Legend Biotech Reports Second Quarter 2024 Results and Recent Highlights

Rhea-AI Summary

Legend Biotech (NASDAQ: LEGN) reported its Q2 2024 results, highlighting CARVYKTI®'s net trade sales of $186 million. The company received MHRA and Health Canada approvals for CARVYKTI® in earlier treatment lines for multiple myeloma. Positive overall survival results were demonstrated in the CARTITUDE-4 study. Legend Biotech's cash position stood at $1.3 billion as of June 30, 2024, providing runway into 2026.

Financial highlights include license revenue of $90.8 million, up from $15.1 million in Q2 2023, and collaboration revenue of $93.3 million, increased from $58.2 million. The company reported a net loss of $18.2 million, significantly reduced from $199.1 million in the same period last year. Research and development expenses rose to $112.6 million, reflecting ongoing investment in cilta-cel and solid tumor programs.

Positive

• CARVYKTI® net trade sales reached $186 million
• License revenue increased to $90.8 million from $15.1 million year-over-year
• Collaboration revenue grew to $93.3 million from $58.2 million year-over-year
• Net loss reduced significantly to $18.2 million from $199.1 million year-over-year
• Cash position of $1.3 billion, providing runway into 2026
• MHRA and Health Canada approvals for CARVYKTI® in earlier treatment lines
• Positive overall survival results in CARTITUDE-4 study

Negative

• Research and development expenses increased to $112.6 million from $95.8 million year-over-year
• Administrative expenses rose to $35.4 million from $27.8 million year-over-year
• Selling and distribution expenses increased to $30.1 million from $21.4 million year-over-year

Financial Analyst

Legend Biotech's Q2 2024 results show significant progress. Revenue growth is impressive, with license revenue jumping to $90.8 million from $15.1 million year-over-year, primarily due to milestone achievements. Collaboration revenue increased to $93.3 million from $58.2 million, driven by CARVYKTI® sales. The company's net loss narrowed substantially to $18.2 million from $199.1 million last year, indicating improved financial health.

However, expenses are rising across the board, with R&D, administrative and selling costs all increasing. This is expected for a growing biotech company but should be monitored. The cash position of $1.3 billion provides a strong runway into 2026, aligning with the company's expectation to achieve operating profit by then. This financial stability is important for continued development and commercialization efforts.

Oncology Specialist

The regulatory approvals for CARVYKTI® in earlier treatment lines by MHRA and Health Canada are significant milestones. This expansion allows for treating patients with fewer prior therapies, potentially improving outcomes. The positive overall survival results from the CARTITUDE-4 study further validate CARVYKTI®'s efficacy.

The completion of CARTITUDE-5 enrollment and ongoing studies demonstrate a robust clinical development program. The outpatient administration progress is particularly noteworthy, as it could significantly improve patient access and reduce healthcare system burden. However, it's important to monitor long-term safety data as the treatment reaches broader patient populations. The growing momentum in both inpatient and outpatient settings suggests increasing physician confidence in managing this complex therapy.

Market Research Analyst

Legend Biotech's market position is strengthening, evidenced by the growing demand for CARVYKTI®. The expansion into earlier treatment lines opens a larger market opportunity. The $186 million in net trade sales for CARVYKTI® indicates strong market uptake.

The partnership with Janssen Biotech (Johnson & Johnson) provides valuable commercialization support and milestone payments. The new collaboration with Novartis for LB2102 diversifies the pipeline and could lead to future revenue streams. The planned commercial production at the Obelisc facility in Belgium is important for meeting increasing demand. However, investors should watch for potential competition in the CAR-T space and monitor the company's ability to scale manufacturing to meet demand efficiently.

• CARVYKTI^® (ciltacabtagene autoleucel; cilta-cel) net trade sales of approximately $186 million
• MHRA and Health Canada approved CARVYKTI^® in earlier lines of treatment for adult patients with relapsed and lenalidomide-refractory multiple myeloma
• CARVYKTI^® demonstrates positive overall survival results in second interim analysis of CARTITUDE-4 study
• Cash and cash equivalents, deposits and short-term investments of $1.3 billion, as of June 30, 2024, which Legend Biotech believes will provide financial runway into 2026, when Legend Biotech anticipates achieving an operating profit

SOMERSET, N.J., Aug. 09, 2024 (GLOBE NEWSWIRE) -- Legend Biotech Corporation (NASDAQ: LEGN) (Legend Biotech), a global leader in cell therapy, today reported its second quarter 2024 unaudited financial results and key corporate highlights.

