Legend Biotech: A Potential Global Leader in Cell Therapy
Goldman Sachs has identified Legend Biotech as a promising contender in the cell and gene therapy field, with the potential to become a global leader. Analyst Ziyi Chen, who initiated coverage of the stock, assigned a buy rating and set a target price of $90.09 per share, implying a potential rally of 36.6%. Chen expressed confidence in Legend's ability to grow into a leading global cell therapy company, particularly highlighting their portfolio of solid tumor and hematology treatments within the CAR T-cell therapy area.
Leading the Way with Carvykti
Carvykti, Legend's flagship therapy, has been hailed as "best-in-class" by Chen. In collaboration with Johnson & Johnson, Legend is expanding the capacity of Carvykti in the United States and the European Union to meet growing demand. While current supply constraints may limit the number of treatments available, Chen expects these limitations to be resolved in the near term. However, he also anticipates continued regulatory scrutiny due to the complex and variable nature of the manufacturing process.
Predicted Sales and Market Share
Chen forecasts that Legend's drug will achieve risk-adjusted global sales of $6.8 billion by 2030. Given the treatment's esteemed status, he believes that Legend is likely to capture a significant market share. This positive outlook has already had an impact on Legend's stock, which rose by 0.3% during Monday's session. In fact, Legend's shares have outperformed the market in 2023, experiencing a remarkable year-to-date climb of over 32%.
— Contribution by Michael Bloom, CNBC
Implications for New Businesses in the Cell Therapy Space
The rise of Legend Biotech as a potential global leader in cell therapy, as highlighted by Goldman Sachs, has significant implications for new business formation in this field. Analyst Ziyi Chen's predictions suggest a promising future for companies venturing into this area, particularly those focusing on solid tumor and hematology treatments within the CAR T-cell therapy realm.
Lessons from Legend's Flagship Therapy Carvykti
Legend's flagship therapy, Carvykti, serves as a benchmark for new businesses. Its "best-in-class" status and the ongoing capacity expansion in partnership with Johnson & Johnson underscore the importance of strategic collaborations and constant innovation. However, new businesses must also be prepared for regulatory scrutiny and supply constraints, as experienced by Legend.
Market Share and Financial Performance
Chen's forecast of Legend achieving risk-adjusted global sales of $6.8 billion by 2030 and capturing a significant market share provides a glimpse into the potential profitability of the cell therapy market. The positive impact on Legend's stock performance, with a year-to-date climb of over 32%, further highlights the financial potential in this sector. New businesses can draw inspiration from Legend's success and strategize to capture their share of this growing market.
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