5. Legend Biotech Corp. (NASDAQ:LEGN)
Average Upside Potential as of November 26: 102.81%
Number of Hedge Fund Holders: 31
Legend Biotech Corp. (NASDAQ:LEGN) is a clinical-stage biopharmaceutical company engaged in the discovery and development of cell therapies for oncology and other indications. Its lead product candidate, LCAR-B38M, is designed to treat multiple myeloma, a type of blood cancer.
In the third quarter of 2024, the company reported strong financial performance, driven by the significant growth of its flagship drug, CARVYKTI. CARVYKTI is the brand name for the chimeric antigen receptor T-cell (CAR-T) therapy known as LCAR-B38M, which is designed to target B-cell maturation antigen (BCMA) for the treatment of multiple myeloma, as mentioned earlier.
Net trade sales of CARVYKTI surged 87.6% year-over-year to approximately $286 million. This growth was fueled by increased demand and expanded patient access. The company’s overall quarterly revenue improved by 66.86%, generating an amount of $160.21 million. Despite the positive momentum, the company reported a net loss of $125 million, primarily due to increased spending on research and development.
CARVYKTI demonstrated significant efficacy in treating multiple myeloma patients, with a 45% reduction in the risk of death compared to standard therapies. The company also received approval for CARVYKTI production in Belgium, enhancing its global manufacturing capabilities.
Legend Biotech Corp. (NASDAQ:LEGN) is eagerly anticipating the upcoming data update for the CARTITUDE-1 and IMAgINE-1 trials, which will provide further insights into the efficacy and safety of CARVYKTI in different patient populations. The strong demand for CARVYKTI and the potential for expanded indications offer significant growth opportunities. Hence, the company is well-positioned to capitalize on the growing demand for innovative cancer therapies.
TimesSquare Capital Management U.S. Focus Growth Strategy stated the following regarding Legend Biotech Corporation (NASDAQ:LEGN) in its Q2 2024 investor letter:
“Pulling back by -27% was Legend Biotech Corporation (NASDAQ:LEGN), a biotechnology developer of cell therapies to treat blood cancers such as multiple myeloma and leukemia. Recently both the European Union and the FDA approved the use of Legend’s Carvykti treatment of multiple myeloma. Some investors may have been concerned about possible supply delays as Legend ramps up production. Though with a long-standing agreement with Johnson & Johnson and a new partnership with Novartis for increasing production capacity, we see a long runway of growth ahead. Later in the quarter, there were concerns surrounding potential negative impacts from Congress’s draft BIOSECURE Act, which would bar certain Chinese-controlled biotechnology companies from U.S. government contracts. Our initial view is that Legend may not fall under the scope of the Act, though in our discussions with Legend’s management they seem ready to take steps to avoid possible negative outcomes from the Act. However, with that potential risk we removed the position from our concentrated strategy.”
