Legend Biotech (NasdaqGS:LEGN) is in focus after reporting that CARVYKTI® generated about US$657 million in net trade sales for the quarter ended June 30, 2026, based on figures provided by partner Janssen.

Despite the CARVYKTI® sales update, Legend Biotech’s share price has been under pressure in the short term, with a 7 day share price return down 17.06% and a 30 day share price return down 31.97%, while the 1 year total shareholder return is down 46.10%. This signals that recent momentum has faded, even though the 90 day share price return shows a 7.27% gain and the year to date share price return is up 5.58%.

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Legend Biotech’s share price slide has opened a wide gap between the recent US$22.71 level and analyst and intrinsic value estimates. This raises two key questions: where does fair value really sit within that spread, and how wide is the safety margin?

Most Popular Narrative: 60.3% Undervalued

On the most followed narrative, Legend Biotech’s fair value of $57.24 sits well above the last close at $22.71. This frames the current discount as a valuation gap the narrative is trying to explain.

Significant expansion potential in both earlier lines of therapy and frontline settings for multiple myeloma, driven by strong survival data, ongoing clinical trials (CARTITUDE-5 and -6), and label updates that increase patient access, is setting up long-term revenue acceleration as the patient pool widens.

Curious what earnings trajectory, margin shift, and future multiple are built into that fair value for Legend Biotech? The narrative leans on ambitious growth, richer profitability, and a premium valuation multiple compared with the wider biotech sector.

The most popular narrative applies a 7.31% discount rate and ties that to expectations around CARVYKTI’s roll out, broader multiple myeloma coverage, and Legend Biotech’s wider cell therapy pipeline. It then backs into a fair value around $57.24 per share. It also layers in assumptions about future revenue scale, profitability and a higher P/E multiple in later years, which together produce a modelled value well above the current market price.

Result: Fair Value of $57.24 (UNDERVALUED)

However, Legend Biotech’s heavy reliance on CARVYKTI, along with the potential impact of competing multiple myeloma therapies, could still undermine this upbeat valuation narrative.

Next Steps

With sentiment clearly split between risks and rewards around Legend Biotech, this is a moment to look closely at the data and move quickly to shape your own view. Start with the 3 key rewards and 1 important warning sign.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.