Legend Biotech’s Strategic Expansion Through a Potential Dual Listing

Legend Biotech (LEGN) has emerged as a pivotal player in the biotech sector, leveraging its flagship CAR-T cell therapy, CARVYKTI, to drive revenue growth of 134.73% as of December 2024 [2]. However, despite its robust innovation pipeline and market traction, the company’s net margin of 14.09% underscores persistent profitability challenges [5]. To address these hurdles and unlock long-term value, Legend Biotech is reportedly exploring a dual listing on international exchanges such as the Hong Kong Stock Exchange (HKEX) or NASDAQ. This strategic move, if executed, could optimize its capital structure, enhance valuation visibility, and position the firm to capitalize on global biotech market dynamics.

Capital Structure and Valuation: A Foundation for Growth

Legend Biotech’s current capital structure reflects a conservative approach to financing. As of December 2025, the company holds $967.56 million in cash reserves and $387.91 million in total debt, yielding a debt-to-equity ratio of 0.16 [1]. This low leverage, combined with a current ratio of 5, signals strong liquidity and financial flexibility [2]. However, the firm’s market capitalization of $6.41–6.46 billion appears undervalued relative to intrinsic valuation metrics. Discounted cash flow (DCF) and relative valuation models estimate its fair value at $44.9 per share, a 23.9% premium to its August 2025 price of $36.2 [4]. Analysts further project a 12-month average price target of $75.8, reflecting optimism about its long-term potential [5].

The disconnect between Legend Biotech’s current valuation and its growth prospects suggests untapped value. A dual listing could address this by expanding access to international capital pools, reducing reliance on U.S.-centric investors, and diversifying risk amid geopolitical uncertainties. For instance, a Hong Kong listing might attract Asian institutional investors, while a NASDAQ listing could deepen liquidity for U.S. shareholders.

Strategic Rationale for Dual Listing

The biotech industry’s capital-intensive nature necessitates strategic financing solutions. Dual listings have become a favored tool for firms seeking to optimize capital structures while navigating regulatory and market volatility. According to EY’s Q2 2025 Global IPO Trends report, cross-border listings accounted for 62% of U.S. IPOs in the first half of 2025, with companies from Greater China and Singapore leading the charge [3]. This trend highlights the growing appetite for international exposure among investors and the potential for dual-listed firms to access diversified funding sources.

For Legend Biotech, a dual listing aligns with broader strategic goals. The company has already tapped into China’s STAR Market to advance its oncology pipeline, benefiting from domestic demand and supportive regulatory policies [1]. Expanding to additional markets would further diversify its investor base, mitigate regional market risks, and enhance brand recognition. Moreover, dual listings often improve corporate governance standards, which can bolster investor confidence and reduce cost of capital.

Valuation Uplift and Industry Trends

The potential valuation uplift from a dual listing is supported by broader industry trends. In 2025, global biotech IPO activity surged, with cross-border deals accounting for a significant share of proceeds [3]. This reflects investor demand for innovative therapies and the sector’s resilience amid macroeconomic headwinds. For Legend Biotech, a dual listing could amplify its visibility in markets where CAR-T therapies are gaining traction, such as Europe and Asia.

Additionally, the company’s partnerships with global pharma giants like Johnson & Johnson underscore its strategic value in the cell therapy ecosystem [1]. These collaborations provide access to commercialization expertise and funding, further strengthening its capital structure. By pairing these alliances with a dual listing, Legend Biotech could accelerate R&D investments while maintaining financial prudence.

Risks and Considerations

While dual listings offer clear advantages, they also entail challenges. Regulatory compliance costs, currency risks, and the complexity of managing multiple market expectations could strain operational efficiency. For example, COSCIENS Biopharma’s recent delisting from NASDAQ to reduce costs illustrates the trade-offs firms face when balancing capital access and operational overhead [2]. Legend Biotech must carefully weigh these factors to ensure its dual listing strategy aligns with long-term objectives.

Conclusion: A Strategic Leap for Biotech’s Future

Legend Biotech’s potential dual listing represents a calculated step toward capital structure optimization and valuation uplift. By leveraging international markets, the company can diversify funding sources, enhance liquidity, and position itself to capitalize on the global demand for next-generation therapies. With a strong balance sheet, a high-growth revenue trajectory, and analyst optimism, the firm is well-positioned to navigate the complexities of dual listings and emerge as a biotech leader in an increasingly interconnected world.

**Source:[1] LEGN Legend Biotech Corporation Valuation Measures [https://seekingalpha.com/symbol/LEGN/valuation/metrics][2] Breaking Down Legend Biotech Corporation (LEGN) [https://dcfmodeling.com/blogs/health/legn-financial-health?srsltid=AfmBOoqpus33tE8KJAeejPfH4Zj37YT0FPisfqJ9fzPD7mJtY02Vkjcr][3] EY Global IPO Trends Q2 2025 | EY - US [https://www.ey.com/en_us/insights/ipo/trends][4] Legend Biotech Corporation (LEGN) Intrinsic Value [https://valuesense.io/ticker/legn/intrinsic-value][5] Demystifying Legend Biotech: Insights From 5 Analyst Reviews [https://www.nasdaq.com/articles/demystifying-legend-biotech-insights-5-analyst-reviews]