“In the second quarter, approval of CARVYKTI in the second line increased demand and interest from patients and the healthcare community. Momentum for CARVYTKI is growing and we are excited to see it helping not only later line patients, but an increasing number of earlier line patients. I am encouraged by the progress we have been making in both the inpatient and outpatient settings, enabling more patients to receive our transformative one-time treatment,” said Ying Huang, Ph.D., Chief Executive Officer of Legend Biotech. “We look forward to starting commercial production at our Obelisc facility in Belgium later this year in order to meet the growing demand, and we remain laser-focused on increasing our manufacturing capacity.”

Regulatory Updates

• The United Kingdom’s Medicines and Healthcare products Regulatory Agency (MHRA) approved CARVYKTI^® for the treatment of adult patients with relapsed and refractory multiple myeloma, who have received at least one prior therapy, including an immunomodulatory agent (IMiD) and a proteasome inhibitor (PI), have demonstrated disease progression on the last therapy and are refractory to lenalidomide.
• Health Canada approved CARVYKTI^® for the treatment of adult patients with multiple myeloma, who have received one to three prior lines of therapy including a PI and an IMiD, and who are refractory to lenalidomide.

Key Business Developments

• Novartis Pharmaceuticals Corporation initiated clinical production in July 2024.
• Completed CARTITUDE 5 enrollment in July 2024.
• Announced positive results from a second interim analysis of the Phase 3 CARTITUDE-4 study demonstrating a statistically significant and clinically meaningful improvement in overall survival for multiple myeloma patients treated with CARVYKTI^® versus standard-of-care treatment regimens. These new results will be presented at an upcoming medical meeting and shared with regulatory agencies for label updates worldwide.
• New data from the Phase 2 CARTITUDE-2 Cohort D study and new and updated data from the Phase 3 CARTITUDE-4 study of cilta-cel were featured at the 2024 American Society of Clinical Oncology (ASCO) Annual Meeting (Abstracts #7504 and 7505) and European Hematology Association (EHA) 2024 Hybrid Congress (Abstract #S205).
• On June 28, 2024, Legend Biotech received a milestone payment of $30 million in connection with the Janssen Agreement.
• On August 8, 2024, Peter Salovey, Ph.D., was appointed to the Company's Board of Directors, effective August 9, 2024.

* In December 2017, Legend Biotech entered into an exclusive worldwide collaboration and license agreement with Janssen Biotech, Inc., a Johnson & Johnson company, to develop and commercialize cilta-cel (the Janssen Agreement).

Second Quarter 2024 Financial Results

• License Revenue: License revenue was $90.8 million for the three months ended June 30, 2024, compared to $15.1 million for the three months ended June 30, 2023. The increase was primarily driven by a $60.0 million increase in revenue that was recognized due to the nature of, and timing of milestones achieved as outlined in the Global Development Plan under the Janssen Agreement for cilta-cel. Additionally, the increase in license revenue is driven by the recognition of $15.7 million of revenue due to the timing of underlying activities performed in connection with the global license agreement with Novartis Pharma AG (the "Novartis License Agreement") to develop, manufacture, and commercialize LB2102 and other potential CAR-T therapies selectively targeting DLL3. Legend Biotech did not recognize any license revenue from the Novartis License Agreement for the three months ended June 30, 2023.

• Collaboration Revenue: Collaboration revenue was $93.3 million for the three months ended June 30, 2024, compared to $58.2 million for the three months ended June 30, 2023. The increase was primarily due to an increase in revenue generated from sales of CARVYKTI^® in connection with the Janssen Agreement.

• Collaboration Cost of Revenue: Collaboration cost of revenue was $45.4 million for the three months ended June 30, 2024, compared to $32.7 million for the three months ended June 30, 2023. The increase was primarily due to Legend Biotech’s share of the cost of sales in connection with CARVYKTI^® sales under the Janssen Agreement.

• Cost of License and Other Revenue: Cost of license and other revenue for the three months ended June 30, 2024, was $5.1 million and consisted of costs in connection with the Novartis License Agreement. The Company did not incur any cost of license and other revenue for the three months ended June 30, 2023.

• Research and Development Expenses: Research and development expenses were $112.6 million for the three months ended June 30, 2024, compared to $95.8 million for the three months ended June 30, 2023. The increase was primarily driven by continuous research and development activities in cilta-cel, including start up costs for clinical production in Belgium and continued investment in Legend Biotech’s solid tumor programs.

