JNJ - Legend Biotech adds 18% after leaked report on JNJ-partnered CAR-T therapy

2023-04-19 07:48:49 ET

Legend Biotech ( NASDAQ: LEGN ) added 18% , and Jonson & Jonson ( NYSE: JNJ ), its partner for Carvykti CAR-T cell therapy, gained 1% on Wednesday pre-market after a leaked report showed that the treatment sharply reduced the risk of relapse in multiple myeloma patients.

In 2017, the Janssen unit of JNJ signed a worldwide exclusive license and collaboration to develop and commercialize Carvykti, approved in the U.S. as a late-line option for adults with MM, a type of bone marrow cancer.

The leaked results on Tuesday showed that in a Phase 3 trial called CARTITUDE-4, the BCMA-directed CAR-T therapy, also known as cilta-cel, reduced the risk of relapse by 74% compared to standard treatment in MM patients.

As the size of the benefit exceeded expectations, doctors will be more inclined to use Carvykti as an earlier line option for MM, subject to regulatory clearance, Stat News reported citing leaked results.

In comparison, Abecma, another CAR-T therapy jointly developed and commercialized by Bristol Myers Squibb ( BMY ) and 2Seventy Bio ( TSVT ), led to a 51% decline in the risk of relapse compared to standard of care, according to published data from a similar Phase 3 trial.

Seeking Alpha contributor Avisol Capital Partners argues that Carvykti’s approval as a fifth-line option for MM is not enough to realize its multibillion-dollar peak sales potential projected by analysts.

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