Latest news with #CARVYKTI
Yahoo
15 hours ago
- Business
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Legend Biotech Reports Second Quarter 2025 Results and Recent Highlights
CARVYKTI® (ciltacabtagene autoleucel; cilta-cel) net trade sales of approximately $439 million CARVYKTI® demonstrated positive long-term outcomes in CARTITUDE-1 study with one-third of patients remaining progression-free for ≥5 years Presented other important CARVYKTI® and new solid tumor data at ASCO Over 7,500 patients treated to date Cash and cash equivalents, and time deposits of $1.0 billion, as of June 30, 2025 SOMERSET, N.J., Aug. 11, 2025 (GLOBE NEWSWIRE) -- Legend Biotech Corporation (NASDAQ: LEGN) (Legend Biotech), a global leader in cell therapy, today reported its second quarter 2025 unaudited financial results and key corporate highlights. 'The groundbreaking five-year survival data from CARTITUDE-1, with one-third of patients remaining progression-free, reinforces CARVYKTI's durability and potential to redefine the standard of care when treating relapsed and refractory multiple myeloma patients. These findings mark the latest step forward in ensuring patients in need of long-term relief from disease progression and the burden of continuous treatments can benefit from a one-time infusion of our differentiated therapy,' said Ying Huang, Ph.D., Chief Executive Officer of Legend Biotech. 'Further, our continued commitment to expanding access to CARVYKTI, with recent launches in several new markets, is underscored by a record quarterly performance representing the strongest single period of any CAR-T therapeutic sales to date. As we advance our pipeline of CAR-T programs and work towards profitability in 2026, we remain guided by our mission of delivering innovative cell therapy solutions to patients worldwide.' Regulatory Updates The U.S. Food and Drug Administration (FDA) removed Risk Evaluation and Mitigation Strategies (REMS) for currently approved BCMA- and CD19-directed autologous chimeric antigen receptor (CAR) T cell immunotherapies, including CARVYKTI. In addition, product labeling was updated to include the reduction of certain monitoring requirements for CARVYKTI patients. Key Business Developments Treated over 7,500 clinical and commercial patients to date. At the 2025 American Society of Clinical Oncology (ASCO) Annual Meeting: Announced positive long-term outcomes from the CARTITUDE-1 study, demonstrating one-third of patients with relapsed and refractory multiple myeloma remained progression-free for ≥5 years. Presented Phase 3 CARTITUDE-4 study subgroup analyses at a median follow-up of 33.6 months, which highlighted consistent, durable progression-free and overall survival benefit when compared to standard therapies across cytogenetic risk groups as early as second-line of therapy at ASCO. Presented safety, tolerability, and preliminary efficacy results of a Phase 1 dose-escalating study of LB2102, an autologous DLL3-targeted CAR-T therapy, which demonstrated no dose-limiting toxicities and preliminary efficacy signal was observed up to four dose levels in patients with relapsed or refractory small-cell lung cancer and large cell neuroendocrine carcinoma. Announced preliminary results of a first-in-human Phase 1 study of LB1908, an autologous Claudin 18.2-targeted CAR-T product, which demonstrated encouraging antitumor activity with manageable safety and tolerability in patients with advanced gastric, gastroesophageal, and esophageal adenocarcincoma. At the European Hematology Association (EHA) 2025 Congress, presented an analysis of 355 patients from the CARTITUDE program on the association of key biomarker Absolute Lymphocyte Count (ALC) with select neurocognitive treatment-emergent adverse events post-treatment. The analysis showed that patients with a Movement and Neurocognitive Treatment-emergent