Q2 2026 Legend Biotech Corp Earnings Call Transcript
Key Points
- Legend Biotech Corp (LEGN) achieved its first quarter of company-wide profitability on both IFRS and adjusted basis, with adjusted net income of $63 million in Q2 2026.
- CARVYKTI global net trade sales grew 50% year-over-year to $657 million, driven by strong demand and increasing adoption in earlier lines of therapy, with ex-US sales up 128%.
- The in vivo CAR-T platform showed promising early data, with LB2501 achieving a 100% objective response rate and 83.3% complete response rate at dose level two in a Phase 1 study.
- The company strengthened its balance sheet with a public equity offering, raising approximately $212 million in net proceeds, ending Q2 with about $965 million in cash and no long-term debt.
- Management reaffirmed confidence in achieving adjusted net income profitability for the second half of 2026 and maintained CARVYKTI peak annual sales potential exceeding $5 billion.
- The company experienced a leadership transition with the CEO stepping down, which could create uncertainty despite assurances of continuity.
- Gross margin on net product sales is expected to fluctuate, with Q3 projected in the lower 50% range due to increasing outpatient volume and other dynamics.
- The company faces potential competitive pressure from bispecific antibodies, such as the MonumenTAL-6 data, which may impact CARVYKTI's market position in later lines.
- Income tax expense increased significantly year-over-year to $22.3 million, and the company anticipates a tax rate in the high-20% range, which could affect future profitability.
- The company noted potential divergence in reported revenue due to foreign exchange rate differences between Legend and its partner J&J, especially as international sales grow.
Good day, everyone, and thank you for standing by. Welcome to Legend Biotech second-quarter 2026 earnings call. (Operator Instructions) Please be advised that today's conference is being recorded.
Now it's my pleasure to hand the conference to Caroline Paul, Director of Investor Relations. Please go ahead.
Good morning. This is Caroline Paul, Director of Investor Relations at Legend Biotech. Thank you for joining our conference call today to review our second-quarter 2026 performance. Prior to this call, we issued a press release announcing our financial results for the quarter, which can be found on the Legend Biotech Investor Relations website.
Joining me on today's call are Alan Bash, the company's Interim Chief Executive Officer, and Carlos Santos, the company's Chief Financial Officer. Following the prepared remarks, we will open up the call for Q&A. We also have our Interim Head of R&D, Yuhong Qiu, joining the Q&A session.
During today's call, we will
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