Legend Biotech Reports Second Quarter 2023 Results and Recent Highlights
- Supplemental Biologics License Application (sBLA) and Type II Variation Application submitted for CARVYKTI® to FDA and EMA
- New data from clinical studies presented at ASCO and EHA
- Financial results reported $1.5 billion in cash and cash equivalents, time deposits, and short-term investments
- Legend Biotech received milestone payments and completed financings in 2023
- None.
-
A supplemental Biologics License Application (sBLA) was submitted to the
U.S. Food and Drug Administration (FDA) and a Type II Variation Application was submitted to the European Medicines Agency (EMA) by Janssen, seeking approval of CARVYKTI® (ciltacabtagene autoleucel; cilta-cel) for the earlier treatment of patients with relapsed or refractory multiple myeloma - The FDA set the Prescription Drug User Fee Act target date for the CARVYKTI® sBLA to April 5, 2024
- The FDA granted Orphan Drug Designation for LB2102 (DLL-3) (NCT05680922), which is being evaluated for the treatment of small cell lung cancer. The US clinical trial is actively recruiting at two sites1
-
On August 3, 2023, Legend Biotech received a payment in the amount of
for the EMA’s acceptance of the Type II Variation Application for CARVYKTI®, in accordance with Legend Biotech’s license and collaboration agreement with Janssen (Janssen Agreement)$15 million -
On August 4, 2023, Legend Biotech earned a milestone payment of
in connection with the FDA’s acceptance of the sBLA, in accordance with the Janssen Agreement$20 million - New data from the CARTITUDE-4 study (NCT04181827) of cilta-cel were featured at the 2023 American Society of Clinical Oncology (ASCO) Annual Meeting (Abstract #LBA106) and European Hematology Association (EHA) 2023 Hybrid Congress (Abstract #S100); these data were also published in The New England Journal of Medicine2
- Long-term data from the cilta-cel CARTITUDE-1 (NCT03548207) and LEGEND-2 (NCT03090659) studies were also presented at ASCO (Abstract #8009, Abstract #8010) and EHA (Abstract #S202, Abstract #P874)
-
Cash and cash equivalents, deposits and investments of
, as of June 30, 2023, extends Legend Biotech’s cash runway through 2025, strengthened by recently completed financings$1.5 billion -
In April and May 2023, Legend Biotech entered into subscription agreements with certain institutional investors pursuant to which Legend Biotech sold an aggregate of 8,834,742 ordinary shares for aggregate gross proceeds of approximately
$235 million -
In May 2023, Legend Biotech sold 5,468,750 American Depositary Shares (the “ADSs”), each representing two ordinary shares, to certain investors in a registered direct offering at a price of
per ADS for aggregate gross proceeds of$64.00 $350 million -
In May 2023, an institutional investor exercised in full a warrant to purchase 10,000,000 ordinary shares of Legend Biotech at an exercise price of
per ordinary share for an aggregate exercise price of$20.00 $200 million
In addition to financial performance, Legend Biotech reported on the success of its portfolio and pipeline, including the CARTITUDE clinical development program for CARVYKTI®, in collaboration with the Janssen Biotech, Inc. (Janssen).
Initial data from the CARTITUDE-4 study presented at ASCO and EHA supported recent submissions to
"We remain committed to exploring the full potential of CARVYKTI® and are pleased with the continued growth of our development program, including two regulatory submissions made during the second quarter," said Ying Huang, Chief Executive Officer of Legend Biotech. “Following our most recent fundraising, we are well positioned to advance our pipeline and portfolio. We remain grateful to the investors who support our endeavors.”
