Legend Biotech (LEGN) Q2 2024 earnings summary

Executive summary

• CARVYKTI net trade sales reached $186 million in Q2 2024, reflecting 18.5% sequential and 60% year-over-year growth, driven by expanded approvals and increased demand.

• Secured label expansion approvals for CARVYKTI from FDA, EMA, UK, and Canada, boosting market access and penetration into earlier lines of therapy.

• Demonstrated statistically significant and clinically meaningful overall survival benefit for CARVYKTI in the CARTITUDE-4 study; CARTITUDE-5 enrollment completed.

• Broke ground on a new research center in Philadelphia and began preclinical development in the autoimmune field.

• Cash and equivalents totaled $1.3 billion as of June 30, 2024, expected to fund operations and capital expenditures into 2026, with operating profit targeted that year.

Financial highlights

• Total Q2 2024 revenues were $187 million, including $93 million collaboration revenue and $91 million license revenue, up 154% year-over-year.

• Net loss for Q2 2024 was $18 million ($0.05 per share), a significant improvement from $199 million ($0.57 per share) in Q2 2023.

• Research and development expenses rose to $113 million, up from $96 million year-over-year, mainly due to CARVYKTI and solid tumor program investments.

• Administrative expenses increased to $35 million and selling/distribution expenses to $30 million, reflecting expanded infrastructure and commercialization efforts.

• Received a $30 million milestone payment under the Janssen collaboration for cilta-cel.

Outlook and guidance

• Financial runway expected into 2026, with operating profit anticipated that year.

• Manufacturing capacity expected to double in 2025, with commercial production ramping up at multiple global sites, including the Obelisc facility in Belgium.

• Ongoing investment in pipeline, with CARTITUDE-5 enrollment completed and CARTITUDE-6 enrollment ahead of expectations.

• Ongoing global launches for CARVYKTI in 2L+ lines of therapy and continued pipeline advancement.