Legend Biotech Stock Soars on Takeover Bid Amid J&J Speculation
Legend Biotech explores takeover bid, stocks surge; J&J speculated as potential buyer.
Breaking News
Jul 16, 2024
Mrudula Kulkarni

CAR-T specialist Legend Biotech has reportedly received a takeover bid and has enlisted Centerview Partners as a financial adviser to evaluate its options, according to StreetInsider, which cites an unnamed source. Following this news, Legend Biotech’s stock price surged approximately 12% on the Nasdaq exchange Friday afternoon. Meanwhile, the share price of GenScript, Legend’s former parent company and largest shareholder, jumped about 25% on Monday in Hong Kong. At the end of 2023, GenScript held a 48% stake in Legend.
In a Monday filing, GenScript stated it was unaware of any reason for the significant stock movement and had no inside information to disclose under Hong Kong securities laws.Legend Biotech declined to comment on market rumors. The company gained prominence through a 2017 collaboration with Johnson & Johnson (J&J) on the BCMA CAR-T therapy Carvykti. The therapy’s impressive efficacy in treating multiple myeloma led J&J to project its peak sales potential at over $5 billion. The 2017 agreement indicated Legend's intention to establish itself as a standalone biopharma company. Instead of transferring all responsibilities to J&J, Legend is co-developing and commercializing Carvykti, with both companies sharing costs and profits equally outside China. Given their ongoing partnership, there is speculation that J&J might be interested in acquiring Legend. J&J did not immediately respond to a request for comment from Fierce Pharma.
Recent examples of Big Pharma companies acquiring partners include Sanofi’s $2.9 billion purchase of diabetes partner Provention Bio last year and Pfizer’s $11.6 billion acquisition of Biohaven Pharma’s CGRP inhibitor portfolio in 2022, shortly after initiating a collaboration on a migraine drug. This report emerges amidst a biosecurity crackdown on Chinese biopharma service providers under the proposed BIOSECURE Act. In May, two House lawmakers requested an intelligence briefing from the U.S. government on GenScript and three of its related business units, including Legend.