In the past two months, the stock price has dropped by a maximum of 25%. Will a secondary listing be a good way for Legend Biotech Corp. Sponsored ADR (LEGN.US) to rebound?

On September 5th this year, Bloomberg cited sources as saying that Legend Biotech Corp. Sponsored ADR (LEGN.US) is considering a secondary listing outside the United States due to strong interest from investors in pharmaceutical companies. According to foreign media reports, Legend Biotech Corp. Sponsored ADR has already discussed listing plans with potential advisors, and potential locations for the listing include Hong Kong, Singapore, or London. This news immediately caught the market's attention, and the company's stock price rose by 3.12% on the same day. However, at this time, Legend Biotech Corp. Sponsored ADR's stock price was in a downward trend, and the rumors of a secondary listing seemed to have not stopped its continuous decline. Since reaching a high point of $45.30 on July 23rd, Legend Biotech Corp. Sponsored ADR's stock price has been in a downward trend until now. After the rumors of a secondary listing were revealed, the stock price of Legend Biotech Corp. Sponsored ADR continued to decline from September 8th to 10th, followed by fluctuations at low levels. On September 19th, the company's closing price was $34.01, with the stock price falling by a maximum of 25% in the past two months. When will the stock price rebound? Due to the fact that investors in the Hong Kong stock market are more familiar with Chinese business models, and institutional investors in the US market may be less willing to allocate funds due to factors such as GEO Group Inc., many Chinese concept stocks listed in the US have chosen to seek a secondary listing in Hong Kong in recent years. This can bring new funding channels to companies, so the market's response is often more positive than negative. However, the secondary market seemed indifferent to the rumors of Legend Biotech Corp. Sponsored ADR's secondary listing in early September. It can be observed that after July 23rd, Legend Biotech Corp. Sponsored ADR's stock price entered a new round of technical adjustment. Because its stock price rose by 22.59% and 10.09% in June and July respectively, this adjustment did not show any volatile fluctuations, but the stock price continued to decline and run along the lower BOLL line. This led to a cumulative decline of 11.11% in August, surpassing its gains in July. After the rumors of a secondary listing came out in September, the stock price of Legend Biotech Corp. Sponsored ADR fluctuated between the middle and lower BOLL lines, but there is still no sign of a continued upward trend in the stock price. In fact, the return of Chinese concept stocks listed in Hong Kong for a second time is mostly to avoid policy risks in the United States and ensure the stability of capital market financing channels. For bio-technology Chinese concept stock companies, this need also exists. A few days after the news of Legend Biotech Corp. Sponsored ADR's secondary listing came out, there were reports from foreign media that the Trump administration was drafting an executive order to impose strict restrictions on Chinese pharmaceuticals (especially experimental drugs). This news led to a decline in stock prices of several companies listed on AH and US stock exchanges. However, Goldman Sachs Group, Inc. published a research report on potential short-term stock price risks, categorizing Chinese innovative drug companies into three categories, namely "companies that have a global layout," "companies that have strong global partners," and "companies with high expectations for external authorization but have not yet been realized." Among them, Goldman Sachs Group, Inc. listed Legend Biotech Corp. Sponsored ADR as the first category of "companies with a global layout," believing that the impact of this plan will be limited, as these companies have already established a solid foundation in markets such as the United States, and the market has low expectations for new trading. Looking at the secondary market, after falling by 2.28% on September 10th, Legend Biotech Corp. Sponsored ADR's stock price rose by 1.08% the next day, and after September 16th, it rose for four consecutive days, confirming Goldman Sachs Group, Inc.'s view that the impact of the above policies on it is limited. However, avoiding negative factors does not necessarily make the stock price rebound. Referring to the trend of Legend Biotech Corp. Sponsored ADR in June and July, the key to its stock price rebound may still