event or Cranial Nerve Palsy had significantly higher ALC compared to control, suggesting ALC may help guide closer monitoring and preemptive interventions. Cash and cash equivalents, and time deposits of $1.0 billion, which Legend Biotech believes will provide financial runway into 2026, when Legend Biotech anticipates potentially achieving an operating profit excluding unrealized foreign exchange gains or losses. Second Quarter 2025 Financial Results : Cash and cash equivalents, and time deposits were $1.0 billion as of June 30, 2025. License Revenue: License revenue was $35.3 million for the three months ended June 30, 2025, compared to $90.8 million for the three months ended June 30, 2024. The decrease was primarily driven by the timing of $75.1 million of milestones achieved during the three months ended June 30, 2024, under the Janssen Agreement, while we did not achieve any milestones from the Janssen Agreement for the three months ended June 30, decrease was offset by an increase in license revenue recognized in the three months ended June 30, 2025, under an exclusive agreement with a related party. For the three months ended June 30, 2025, we recognized $20.0 million in license revenue under this agreement. No license revenue was recognized under this agreement during the three months ended June 30, 2024. : Collaboration revenue was $219.7 million for the three months ended June 30, 2025, compared to $93.3 million for the three months ended June 30, 2024. The increase was due to an increase in revenue generated from sales of CARVYKTI® in connection with the Janssen Agreement. : Cost of collaboration revenue was $94.9 million for the three months ended June 30, 2025, compared to $45.4 million for the three months ended June 30, 2024. The increase was primarily due to our share of the cost of sales in connection with CARVYKTI® sales under the Janssen Agreement and expenditures to support expansion in manufacturing capacity. : Research and development expenses were $98.3 million for the three months ended June 30, 2025, compared to $112.6 million for the three months ended June 30, 2024. The decrease was due to higher research and development activities in cilta-cel for the three months ended June 30, 2024, driven by start-up costs for clinical production at our two Belgium facilities. With one of those facilities now manufacturing commercial product, clinical production has scaled back, resulting in lower research and development expenses for the current period. Administrative expenses were $32.6 million for the three months ended June 30, 2025, compared to $35.4 million for the three months ended June 30, 2024. Administrative expenses remained relatively flat, with an increase in staffing-related expenses due to higher headcount, offset by lower IT expenses due to the timing of completion of existing projects or the initiation of new projects compared to the same period in the prior year. nses: Selling and distribution expenses were $48.1 million for the three months ended June 30, 2025, compared to $30.1 million for the three months ended June 30, 2024. The increase was due to increased costs associated with commercial activities, including expansion of the sales force due to growing sales of CARVYKTI®. Adjusted net income was $10.1 million for the three months ended June 30, 2025, compared to an adjusted net loss of $2.5 million for the three months ended June 30, 2024. Webcast/Conference Call Details: Legend Biotech will host its quarterly earnings call and webcast today at 8:00 am ET. To access the webcast, please visit this weblink. A replay of the webcast will be available on Legend Biotech's website at About Legend Biotech With over 2,800 employees, Legend Biotech is the largest standalone cell therapy company and a pioneer in treatments that change cancer care forever. The