Legend Biotech Downgraded Amid Market Optimism for FDA Guidance
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 10 2025
0mins
Should l Buy LEGN?
Legend Biotech Corp's stock fell 6.53% and hit a 52-week low, closing at $20.76.
The downgrade from TD Cowen analyst Yaron Werber to Hold, with a reduced price target of $21, reflects concerns about the company's market performance despite recent positive FDA guidance that could benefit its therapies. The FDA's draft guidance allows for new endpoints in multiple myeloma treatments, which analysts believe could enhance Legend Biotech's prospects, especially with its partnership with Johnson & Johnson on the Carvykti cell therapy.
This downgrade comes in a context where the broader market is showing strength, with the Nasdaq-100 and S&P 500 both up, indicating a potential sector rotation affecting Legend Biotech's stock performance.
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Analyst Views on LEGN
Wall Street analysts forecast LEGN stock price to rise
11 Analyst Rating
10 Buy
1 Hold
0 Sell
Strong Buy
Current: 19.560
Low
48.00
Averages
68.10
High
90.00
Current: 19.560
Low
48.00
Averages
68.10
High
90.00
About LEGN
Legend Biotech Corporation is a global biopharmaceutical company. The Company is engaged in the discovery, development, manufacturing and commercialization of cell therapies for oncology and other indications. Its lead product candidate, ciltacabtagene autoleucel (cilta-cel), referred to as LCAR- B38M, is an autologous chimeric antigen receptor (CAR-T) cell therapy that targets the B-cell maturation antigen (BCMA), which is a highly expressed protein in several hematologic malignancies, including multiple myeloma (MM). In addition to cilta-cel, the Company has a portfolio of earlier-stage autologous CAR-T product candidates targeting various cancers, including Non-Hodgkins Lymphoma, acute lymphoblastic leukemia, gastric cancer, esophageal cancer, pancreatic cancer, colorectal cancer, small cell lung cancer, and non-small cell lung cancer. It is also engaged in developing an allogeneic gamma delta CAR-T product candidate and an allogeneic CAR-NK product candidate targeting BCMA for MM.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Earnings Announcement: Legend Biotech (LEGN) is set to announce its Q4 earnings on March 10 before market open, with a consensus EPS estimate of $0.19, reflecting a substantial year-over-year increase of 218.8%, indicating a significant improvement in profitability.
- Revenue Expectations: The anticipated revenue for Q4 is $310.21 million, representing a 66.3% year-over-year growth, which will further solidify the company's market position in the biotechnology sector, particularly driven by the Carvykti product.
- Performance Beat Record: Over the past two years, LEGN has beaten EPS estimates 63% of the time and revenue estimates 50% of the time, demonstrating the company's stability in financial performance and market confidence.
- Estimate Revision Dynamics: In the last three months, EPS estimates saw no upward revisions but two downward adjustments, while revenue estimates experienced one upward revision and five downward adjustments, indicating a cautious market sentiment regarding the company's future performance.
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- Technical Analysis Tool: Comparing the current share price to the 200-day moving average provides valuable insights for investors, helping to assess market trends and potential buy or sell opportunities.
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- Executive Departures: Directors Li Zhu and Yau Wai Man Philip resigned, with the company clarifying that these departures were not due to operational disputes, reflecting efforts to maintain management stability and bolster investor confidence.
- Sales Performance: The company reported preliminary net trade sales of approximately $555 million for its CARVYKTI multiple myeloma cell therapy for Q4 2025, demonstrating strong market demand in oncology, which could drive future revenue growth.
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- Earnings Announcement: Legend Biotech (LEGN) is set to announce its Q4 earnings on March 10 before market open, with a consensus EPS estimate of $0.19, reflecting a substantial year-over-year increase of 218.8%, indicating a significant improvement in profitability.
- Revenue Expectations: The anticipated revenue for Q4 is $310.21 million, representing a 66.3% year-over-year growth, which will further solidify the company's market position in the biotechnology sector, particularly driven by the Carvykti product.
- Performance Beat Record: Over the past two years, LEGN has beaten EPS estimates 63% of the time and revenue estimates 50% of the time, demonstrating the company's stability in financial performance and market confidence.
- Estimate Revision Dynamics: In the last three months, EPS estimates saw no upward revisions but two downward adjustments, while revenue estimates experienced one upward revision and five downward adjustments, indicating a cautious market sentiment regarding the company's future performance.
See More
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- Price Range Analysis: The MCHI ETF has a 52-week low of $44.71 and a high of $67.37, with the latest trade at $58.77, indicating relative stability and investor confidence in the current market.