Financial Results for Quarter Ended June 30, 2023
Cash and Cash Equivalents, Time Deposits, and Short-Term Investments
As of June 30, 2023, after giving effect to the registered direct offering, private placements or warrant exercise noted above, Legend Biotech had approximately
Revenue
License Revenue
License revenue for the three months ended June 30, 2023 was
Collaboration Revenue
Collaboration revenue for the three and six months ended June 30, 2023 was
Operating Expenses
Collaboration cost of revenue
Collaboration cost of revenue for the three and six months ended June 30, 2023 was
Research and Development Expenses
Research and development expenses for the three and six months ended June 30, 2023 were
Administrative Expenses
Administrative expenses for the three and six months ended June 30, 2023 were
Selling and Distribution Expenses
Selling and distribution expenses for the three and six months ended June 30, 2023 were
Other Income and Gains
Other income and gains for the three and six months ended June 30, 2023 were
Other Expenses
Other expenses for the three and six months ended June 30, 2023 were
Finance Costs
Finance costs for the three and six months ended June 30, 2023 were
Fair Value Loss of Warrant Liability
Fair value loss of warrant liability for the six months ended June 30, 2023 was
Loss for the Period
For the three months ended June 30, 2023, net loss was
Webcast/Conference Call Details:
Legend Biotech will host its quarterly earnings call and webcast today at 8:00am ET. To access the webcast, please visit this weblink.
A replay of the webcast will be available on Legend Biotech’s website at https://investors.legendbiotech.com/events-and-presentations.
About Legend Biotech
Legend Biotech is a global biotechnology company dedicated to treating, and one day curing, life-threatening diseases. Headquartered in
Learn more at https://legendbiotech.com/ and follow us on Twitter and LinkedIn.
CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS
Statements in this press release about future expectations, plans and prospects, as well as any other statements regarding matters that are not historical facts, constitute “forward-looking statements” within the meaning of The Private Securities Litigation Reform Act of 1995. These statements include, but are not limited to, statements relating to Legend Biotech’s strategies and objectives; statements relating to CARVYKTI®, including Legend Biotech’s expectations for CARVYKTI®; and statements about regulatory submissions for CARVYKTI®, and the progress of such submissions with the FDA, the EMA and other regulatory authorities; and expected results of clinical trials; Legend Biotech’s expectations on advancing their pipeline and product portfolio; and the potential benefits of Legend Biotech’s product candidates. The words “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “intend,” “may,” “plan,” “potential,” “predict,” “project,” “should,” “target,” “will,” “would” and similar expressions are intended to identify forward- looking statements, although not all forward-looking statements contain these identifying words. Actual results may differ materially from those indicated by such forward-looking statements as a result of various important factors. Legend Biotech’s expectations could be affected by, among other things, uncertainties involved in the development of new pharmaceutical products; unexpected clinical trial results, including as a result of additional analysis of existing clinical data or unexpected new clinical data; unexpected regulatory actions or delays, including requests for additional safety and/or efficacy data or analysis of data, or government regulation generally; unexpected delays as a result of actions undertaken, or failures to act, by our third party partners; uncertainties arising from challenges to Legend Biotech’s patent or other proprietary intellectual property protection, including the uncertainties involved in the