• Administrative Expenses: Administrative expenses were $35.4 million for the three months ended June 30, 2024, compared to $27.8 million for the three months ended June 30, 2023. The increase was primarily due to the expansion of administrative functions and infrastructure to increase manufacturing capacity.

• Selling and Distribution Expenses: Selling and distribution expenses were $30.1 million for the three months ended June 30, 2024, compared to $21.4 million for the three months ended June 30, 2023.The increase was primarily driven by costs associated with commercial activities for cilta-cel, including the expansion of the sales force and second line indication launch preparation.

• Net Loss: Net loss was $18.2 million for the three months ended June 30, 2024, compared to a net loss of $199.1 million for the three months ended June 30, 2023.

• Cash Position: Cash and cash equivalents, time deposits, and short-term investments were $1.3 billion as of June 30, 2024.
  

Webcast/Conference Call Details:
Legend Biotech will host its quarterly earnings call and webcast today at 8:00 a.m. 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 Somerset, New Jersey, we are developing advanced cell therapies across a diverse array of technology platforms, including autologous and allogeneic chimeric antigen receptor T-cell, gamma-delta T cell and natural killer (NK) cell-based immunotherapy. From our three R&D sites around the world, we apply these innovative technologies to pursue the discovery of cutting-edge therapeutics for patients worldwide.

Learn more at www.legendbiotech.com and follow us on X (formerly 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 its therapeutic potential; statements relating to the potential approval of CARVYKTI^® for earlier lines of therapy; statements related to Legend Biotech manufacturing expectations for CARVYKTI^®; statements related to Legend Biotech’s ability to achieve operating profit; 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 U.S. litigation process; government, industry, and general product pricing and other political pressures; as well as the other factors discussed in the “Risk Factors” section of Legend Biotech’s Annual Report on Form 20-F filed with the Securities and Exchange Commission on March 19, 2024. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those described in this press release as anticipated, believed, estimated or expected. Any forward-looking statements contained in this press release speak only as of the date of this press release. Legend Biotech specifically disclaims any obligation to update any forward-looking statement, whether as a result of new information, future events or otherwise.

INVESTOR CONTACT:

Jessie Yeung
Tel: (732) 956-8271
jessie.yeung@legendbiotech.com

PRESS CONTACT:

Mary Ann Ondish
Tel: (914) 552-4625
media@legendbiotech.com

LEGEND BIOTECH CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF PROFIT OR LOSS
		Three Months Ended June 30, 2024							Six Months Ended June 30, 2024
		2024				2023				2024				2023
US$’000, except share and per share data		(Unaudited)			(Unaudited)				(Unaudited)				(Unaudited)
REVENUE
License revenue		90,846				15,115				103,027				15,115
Collaboration revenue		93,254				58,152				171,735				94,432
Other revenue		2,423				63				5,752				119
Total revenue		186,523				73,330				280,514				109,666
Collaboration cost of revenue		(45,355	)			(32,672	)			(94,456	)			(68,285	)
Cost of license and other revenue		(5,096	)			—				(10,734	)			—
Other income and gains		29,484				16,433				93,037				20,994
Research and development expenses		(112,626	)			(95,791	)			(213,590	)			(180,680	)
Administrative expenses		(35,353	)			(27,753	)			(67,282	)			(49,958	)
Selling and distribution expenses		(30,063	)			(21,429	)			(54,286	)			(39,383	)
Other expenses		—				(21	)			(2	)			(7,117	)
Fair value loss of warrant liability		—				(105,750	)			—				(85,750	)
Finance costs		(5,484	)			(5,185	)			(10,959	)			(10,298	)
LOSS BEFORE TAX		(17,970	)			(198,838	)			(77,758	)			(310,811	)
Income tax expense		(226	)			(290	)			(231	)			(418	)
LOSS FOR THE PERIOD		(18,196	)			(199,128	)			(77,989	)			(311,229	)
Attributable to:
Ordinary equity holders of the parent		(18,196	)			(199,128	)			(77,989	)			(311,229	)
LOSS PER SHARE ATTRIBUTABLE TO ORDINARY EQUITY HOLDERS OF THE PARENT
Basic		(0.05	)			(0.57	)			(0.21	)			(0.91	)
Diluted		(0.05	)			(0.57	)			(0.21	)			(0.91	)
ORDINARY SHARES USED IN LOSS PER SHARE COMPUTATION
Basic		365,204,154				350,517,429				364,610,589				340,779,779
Diluted		365,204,154				350,517,429				364,610,589				340,779,779

