Legend Biotech (LEGN) Q3 2024 earnings summary

Executive summary

• CARVYKTI net trade sales reached $286 million in Q3 2024, up 88% year-over-year and 53.2% quarter-over-quarter, driven by strong demand, expanded capacity, and new market launches.

• CARVYKTI demonstrated a 45% reduction in risk of death versus standard therapies in multiple myeloma, with significant overall survival and progression-free survival benefits.

• CARVYKTI is now commercially available in five countries, treating over 4,000 patients across 110+ centers globally, with commercial production commencing at the Obelisc facility in Belgium.

• Outpatient administration comprises up to 48% of CARVYKTI volume in the US, supporting further market penetration and differentiation.

• Appointment of a new president for the CARVYKTI business unit to drive continued growth and operational excellence.

Financial highlights

• Total Q3 2024 revenues were $160 million, including $143 million from collaboration revenue and $17 million from license revenue.

• Net loss for Q3 2024 was $125.3 million ($0.34 per share), compared to $62.2 million ($0.17 per share) in the prior year, mainly due to unrealized foreign exchange losses.

• Operating expenses increased 21% year-over-year, with higher SG&A and administrative costs supporting commercial expansion.

• R&D expenses remained stable at $96 million, while selling and distribution expenses more than doubled to $44.3 million.

• Cash and equivalents stood at $1.2 billion as of September 30, 2024, sufficient to fund operations into 2026, with operating profit expected by then.

Outlook and guidance

• Sequential revenue growth is expected in Q4, with continued strong demand, capacity expansion, and global launches.

• Majority of future CARVYKTI use anticipated in earlier lines of therapy, with a projected 2/3 to 1/3 split favoring second-line plus indications by next year.

• Majority of US patients expected to be treated in outpatient settings by end of 2025.

• Ongoing investments in new research facilities and manufacturing capacity, including a new R&D facility in Philadelphia, to support long-term growth.