LEGEND BIOTECH CORPORATION |
||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF PROFIT OR LOSS |
||||||||||||
|
|
Three Months Ended June 30, |
Six months ended June 30, |
|||||||||
|
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
US$’000, except per share data |
|
(Unaudited) |
|
(Unaudited) |
|
(Unaudited) |
|
(Unaudited) |
||||
REVENUE |
|
|
|
|
|
|
|
|
||||
License revenue |
|
15,115 |
|
|
— |
|
|
15,115 |
|
|
50,000 |
|
Collaboration revenue |
|
58,152 |
|
|
11,937 |
|
|
94,432 |
|
|
11,937 |
|
Other revenue |
|
63 |
|
|
34 |
|
|
119 |
|
|
74 |
|
Total revenue |
|
73,330 |
|
|
11,971 |
|
|
109,666 |
|
|
62,011 |
|
Collaboration cost of revenue |
|
(32,672 |
) |
|
(16,939 |
) |
|
(68,285 |
) |
|
(16,939 |
) |
Other income and gains |
|
16,433 |
|
|
1,856 |
|
|
20,994 |
|
|
2,868 |
|
Research and development expenses |
|
(95,791 |
) |
|
(68,827 |
) |
|
(180,680 |
) |
|
(150,375 |
) |
Administrative expenses |
|
(27,753 |
) |
|
(18,050 |
) |
|
(49,958 |
) |
|
(30,707 |
) |
Selling and distribution expenses |
|
(21,429 |
) |
|
(27,440 |
) |
|
(39,383 |
) |
|
(48,742 |
) |
Other expenses |
|
(21 |
) |
|
(8,099 |
) |
|
(7,117 |
) |
|
(9,626 |
) |
Fair value loss of warrant liability |
|
(105,750 |
) |
|
(65,900 |
) |
|
(85,750 |
) |
|
(31,000 |
) |
Finance costs |
|
(5,185 |
) |
|
(1,643 |
) |
|
(10,298 |
) |
|
(2,687 |
) |
LOSS BEFORE TAX |
|
(198,838 |
) |
|
(193,071 |
) |
|
(310,811 |
) |
|
(225,197 |
) |
Income tax expense |
|
(290 |
) |
|
(157 |
) |
|
(418 |
) |
|
(320 |
) |
LOSS FOR THE PERIOD |
|
(199,128 |
) |
|
(193,228 |
) |
|
(311,229 |
) |
|
(225,517 |
) |
Attributable to: |
|
|
|
|
|
|
|
|
||||
Ordinary equity holders of the parent |
|
(199,128 |
) |
|
(193,228 |
) |
|
(311,229 |
) |
|
(225,517 |
) |
LOSS PER SHARE ATTRIBUTABLE TO ORDINARY EQUITY HOLDERS OF THE PARENT |
|
|
|
|
|
|
|
|
||||
Basic |
|
(0.57 |
) |
|
(0.62 |
) |
|
(0.91 |
) |
|
(0.73 |
) |
Diluted |
|
(0.57 |
) |
|
(0.62 |
) |
|
(0.91 |
) |
|
(0.73 |
) |
ORDINARY SHARES USED IN LOSS PER SHARE COMPUTATION |
|
|
|
|
|
|
|
|
||||
Basic |
|
350,517,429 |
|
|
309,777,816 |
|
|
340,779,779 |
|
|
309,241,404 |
|
Diluted |
|
350,517,429 |
|
|
309,777,816 |
|
|
340,779,779 |
|
|
309,241,404 |
|
LEGEND BIOTECH CORPORATION |
||||
CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION |
||||
|
|
June 30, 2023 |
|
December 31, 2022 |
|
|
US$’000 |
|
US$’000 |
|
|
(Unaudited) |
|
(Audited) |
NON-CURRENT ASSETS |
|
|
|
|
Property, plant and equipment |
|
110,978 |
|
105,168 |
Advance payments for property, plant and equipment |
|
1,061 |
|
914 |
Right-of-use assets |
|
78,497 |
|
55,590 |
Time deposits |
|
4,209 |
|
— |
Intangible assets |
|
2,465 |
|
3,409 |
Collaboration prepaid leases |
|
119,173 |
|
65,276 |
Other non-current assets |
|
1,414 |
|
1,487 |
Total non-current assets |
|
317,797 |
|
231,844 |
CURRENT ASSETS |
|
|
|
|
Collaboration inventories |
|
15,196 |
|
10,354 |
Trade receivables |
|
15,064 |
|
90 |
Prepayments, other receivables and other assets |
|
66,573 |
|
61,755 |
Financial assets at fair value through profit or loss |
|
185,756 |
|
185,603 |
Pledged deposits |
|
1,246 |
|
1,270 |
Time deposits |
|
95,814 |
|
54,016 |
Cash and cash equivalents |
|
