2023-05-01 09:25:00 ET
With its shares up by 49% in one month and 80% in one year, shareholders of Legend Biotech (NASDAQ: LEGN) are bound to be feeling pretty smart right about now. After commercializing an oncology medicine last year and seeing its stock skyrocket after a very positive set of data leaked from one of its late-stage clinical trials in April, it looks like the company's future is bright.
But is there still time to get in on this stock's ascent, or is it about to lose a bit of steam in the face of overly high expectations? Let's take a look at the arguments for each position.
In 2022, Legend Biotech launched its first medicine, Carvykti, which is a genetically engineered cell therapy designed to treat treatment-resistant relapsed or refractory multiple myeloma. As per the terms of its agreement with its development collaborator, Johnson & Johnson , the biotech will be entitled to 50% of the revenue and costs in most international jurisdictions and 70% in Greater China. In 2022, it brought in $117 million, though that wasn't enough to make it profitable. Furthermore, it also has the possibility of earning an additional $770 million in milestone payments if things go according to plan. With a significant amount of success in the rearview mirror, it's no surprise that investors are wondering whether there's any upside left in this stock.
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After Jumping 49% in 1 Month, Is It Too Late to Buy Legend Biotech?