Legend Biotech's Strategic Second Listing: A Pathway to Valuation Growth and Risk Mitigation?

In the ever-shifting landscape of biotechnology, Legend Biotech (LEGN) has emerged as a case study in strategic adaptation. The company, best known for its CAR-T therapy Carvykti and its $1 billion partnership with Novartis, now faces a pivotal decision: whether to pursue a dual-listing strategy to mitigate regulatory risks and unlock valuation potential. While no official announcement has materialized as of September 2025, whispers of a secondary listing outside the U.S. have gained traction, fueled by geopolitical headwinds and the company’s evolving ownership structure.

Financial Rationale: Diversification Amid Uncertainty

Legend’s financials tell a story of resilience. Q2 2025 earnings revealed robust revenue growth, driven by Carvykti’s expansion into multiple myeloma and the company’s deepening collaboration with Novartis [2]. However, its valuation remains constrained by a “BIOSECURE discount”—a term coined by analysts to describe the market’s skepticism toward firms with historical ties to China [1]. Despite Legend’s reduced ownership by GenScript, its Chinese roots continue to cast a shadow, particularly as the U.S. government scrutinizes biotech supply chains for national security risks.

A dual-listing could address this discount by diversifying Legend’s investor base and reducing reliance on U.S. markets. Secondary listings in jurisdictions like Singapore, which offer political neutrality and strong intellectual property protections, could attract institutional investors wary of U.S.-China tensions [3]. Such a move would also align with broader industry trends: biotech firms are increasingly seeking to hedge against geopolitical volatility by splitting their capital-raising efforts across multiple geographies.

Geopolitical Factors: The BIOSECURE Act’s Shadow

The stalled BIOSECURE Act, which passed the U.S. House in September 2024 but remains deadlocked in the Senate, has created a temporary reprieve for Legend and other China-linked biotechs. The legislation, if enacted, would prohibit federal agencies from procuring services from Chinese firms deemed national security risks, including WuXi AppTec and BGI [4]. While Legend is not explicitly named in the Act, its historical ties to China and GenScript have left it vulnerable to regulatory overreach.

The Act’s delays have given Legend a window to act before stricter rules materialize. By listing in a jurisdiction less entangled in U.S.-China tensions, the company could insulate itself from potential supply chain disruptions and reputational damage. This strategy mirrors moves by other biotechs, such as BeiGene, which has similarly explored exits or partnerships to navigate the evolving regulatory landscape [5].

Jurisdictional Considerations: Singapore as a Strategic Hub

Singapore has emerged as a leading candidate for Legend’s secondary listing. The city-state’s regulatory framework, which aligns with U.S. and EU standards, offers a bridge to global markets while avoiding the political risks of China or the U.S. [3]. Its commitment to innovation—bolstered by public funding and a neutral geopolitical stance—makes it an attractive destination for biotechs seeking to balance growth and stability.

Other Asia-Pacific jurisdictions, such as Hong Kong or Tokyo, could also be viable, but Singapore’s track record in attracting biotech firms (e.g., BeiGene’s 2023 listing) gives it a distinct edge. A dual-listing there would not only diversify Legend’s capital base but also signal a strategic pivot toward a U.S.-centric identity, a move that could appease investors concerned about the company’s China exposure [1].

Risks and Counterarguments

Critics argue that a dual-listing may not address Legend’s deeper challenges. Its pipeline, while anchored by Carvykti, lacks the breadth of competitors like Bristol Myers Squibb or Gilead. Additionally, shared commercial rights with Novartis and Johnson & Johnson could limit upside potential, making the company a less attractive acquisition target despite takeover speculation [5].

Moreover, the cost of maintaining dual listings—including compliance with multiple regulatory regimes—could strain resources. For a mid-cap biotech, these expenses must be weighed against the benefits of risk mitigation and valuation growth.

Conclusion: A Calculated Bet on Stability

Legend Biotech’s potential dual-listing represents a calculated bet on stability in an unstable world. By leveraging Singapore’s regulatory strengths and the temporary reprieve from the BIOSECURE Act, the company could reduce its geopolitical risk premium and unlock value for shareholders. However, success hinges on execution: the listing must be timed to capitalize on the Act’s delays while avoiding the pitfalls of overextension.

As the biotech sector grapples with a new era of geopolitical scrutiny, Legend’s strategy offers a blueprint for balancing innovation with resilience. Whether this path leads to sustained growth or merely delays an inevitable reckoning remains to be seen.

Source:
[1] Legend Biotech Said to Consider Second Listing Outside US, Bloomberg Reports [https://www.marketscreener.com/news/legend-biotech-said-to-consider-second-listing-outside-us-bloomberg-reports-ce7d59d9dd88f423]
[2] Earnings call transcript: Legend Biotech Q2 2025 reveals strong revenue growth [https://www.investing.com/news/transcripts/earnings-call-transcript-legend-biotech-q2-2025-reveals-strong-revenue-growth-93CH-4183060]
[3] Empowering Biotech Innovation in Asia-Pacific [https://www.bain.com/insights/empowering-biotech-innovation-in-asia-pacific]
[4] BIOSECURE Act: US to Target Chinese Biotechnology Companies [https://regandtrade.com/2024/09/biosecure-act-us-to-target-chinese-biotechnology-companies]
[5] Should BeiGene and Legend sell themselves in 2025? [https://www.fiercepharma.com/pharma/should-beigene-and-legend-sell-themselves-2025]