Legend Biotech and Janssen's CAR-T Collaboration: A Catalyst for Long-Term Growth in a $10B+ Market

The collaboration between Legend Biotech and Janssen represents one of the most strategically significant partnerships in the rapidly evolving CAR-T therapy landscape. With the recent expansion of their supply agreement for Carvykti (ciltacabtagene autoleucel), the duo is poised to capitalize on the growing demand for personalized cancer treatments while addressing critical manufacturing bottlenecks. For investors, this partnership offers a compelling case for long-term growth, underpinned by robust clinical data, scalable infrastructure, and a shared financial model that aligns incentives.

Strategic Partnership: Shared Risk, Shared Rewards

Legend Biotech and Janssen's collaboration, initiated in 2017, is structured around a 50/50 cost-sharing and profit-split agreement globally, with Legend retaining a 70% stake in Greater China, according to a Janssen press release. This arrangement has proven mutually beneficial: Janssen gains access to Legend's cutting-edge CAR-T platform, while Legend leverages Janssen's global commercialization expertise. The recent 2025 supply deal further solidifies this partnership by addressing production constraints. By investing $150 million in a new manufacturing facility in Ghent, Belgium, and scaling operations at existing sites in Raritan, New Jersey, and Novartis' Obelisc facility, the companies aim to double Carvykti's supply by year-end, according to a Pharma Manufacturing report. This expansion is critical, as CAR-T therapies require complex, cell-specific manufacturing processes that have historically limited scalability.

Clinical Success Drives Market Expansion

Carvykti's clinical profile has been a key driver of its commercial success. A phase 3 trial demonstrated a 74% reduction in tumor progression or death among patients with relapsed or refractory multiple myeloma, leading to FDA approval in 2022 and an expanded indication in April 2024 for patients with just one prior line of therapy, as noted in the Janssen press release. This broader eligibility has significantly expanded the patient pool, with analysts projecting peak annual sales of $7.2 billion by 2030, according to a Visible Alpha analysis. For Legend, this means a direct correlation between Carvykti's adoption and its revenue potential. Given the 50/50 profit-split model, Legend stands to benefit from every incremental dose produced and sold.

Financial Implications: A Path to Billion-Dollar Earnings

Carvykti's financial performance underscores its blockbuster potential. In 2024, the therapy generated $963 million in sales, and 2025 projections suggest a leap to $1.7 billion, per Visible Alpha's estimates. With Legend's 50% share, this translates to $850 million in direct revenue for the company in 2025 alone. The new manufacturing facilities, expected to produce over 10,000 doses annually by late 2025 as the Pharma Manufacturing report notes, will further amplify these figures. Additionally, the cost-sharing structure reduces Legend's financial exposure, allowing it to scale production without shouldering the full burden of capital expenditures.

Long-Term Growth: Leadership in a $10B+ Market

The CAR-T market is projected to exceed $10 billion by 2030, driven by advancements in BCMA-targeted therapies like Carvykti and expanding applications in other cancers. Legend's partnership with Janssen positions it as a market leader in this space. By securing a dominant share of the multiple myeloma CAR-T market and leveraging its manufacturing expertise, Legend is well-positioned to enter new therapeutic areas. The company's ability to navigate regulatory hurdles-evidenced by Carvykti's rapid approval timeline-further strengthens its competitive edge.

Conclusion: A Win-Win for Innovation and Investors

Legend Biotech's collaboration with Janssen exemplifies the power of strategic alliances in biotech. By combining Legend's scientific innovation with Janssen's commercial prowess, the partnership has created a therapy that is not only clinically transformative but also financially rewarding. For investors, the expansion of manufacturing capacity, coupled with Carvykti's strong market trajectory, signals a high-conviction opportunity. As the CAR-T market matures, Legend's leadership in BCMA-targeted therapies and its scalable infrastructure will likely drive sustained growth, making it a cornerstone of the personalized medicine revolution.