Legend Biotech shares tumble as Carvykti outlook overshadows profit

Cancer treatment developer Legend Biotech Corp. (LEGN.US) reported on Tuesday that its third-quarter revenue rose 32% year-on-year to $359.5 million, while its net income reached $51.7 million, reversing a $39.6 million loss a year earlier. But slower-than-expected progress for its cancer therapy in earlier-line U.S. treatment settings weighed on its shares following release of the results.

The company attributed the profit improvement mainly to higher gross profit from its core Carvykti cancer treatment and lower R&D and administrative expenses. Carvykti, a cell therapy for multiple myeloma being developed with Johnson & Johnson, generated global net trade sales of approximately $710 million during the quarter, up 36% year-on-year. U.S. sales grew 19%, while sales outside the U.S. rose 86%. Legend’s collaboration revenue increased to $353.2 million. Its adjusted net income for the quarter was $55.6 million, also reversing a year-earlier loss.

Management said on the earnings call that Carvykti’s market share gains in earlier-line U.S. treatment settings were slower than expected, while overseas launch timing was also affecting its fourth-quarter outlook. Consensus sales estimates for the quarter are at the high end of the company’s range of internal scenarios. Legend still expects double-digit sales growth for Carvykti in 2027 and maintained its goal of company-wide profitability this year on an adjusted net income basis.

Legend’s shares fell 15.97% to $20.41 on Tuesday in New York, bringing their decline over the past six months to 27.42%.

By Lee Shih Ta

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