company is at the forefront of the CAR-T cell therapy revolution with CARVYKTI®, a one-time treatment for relapsed or refractory multiple myeloma, which it develops and markets with collaborator Johnson & Johnson. Centered in the US, Legend is building an end-to-end cell therapy company by expanding its leadership to maximize CARVYKTI's patient access and therapeutic potential. From this platform, the company plans to drive future innovation across its pipeline of cutting-edge cell therapy modalities. Learn more at and follow us on X (formerly Twitter) and LinkedIn. CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS Statements in this press release about future expectations, plans, and prospects, as well as any other statements regarding matters that are not historical facts, constitute 'forward-looking statements' within the meaning of The Private Securities Litigation Reform Act of 1995. These statements include, but are not limited to, statements relating to Legend Biotech's strategies and objectives; statements relating to CARVYKTI®, including Legend Biotech's expectations for CARVYKTI® and its therapeutic potential; statements related to Legend Biotech manufacturing expectations for CARVYKTI® and the ability of Legend Biotech's manufacturing expansion and commercial execution to maintain CARVYKTI's market leadership position; statements related to Legend Biotech's ability to fund its operations into 2026 and to achieve profitability in 2026; and the potential benefits of Legend Biotech's product candidates. The words 'anticipate,' 'believe,' 'continue,' 'could,' 'estimate,' 'expect,' 'intend,' 'may,' 'plan,' 'potential,' 'predict,' 'project,' 'should,' 'target,' 'will,' 'would' and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. Actual results may differ materially from those indicated by such forward-looking statements as a result of various important factors. Legend Biotech's expectations could be affected by, among other things, uncertainties involved in the development of new pharmaceutical products; unexpected clinical trial results, including as a result of additional analysis of existing clinical data or unexpected new clinical data; unexpected regulatory actions or delays, including requests for additional safety and/or efficacy data or analysis of data, or government regulation generally; unexpected delays as a result of actions undertaken, or failures to act, by our third party partners; uncertainties arising from challenges to Legend Biotech's patent or other proprietary intellectual property protection, including the uncertainties involved in the U.S. litigation process; government, industry, and general product pricing and other political pressures; as well as the other factors discussed in the 'Risk Factors' section of Legend Biotech's Annual Report on Form 20-F for the year ended December 31, 2024 filed with the Securities and Exchange Commission (SEC) on March 11, 2025 and Legend Biotech's other filings with the SEC. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those described in this press release as anticipated, believed, estimated or expected. Any forward-looking statements contained in this press release speak only as of the date of this press release. Legend Biotech specifically disclaims any obligation to update any forward-looking statement, whether as a result of new information, future events or otherwise. INVESTOR CONTACT:Jessie YeungTel: (732) PRESS CONTACT:Mary Ann OndishTel: (914) 552-4625media@ BIOTECH CORPORATIONCONDENSED CONSOLIDATED STATEMENTS OF PROFIT OR LOSS(UNAUDITED; DOLLARS IN THOUSANDS, EXCEPT PER SHARE AND SHARES DATA) Three Months EndedJune 30, Six Months EndedJune 30, 2025 2024 2025 2024 REVENUE License revenue $ 35,338 $ 90,846 $ 44,686 $ 103,027 Collaboration revenue 219,717 93,254 405,332 171,735 Other revenue 3 2,423 93 5,752 Total