lie in the release of major financial and clinical data. Once again, heavy data is the strongest "catalyst" Looking at a longer timeline, since the failure of the "sale" announcement last September, the stock price of Legend Biotech Corp. Sponsored ADR has been falling, from a high point of $58.90 in August of last year to a low point of $29.27 in April of this year. In May, the heavy data reveal of the rival product Anito-cel of CARVYKTI showed safety potential that still made the market concerned about the pricing power and market share of CARVYKTI in the indication market in the future, monopolistic premium or serious discounts. In the context of valuation logic being impacted. On May 14th, Legend Biotech Corp. Sponsored ADR's stock price fell by 10.55%, and reached a low of $27.43 the next day, setting a new low since May 2021. However, in such a "headwind" background, Legend Biotech Corp. Sponsored ADR still relied on strong sales performance of core varieties and impressive clinical results to turn around the market's negative attitude in June and July. On June 2nd of this year, at the ASCO Annual Meeting, Legend Biotech Corp. Sponsored ADR announced through verbal reports the latest long-term follow-up data from the CARTITUDE-1 study of its core variety CARVYKTI in patients with relapsed or refractory multiple myeloma (RRMM) who had undergone multiple treatments. The data showed that 33% (32/97) of the patients had no disease progression for five years or longer (PFS); in terms of measuring the efficacy of anticancer drugs, CARVYKTI also reached a median overall survival (OS) of 60.7 months; and in this analysis, 12 patients from a single center underwent serial minimal residual disease (MRD) assessments, with results showing that all of them maintained a disease-free survival for five years or more, MRD-negative status, and no signs of disease on annual PET/CT scans over the course of five years. Legend Biotech Corp. Sponsored ADR stated in its report that the aforementioned drug data were "unprecedented," and emphasized that compared to standard therapy, CARVYKTI is currently the only CAR-T therapy that shows a clear benefit in total survival in multiple myeloma treatment. The disclosure of this follow-up data significantly boosted the confidence of the global industry and market. The day after the data was released, the stock price of Legend Biotech Corp. Sponsored ADR rose by more than 13%, and quickly surged in the following six trading days. On June 12th, the stock price of Legend Biotech Corp. Sponsored ADR reached a high of $39.66, approaching the previous high of $40 in February of this year. At this time, the stock price of Legend Biotech Corp. Sponsored ADR had surpassed the upper BOLL line and entered the overbought zone. After a technical pullback to the middle line in ten trading days and a subsequent rise, the stock price reached the upper BOLL line again on July 9th. This time, the stock price did not immediately pull back, but under the stimulus of positive news, it broke through the previous high and reached a new high for the year. It is worth noting that on the evening of July 16th, Johnson & Johnson's financial report revealed the remarkable performance of CARVYKTI, the CAR-T cell therapy of Legend Biotech Corp. Sponsored ADR. The report showed that CARVYKTI reached sales of $808 million in the first half of this year, a year-on-year increase of approximately 136% and a month-on-month increase of 30%. Combining the full-year financial report for 2024 and the first-half financial report for 2025 of Legend Biotech Corp. Sponsored ADR, the accelerated growth performance of CARVYKTI in sales is obvious. In 2024, the net trade sales of CARVYKTI for the whole year reached $963 million, a year-on-year increase of 92.7%, almost reaching the status of a "blockbuster drug." In the first quarter of 2025, the sales growth of CARVYKTI further increased, with sales reaching $369 million, a year-on-year increase of up to 135%; in the second quarter of 2025, the sales of CARVYKTI achieved a 136% year-on-year growth, and a 30% increase from the previous quarter. This showed a sustained accelerated growth on the basis of the high-speed growth in the full year of 2024. Based on the performance mentioned above, on July 21st, Legend Biotech Corp. Sponsored ADR once again became the headline of major investment bank research reports. Out of the 21 analysts, 20 gave a "buy" rating, with an average target price of $76.42, representing a potential increase of up to 83.74% from the closing price of $41.59 on July 18th.