Legend Biotech Corporation (Nasdaq: LEGN), a leading Chinese biopharmaceutical company, has released its financial results for the second quarter of 2024. Amidst recent speculation about potential implications from the U.S. Biosecure Act, CEO Ying Huang addressed concerns during the earnings call. The U.S. House of Representatives’ committee on China had previously requested an FBI investigation into GenScript Biotechnology Co., Ltd (HKG: 1548) and its subsidiaries, including Legend Biotech, to evaluate any national security risks.
In response to investor inquiries about the company’s stance and actions in light of these developments, Dr. Huang expressed confidence in Legend’s ability to navigate U.S. legislative challenges: “We have carefully evaluated the draft bill… And have been engaging with certain stakeholders in Washington DC, including the Committee and House Speaker’s office… At this point, we do not believe there will be any direct impact to Legend… we’re not too concerned that we’re the target of the Biosecure bill.”
Dr. Huang was more reserved when discussing the possibility of Legend becoming a takeover target, especially after the company reportedly began considering offers and enlisted Centerview Partners for advisory support. He chose to focus on Legend’s positive trajectory, particularly its collaboration with global partner Janssen Biotech on the development of the chimeric antigen receptor (CAR) T cell therapy Carvykti (ciltacabtagene autoleucel; cilta-cel). The therapy is expanding into second-line use for multiple myeloma (MM), with trials for frontline use ongoing. Huang noted that the company is exploring various options to maximize shareholder value, suggesting that remaining independent is a viable strategy given its potential: “We certainly believe that there’s a lot of growth ahead of us and we remain confident in our current long-term strategy to realize the full potential of Carvykti,” said Huang.
In Q2’24, Carvykti net sales reached approximately USD 186 million, marking an 18.5% year-on-year increase. Following the U.S. FDA and EU’s April approvals for Carvykti in the second-line setting for MM, the UK’s Medicines and Healthcare products Regulatory Agency (MHRA) and Health Canada also granted approvals for the same indication during Q2. The growing demand for the drug indicates that scaling up manufacturing capacity is the key challenge for Legend and J&J at present.- Flcube.com