revenue 255,058 186,523 450,111 280,514 Cost of collaboration revenue (94,872 ) (45,355 ) (164,369 ) (94,456 ) Cost of license and other revenue (3,119 ) (5,096 ) (4,966 ) (10,734 ) Research and development expenses (98,302 ) (112,626 ) (200,226 ) (213,590 ) Administrative expenses (32,594 ) (35,353 ) (64,057 ) (67,282 ) Selling and distribution expenses (48,052 ) (30,063 ) (89,021 ) (54,286 ) Loss on asset impairment — — (970 ) — Finance costs (5,222 ) (5,484 ) (10,283 ) (10,959 ) Finance income* 10,433 17,049 22,489 30,919 Other (expense)/income, net* (108,128 ) 12,435 (162,636 ) 62,116 Loss before tax (124,798 ) (17,970 ) (223,928 ) (77,758 ) Income tax expense (582 ) (226 ) (2,368 ) (231 ) Net loss $ (125,380 ) $ (18,196 ) $ (226,296 ) $ (77,989 ) LOSS PER SHARE Basic $ (0.34 ) $ (0.05 ) $ (0.62 ) $ (0.21 ) Diluted $ (0.34 ) $ (0.05 ) $ (0.62 ) $ (0.21 ) Weighted average shares outstanding Basic 368,271,125 365,204,154 367,900,548 364,610,589 Diluted 368,271,125 365,204,154 367,900,548 364,610,589 *Certain prior year amounts have been reclassified to present finance income as a separate line item and to combine other income/(expense), net for comparative BIOTECH CORPORATIONCONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION(DOLLARS IN THOUSANDS) June 30, 2025 December 31, 2024 NON-CURRENT ASSETS (Unaudited) Property, plant and equipment $ 106,381 $ 99,288 Right-of-use assets 127,217 101,932 Time deposits — 4,362 Intangible assets 2,137 2,160 Collaboration prepaid leases 198,646 172,064 Other non-current assets* 5,659 6,430 Total non-current assets $ 440,040 $ 386,236 CURRENT ASSETS Collaboration inventories, net $ 35,589 $ 23,903 Trade receivables 27,584 6,287 Prepayments, other receivables and other assets 219,076 130,975 Pledged deposits 70 70 Time deposits 700,969 835,934 Cash and cash equivalents 266,586 286,749 Total current assets 1,249,874 1,283,918 TOTAL ASSETS $ 1,689,914 $ 1,670,154 CURRENT LIABILITIES Trade payables $ 75,361 $ 38,594 Other payables and accruals 138,836 166,180 Government grants 651 532 Lease liabilities 5,906 4,794 Tax payable 11,550 20,671 Contract liabilities 33,178 46,874 Total current liabilities $ 265,482 $ 277,645 NON-CURRENT LIABILITIES Collaboration interest-bearing advanced funding $ 310,264 $ 301,196 Lease liabilities long term 71,742 44,613 Government grants 6,887 6,154 Total non-current liabilities 388,893 351,963 TOTAL LIABILITIES $ 654,375 $ 629,608 EQUITY Share capital $ 37 $ 37 Reserves 1,035,502 1,040,509 Total equity 1,035,539 1,040,546 TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 1,689,914 $ 1,670,154 *Certain prior year amounts have been reclassified to combine advance payments for property, plant, and equipment into other non-current assets for comparative BIOTECH CORPORATIONCONDENSED CONSOLIDATED STATEMENTS OF CASH FLOW(UNAUDITED; DOLLARS IN THOUSANDS) Three Months EndedJune 30, Six Months EndedJune 30, 2025 2024 2025 2024 Loss before tax $ (124,798 ) $ (17,970 ) $ (223,928 ) $ (77,758 ) Cash flows (used in) / provided by operating activities (13,042 ) (1,651 ) (116,796 ) 13,867 Cash flows (used in) / provided by investing activities (165,525 ) (695,631 ) 91,115 (1,091,779 ) Cash flows (used in) / provided by financing activities (990 ) 955 (323 ) 1,786 Net decrease in cash and cash equivalents (179,557 ) (696,327 ) (26,004 ) (1,076,126 ) Effect of foreign exchange rate changes, net 4,441 9 5,841 (334 ) Cash and cash equivalents at beginning of the year $ 441,702 $ 897,571 $ 286,749 $ 1,277,713 CASH AND CASH EQUIVALENTS AT END OF THE PERIOD $ 266,586 $ 201,253 $ 266,586 $ 201,253 Analysis of balances of cash and cash equivalents Cash and bank balances $ 967,625 $ 1,254,469 $ 967,625 $ 1,254,469 Less: Pledged deposits 70 431 70 431 Time deposits 700,969 1,052,785 700,969 1,052,785 Cash and cash equivalents as stated in the