Legend Biotech's Q4 2024: Unpacking Contradictions in Neurotoxicity Management, Manufacturing, and Market Dynamics

These are the key contradictions discussed in Legend Biotech Corporation's latest 2024 Q4 earnings call, specifically including: Neurotoxicity Management, CARVYKTI's Outpatient Administration, Manufacturing Capacity Expansion, and Supply Demand Dynamics:



CARVYKTI Market Performance:
- Legend Biotech reported net trade sales of CARVYKTI for Q4 were approximately $334 million, a 110% increase year-over-year and 17% increase from Q3.
- The growth was driven by strong demand, capacity expansion, and the CARTITUDE-4 label launch for use as early as the second line.

Outpatient Administration and Capacity Expansion:
- Approximately half of CARVYKTI's business is now being administered in outpatient settings, driven by a delayed onset of CRS.
- This shift allows for increased capacity in treatment centers and improved patient care.

Manufacturing and Supply Chain:
- Legend and J&J are pioneering large-scale manufacturing, including the FDA approval for commercial production at the CMO Novartis facility in New Jersey and initiation of production at the Tech Lane facility in Belgium.
- These milestones are crucial for meeting increasing demand and expanding patient access globally.

Pipeline and R&D Investments:
- The company is investing in expanding its pipeline, with multiple Phase 1 programs in gastric and lung cancer, and plans to open a new research center in Philadelphia.
- These efforts are aimed at leveraging the successful model from CARVYKTI to other therapeutic areas and solid tumor programs.

Financial Performance and Profitability:
- Total revenues for Q4 were $187 million, with a net profit of $26 million, driven by an unrealized foreign exchange gain of $110 million.
- Despite fluctuations in foreign exchange rates, Legend Biotech anticipates achieving profitability in 2026, excluding unrealized foreign exchange gains.