Core Viewpoint - The sales of CAR-T cell therapy Carvykti (西达基奥仑赛) have significantly increased, but the stock price of Legend Biotech (传奇生物) has declined following the earnings report from Johnson & Johnson (强生) [1] Group 1: Financial Performance - Johnson & Johnson reported a total revenue of $94.193 billion for 2025, a year-on-year increase of 6% [1] - Carvykti generated $1.887 billion in revenue for 2025, representing a 95.95% increase compared to $963 million in 2024 [1] - In Q4 2025, Carvykti's sales reached $555 million, a 65.8% year-on-year increase, but only a 5.9% quarter-on-quarter growth [1] Group 2: Market Position and Product Development - Carvykti is positioned as a one-time therapy for relapsed or refractory multiple myeloma and has been approved in the U.S., EU, and Japan [3] - The product was priced at $465,000 per dose in the U.S., which is approximately three times the price of other domestic CAR-T products [3] - Legend Biotech aims to achieve profitability in 2026 by expanding Carvykti's application globally and increasing its use in community healthcare settings [4] Group 3: Production and Clinical Trials - Legend Biotech has completed the expansion of its production facility in Raritan, which is the largest CAR-T production base in the U.S., capable of supporting the treatment of up to 10,000 patients annually [4] - The company has initiated a Phase 3 clinical trial (CARTITUDE-6) for new indications targeting newly diagnosed multiple myeloma patients [4] Group 4: Market Challenges and Pricing - The commercialization of Carvykti in China lagged behind the U.S. market by two years, with approval granted in August 2024 [7] - The pricing strategy for the Chinese market has not yet been disclosed, and the product has not participated in national health insurance negotiations [7] - The high costs associated with CAR-T therapies pose challenges for accessibility, despite ongoing efforts to explore diverse payment models [8][9]

Group 1 - Top Wall Street analysts have revised their outlook on several key stocks, indicating potential shifts in investment sentiment [1] - The article suggests that investors consider ZTS stock, highlighting the importance of analyst opinions in making investment decisions [1]

Group 1 - The Nasdaq China Golden Dragon Index increased by over 2% [1] - Popular Chinese concept stocks generally rose, with Bilibili up 6.74%, Baidu up 6.59%, and GDS Holdings up 4.98% [1] - Other notable gains include Kingsoft Cloud rising by 4.14% and Miniso increasing by 4.06% [1] Group 2 - Legend Biotech experienced a significant decline, falling by 10.76% [1] - NetEase and Luckin Coffee both dropped nearly 3% [1] - Amer Sports saw a decrease of 1.63% [1]

Core Insights - Legend Biotech is presenting six poster presentations on CARVYKTI at the upcoming Tandem Meetings, showcasing its efficacy, safety, and real-world outcomes in treating multiple myeloma [1][4]. Group 1: CARVYKTI Efficacy and Safety - CARVYKTI has treated over 10,000 patients globally, generating substantial clinical and real-world evidence for its use in multiple myeloma treatment [2]. - The therapy demonstrates consistent and durable efficacy and safety, particularly when administered earlier in the treatment journey, leading to meaningful quality-adjusted survival gains [3][4]. - CARVYKTI is the first and only BCMA-targeted CAR-T cell therapy approved for patients with multiple myeloma who have undergone at least one prior line of therapy, and it is now available in 14 countries [4]. Group 2: Poster Presentations Overview - The six poster presentations will cover various aspects of CARVYKTI, including quality-adjusted survival analysis, management of neurologic events, and the impact of bridging therapy on treatment outcomes [5][6]. - Specific topics include the characterization of neurologic events, the relationship between bridging therapy response and safety outcomes, and long-term progression-free survival benefits [5][6]. Group 3: Industry Context - Multiple myeloma is an incurable blood cancer with an estimated 35,000 new diagnoses and over 12,000 deaths in the U.S. in 2024, highlighting the critical need for effective treatments like CARVYKTI [58]. - Legend Biotech is positioned as a leader in cell therapy, focusing on maximizing patient access and therapeutic potential of CARVYKTI while expanding its pipeline of innovative treatments [59].

