Piper Sandler analysts reaffirmed an Overweight rating and a $78 price target for Legend Biotech (NASDAQ:LEGN), reflecting confidence in the company’s long-term growth potential despite near-term adjustments to revenue forecasts for its flagship therapy, CARVYKTI.
The analysts lowered their fourth-quarter 2024 revenue projection for CARVYKTI to $290 million from $335 million and the 2025 estimate to $1.63 billion from $1.75 billion due to supply challenges. Demand for CARVYKTI remains robust, outstripping supply as Legend and its partner, Johnson & Johnson, work to scale production capacity.
Significant progress is anticipated in 2025, with several production milestones set to boost supply. The Obelisc facility in Belgium is expected to reach full capacity in the first quarter, while Novartis is slated to begin production at its Morris Plains, NJ facility in the first half of the year.
Expansion at J&J’s Raritan facility is on track for completion in the fourth quarter, coinciding with the opening of the Tech Lane facility in Belgium. Together, these developments aim to increase annual production to 10,000 autologous doses, representing a potential revenue opportunity of $5 billion by year-end 2025. By 2027, the partners expect to achieve production capacity of 20,000-24,000 doses, exceeding $10 billion in revenue potential.