Legend Biotech Corporation

Total revenue increased 52% year over year. CARVYKTI worldwide net trade sales were approximately $657 million, up 50% year over year and 10% sequentially; U.S. sales rose 32% year over year and ex-U.S. sales grew 128% year over year. Gross margin on net product sales improved to 58%, up 1% year over year and up from 41% in Q1 2026; operating margin was positive 15% versus negative 9% in Q2 2025. Adjusted net income was $63 million, or $0.16 per diluted share, compared with $10 million, or $0.03 per diluted share, in the same period last year. Cash, cash equivalents and time deposits were approximately $965 million at June 30, 2026, including about $212 million of net proceeds from a public equity offering. Guidance: management said it expects adjusted net income profitability in the second half of 2026 and remains committed to company-wide profitability in 2026. They also said Q3 gross margin on net product sales should be in the lower 50% range, with a rebound into the mid-50% range in Q4; they expect Q4 revenue to benefit from an extra selling week and greater international expansion than Q3.

Alan Bash framed the quarter as a leadership transition but not a strategy change, saying the company remains focused on maximizing CARVYKTI, advancing the next-generation pipeline, and strengthening execution. He emphasized that CARVYKTI is still seeing strong global momentum, with earlier-line adoption and broader geographic access supporting long-term growth. On pipeline, he highlighted encouraging early in vivo CAR-T data, especially LB2501, and said the company plans to keep updating investors at future medical conferences.

Carlos Santos said the quarter showed strong operating leverage, citing revenue CAGR of 74% since Q2 2023 and operating margin improvement from negative 142% in Q2 2023 to positive 15% in Q2 2026. He noted gross margin on net product sales improved to 58%, helped by unwinding one-time manufacturing expansion costs from Q1, but said quarter-to-quarter gross margin may still vary and Q3 could be in the lower 50% range. He also said total operating expenses rose only 7% year over year, R&D fell 2%, SG&A rose 19%, tax expense was $22.3 million, and the company expects a tax rate in the high 20% range over the next several quarters. He described the equity raise as opportunistic, intended to fund LB2501 and the broader in vivo platform, and said the company expects to fully settle the roughly $300 million J&J liability this year.

Analysts focused on the in vivo strategy, especially BCMA, durability for LB2501, gross margin dynamics, the equity raise, and competition in myeloma. Management said Legend will conduct an investigator-initiated China study for LB2505, a BCMA-targeted in vivo CAR-T, but could not share more because it is subject to the J&J collaboration. On LB2501, Alan Bash said the company is ultimately targeting 6-month complete response durability data, with updates at future medical conferences. On competition, management argued CARVYKTI’s value proposition remains distinct because it is a one-and-done therapy with the potential for long remissions, and said physicians are increasingly focused on sequencing CAR-T earlier rather than choosing CARVYKTI versus bispecifics. They also said the board’s CEO search is underway without a fixed deadline and that the company intends to run the LB2501 Phase I program itself.