statement of financial position $ 266,586 $ 201,253 $ 266,586 $ 201,253 Cash and cash equivalents as stated in the statement of cash flows $ 266,586 $ 201,253 $ 266,586 $ 201,253 RECONCILIATION OF IFRS TO NON-IFRS MEASURES We use Adjusted Net Income (Loss) and Adjusted Net Income (Loss) per Share (which we sometimes refer to as 'Adjusted EPS' or 'ANI per Share', respectively) as performance metrics. Adjusted Net Income (Loss) and ANI per share are not defined under IFRS, are not a measure of operating income, operating performance, or liquidity presented in accordance with IFRS, and are subject to important limitations. Our use of Adjusted Net Income (Loss) has limitations as an analytical tool, and you should not consider it in isolation or as a substitute for analysis of our results as reported under IFRS. For example: Although depreciation and amortization are non-cash charges, the assets being depreciated and amortized may have to be replaced in the future, and Adjusted Net Income (Loss) does not reflect cash capital expenditure requirements for such replacements or for new capital expenditure requirements. Adjusted Net Income (Loss) excludes unrealized foreign exchange gain or loss, which resulted primarily from changes in the intercompany loan balances and cash balances as a result of exchange rate changes between USD and EUR. Adjusted Net Income (Loss) does not reflect changes in, or cash requirements for, our working capital needs. In addition, Adjusted Net Income (Loss) excludes such as share based compensation expense, which has been, and will continue to be for the foreseeable future, a significant recurring expense for our business and an important part of our compensation strategy. Also, our definition of Adjusted Net Income (Loss) and ANI per Share may not be the same as similarly titled measures used by other companies. However, we believe that providing information concerning Adjusted Net Income (Loss) and ANI per Share enhances an investor's understanding of our financial performance. We use Adjusted Net Income (Loss) as a performance metric that guides management in its operation of and planning for the future of the business. We believe that Adjusted Net Income (Loss) provides a useful measure of our operating performance from period to period by excluding certain items that we believe are not representative of our core business. We define Adjusted Net Income (Loss) as net income (loss) adjusted for (1) non-cash items such as depreciation and amortization, share based compensation, impairment loss, and (2) unrealized foreign exchange gain or loss mainly related to intercompany loan balances and cash deposit balances as a result of exchange rate changes between USD and EUR. ANI per Share is computed by dividing Adjusted Net Income (Loss) by the weighted average shares outstanding. A reconciliation between Adjusted Net Income (Loss) and Net Loss, the most directly comparable measure under IFRS, has been provided in the table BIOTECH CORPORATIONRECONCILIATION OF IFRS TO NON-IFRS(UNAUDITED; DOLLARS IN THOUSANDS, EXCEPT PER SHARE AND SHARES DATA) Three Months EndedJune 30, Six Months EndedJune 30, 2025 2024 2025 2024 Net loss $ (125,380 ) $ (18,196 ) $ (226,296 ) $ (77,989 ) Depreciation and amortization 5,854 5,369 11,053 11,091 Share based compensation 18,697 21,739 34,643 40,442 Impairment loss — — 970 — Unrealized foreign exchange loss/(gain) (included in Other income/(expense), net) 110,920 (11,419 ) 162,722 (61,308 ) Adjusted net income/(loss) (ANI) $ 10,091 $ (2,507 ) $ (16,908 ) $ (87,764 ) ANI per share: ANI per share - basic $ 0.03 $ (0.01 ) $ (0.05 ) $ (0.24 ) ANI per share - diluted* $ 0.03 $ (0.01 ) $ (0.05 ) $ (0.24 ) *The diluted weighted average shares outstanding used in the calculation of the diluted ANI per share for the three months ended June 30, 2025, is 377,041,415.