Core Insights - The 44th J.P. Morgan Healthcare Conference (JPM) is a significant event in the global healthcare sector, attracting over 8,000 participants, with a strong representation from biotechnology and pharmaceutical companies [1][3] - Chinese pharmaceutical companies are increasingly participating in JPM, focusing on collaboration and showcasing their innovative pipelines, particularly in the context of a booming merger and acquisition landscape in the industry [1][4] Group 1: Conference Overview - The conference is recognized as a "barometer" for development and investment in the pharmaceutical sector, featuring industry leaders and innovators discussing trends and opportunities [3] - Key areas of focus at this year's conference include biotechnology and pharmaceuticals, which account for 35% and 33% of participating companies, respectively [3] Group 2: Chinese Pharmaceutical Companies - At least 30 Chinese pharmaceutical companies are participating, with several being regular attendees, indicating a growing presence in the global market [4][5] - Notable Chinese companies presenting include BeiGene, Zai Lab, and Legend Biotech, with significant advancements in their clinical pipelines being highlighted [4] Group 3: Investment Trends - Investors are increasingly interested in the integration of AI in pharmaceuticals and how multinational companies are addressing patent cliffs and BD strategies [4][5] - The perception of Chinese pharmaceutical companies is shifting from mere asset providers to co-creators of global pharmaceutical innovation, reflecting their growing capabilities [9] Group 4: Company Innovations - Companies like China Biologic Products are undergoing significant innovation transformations, aiming for over 50% of their revenue from innovative products by 2025 [7] - Yuyuan Pharmaceutical, previously seen as a generic drug company, is transitioning to focus on nucleic acid and peptide innovative drugs, indicating a strategic shift in their business model [8]

Core Insights - The 44th J.P. Morgan Healthcare Conference has highlighted significant industry developments, including a $1 billion investment by NVIDIA and Eli Lilly to establish a joint research lab in the San Francisco Bay Area to accelerate AI applications in the pharmaceutical sector [1] - The conference serves as a critical platform for domestic pharmaceutical companies to showcase core molecular product capabilities and advance overseas business development collaborations, indicating a return to global value validation for products [2] - The participation of over 8,000 global attendees and more than 500 listed companies underscores the strengthening global competitiveness of Chinese companies in the pharmaceutical sector [2] Group 1: Innovative Drugs - BeiGene focuses on oncology drug development and global commercialization, presenting progress on core products like CDK4 at the conference [2] - Rongchang Biologics has entered an exclusive licensing agreement with AbbVie for the novel PD-1/VEGF bispecific antibody drug RC148, granting AbbVie rights outside Greater China for development, production, and commercialization [2] - Hengrui Medicine, involved in the R&D, production, and sales of innovative and generic drugs, reported that over 50% of its revenue now comes from innovative drugs, with multiple self-developed products receiving approvals [2] Group 2: CRO/CMO - WuXi AppTec provides integrated CXO services covering the entire drug development and manufacturing process, projecting a 32.56% year-on-year growth in net profit for 2025 [3] - WuXi Biologics, specializing in biopharmaceutical CRDMO services, announced 209 new projects, bringing the total to 945, with potential milestone payments exceeding $4 billion from new research contracts [3] - Tigermed offers clinical trial CRO services and participated in the Asia-Pacific session of the conference, providing outsourcing services related to clinical trials for global pharmaceutical companies [3] Group 3: AI in Healthcare - NVIDIA and Eli Lilly's collaboration aims to build AI models to enhance new drug development, with a planned investment of $1 billion over the next five years [4] - RunDa Medical focuses on comprehensive medical testing services and is developing an automated testing interpretation system based on large models [4] - Anbiping has launched a digital pathology AI system and is exploring the registration and commercialization of AI medical devices in cervical cytology [4]

Group 1 - The presentation is part of the 44th Annual Healthcare Conference hosted by JPMorgan [1] - Jessica Fye, a biotech analyst at JPMorgan, is leading the session [1] - The session includes a presentation from Legend's CEO, Ying Huang, followed by a Q&A segment [2]

