FAST NEWS: Legend Biotech Pares Losses on Milestone Revenue
The latest: Legend Biotech Corp. (LEGN.US), a cell therapy subsidiary of Genscript Biotech Corp. (1548.HK), reported a loss of $41.09 million in the first quarter, half the $80.9 million loss from the same period a year earlier, according to its latest results published on Wednesday.
Looking up: Legend Biotech’s revenue tripled year-on-year to $40.8 million in the latest quarter, thanks to milestone payments from a drug collaboration agreement with Janssen Biotech.
Take Note: The company’s selling and distribution expenses jumped 59% to $21.3 million during the latest reporting quarter, even though it has yet to generate any revenue from product sales.
Digging Deeper: In December 2017, Legend Biotech signed an exclusive global license and collaboration agreement with Janssen Biotech to develop and commercialize its cancer drug Carvykti. In late February, the U.S. Food and Drug Administration (FDA) approved the drug for treatment of adult patients with relapsed and refractory multiple myeloma, making it the company’s first product approved for sale by health authorities. Legend’s lack of product sales and heavy R&D spending have been a drag on its parent, Genscript Biotech. But approval of Carvykti by the FDA is expected to bring significant new revenue to Genscript in the future.
Market Reaction: Legend Biotech edged up 0.85% to $42.65 in New York on Wednesday. Genscript Biotech closed down 4.8% at HK$21.9 at the midday break in Hong Kong on Thursday. The stock now trades at the lower end of its 52-week range.
Translation by Jony Ho
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