Why has Legend Biotech Corporation (LEGN) stock experienced a decrease in premarket?

Legend Biotech Corporation (LEGN) experienced a decrease of 9.35% in premarket after the company announced its proposed public offering. However, the last trading session closed at $48.54 with a decrease of 4.2%.

Proposed Public Offering – What is it?

On 14th December 2021, LEGN announced that the company plans to issue and sell $300.0 million in American Depositary Shares. Moreover, Legend Biotech also plans to give the underwriters a 30-day option so that they can purchase an additional $45.0 million in ADSs.

Analysis of CARTITUDE-1 – How were the results?

LEGN announced updated results of the CARTITUDE-1 analysis on 13th December 2021. Cilta-cel is yet another medication for multiple myeloma that uses a B-cell maturation antigen (BCMA)-directed chimeric antigen receptor T cell (CAR-T) therapy. Patients with multiple myeloma who have been aggressively pre-treated frequently have exhausted all therapy choices and have a bad prognosis. Moreover, the updated results from the CARTITUDE-1 trial continue to suggest that cilta-cel may provide complex and long responses in this patient population. Last but not least, Cilta-cel may provide hope to patients, families, and clinicians as a one-time infusion with the potential to increase long-term survival and give patients a break from continuous therapy.

Submission of New Drug Application – Latest Updates

On 7th December 2021, LEGN reported the latest updates on the submission of a new drug application. This submission is a positive step forward in the objective to offer patients with multiple myeloma a potentially life-changing cell treatment alternative. Moreover, the company looks forward to working together with the partner Janssen and the MHLW to provide cilta-cel to patients with relapsed or refractory multiple myeloma who have tried all traditional therapies and are facing a bad prognosis.

Third Quarter 2021 Results Revealed

LEGN reported third-quarter 2021 results on 16th November 2021. According to the company’s report, they had cash and cash equivalents of $636.0 million. Moreover, the revenue came out to be $16.9 million, and research and development costs for about $72.3 million. Not only this but the PDUFA target date for cilta-cel has been extended by three months to February 28, 2022, by the US FDA. The delay gives the FDA more time to analyze the information.

So what?

The company reports that this has been a golden year for them as they initiated their clinical trial in the US for the T cell lymphoma program and observe positive advances in the pipeline. The company wants to conclude the year on a high note by presenting fresh and updated data from CARTITUDE Clinical Development Program at the 63rd American Society of Hematology Annual Meeting next month, as well as working to introduce cilta-cel to additional patients.