Legend Biotech’s Surging Revenue Fuels Analyst Confidence Despite Ongoing Losses

Legend Biotech Corp (LEGN) delivered a powerful revenue performance in its second quarter 2025 earnings report, sparking significant analyst enthusiasm even as the company continues to operate at a substantial loss. The biotech firm’s impressive commercial progress with its flagship therapy has market experts increasingly optimistic about its path to profitability.

Explosive Revenue Growth and Persistent Challenges

The company reported quarterly revenue of $255 million, representing a substantial increase from the $186 million recorded in the same period last year. This performance notably exceeded analyst expectations, demonstrating remarkable commercial traction. Despite this impressive top-line achievement, Legend Biotech posted a net loss of $125 million for the quarter, highlighting the ongoing cost challenges facing the innovative biotech company.

Driving this revenue surge is the exceptional market performance of CARVYKTI®, the company’s CAR-T cell therapy. The treatment generated net trade sales of $439 million, reflecting an extraordinary 136 percent year-over-year increase. This explosive demand for the innovative cancer therapy suggests strong market adoption and provides a solid foundation for future financial improvement.

Analyst Community Responds with Upgraded Targets

The financial community has responded to these developments with a series of upgraded price targets and positive ratings. JPMorgan Chase increased its target price to $78 from $77 while maintaining its “Overweight” rating. Morgan Stanley demonstrated even greater optimism, establishing a new target of $83 per share. Cantor Fitzgerald took the most bullish stance, upgrading the stock to a “Strong Buy” recommendation.

Should investors sell immediately? Or is it worth buying Legend Biotech Corp?

Market consensus remains decidedly positive, with analysts maintaining an average “Buy” rating and a price target of $73. This collective optimism suggests that financial experts are focusing on the company’s long-term potential rather than its current unprofitability.

Regulatory Support and Leadership Strengthening

Legend Biotech received additional positive news from regulatory authorities. The U.S. Food and Drug Administration (FDA) recently eliminated Risk Evaluation and Mitigation Strategies (REMS) requirements for approved BCMA- and CD19-directed CAR-T cell immunotherapies, including CARVYKTI®. This regulatory simplification is expected to improve patient access to these treatments and potentially accelerate adoption rates.

The company has also strengthened its leadership team with the appointment of a new Chief Financial Officer. Carlos Santos assumed the CFO role on August 18, replacing interim finance head Jessie Yeung. Santos brings experience that the company believes will help guide Legend Biotech toward its goal of achieving profitability by 2026.

While analysts currently project a negative EPS of -0.88 for the current fiscal year, the combination of dramatic revenue growth, regulatory tailwinds, and strengthened leadership has created conditions that could potentially surprise to the upside. The fundamental question remains whether these positive developments can translate into sustained shareholder value despite the company’s ongoing financial losses.