Legend Biotech Outlook: Bearish Momentum and Mixed Signals

Market Snapshot

Legend Biotech (LEGN.O) has been hit by a strong bearish trend, with the stock down 15.29% recently. Despite a positive internal diagnostic score (0-10) of 7.79 for fund flows, technical indicators signal deep caution. The stock is best approached with a wait-and-watch stance due to its weak technical profile.

News Highlights

Recent news has underscored regulatory shifts and market uncertainty in the biotech sector: On May 9, 2025, a report highlighted that the FDA’s evolving leadership might raise the bar for drug approvals. This could impact Legend Biotech and other firms reliant on timely regulatory clearances. The risk of increased delays has already caused volatility in similar stocks. On May 13, 2025, news emerged about President Trump’s executive order aiming to reduce U.S. drug prices, which could significantly lower revenue for biotech firms like Legend. This has created uncertainty about long-term profitability and innovation pipelines. On May 29, 2025, the Department of Health and Human Services made changes to how Covid-19 vaccines are approved, which may affect broader vaccine and biotech strategies, though Legend Biotech isn’t directly involved in this space.

Analyst Views & Fundamentals

The analyst consensus for Legend Biotech is mixed. In the last 20 days, UBS issued a “Strong Buy” rating on December 8, 2025, but overall, ratings are spread out. Here’s a breakdown:

Average Rating Score (Simple Mean): 5.00 Weighted Rating Score (Performance-Weighted): 2.75 Ratings Consistency: Divergent – analysts show varied expectations. Alignment with Price Trend: The “Strong Buy” rating clashes with the 15.29% price drop, suggesting a disconnect between market sentiment and analyst optimism.

Key Fundamental Values and Model Scores ROE: -26.30% (score: 1.0 internal diagnostic score) ROA: -15.53% (score: 3.0) EV/EBIT: -2285.03% (score: 1.0) CFOA: -5.14% (score: 2.0) GPM: 57.66% (score: 1.0) Asset-MV: -44.82% (score: 2.0)

These figures show strong operational margins but weak profitability and poor return metrics, suggesting underlying financial challenges. The fundamental score (2.05) aligns with the bearish technical outlook.

Money-Flow Trends

Despite the overall bearish technical setup, money-flow data shows some positive inflow patterns from larger investors. Key inflow ratios include: Large Inflow Ratio: 51.20% Extra-Large Inflow Ratio: 46.24% Overall Inflow Ratio: 46.30%This suggests institutional confidence or opportunistic buying during the dip. However, the overall trend is still negative for most sizes of investors, including retail, with Small and Medium inflow ratios also declining. It may indicate a mixed market with short-term buying interest clashing with longer-term bearish sentiment.

Key Technical Signals

Legend Biotech’s technical outlook is bleak. The internal diagnostic score (0-10) for technical indicators is 1.58, and the stock is marked as “weak” with a clear “avoid” recommendation.Indicator Scores MACD Death Cross: 1.0 (bearish) MACD Golden Cross: 1.0 (bearish) Marubozu White: 1.0 (bearish) Long Upper Shadow: 1.78 (neutral bias) Long Lower Shadow: 3.1 (neutral rise)These signals confirm a high-risk environment with no bullish indicators emerging in the past five days. The key insights from the technical analysis reiterate a weak trend and a high risk of decline.

Recent Chart Patterns (Dec 2–Dec 8, 2025) Dec 8: Long Lower Shadow, MACD Death Cross (bearish confirmation) Dec 3: Marubozu White (bearish reversal) Dec 5: MACD Golden Cross (but bearish in context)

These signals confirm a high-risk environment with no bullish indicators emerging in the past five days. The key insights from the technical analysis reiterate a weak trend and a high risk of decline.

Conclusion

Legend Biotech is in a deeply bearish phase, marked by weak fundamentals, divergent analyst ratings, and poor technical signals. While money flows show some short-term interest, the 15.29% recent price drop and 1.58 technical score suggest a high-risk, low-reward environment.

Actionable takeaway: Consider avoiding this stock for now and wait for clearer signs of reversal or improved fundamentals. Investors might want to watch regulatory updates and earnings reports for potential catalysts, but the current trend points to continued caution.