Analyst's Verdict on Legend Biotech: Doubts On Commercial Execution, Long- Term Market Share

William Blair initiated coverage on Legend Biotech Corporation LEGN with a rating of Market Perform.
The analyst says that Legend’s valuation adequately reflects projected Carvykti revenues and the current stage of Legend’s other pipeline programs.
It notes that Carvykti’s commercial launch has faced several hiccups by limited vector supply, reduced manufacturing slots due to ongoing clinical trials, and a higher-than-expected percentage of out-of-spec product.
Legend/Janssen is working to solve these facets and expects to be able to support about 10,000 patients annually by the end of 2025, critical to achieving $5 billion in sales.
Legend estimates that second-line setting patients for Carvykti will eventually generate three-fourths of its sales.
William Blair also says that though the multiple myeloma market is large enough to support multiple players, emerging BCMA-targeted products could decrease Carvykti’s market share and impact its revenue tail.
Legend’s stock will trade in line with the broader market unless it becomes increasingly evident that Carvykti sales are not meeting or are superseding the Street’s expectations.
Earlier today, Legend Biotech submitted a supplemental marketing application for Carvykti to the European Medicines Agency based on a CARTITUDE-4 study for adult patients with relapsed and lenalidomide-refractory multiple myeloma who have received one to three prior lines of therapy.
Price Action: LEGN shares are down 3.00% at $64.06 on the last check Thursday.

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