LEGEND BIOTECH CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
		June 30, 2024				December 31, 2023
		US$’000				US$’000
		(Unaudited)
NON-CURRENT ASSETS
Property, plant and equipment		105,018				108,725
Advance payments for property, plant and equipment		295				451
Right-of-use assets		114,718				80,502
Time deposits		4,400				4,362
Intangible assets		2,772				4,061
Collaboration prepaid leases		144,552				151,216
Other non-current assets		1,596				1,493
Total non-current assets		373,351				350,810
CURRENT ASSETS
Collaboration inventories		18,870				19,433
Trade receivables		13,064				100,041
Prepayments, other receivables and other assets		100,628				69,251
Financial assets at fair value through profit or loss		42,201				663
Pledged deposits		431				357
Time deposits		1,048,385				30,341
Cash and cash equivalents		201,253				1,277,713
Total current assets		1,424,832				1,497,799
Total assets		1,798,183				1,848,609
CURRENT LIABILITIES
Trade payables		39,490				20,160
Other payables and accruals		169,531				132,802
Government grants		545				68
Lease liabilities		3,325				3,175
Tax payable		6,566				7,203
Contract liabilities		74,845				53,010
Total current liabilities		294,302				216,418
NON-CURRENT LIABILITIES
Collaboration interest-bearing advanced funding		291,559				281,328
Lease liabilities long term		44,042				44,169
Government grants		6,574				7,305
Contract liabilities		2,704				47,962
Other non-current liabilities		—				56
Total non-current liabilities		344,879				380,820
Total liabilities		639,181				597,238
EQUITY
Share capital		37				36
Reserves		1,158,965				1,251,335
Total ordinary shareholders’ equity		1,159,002				1,251,371
Total equity		1,159,002				1,251,371
Total liabilities and equity		1,798,183				1,848,609

LEGEND BIOTECH CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOW
		Three Months Ended June 30,							Six Months Ended June 30,
US$’000		2024				2023				2024				2023
		(Unaudited)			(Unaudited)				(Unaudited)				(Unaudited)
LOSS BEFORE TAX		(17,970	)			(198,838	)			(77,758	)			(310,811	)
CASH FLOWS (USED IN)/PROVIDED BY OPERATING ACTIVITIES		(1,651	)			(95,730	)			13,867				(236,783	)
CASH FLOWS USED IN INVESTING ACTIVITIES		(695,631	)			(123,581	)			(1,091,779	)			(105,651	)
CASH FLOWS PROVIDED BY FINANCING ACTIVITIES		955				789,890				1,786				789,604
NET (DECREASE)/INCREASE IN CASH AND CASH EQUIVALENTS		(696,327	)			570,579				(1,076,126	)			447,170
Effect of foreign exchange rate changes, net		9				2,584				(334	)			12
Cash and cash equivalents at beginning of the period		897,571				660,050				1,277,713				786,031
CASH AND CASH EQUIVALENTS AT END OF THE PERIOD		201,253				1,233,213				201,253				1,233,213
ANALYSIS OF BALANCES OF CASH AND CASH EQUIVALENTS
Cash and bank balances		1,254,469				1,334,482				1,254,469				1,334,482
Less: Pledged deposits		431				1,246				431				1,246
Time deposits		1,052,785				100,023				1,052,785				100,023
Cash and cash equivalents as stated in the statement of financial position		201,253				1,233,213				201,253				1,233,213
Cash and cash equivalents as stated in the statement of cash flows		201,253				1,233,213				201,253				1,233,213

FAQ

What were CARVYKTI's net trade sales in Q2 2024 for Legend Biotech (LEGN)?

CARVYKTI's net trade sales were approximately $186 million in Q2 2024 for Legend Biotech (LEGN).

How much was Legend Biotech's (LEGN) license revenue in Q2 2024?

Legend Biotech's (LEGN) license revenue was $90.8 million in Q2 2024, compared to $15.1 million in Q2 2023.

What was Legend Biotech's (LEGN) net loss in Q2 2024?

Legend Biotech (LEGN) reported a net loss of $18.2 million in Q2 2024, significantly reduced from $199.1 million in Q2 2023.

What is Legend Biotech's (LEGN) cash position as of June 30, 2024?

Legend Biotech (LEGN) reported cash and cash equivalents, time deposits, and short-term investments of $1.3 billion as of June 30, 2024.

What new approvals did CARVYKTI receive for Legend Biotech (LEGN) in Q2 2024?

CARVYKTI received approvals from MHRA (UK) and Health Canada for earlier lines of treatment in adult patients with relapsed and lenalidomide-refractory multiple myeloma.