Legend Biotech (LEGN) shares are in focus after the company reported fourth quarter and full year 2025 results, with higher revenue figures alongside net losses that may shape how you think about the stock.

Legend Biotech’s recent results come after a tough stretch for shareholders, with a 1 year total shareholder return decline of 51.03% and a 3 year total shareholder return decline of 58.75%, while the 30 day share price return of 5.52% hints at some short term momentum from a depressed base.

If the earnings reaction has you reassessing exposure to high risk biotech names, it could be a good time to scan for more specialized healthcare opportunities using our screener of 36 healthcare AI stocks

With Legend Biotech now generating over US$1b in annual revenue but still reporting a US$296.8m net loss, the key question is simple: are you looking at an undervalued cell therapy player, or has the market already priced in future growth?

Most Popular Narrative: 53.4% Undervalued

With Legend Biotech last closing at $18.55 against a narrative fair value of $39.81, the gap between price and story is hard to ignore.

The primary engine of Legend’s valuation is the Expansion into Second-Line Multiple Myeloma, which has effectively tripled the company’s addressable patient population. By securing FDA and European Commission label updates that include "overall survival benefit" over standard care, Legend has positioned Carvykti as the undisputed market leader in its class. This segment's strength, driven by the 50.4-month median progression-free survival data, is the most critical factor for the 2026 outlook. As the company transitions from a "late-stage" salvage therapy to a primary treatment option, the shift in volume and pricing power is expected to drive the margin expansion necessary to hit their 2026 profitability targets.

The narrative from Vestra hinges on one big idea, a maturing CAR T franchise that leans on expanding treatment lines, richer margins and a revenue mix built for scale. Curious how those moving parts stack up to reach that fair value and what assumptions sit under the profit timeline.

Result: Fair Value of $39.81 (UNDERVALUED)

However, this story can break if Carvykti loses share to competing CAR T therapies or if ongoing net losses of US$296.8m push Legend toward fresh funding.

Next Steps

If this mix of optimism and caution around Legend Biotech resonates with you, do not wait too long to test the thesis against the numbers yourself. To see what the market is currently excited about, review the company’s 3 key rewards

Looking for more investment ideas?

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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.