Legend Biotech’s Strategic Pursuit of a Secondary Listing in Asia: Assessing Valuation Uplift and Geopolitical Risk Mitigation

In the shadow of escalating U.S.-China trade tensions and the looming specter of the BIOSECURE Act, Legend Biotech (NASDAQ: LEGN) has emerged as a case study in strategic resilience. The company’s rumored exploration of a secondary listing in Asia—potentially in Hong Kong, Singapore, or London—reflects a broader industry trend of biotech firms diversifying their capital structures to mitigate geopolitical risks while unlocking valuation potential. For investors, the question is whether this move represents a calculated hedge against uncertainty or a necessary pivot in a rapidly shifting global landscape.

Valuation Uplift: A Premium on Innovation, But at What Cost?

Legend Biotech’s financials tell a story of high-growth ambition. Over the past year, the company reported a 73.2% revenue increase, with a three-year compound annual growth rate of 91.4% [1]. However, profitability remains elusive: a net margin of -40.83% and operating margin of -27.1% underscore the heavy R&D and manufacturing costs inherent in biotech innovation [1]. Despite these challenges, Legend trades at a premium—price-to-sales (P/S) of 8.28 and price-to-book (P/B) of 6.39—suggesting investor confidence in its pipeline, particularly its FDA-approved CAR-T therapy, Cilta-cel [2].

A secondary listing in Asia could amplify this premium. Hong Kong, for instance, has become a magnet for biotech firms, with the Hang Seng Biotech Index surging over 100% in 2025 [3]. This surge reflects not only demand for innovation but also a flight of capital toward markets perceived as less exposed to U.S.-China regulatory friction. For Legend, a dual listing could enhance liquidity, attract Asian institutional investors, and provide a buffer against the volatility of U.S. markets, where geopolitical risks have already led to the delisting of over 200 Chinese firms [4].

Geopolitical Risk Mitigation: Beyond the Balance Sheet

The strategic calculus for Legend extends beyond valuation. The U.S. government’s BIOSECURE Act, which phases out federal reliance on Chinese biotech firms by 2032, has created a regulatory overhang for companies with cross-border ties [5]. While Legend is not explicitly targeted, its reliance on U.S. partnerships and its Chinese origins place it in a precarious position. A secondary listing in Asia would allow the company to decouple its brand from geopolitical narratives, leveraging the political neutrality of markets like Singapore or the regulatory familiarity of Hong Kong [6].

This strategy mirrors the playbook of DualityBio, a Chinese CAR-T developer that raised $200 million via a 2025 Hong Kong IPO [5]. By diversifying its shareholder base and listing venues, Legend could reduce exposure to U.S. audit requirements and potential delisting pressures. Moreover, as U.S. biopharma firms unwind partnerships with Chinese contract manufacturers, Asian-listed biotechs are gaining traction as alternative collaborators, a trend that could bolster Legend’s access to global supply chains [5].

Market Trends and Investor Implications

The broader market context reinforces the urgency of Legend’s pivot. In H1 2025, Asia accounted for 62% of global IPO proceeds, with Hong Kong overtaking New York as the top listing destination [7]. This shift is driven by both opportunity and necessity: Chinese firms are increasingly turning to domestic and regional markets to circumvent U.S. scrutiny, while Asian investors are capitalizing on undervalued biotech assets. For Legend, a secondary listing could position it to benefit from this momentum, particularly as the STAR Market in China eases listing requirements for pre-profit innovators [8].

However, risks remain. The biotech sector is inherently volatile, and a secondary listing may not shield Legend from sector-specific headwinds, such as clinical trial setbacks or pricing pressures. Additionally, geopolitical tensions could escalate further, with U.S. tariffs on pharmaceuticals and equipment threatening to disrupt global supply chains [9]. Investors must weigh these factors against the potential for valuation uplift and risk diversification.

Conclusion: A Calculated Bet in a Fractured World

Legend Biotech’s pursuit of a secondary listing in Asia is emblematic of a sector in flux. While the company’s financials highlight the high-stakes nature of biotech innovation, its strategic moves underscore the growing importance of geopolitical agility. For investors, the key takeaway is clear: in an era of fragmented global markets, diversification is not just a financial strategy—it’s a survival imperative. Whether Legend’s dual listing ultimately delivers valuation uplift or merely mitigates risk, it signals a broader realignment of power in the biotech Cold War.

Source:
[1] Legend Biotech (LEGN) Explores Dual Listing Opportunities Abroad [https://www.gurufocus.com/news/3096619/legend-biotech-legn-explores-dual-listing-opportunities-abroad]
[2] 2025 Trends Buoying Boom Phase in APAC [https://www.biospectrumasia.com/analysis/106/25270/2025-trends-buoying-boom-phase-in-apac.html]
[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] Chinese Stocks to Delist in US Amid Trade War [https://www.thinkchina.sg/economy/big-read-chinese-stocks-delist-us-amid-trade-war-market-rout]
[5] The Biotech Cold War: How Chinese IPOs and U.S. Policy Reshaping the Global Biopharmaceutical Industry [https://www.linkedin.com/pulse/biotech-cold-war-how-chinese-ipos-us-policy-redrawing-lee-mba-ldxwc]
[6] Empowering Biotech Innovation in Asia-Pacific [https://www.bain.com/insights/empowering-biotech-innovation-in-asia-pacific/]
[7] EY Global IPO Trends Q2 2025 [https://www.ey.com/en_gl/insights/ipo/trends]
[8] China Thematic Update: New IPOs (KSTR) [https://kraneshares.com/china-thematic-update-new-ipos-kstr-healthcare-momentum-from-regulatory-reprieve-innovation-kure-new-hydroelectric-dam-kgrn/]
[9] How Geopolitical Tensions Disrupted Pharma Supply Chains [https://pharmasource.global/content/guides/category-guide/geopolitical-tensions-persist-disrupting-supply-chains-and-fuelling-global-market-volatility-in-q3-2025/]