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Legend Biotech (LEGN) Up 12% on Reports of Takeover Bid
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Shares of Legend Biotech (LEGN - Free Report) rose 12.1% on Friday following an article issued by StreetInsider.com, which mentioned that the company recently received a takeover bid from an unidentified bidder.
The article further claimed that LEGN hired investment banking firm Centerview Partners to assist its board of directors in reviewing this takeover offer. The article did not provide information on whether this interest could lead to a potential sale. Legend is yet to confirm these reports.
Legend currently has only one marketed product in its portfolio, Carvykti, an autologous CAR-T cell therapy for multiple myeloma (MM). The therapy is marketed in partnership with pharma giant Johnson & Johnson (JNJ - Free Report) .
In April, the FDA granted label expansion to the J&J-partnered therapy to treat adult patients with MM who have received at least one prior line of therapy, including a proteasome inhibitor (PI) and an immunomodulatory agent (IMiD) and who are refractory to Bristol-Myers’ (BMY - Free Report) Revlimid (lenalidomide). The therapy was initially cleared for use as a fifth-line treatment in the country in 2022.
Before this label expansion, around 15% of patients initially diagnosed with MM were able to start a fifth line of therapy in the United States. With the new label, J&J and Legend Biotech expect to cater to a wider patient population. In anticipation of meeting an increased demand for the therapy post-label expansion, J&J claims that it has more than doubled its manufacturing capacity last year.
The company’s pipeline is made up of investigational novel cell therapies for a variety of oncology indications, including gastric cancer, esophageal cancer, pancreatic cancer, colorectal cancer, and lung cancer.
Year to date, Legend Biotech’s shares have lost 9.7% compared with the industry’s 2.6% fall.
Image Source: Zacks Investment Research
The takeover report also benefitted the Legend’s rival 2seventy bio (TSVT - Free Report) , whose shares were also up 7% on Jul 12. TSVT markets Abecma, another FDA-approved CAR-T therapy that is similar to Carvykti, in partnership with Bristol Myers.
Earlier this April, the FDA also granted label expansion to BMY/TSVT drug for the treatment of adults with r/r MM who have received two or more prior lines of therapy, including PI, an IMiD agent, and an anti-CD38 monoclonal antibody. Like Carvykti, Bristol Myers/2seventy’s Abecma was previously cleared for use as a fifth-line treatment in the country.
While we acknowledge that both therapies are based on similar mechanisms and the new labels are expected to boost their revenue-generating potential, Carvykti’s use as an earlier line of treatment in MM patients gives it an edge over Abecma.
Image: Bigstock
Legend Biotech (LEGN) Up 12% on Reports of Takeover Bid
Shares of Legend Biotech (LEGN - Free Report) rose 12.1% on Friday following an article issued by StreetInsider.com, which mentioned that the company recently received a takeover bid from an unidentified bidder.
The article further claimed that LEGN hired investment banking firm Centerview Partners to assist its board of directors in reviewing this takeover offer. The article did not provide information on whether this interest could lead to a potential sale. Legend is yet to confirm these reports.
Legend currently has only one marketed product in its portfolio, Carvykti, an autologous CAR-T cell therapy for multiple myeloma (MM). The therapy is marketed in partnership with pharma giant Johnson & Johnson (JNJ - Free Report) .
In April, the FDA granted label expansion to the J&J-partnered therapy to treat adult patients with MM who have received at least one prior line of therapy, including a proteasome inhibitor (PI) and an immunomodulatory agent (IMiD) and who are refractory to Bristol-Myers’ (BMY - Free Report) Revlimid (lenalidomide). The therapy was initially cleared for use as a fifth-line treatment in the country in 2022.
Before this label expansion, around 15% of patients initially diagnosed with MM were able to start a fifth line of therapy in the United States. With the new label, J&J and Legend Biotech expect to cater to a wider patient population. In anticipation of meeting an increased demand for the therapy post-label expansion, J&J claims that it has more than doubled its manufacturing capacity last year.
The company’s pipeline is made up of investigational novel cell therapies for a variety of oncology indications, including gastric cancer, esophageal cancer, pancreatic cancer, colorectal cancer, and lung cancer.
Year to date, Legend Biotech’s shares have lost 9.7% compared with the industry’s 2.6% fall.
Image Source: Zacks Investment Research
The takeover report also benefitted the Legend’s rival 2seventy bio (TSVT - Free Report) , whose shares were also up 7% on Jul 12. TSVT markets Abecma, another FDA-approved CAR-T therapy that is similar to Carvykti, in partnership with Bristol Myers.
Earlier this April, the FDA also granted label expansion to BMY/TSVT drug for the treatment of adults with r/r MM who have received two or more prior lines of therapy, including PI, an IMiD agent, and an anti-CD38 monoclonal antibody. Like Carvykti, Bristol Myers/2seventy’s Abecma was previously cleared for use as a fifth-line treatment in the country.
While we acknowledge that both therapies are based on similar mechanisms and the new labels are expected to boost their revenue-generating potential, Carvykti’s use as an earlier line of treatment in MM patients gives it an edge over Abecma.
Zacks Rank
Legend Biotech currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.