- Technical Analysis Tool: Comparing the current share price to the 200-day moving average provides valuable insights for investors, helping to assess market trends and potential buy or sell opportunities.
- ETF Trading Mechanism: ETFs trade like stocks, where investors buy and sell 'units' that can be created or destroyed based on demand, impacting the underlying holdings of the ETF.
- Liquidity Monitoring: Weekly monitoring of changes in shares outstanding helps identify ETFs experiencing significant inflows or outflows, where inflows necessitate purchasing underlying assets, while outflows may lead to selling those assets.
See More
Legend Biotech Q4 Earnings Miss Expectations with Revenue Growth
- Earnings Performance: Legend Biotech reported a Q4 non-GAAP EPS of $0.01, missing expectations by $0.18, indicating pressure on profitability that could affect investor confidence.
- Revenue Growth Shortfall: The company reported revenue of $306.3 million, a 64.2% year-over-year increase, yet it fell short of expectations by $3.91 million, suggesting that despite significant growth, market demand did not fully meet projections.
- Strong Cash Reserves: As of December 31, 2025, Legend Biotech had approximately $949 million in cash and cash equivalents, providing a solid financial foundation for future R&D and market expansion efforts.
- Market Outlook Analysis: Despite the disappointing earnings report, the growth of Carvykti is bolstered by FDA regulatory support, which may drive a recovery in the company's performance, particularly in the multiple myeloma treatment sector.
See More
HHLR Advisors Fully Exits Baidu Position
- Position Change: HHLR Advisors fully divested its 1.64 million shares of Baidu in Q4 2026, with an estimated transaction value of $216.23 million, indicating a significant reduction in confidence towards Baidu, leading to a drop in the stake's valuation at quarter-end.
- Asset Management Impact: This sale reduced Baidu's representation in HHLR Advisors' assets from 5.3% to 0%, reflecting a reassessment of the company's future performance, which could influence market sentiment towards Baidu.
- Market Performance: As of February 17, 2026, Baidu's stock price stood at $137.33, up 52.3% over the past year, outperforming the S&P 500 by 29 percentage points; however, HHLR's exit may exert downward pressure on the stock in the short term.
- Future Outlook: Despite significant investments in AI and cloud services, Baidu's revenue remains heavily reliant on advertising, prompting investors to monitor whether the company can stabilize its ad revenue while successfully commercializing AI to ensure future growth.
See More
Legend Biotech Named One of the Best Revenue Growth Stocks
- Board Restructuring: Legend Biotech appointed Robin Meng, chairman of major shareholder GenScript, as a Class III director until the 2026 annual meeting, replacing Li Zhu, indicating a strategic governance adjustment to align with shareholder interests.
- Executive Departures: Directors Li Zhu and Yau Wai Man Philip resigned, with the company clarifying that these departures were not due to operational disputes, reflecting efforts to maintain management stability and bolster investor confidence.
- Sales Performance: The company reported preliminary net trade sales of approximately $555 million for its CARVYKTI multiple myeloma cell therapy for Q4 2025, demonstrating strong market demand in oncology, which could drive future revenue growth.
- Analyst Rating Changes: H.C. Wainwright lowered the price target from $60 to $50, while TD Cowen downgraded the stock from Buy to Hold with a target of $21, reflecting a cautious market outlook on the company's future performance.
See More
Deutsche Bank Downgrades Qiagen to Hold, Raises Price Target to $54
- Qiagen Rating Change: Deutsche Bank analyst Jan Koch downgraded Qiagen N.V. (NYSE:QGEN) from Buy to Hold while raising the price target from $52 to $54, indicating a cautious outlook on the company's future growth prospects.
- Legend Biotech Downgrade: TD Cowen analyst Yaron Werber downgraded Legend Biotech Corp (NASDAQ:LEGN) from Buy to Hold and significantly cut the price target to $21, reflecting concerns about its market performance, even as the stock closed at $20.76 on Wednesday.
- Crocs Rating Adjustment: Keybanc analyst Ashley Owens downgraded Crocs Inc (NASDAQ:CROX) from Overweight to Sector Weight, suggesting diminished confidence in the brand's future growth potential, with shares closing at $85.27 on Wednesday.
- Zoetis Rating Change: Piper Sandler analyst David Westenberg downgraded Zoetis Inc (NYSE:ZTS) from Overweight to Neutral and lowered the price target from $190 to $135, reflecting concerns about its profitability, despite the stock closing at $125.08 on Wednesday.
See More
