://finance.yahoo.com/news/rbc-capital-lifts-pt-legend-035712295.html
[2] https://www.marketscreener.com/news/legend-biotech-appoints-carlos-santos-as-chief-financial-officer-ce7c51dcd88af52d
[3] https://www.ainvest.com/news/legend-biotech-appoints-carlos-santos-cfo-enhance-financial-strategy-drive-profitability-2508/