1,233,213 |
|
786,031 |
Total current assets |
|
1,612,862 |
|
1,099,119 |
Total assets |
|
1,930,659 |
|
1,330,963 |
CURRENT LIABILITIES |
|
|
|
|
Trade payables |
|
21,544 |
|
32,893 |
Other payables and accruals |
|
165,519 |
|
184,109 |
Government grants |
|
435 |
|
451 |
Lease liabilities |
|
3,558 |
|
3,563 |
Tax payable |
|
10,326 |
|
9,772 |
Warrant liability |
|
— |
|
67,000 |
Total current liabilities |
|
201,382 |
|
297,788 |
NON-CURRENT LIABILITIES |
|
|
|
|
Collaboration interest-bearing advanced funding |
|
270,614 |
|
260,932 |
Lease liabilities long term |
|
44,444 |
|
20,039 |
Government grants |
|
7,036 |
|
7,659 |
Other non-current liabilities |
|
152 |
|
233 |
Total non-current liabilities |
|
322,246 |
|
288,863 |
Total liabilities |
|
523,628 |
|
586,651 |
EQUITY |
|
|
|
|
Share capital |
|
36 |
|
33 |
Reserves |
|
1,406,995 |
|
744,279 |
Total ordinary shareholders’ equity |
|
1,407,031 |
|
744,312 |
Total equity |
|
1,407,031 |
|
744,312 |
Total liabilities and equity |
|
1,930,659 |
|
1,330,963 |
LEGEND BIOTECH CORPORATION |
|||||||||
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOW |
|||||||||
|
|
Three Months Ended June 30, |
Six months ended June 30, |
||||||
US$’000 |
|
2023 |
|
2022 |
|
2023 |
|
2022 |
|
|
|
(Unaudited) |
|
(Unaudited) |
|
(Unaudited) |
|
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
LOSS BEFORE TAX |
|
(198,838) |
|
(193,071) |
|
(310,811) |
|
(225,197) |
|
CASH FLOWS USED IN OPERATING ACTIVITIES |
|
(95,730) |
|
(740) |
|
(236,783) |
|
(79,427) |
|
CASH FLOWS USED IN INVESTING ACTIVITIES |
|
(123,581) |
|
2,585 |
|
(105,651) |
|
(229,915) |
|
CASH FLOWS FROM FINANCING ACTIVITIES |
|
789,890 |
|
1,009 |
|
789,604 |
|
1,034 |
|
NET INCREASE/(DECREASE) IN CASH AND CASH EQUIVALENTS |
|
570,579 |
|
2,854 |
|
447,170 |
|
(308,308) |
|
Effect of foreign exchange rate changes, net |
|
2,584 |
|
(864) |
|
12 |
|
(854) |
|
Cash and cash equivalents at beginning of the period |
|
660,050 |
|
377,786 |
|
786,031 |
|
688,938 |
|
|
|
|
|
|
|
|
|
|
|
CASH AND CASH EQUIVALENTS AT END OF THE PERIOD |
|
1,233,213 |
|
379,776 |
|
1,233,213 |
|
379,776 |
|
ANALYSIS OF BALANCES OF CASH AND CASH EQUIVALENTS |
|
|
|
|
|
|
|
|
|
Cash and bank balances |
|
1,334,482 |
|
788,982 |
|
1,334,482 |
|
788,982 |
|
Less: Pledged deposits |
|
1,246 |
|
1,402 |
|
1,246 |
|
1,402 |
|
Time deposits |
|
100,023 |
|
407,804 |
|
100,023 |
|
407,804 |
|
Cash and cash equivalents as stated in the statement of financial position |
|
1,233,213 |
|
379,776 |
|
1,233,213 |
|
379,776 |
|
Cash and cash equivalents as stated in the statement of cash flows |
|
1,233,213 |
|
379,776 |
|
1,233,213 |
|
379,776 |
|
____________________________ |
1 ClinicalTrials.gov. DLL3-Directed Chimeric Antigen Receptor T-cells in Subjects With Extensive Stage Small Cell Lung Cancer. Available at: https://classic.clinicaltrials.gov/ct2/show/NCT05680922. Last accessed Aug 2023. |
2 San-Miguel, J, Dhakal B, Yong K, et al. Cilta-cel or Standard Care in Lenalidomide-Refractory Multiple Myeloma. N Engl J Med. 2023;389:335-347 |
View source version on businesswire.com: https://www.businesswire.com/news/home/20230815252970/en/
Press:
Tina Carter, Corporate Communications Lead, Legend Biotech
tina.carter@legendbiotech.com
(908) 331-5025
Investor:
Jessie Yeung, Head of Investor Relations and Public Relations, Legend Biotech
jessie.yeung@legendbiotech.com
Source: Legend Biotech Corporation
FAQ
What applications were submitted by Legend Biotech to FDA and EMA?
What financial results were reported for the three and six months ended June 30, 2023?