Yahoo
3 days ago
- Business
- Yahoo
Bet on JNJ & Hold on to Apple to Grow Your Retirement Fund Stress-Free
In a well-balanced retirement portfolio, investors should aim for a mix of defensive and growth stocks. This approach offers both stability and the potential for wealth creation over time. By investing in Johnson & Johnson JNJ and holding on to Apple Inc. AAPL, you get the best of both worlds — the reliability and income of a proven healthcare leader and the innovation and growth of a global tech giant. JNJ: Stability & Steady Growth in Any Market Johnson & Johnson is a reliable investment because it is a leading provider of essential healthcare products that people need, regardless of economic conditions. Notably, despite losing exclusivity for its blockbuster drug STELARA, the company's second-quarter 2025 operational sales increased 4.6%, proving its resilience. This shows that Johnson & Johnson is strong and can continue to grow even when facing challenges. Interestingly, JNJ's uniquely diversified business comprises both important medicines — like cancer drugs CARVYKTI and DARZALEX — and life-saving medical devices, such as tools that help patients recover from heart problems. Because it doesn't depend on just one product to succeed, its business is more stable and less risky. Also, JNJ's balance sheet is strong, as reflected in $19 billion in cash and marketable securities, and a debt-to-capitalization of 39.3%. Thus, the company can lean on its balance sheet strength to sail through an unfavorable business environment. Overall, the stability of JNJ's business model lies in its ability to generate substantial free cash flow ($6 billion in the second quarter of 2025), which it believes to strategically allocate toward mergers and acquisitions as well as returning capital to shareholders through dividends and share repurchases. Image Source: Johnson & Johnson AAPL: Innovation Engine Powering Long-Term Growth We all know that Apple is not just selling phones or laptops, but rather that the tech giant is creating a connected world that keeps people coming back. In its fiscal 2025 third quarter, AAPL's newest iPhones helped boost sales by 13%, while Mac sales rose 15%, and its Services business (like iCloud and Apple Music) reached a record high. More people than ever are upgrading their devices, drawn in by exciting new features like faster chips, smarter AI and sleek new designs. Importantly, the number of Apple devices in use worldwide hit a new record, showing that customers aren't switching brands—they're sticking with Apple and buying even more of its products. What's more, Apple has a strong growth opportunity because it's constantly finding new ways to make money and stay ahead of the curve. Big trends like artificial intelligence (through Apple Intelligence), new tech like the Vision Pro headset and expanding into fast-growing regions like India and the Middle East are boosting its future potential. This combination of brand loyalty, innovation and expanding markets makes Apple a compelling growth engine for the long term. What Investors Should Do Now? Given the current market backdrop, it's important to look at how both JNJ and AAPL are valued before making any investment decisions. JNJ, carrying a Zacks Rank #2 (Buy), is currently trading at a trailing 12-month P/E of 17.15x, below the industry average of 22.26x. This suggests the stock is undervalued, offering a potentially attractive entry point for investors. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Image Source: Zacks Investment Research In contrast, Apple, carrying a Zacks Rank #3 (Hold), trades at a trailing P/E of 30.31x, which is higher than the industry average of 28.38x. This indicates the stock is relatively expensive at current levels. Therefore, while new investors may want to wait for a better entry point, existing shareholders can continue to hold Apple for its long-term potential. Image Source: Zacks Investment Research Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Johnson & Johnson (JNJ) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
28-07-2025
- Business
- Yahoo
Legend Biotech to Host Investor Conference Call on Second Quarter 2025 Results
