Legend Biotech (NASDAQ:LEGN) Announces Earnings Results

Key Points

• Legend Biotech beat quarterly expectations: EPS was $0.09 versus the $0.06 consensus, while revenue rose 51.9% year over year to $387.5 million, above estimates of $355.96 million.
• CARVYKTI continued strong growth, with net trade sales up 50% year over year to approximately $657 million and international sales increasing 128%. The company also reported its first quarter of company-wide profitability, including $63 million in adjusted net income.
• Pipeline developments were positive: LB2501 showed a 100% objective response rate in an early higher-dose cohort, and Legend plans to file a U.S. IND by year-end, though management warned of near-term gross-margin pressure and competition from bispecific therapies.

Legend Biotech (NASDAQ:LEGN - Get Free Report) posted its quarterly earnings data on Tuesday. The company reported $0.09 EPS for the quarter, beating analysts' consensus estimates of $0.06 by $0.03, Briefing.com reports. Legend Biotech had a negative return on equity of 24.92% and a negative net margin of 21.98%.The business had revenue of $387.50 million during the quarter, compared to analysts' expectations of $355.96 million. During the same period in the previous year, the business earned $0.03 earnings per share. The business's revenue was up 51.9% compared to the same quarter last year.

Here are the key takeaways from Legend Biotech's conference call:

• CARVYKTI net trade sales rose 50% year over year to approximately $657 million, with 10% sequential growth. Earlier-line use continued to expand, with second- through fourth-line treatment accounting for more than 70% of U.S. volume, while international sales grew 128% year over year.
• Legend reported its first quarter of company-wide profitability, including $63 million in adjusted net income, and maintained its outlook for adjusted net income profitability in the second half of 2026. The company ended the quarter with approximately $965 million in cash and no long-term debt.
• Early data for in vivo CAR-T candidate LB2501 showed a 100% objective response rate and an 83.3% complete response rate at the higher dose cohort, with CAR-T cells detectable for up to 116 days and no dose-limiting toxicities reported. Legend plans to file a U.S. IND by year-end and initially conduct the Phase I study itself.
• Gross margin improved to 58% in Q2 but is expected to decline to the lower-50% range in Q3 before recovering to the mid-50% range in Q4, partly due to changing outpatient treatment economics. Management also acknowledged potential competitive pressure from bispecific therapies, although it continues to emphasize CARVYKTI’s one-time treatment and durability advantages.
• Interim CEO Alan Bash characterized the CEO change as a leadership transition rather than a strategy shift, while the board continues a search for a permanent chief executive. Legend also disclosed plans to advance LB2505, an investigational BCMA-targeted in vivo CAR-T therapy in China, subject to the company’s collaboration agreement with Johnson & Johnson.

Legend Biotech Trading Up 5.0%

LEGN stock traded up $1.04 during midday trading on Tuesday, hitting $21.70. 876,108 shares of the company's stock were exchanged, compared to its average volume of 2,490,348. Legend Biotech has a 1-year low of $16.24 and a 1-year high of $38.35. The stock has a market capitalization of $4.03 billion, a PE ratio of -31.81 and a beta of 0.37. The business has a 50-day simple moving average of $26.97 and a two-hundred day simple moving average of $23.14.

Insiders Place Their Bets

In other news, CEO Ying Huang sold 5,566 shares of the firm's stock in a transaction that occurred on Thursday, June 25th. The shares were sold at an average price of $14.78, for a total value of $82,265.48. Following the completion of the transaction, the chief executive officer owned 241,872 shares of the company's stock, valued at approximately $3,574,868.16. This trade represents a 2.25% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through the SEC website. 0.02% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On Legend Biotech

A number of hedge funds have recently added to or reduced their stakes in LEGN. Virtu Financial LLC purchased a new position in Legend Biotech in the 4th quarter valued at approximately $298,000. Invesco Ltd. raised its stake in shares of Legend Biotech by 4.4% in the fourth quarter. Invesco Ltd. now owns 13,710 shares of the company's stock valued at $298,000 after acquiring an additional 581 shares in the last quarter. Mackenzie Financial Corp raised its stake in shares of Legend Biotech by 8.6% in the fourth quarter. Mackenzie Financial Corp now owns 25,487 shares of the company's stock valued at $548,000 after acquiring an additional 2,026 shares in the last quarter. Ikarian Capital LLC purchased a new position in Legend Biotech in the fourth quarter valued at $4,933,000. Finally, Virtus Investment Advisers LLC boosted its holdings in Legend Biotech by 161.2% in the fourth quarter. Virtus Investment Advisers LLC now owns 30,617 shares of the company's stock valued at $666,000 after purchasing an additional 18,895 shares during the period. 70.89% of the stock is currently owned by institutional investors and hedge funds.

Wall Street Analyst Weigh In

Several analysts have recently issued reports on LEGN shares. Morgan Stanley dropped their target price on shares of Legend Biotech from $49.00 to $48.00 and set an "overweight" rating on the stock in a research report on Wednesday, May 13th. TD Cowen upped their price target on shares of Legend Biotech to $29.00 and gave the stock a "hold" rating in a research report on Wednesday, May 13th. Raymond James Financial reaffirmed an "outperform" rating and issued a $58.00 price target on shares of Legend Biotech in a research note on Monday, July 27th. JPMorgan Chase & Co. started coverage on Legend Biotech in a research note on Monday, July 13th. They set a "neutral" rating and a $35.00 price objective for the company. Finally, Weiss Ratings raised Legend Biotech from a "sell (e+)" rating to a "sell (d-)" rating in a report on Thursday, July 30th. Nine research analysts have rated the stock with a Buy rating, five have assigned a Hold rating and one has given a Sell rating to the stock. According to MarketBeat.com, the company currently has an average rating of "Moderate Buy" and a consensus price target of $55.29.

About Legend Biotech

Legend Biotech NASDAQ: LEGN is a commercial-stage biopharmaceutical company specializing in the development and commercialization of chimeric antigen receptor T-cell (CAR-T) therapies for oncology. Headquartered in Somerset, New Jersey, with research and development operations in Shanghai, the company leverages a global infrastructure to advance innovative cellular therapies. Legend Biotech pursues a strategy of strategic collaboration to extend its reach, most notably through its partnership with Janssen Biotech, a subsidiary of Johnson & Johnson.

The company's lead asset, ciltacabtagene autoleucel (commercially marketed as Carvykti), is a B-cell maturation antigen (BCMA)–directed CAR-T therapy for the treatment of relapsed or refractory multiple myeloma.

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