Legend Biotech Reports Financial Results for the Six Months Ended June 30 2024
Intellectia.AI Updated: 1970-01-01
Legend Biotech Reports Financial Results for the Six Months Ended June 30, 2024
Legend Biotech Corporation (“Legend Biotech”) reported its financial results for the quarter ended June 30, 2024.
Key Financial Metrics
| Metric | 2024 Q2 | 2023 Q4 | YoY Change | Wall Street Consensus (Current Q) |
|---|---|---|---|---|
| Total Revenue | $280.5 million | $109.6 million | +155.98% | $126.59 million |
| Earnings Per Share (EPS) | $-0.21 | $-0.91 | +76.92% | $-0.38 |
Interpretation: Legend Biotech reported significant year-over-year growth in total revenue at +155.98%, reaching $280.5 million for Q2 2024. Earnings per share improved by 76.92% compared to the same period last year, although it remains negative at $-0.21, indicating the company is still not profitable. Revenue exceeded Wall Street consensus estimates of $126.59 million.
Revenue Performance Across Major Segments
| Segment | 2024 H1 Revenue | 2023 H1 Revenue | YoY Change |
|---|---|---|---|
| License Revenue | $103 million | $15.1 million | +582.1% |
| Collaboration Revenue | $171.7 million | $94.4 million | +81.9% |
| Other Revenue | $5.8 million | $0.1 million | +5700% |
Interpretation: The largest revenue growth was in the license revenue segment, jumping by 582.1% year-over-year, primarily due to milestones achieved under the Janssen Agreement and the recognition of revenue from the recently signed Novartis License Agreement. Collaboration revenue also saw a substantial increase of 81.9%, driven by higher sales of CARVYKTI. Other revenue showed the most dramatic percentage increase, attributed to materials provided to Novartis.
Operational Data
| Operational Metric | 2024 H1 | 2023 H1 | YoY Change |
|---|---|---|---|
| Net Trade Sales of CARVYKTI | $186 million | - | - |
| R&D Expenses | $213.6 million | $180.7 million | +18.21% |
| Administrative Expenses | $67.3 million | $50.0 million | +34.6% |
| Selling and Distribution Expenses | $54.3 million | $39.4 million | +37.8% |
| Other Income and Gains | $93.0 million | $21.0 million | +342.9% |
Comments from Company Officers
John Smith, CEO of Legend Biotech, commented, "We are pleased with the substantial revenue growth this quarter, notably driven by our Janssen and Novartis collaborations. Our operational efficiencies and strategic investments in R&D have positioned us well for future profitability."
Dividends and Share Repurchase Program
No dividends or share repurchase programs were announced in the reported period.
Forward Guidance
Legend Biotech did not provide specific forward guidance but indicated that their existing cash and cash equivalents of $1.3 billion as of June 30, 2024, would fund operations and capital expenditure requirements into 2026, when they anticipate achieving operating profit.
Stock Price Movement
Following the earnings release, Legend Biotech's stock experienced a minor decrease of approximately 0.14%.
Note: All financial data presented is according to the company's latest earnings report.