Legend BiotechLEGN +0.91%73 Gross Margin % is 42.35% as of Mar. 2026, which is 23% below its 10-year median of 54.88. GuruFocus rates LEGN with a GF Score™ of 73/100 and a GF Value™ of $98.55 (Possible Value Trap). The stock has 2 warning signs investors should review. Among 736 Biotechnology companies, Legend Biotech ranks worse than 55.43% on this metric.
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
Legend Biotech had a gross margin of 42.35% for the quarter that ended in Mar. 2026 => Durable competitive advantage
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
Legend Biotech Gross Margin % Related Terms
Legend Biotech Gross Margin % Historical Data
* Premium members only.
The historical data trend for Legend Biotech's Gross Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
LEGN vs DNTH, XENE, CAI: Gross Margin % Comparison
For the Biotechnology subindustry, Legend Biotech's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Legend Biotech Gross Margin % vs Biotechnology Industry
For the Biotechnology industry and Healthcare sector, Legend Biotech's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Legend Biotech's Gross Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
Legend Biotech (LEGN) has a Gross Margin % of 42.35% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Legend Biotech and its competitors. This is 23% below median its historical median of 54.88. Over the past decade, Legend Biotech's Gross Margin % has ranged from 44.14 to 62.60. According to the industry distribution chart, Legend Biotech ranks #408 out of 736 companies in the Biotechnology industry, placing it in the top 55.4%.
Is Legend Biotech's Gross Margin % too high?
Legend Biotech's current Gross Margin % of 42.35% is 23% below median its 10-year median of 54.88. Over the past 10 years, this metric has ranged from a low of 44.14 to a high of 62.60. The Biotechnology industry median Gross Margin % is 60.91. Legend Biotech's value of 42.35% is 30.5% below this industry median. Based on the distribution chart, Legend Biotech ranks #408 out of 736 companies in the Biotechnology industry, which is below the industry midpoint. Overall, Legend Biotech has a GF Score™ of 73/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Legend Biotech's Gross Margin % compare to DNTH and XENE?
According to the Biotechnology industry distribution chart, Legend Biotech ranks #408 out of 736 companies for Gross Margin %. This places Legend Biotech in the lower half of its industry. The industry median Gross Margin % is 60.91. Legend Biotech's value of 42.35% is 30.5% below this benchmark. Historically, Legend Biotech's own Gross Margin % has ranged from 44.14 to 62.60 over the past decade. While the company's 10-year median is 54.88 vs. the industry median of 60.91, Legend Biotech has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for a Biotechnology company?
The median Gross Margin % among Biotechnology companies is 60.91, based on 736 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Legend Biotech's current Gross Margin % of 42.35% is 30.5% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on Legend Biotech and its competitors. For the Biotechnology industry, the median Gross Margin % is 60.91 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Legend Biotech's current Gross Margin % is 42.35%, which is 23% below median its own 10-year median of 54.88. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Legend Biotech stock overvalued right now?
Based on GuruFocus' analysis, Legend Biotech (LEGN) is currently considered Possible Value Trap. The stock's GF Value™ is $98.55, compared to a current price of $28.70 — trading 70.9% below its estimated fair value. The current Gross Margin % is 42.35%, which is 23% below median its 10-year median of 54.88 and 30.5% below the Biotechnology industry median of 60.91. Legend Biotech's overall GF Score™ is 73/100 with 2 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For Legend Biotech (LEGN), the current Gross Margin % is 42.35% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Legend Biotech (LEGN) Overvalued in 2026?
Based on GuruFocus' analysis, Legend Biotech stock appears to be undervalued.
The current stock price of $28.70 is trading 70.9% below its estimated GF Value™ of $98.55.
GuruFocus considers Legend Biotech to be Possible Value Trap.
Key valuation signals for LEGN:
Gross Margin %: 42.35% (23% below median its 10-year median of 54.88)
GF Value™: $98.55 vs. price of $28.70 (70.9% below fair value)
Industry Position: 30.5% below the Biotechnology median (#408 of 736)
No single metric tells the full story. See the LEGN stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Legend Biotech Corp is a clinical-stage biopharmaceutical company. It is engaged in the discovery and development of novel cell therapies for oncology and other indications. The firm's product candidate, LCAR-B38M/JNJ-4528, is a chimeric antigen receptor, or CAR, T cell therapy for the treatment of multiple myeloma. Geographically, the company generates a majority of its revenue from the United States of America. The company generates revenue from License and Collaboration revenue.
73GF Score
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