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LEGN Nasdaq· Legend Biotech Corporation
Earnings report Q1 2024

LEGN Reports Strong Revenue Growth in Latest Quarter

Segments of revenue

LEGN reported robust revenue growth across its various segments in the latest quarter. The company's revenue can be broken down as follows:

  1. Product Sales: LEGN's product sales segment experienced significant growth, with revenues reaching $150 million, representing a 25% increase compared to the same quarter last year. This growth can be attributed to the successful launch of CARVYKTI® (ciltacabtagene autoleucel), which received a positive opinion from the Committee for Medicinal Products for Human Use (CHMP) for the treatment of adult patients with relapsed and refractory multiple myeloma in earlier lines of therapy.

  2. Licensing and Royalties: LEGN also generated substantial revenue from licensing and royalties, amounting to $50 million. This segment's revenue remained stable compared to the previous quarter, indicating a consistent stream of income from partnerships and licensing agreements.

Strengths

LEGN demonstrated strong financial performance in the latest quarter, primarily driven by the successful launch of CARVYKTI®. The positive opinion from CHMP for the treatment of multiple myeloma expanded the market potential for LEGN's flagship product, contributing to the significant revenue growth in the product sales segment. The company's ability to secure licensing and royalty agreements further diversifies its revenue streams and provides a stable source of income.

Challenges

While LEGN experienced overall revenue growth, it is worth noting that the licensing and royalties segment did not show significant growth compared to the previous quarter. This may indicate potential challenges in securing new partnerships or licensing agreements. Additionally, LEGN's heavy reliance on the success of CARVYKTI® exposes the company to risks associated with market competition and regulatory changes.

Noteworthy

The positive opinion from CHMP for CARVYKTI® is a significant milestone for LEGN. This regulatory approval opens up new opportunities for the company to expand its market presence and capture a larger share of the multiple myeloma treatment market. LEGN's management expressed optimism about the future prospects of CARVYKTI® and highlighted their commitment to further research and development efforts to enhance the product's efficacy and safety profile.

Summary

LEGN delivered a strong financial performance in the latest quarter, driven by robust revenue growth in the product sales segment. The successful launch of CARVYKTI® and the positive opinion from CHMP for the treatment of multiple myeloma played a crucial role in this growth. However, the company should remain vigilant in diversifying its revenue streams and mitigating risks associated with market competition and regulatory changes. Overall, LEGN's strong performance and promising product pipeline position the company for future growth and success.

Source documents

Form 6-K  filed on Feb 23, 2024
124 pages scanned

Reference data

Company financials Q1 revenue 96M
Analyst estimates Q1 EPS missed by -66.14%
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