10 Worst Performing Biotech Stocks in 2024

5. Legend Biotech Corporation (NASDAQ:LEGN)

YTD Return: -28.39% 

Legend Biotech Corporation (NASDAQ:LEGN) is a global biotechnology company focused on developing and commercializing cell therapies, particularly CAR-T (Chimeric Antigen Receptor T-cell) therapies. The company aims to create innovative cancer treatments, specifically targeting hematological malignancies and solid tumors. Its flagship product, CARVYKTI (ciltacabtagene autoleucel), is an FDA-approved CAR-T therapy for multiple myeloma. It is one of the worst performing biotech stocks on our list, falling by over 28% since the start of the year.

Legend Biotech reported strong earnings in the third quarter of 2024, with total revenue reaching $160.2 million, a 66.8% increase from the same period last year.

As of September 30, 2024, Legend Biotech Corporation (NASDAQ:LEGN) had $1.2 billion available in cash and cash equivalents. Its research and development expenses were $95.5 million, compared with $96 million in the prior year period. The company faces challenges, including ongoing losses, high R&D costs, dependence on collaborations—particularly with Johnson & Johnson for CARVYKTI, and intense market competition in the cell therapy sector.

Looking ahead, Legend Biotech Corporation (NASDAQ:LEGN) has potential for improvement by expanding its product pipeline with multiple CAR-T therapies, pursuing regulatory approvals that could boost sales, and leveraging manufacturing agreements with partners like Novartis to enhance production capabilities.

TimesSquare Capital U.S. Focus Growth Strategy stated the following regarding Legend Biotech Corporation (NASDAQ:LEGN) in its first quarter 2024 investor letter:

“We began buying shares in Legend Biotech Corporation (NASDAQ:LEGN), a biotechnology developer of cell therapies to treat blood cancers such as multiple myeloma and leukemia. The European Union approved the use of Legend’s Carvykti treatment of multiple myeloma and later the FDA followed suit. Some investors may have been concerned about possible delays as Legend ramps up production, and its price declined. Though with a long-standing agreement with Johnson & Johnson and a new partnership with Novartis, we see a long runway of growth ahead, so we initiated a position.”