Analysts See Long-Term Promise in Legend Biotech's Carvykti Despite Fourth-Quarter Sales Shortfall
Legend Biotech Corporation (NASDAQ: LEGN) finds itself at a crossroads following a mixed reception from Wall Street analysts regarding the commercial performance of its flagship cell therapy, Carvykti. The therapy, developed in collaboration with Johnson & Johnson for the treatment of relapsed or refractory multiple myeloma, posted $555 million in fourth-quarter sales, falling short of the $582 million consensus estimate.
The sales miss triggered divergent analyst moves. H.C. Wainwright maintained its Buy rating on the stock, though it lowered its price target from $60 to $50. In a note to clients, the firm characterized the recent share price pullback as a compelling buying opportunity, underscoring Carvykti's "curative potential" in a competitive oncology landscape. This optimistic stance contrasts sharply with action taken by TD Cowen a day earlier. The firm downgraded LEGN from Buy to Hold and slashed its price target dramatically from $62 to $21, citing not only holiday seasonality but also "sluggish demand" influenced by toxicity management concerns and mounting competitive pressure.
The analyst commentary highlights the complex dynamics facing CAR-T therapies. While hailed as breakthrough treatments, their adoption can be hampered by logistical complexities, safety profiles, and the emergence of new therapeutic modalities. Legend Biotech, a global firm dedicated to developing advanced cell therapies, is banking on its end-to-end capabilities and robust partnership with Johnson & Johnson to navigate these challenges and expand Carvykti's market reach.
Market Voices:
"The focus on a single quarterly figure misses the forest for the trees," said Dr. Anya Sharma, a portfolio manager at Horizon Life Sciences Fund. "Carvykti's clinical data speaks to a potentially transformative outcome for patients. Near-term volatility is a chance to build a position in a leader in solid tumor cell therapy."
"This isn't just a 'miss'—it's a warning flare," countered Marcus Thorne, an independent biotech analyst known for his blunt commentary. "When a downgrade cuts a target by two-thirds, it signals a fundamental reassessment of growth. The toxicity and competition narratives are gaining traction, and management has no clear answer."
"The truth is likely in the middle," offered Rebecca Choi, a healthcare strategist. "Demand is growing but facing predictable headwinds. The J&J partnership provides immense commercial muscle, but the next few quarters are critical for proving this is a temporary slowdown, not a trend."
As the biotech sector grapples with valuation resets, the debate around Legend Biotech encapsulates a broader theme: balancing near-term commercial execution against long-term, paradigm-shifting therapeutic potential.