FAST NEWS: Legend Biotech to raise $300 million from share sale
The latest: Genscript Biotech Corp. (1548.HK) announced Monday that its New York-listed subsidiary Legend Biotech Corp. (LEGN.US) will sell about 5.5 million new American Depositary Shares (ADSs) to an entity advised by T. Rowe Price for $64 per share.
Looking up: Legend expects to raise $350 million from the sale, which it will use for working capital and capital expenditures through the fourth quarter of 2025.
Take Note: The sale price represents a 4.5% discount to Legend Biotech’s Friday closing price of $66.99. Upon completion of the sale, Genscript’s shareholding in Legend will be diluted from 51.36% to 49.76%, meaning that its influence on the company will be slightly reduced.
Digging Deeper: Legend is Genscript’s cellular therapeutics business subsidiary. After years of spending, Legend’s new Cilta-cel product, being developed by a joint venture with Johnson & Johnson’s (JNJ.US) Janssen Biotech, accumulated sales of $206 million in the year since it was approved by the U.S. Food and Drug Administration (FDA) in last year’s first quarter.
Market Reaction: After opening up 2.1% on Monday, Genscript shares moved downward and closed 1.4% lower at HK$20.85 at the midday break. The stock now trades near the lower end of its 52-week range.
Translation by Jony Ho
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