Oppenheimer Downgrades Legend Biotech Corp. (LEGN) to Perform, 'CEO/Partnership/Competition Overhangs to Cap Upside'

Oppenheimer analyst Trevor Allred downgraded Legend Biotech Corp. (NASDAQ: LEGN) from Outperform to Perform with a price target of $40.00 (from $75.00).

The analyst comments "Following in vivo CART readout on 6/2, LEGN significantly underperformed (-40% vs. XBI's +24%) due to diminished M&A prospects amid financing, CEO departure, and JNJ/Sail collaboration. Although LEGN's in vivo CART platform could ultimately attract strategic interest (NVS a likely acquirer, Exhibit below), LEGN's most probable buyer (JNJ) is now removed, eliminating near-term upside from potential partnership/takeout. CEO departure heightens strategic uncertainty ahead of competitor Anitocel commercialization, as the CEO's expertise/experience was LEGN's competitive advantage. Finally, weak Carvykti (and strong Tecvayli) sales in IQVIA, coupled with mgmt.'s gradually diminishing confidence in FY26 sales, may signal a cloudy Carvykti outlook. Therefore, we move to sidelines until clarity is provided around new CEO, their relationship/alignment with the Board (misalignment may have caused CEO departure), and Carvykti/pipeline strategy."

For an analyst ratings summary and ratings history on Legend Biotech Corp. click here. For more ratings news on Legend Biotech Corp. click here.

Shares of Legend Biotech Corp. closed at $21.83 yesterday.

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