SOMERSET, N.J., July 28, 2025 (GLOBE NEWSWIRE) -- Legend Biotech Corporation (NASDAQ: LEGN) (Legend Biotech), a global leader in cell therapy, will host a conference call for investors at 8:00 am ET on Monday, August 11, 2025, to review second-quarter 2025 results. During the webcast and conference call, senior leaders will provide an overview of Legend Biotech's performance for the quarter. Investors and other interested parties may join the live audio webcast of the call via this weblink. A replay of the webcast and earnings news release will be available through the Investor Relations section of Legend Biotech's website under the Events and Presentations section approximately two hours after the call concludes. ABOUT LEGEND BIOTECH With over 2,600 employees, Legend Biotech is the largest standalone cell therapy company and a pioneer in treatments that change cancer care forever. The company is at the forefront of the CAR-T cell therapy revolution with CARVYKTI®, a one-time treatment for relapsed or refractory multiple myeloma, which it develops and markets with collaborator Johnson & Johnson. Centered in the US, Legend is building an end-to-end cell therapy company by expanding its leadership to maximize CARVYKTI's patient access and therapeutic potential. From this platform, the company plans to drive future innovation across its pipeline of cutting-edge cell therapy modalities. Learn more at and follow us on X (formerly Twitter) and LinkedIn. INVESTOR CONTACT:Jessie YeungTel: (732) PRESS CONTACT:Mary Ann OndishTel: (914) 552-4625media@ in to access your portfolio
Business Insider
22-07-2025
- Business
- Business Insider
Johnson & Johnson Stock (JNJ) Bulls Target Breakout Despite Looming Patent Cliff
Johnson & Johnson (JNJ) stock is gaining momentum this week following last week's impressive second-quarter 2025 earnings report. While many large pharmaceutical firms are grappling with 'patent cliffs'—the loss of exclusivity for blockbuster drugs—Johnson & Johnson is defying the trend thanks to its well-balanced portfolio of pharmaceuticals and medical devices. Elevate Your Investing Strategy: Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence. Make smarter investment decisions with TipRanks' Smart Investor Picks, delivered to your inbox every week. What truly stood out wasn't just the strong quarterly performance but also management's upgraded outlook for the full year. The company raised its revenue forecast by $2 billion and bumped up its adjusted EPS guidance by $0.25, signaling confidence in its ability to navigate the looming STELARA patent expiration. With this shift, I believe the stock is poised to break out of its five-year stagnation, reinforcing my Bullish stance. Q2 2025 Performance Hits Top Gear A deeper look at Johnson & Johnson's Q2 earnings reveals solid growth, with global sales reaching $23.7 billion—up 5.8% year-over-year—and net earnings climbing 18.2% to $5.5 billion. According to TipRanks data, the company clearly fits the definition of a 'cash cow,' having generated $6.2 billion in free cash flow during the quarter. While it carries a net debt of $32 billion (with $19 billion in cash and $51 billion in total debt), that burden is offset by its strong cash flow, underscoring the company's fundamentally sound financial position. Johnson & Johnson Looks Beyond STELARA Although STELARA's quarterly sales dropped 42.7% year-over-year to $1.65 billion, Johnson & Johnson more than made up for it with strong performance across other areas of its pharmaceutical portfolio. The standout gains came from its Oncology and Neuroscience segments. In Oncology, therapies like DARZALEX and CARVYKTI drove notable growth, with CARVYKTI—a cutting-edge CAR T-cell treatment—more than doubling its sales year-over-year to $439 million in the high-potential multiple myeloma market. On the Neuroscience front, CAPLYTA generated an impressive $211 million in sales, exceeding expectations. Johnson & Johnson acquired the drug through its $14.6 billion purchase of Intra-Cellular Therapies in April this year. As an FDA-approved treatment for bipolar depression and schizophrenia, CAPLYTA stands out as a differentiated atypical antipsychotic. With potential supplemental approvals on the horizon—for schizophrenia relapse prevention and adjunctive use in major depressive disorder—its total addressable market could expand significantly. MedTech Serves as Supplemental Revenue Stream Johnson & Johnson's medical devices division continues to show steady momentum, with global sales rising 6.1% year-over-year to $8.5 billion, according to TipRanks data. The standout performer was Cardiovascular surgery, which saw 22% growth—largely fueled by strong demand for the company's electrophysiology products and the Impella heart pump. Although the MedTech segment isn't as high-margin as the Innovative Medicines division, it plays a vital role in diversifying the company's revenue streams. Medical devices carry different risk profiles compared to pharmaceuticals, and in that sense, Johnson & Johnson benefits from having its bets spread across distinct sectors. Mitigating the Impact of Trump's Tariffs The company's progress occurs amid a macroeconomic environment that affects every business. However, Johnson & Johnson appears more resilient than others. It slashed its estimate for the impact of tariffs in 2025 from $400 million to around $200 million, primarily due to supply chain optimization. In the long run, Johnson & Johnson has committed to a $55 billion investment over the next three years to increase its U.S. manufacturing capacity and has declared its intention to manufacture all U.S.