Legend Biotech Returns vs. S&P
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Why Legend Biotech Shares Plummeted 17.6%
What was the cause?
Legn Stock : The shares of Legend Biotech ( LEGN 2.42 percent) dropped 17.6% on Wednesday, down over four dollars from the day prior however, the majority of the decline was very early. Legend Biotech, which was trading with $48.54 earlier on Tuesday was trading at $44 per share on Wednesday, and then fell to $39.37 at the beginning of the morning before rebounding little. The stock is up 46% year-to date.
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Investors responded to the announcement of the company this week that it biotech company in its clinical stage company is planning to sell and offer $300 million worth of American securities, which equals two ordinary shares in an offering to the public. The stock’s value will be lowered. worth to investors who are currently.
The business is growing slowly in revenues, however due to the rising cost, it is losing money.
The third quarter of 2013, the company earned $16.9 million, an increase of 44% over the previous year. Over the course of its nine-month period, it had revenues in the range of $50.8 million, which is up 45 percent over the same time last year. But, Legend also said it suffered net losses of $124.8 million which is $0.43 per share, which is in comparison with $66.5 millions and $0.25 per share, year on year. In the nine months that it was in operation the company lost $297.9 million in the amount of $1.07 per share. This compares with $245.7 million , or $1.08 per share during the same time frame last year.
Legend is among the companies studying chimeric receptor T-cell therapies that focus on the B-cell maturation antigens (BCMA) to fight multiple myleloma. It is cancer that affects the bone marrow’s plasma cells. Multiple myeloma accounts for 10 percent of blood-related tumors.
The previous Monday Legend decreased between $51.06 up to $50.67 despite the company announcing good results from its CARTITUDE-1 trial in phase 1b of ciltacabtagene-autoleucel (cilta-cel). It’s an anti-tumor T-cell therapy marketed as a possible single-use treatment for the disease of multiple myeloma. The company claimed that the treatment had an overall response of 98% rate and a 83% strict complete response rate following almost two years of monitoring patients who participated in the trial.
An issue for Legend has to do with the fact that more powerful, better-funded companies like Bristol Myers Squibb, Amgen and Janssen which is an affiliate that is part of Johnson & Johnson are also pursuing BCMA in order to cure multiple myeloma.
One benefit of Legend is that it offers a range of treatments in the Phase 2 and 3 trials, which means it may be able to, within the next couple of years experience an increase in revenue.