Legend Biotech's Strategic Expansion: Implications for Second Listing and Global Market Access

Legend Biotech (LEGN) has emerged as a pivotal player in the global CAR-T therapy market, driven by the blockbuster performance of its flagship product, CARVYKTI. In Q2 2025, the therapy generated $439 million in sales—a 136% year-over-year increase—while the company reported an adjusted net income of $10.1 million despite an IFRS net loss of $125 million [1]. This financial duality underscores a critical strategic shift: Legend is balancing near-term profitability with long-term capital allocation to fuel cross-border expansion. As the company eyes a potential second listing in markets like Hong Kong or Singapore, investors must evaluate how its capital structure and global ambitions align with broader trends in biotech innovation and market access.

Capital Structure: A Conservative Foundation for Aggressive Growth

Legend’s debt-to-equity ratio of 37.46% as of Q2 2025 [2] reflects a relatively conservative approach to leverage, prioritizing equity over debt to fund operations. This structure has allowed the company to maintain flexibility in scaling its manufacturing footprint, including the activation of 213 global treatment sites and plans to achieve 10,000 annualized doses by year-end [1]. However, the company’s $1 billion in cash reserves [3] suggests room for strategic debt or equity issuance to accelerate expansion. A second listing could diversify Legend’s funding sources while tapping into Asian markets, where biotech valuations have surged—exemplified by the Hang Seng Biotech Index’s 100% gain in 2025 [3].

Cross-Border Expansion: From Manufacturing to Market Access

Legend’s global strategy hinges on three pillars: manufacturing scalability, regulatory approvals, and partnerships. The company has initiated clinical production of CARVYKTI at its Ghent, Belgium facility, with commercial production slated for late 2025 [4]. Regulatory wins, such as Australia’s approval for relapsed/refractory multiple myeloma and the European Medicines Agency’s positive opinion on label updates [4], have expanded its addressable market. Meanwhile, partnerships like its collaboration with Janssen—critical to CARVYKTI’s development—demonstrate how Legend leverages external expertise to de-risk R&D and reduce capital outlays [5].

Second Listing: Valuation Gains or Strategic Distraction?

A second listing in Asia could offer Legend Biotech a dual benefit: enhanced liquidity and access to growth-oriented investors. Bloomberg reports indicate the company is in early discussions with advisers for a potential Hong Kong or Singapore listing [3], where biotech investors have shown a premium for scalable platforms. However, the decision carries trade-offs. While a second listing might boost valuation by 20–30% (based on regional biotech premiums), it could also divert management focus from operational execution. For now, Legend’s stock has gained 11% in 2025 but remains down 33% over the past year [3], suggesting market skepticism about its path to full profitability by 2026.

Strategic Partnerships: The Biotech Industry’s New Normal

The broader biotech sector has increasingly relied on partnerships to optimize capital structures. According to BCG’s Biopharma Trends 2025 report, companies are prioritizing collaborations to reduce R&D costs and accelerate commercialization [5]. Legend’s model—leveraging Janssen’s global distribution network while retaining key intellectual property—aligns with this trend. By minimizing upfront capital expenditures and sharing risk, the company can redirect resources toward expanding its cell therapy pipeline and entering emerging markets like Southeast Asia and Latin America.

Conclusion: A Calculated Path to Global Leadership

Legend Biotech’s strategic expansion reflects a nuanced approach to capital structure and cross-border growth. With a conservative debt profile, a robust cash balance, and a pipeline anchored by CARVYKTI, the company is well-positioned to capitalize on its second listing ambitions. However, success will depend on its ability to balance near-term financial discipline with long-term market access goals. As Chinese biotechs continue to redefine global innovation in hematology oncology [6], Legend’s next moves could set a precedent for how emerging-market firms navigate the complexities of international capital markets.

Source:
[1] Legend Biotech Q2 2025 slides: CARVYKTI sales surge ..., [https://www.investing.com/news/company-news/legend-biotech-q2-2025-slides-carvykti-sales-surge-136-adjusted-profit-achieved-93CH-4182828]
[2] LEGN Legend Biotech Corporation Stock Price & Overview, [https://seekingalpha.com/symbol/LEGN]
[3] Legend Biotech Considering Second Listing Outside US, [https://stocktwits.com/news-articles/markets/equity/legend-biotech-considering-second-listing-outside-us-report/chwIifbRdqJ]
[4] Legend Biotech Reports First Quarter 2025 Results and ..., [https://legendbiotech.gcs-web.com/news-releases/news-release-details/legend-biotech-reports-first-quarter-2025-results-and-recent/]
[5] Biopharma Trends 2025, [https://www.bcg.com/publications/2025/biopharma-trends]
[6] Lab leader, market ascender: China's rise in biotechnology, [https://merics.org/en/report/lab-leader-market-ascender-chinas-rise-biotechnology]