-prescribed medicines in the U.S. to mitigate future disruptions from trade wars and tariffs. Potential Risks and Headwinds on JNJ's Radar That said, it's essential to acknowledge the risks. Johnson & Johnson continues to face ongoing litigation related to its talc-based products. While it has already paid several billion dollars in settlements, additional liabilities could still arise. On the macroeconomic front, cost pressures are weighing on profitability, as evident in the MedTech segment, where margins declined from 25.7% to 22.2%. Competition remains intense across both business units, with major players like Medtronic (MDT), Abbott (ABT), and Pfizer (PFE) posing constant challenges. Lastly, the company's ability to maintain momentum hinges on the continued success of its newer drugs, which must offset the revenue decline from STELARA's loss of exclusivity. Is JNJ a Good Stock to Buy Now? On Wall Street, JNJ carries a Moderate Buy consensus rating based on eight Buy, ten Hold, and zero Sell ratings in the past three months. JNJ's average stock price target of $176.35 implies an upside potential of ~8% over the next 12 months. Just last week, Goldman Sachs analyst Asad Haider reiterated a Buy rating on Johnson & Johnson, citing strong second-quarter results as a key driver of his optimism. Haider noted that the company's decision to raise its 2025 guidance signals confidence in its outlook, with expected growth in both operational and reported revenues. He pointed to the continued strength of the Innovative Medicines division—particularly with standout products like Tremfya, Carvykti, and Darzalex—as effectively countering headwinds from Stelara's biosimilar competition. According to Haider, this positive momentum in earnings and sales forecasts positions JNJ ahead of both peers and the broader market. JNJ Prepares for Bullish Upside Without STELARA Johnson & Johnson is managing the STELARA patent cliff with notable poise. Strength in its Neuroscience and Oncology portfolios is helping to offset the declines in its legacy Immunology segment. At the same time, its dependable MedTech division continues to provide a stable foundation. Looking ahead, the company's ambitions are bold. It aims for $50 billion in annual oncology sales by 2030, driven by established therapies like CARVYKTI and promising pipeline candidates, such as TAR-200, for bladder cancer. While risks remain, many appear already priced into the stock. With a P/E ratio of 17.4—representing a 34% discount to the healthcare sector median —JNJ looks attractively valued. A successful transition beyond STELARA could lift a huge weight off its shoulders and trigger a meaningful price breakout. Add in a solid 3.07% dividend yield, and there's a compelling case to be made: Johnson & Johnson offers a lot of value at a very reasonable price.
Yahoo
06-07-2025
- Business
- Yahoo
H.C. Wainwright Maintains a Buy on Legend Biotech (LEGN) With a $75 Price Target
Legend Biotech Corporation (NASDAQ:LEGN) is one of the 13 Best Pharma Stocks to Buy According to Wall Street Analysts. On July 2, analyst Mitchell Kapoor from H.C. Wainwright reiterated a Buy rating on Legend Biotech Corporation (NASDAQ:LEGN) with a $75.00 price target. A laboratory with workers in masks and lab coats focused on analyzing cell therapies. The analyst highlighted the company's promising outlook, supported by its CARVYKTI. Another factor suggesting the treatment's favorable risk-benefit profile is the FDA approval of a supplemental BLA for CARVYKTI that eliminates the need for a risk evaluation and mitigation strategy. The analyst expects this factor, coupled with the updated monitoring requirements, to expedite the launch of CARVYKTI in the US market. In addition, the extensive experience of physicians with CARVYKTI, despite the recommendation by the European Medicines Agency to include warnings regarding potential immune-mediated enterocolitis, suggests that the product's benefits outweigh its risks. Legend Biotech Corporation (NASDAQ:LEGN) is a clinical-stage company that develops, discovers, manufactures, and commercializes novel therapies for oncology and other indications. It develops advanced cell therapies across an elaborate range of technology platforms. The company operates in the US, China, and other geographical segments. While we acknowledge the potential of LEGN as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: The Best and Worst Dow Stocks for the Next 12 Months and 10 Unstoppable Stocks That Could Double Your Money. Disclosure: None. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