Summary of Legend Biotech Conference Call Company Overview - **Company**: Legend Biotech - **Industry**: Biotechnology, specifically focused on cell therapy - **Key Product**: Carvykti, a CAR-T therapy for multiple myeloma - **Market Position**: World's largest standalone cell therapy company, leading in CAR-T therapy for multiple myeloma [2][3] Core Points and Arguments Financial Performance - Carvykti generated approximately **$1.7 billion** in net trade sales over the last 12 months [3] - The company has a cash position of nearly **$1 billion** and has achieved positive operating profit for Carvykti in Q3 [4] - Legend anticipates achieving company-wide profitability in 2026, with Carvykti expected to generate over **$5 billion** in annual peak sales [5][8] Product Efficacy and Market Penetration - Carvykti has treated over **10,000 patients**, demonstrating a **97% manufacturing success rate** [6][8] - The therapy has shown a **median progression-free survival (PFS)** of nearly **35 months** in heavily pretreated patients [10] - In the CARTITUDE-4 trial, the median PFS has not yet been reached after nearly three years of follow-up [10][44] - Carvykti is the only CAR-T therapy to achieve a **five-year remission survival** in one-third of patients after a single infusion [9] Market Expansion and Strategy - The company is expanding its global presence, with **279 treatment sites** in **14 countries** [6] - A partnership with Johnson & Johnson (J&J) is aimed at maximizing Carvykti's potential, with a **50/50 cost-sharing and profit split** in the U.S. [8] - The company is focusing on community settings, where **70%** of relapsed and refractory multiple myeloma patients are treated [15] Clinical Trials and Future Directions - Ongoing trials (CARTITUDE-5 and CARTITUDE-6) are evaluating Carvykti in newly diagnosed patients, with the goal of addressing an additional **50,000 patients** annually [14] - The company is also exploring allogeneic therapies and in vivo CAR-T programs, with a focus on capital efficiency and rapid clinical proof of concept [21][23] Competitive Landscape - Despite competition in the multiple myeloma market, Legend emphasizes Carvykti's superior survival outcomes and unique one-time treatment benefits [30][37] - The current market penetration for BCMA-targeted therapies is low, with less than **10%** in fifth-line treatments and less than **5%** in second to fourth-line treatments, indicating significant growth potential [13][35] Additional Important Insights - The National Comprehensive Cancer Network (NCCN) has updated guidelines recommending Talvey as a bridging therapy to BCMA CAR-T therapy, which is expected to be adopted quickly [19] - The company has improved its manufacturing turnaround time to below **30 days**, supporting increased supply capacity [31] - The collaboration with J&J includes a **30/70** cost-sharing arrangement for the China market, where Legend leads [32] Conclusion Legend Biotech is positioned as a leader in the CAR-T therapy market for multiple myeloma, with strong financial performance, promising clinical outcomes, and a strategic focus on expanding its market presence and pipeline development. The company aims to leverage its successful R&D model to explore new therapeutic areas while maintaining profitability and enhancing patient outcomes.

CARVYKTI Market Leadership - CARVYKTI achieved $1.7 billion in Last Twelve Months (LTM) net trade sales[10, 91] - Over 10,000 patients have been treated with CARVYKTI[11, 22] - CARVYKTI has a manufacturing success rate of 97%[24] - CARVYKTI has a median turnaround time (TAT) of less than 30 days[24] - The company expects 3/4 of CARVYKTI orders to come from 2L-4L (second to fourth line) patients[92] Financial Performance and Profitability - Revenue has scaled nearly 4x since Q2 2023[16] - The company anticipates achieving company-wide operating profit in 2026[13, 92] - Operating margin improved from -142% in Q2 2023 to -16% in Q3 2025[14] - The company has $1 billion in cash, cash equivalents, and time deposits as of September 2025[13, 90] Innovation and Pipeline - The company plans to present in vivo data in the second half of 2026[92] - The company aims to file 1-2 US INDs (Investigational New Drug applications) in the second half of 2026[92]

Core Insights - Legend Biotech Corporation is positioned for transformative growth in 2026, aiming for profitability through the global adoption of its CAR-T therapy, CARVYKTI, which has treated over 10,000 patients [2][5][6] Group 1: Commercial Progress - CARVYKTI has solidified its leadership in multiple myeloma CAR-T cell therapy, achieving a milestone of over 10,000 patients treated [2][6] - The company expanded CARVYKTI's global footprint to over 279 sites across 14 markets in 2025, with plans for further globalization in 2026 [6] - The Raritan facility has been expanded, now being the largest cell therapy manufacturing facility in the U.S., capable of supporting treatment for up to 10,000 patients annually [5][6] Group 2: Clinical Advancements - Promising first-in-human results were presented for the allogeneic CAR-T candidate LUCAR-G39D, showing encouraging safety and efficacy in B-cell non-Hodgkin lymphoma [4] - New clinical data from the CARTITUDE-1 and CARTITUDE-4 trials demonstrated significant benefits of CARVYKTI, including a median progression-free survival (PFS) of 50.4 months for triple-class-exposed patients [6] - The company completed enrollment for the Phase 3 CARTITUDE-6 trial in newly diagnosed multiple myeloma patients who are transplant eligible [6] Group 3: Financial Outlook - The company anticipates achieving profitability in 2026, driven by continued revenue growth from CARVYKTI and operating margin expansion [5][11] - As of September 30, 2025, the company reported approximately $1.0 billion in cash and cash equivalents, providing a financial runway beyond 2026 [11] Group 4: Strategic Priorities - The strategic priorities for 2026 include maximizing CARVYKTI's market leadership and advancing cell therapy innovation [3][5] - The company is committed to leveraging its CAR-T development platform to explore new in vivo and allogeneic opportunities [2][3]