Legend Biotech Corp ADR：3Q24业绩好于预期，市场对竞争格局变化过度悲观，维持买入评级

Investment Rating - Maintains a Buy rating with a target price of $76.00, implying a potential upside of 89.1$40.18 [1][3][5] Core Views - 3Q24 Performance Exceeds Expectations: Revenue grew 67% YoY to $160 million, driven by a 88$143 million Carvykti sales surged 54% QoQ and 88% YoY to $286 million, with expectations of continued growth in 4Q24 due to strong demand for second-line treatment, market share expansion, and capacity ramp-up [1] - **Competition Concerns Overblown**: Despite Arcellx's anito-cel data at ASH, Carvykti's competitive position remains strong due to differences in patient baseline characteristics, higher sCR rates (83$630 million, with 2025E and 2026E forecasts also steady at $1,051 million and$1,382 million respectively [4] - Profitability Adjustments: Gross margin assumptions raised to 58.0% for 2024E (vs 48.0% previously), 60.0% for 2025E (vs 53.0%), and 63.0% for 2026E (vs 60.0%) Net loss for 2024E revised to $276 million (vs$264 million previously), with breakeven expected in 2026E [4] - Sales Expense Increase: Sales expenses surged 110% YoY in 3Q24 due to expanded marketing efforts and team growth following 2-4L MM approval [1] Industry Context - CAR-T Market Dynamics: Carvykti's rapid adoption in frontline therapy is expected to limit opportunities for competitors in later-line treatments, reinforcing its market leadership [2] - Peer Comparisons: Among covered biotech companies, Legend Biotech (LEGN US) has the highest potential upside at 89.1%, followed by Genscript Biotech (1548 HK) at 163.3% and Novotech (6996 HK) at 487.2% [8]