Legend Biotech Corporation (LEGN): 5 FORCES Analysis [Nov-2025 Updated]

You're trying to size up Legend Biotech Corporation's true market strength as we close out 2025, and it's a classic high-risk, high-reward story centered on CARVYKTI's $524 million Q3 net trade sales. We see the tension everywhere: suppliers demand high costs, reflected in the $94.9 million Q2 collaboration revenue, while customers grapple with treatment costs between $373,000-$475,000 amid fierce rivalry with Bristol Myers Squibb's Abecma. The moat is deep, thanks to massive capital needs like the €165 million joint investment in the Ghent facility, which keeps new entrants at bay, but the threat from next-gen substitutes is real. The competitive game here is about manufacturing scale versus clinical superiority. Dive in below to see how all five forces shape the next chapter for Legend Biotech Corporation.

Legend Biotech Corporation (LEGN) - Porter's Five Forces: Bargaining power of suppliers

When you look at the supply side for Legend Biotech Corporation (LEGN), you see a classic case of high supplier power, which is typical for cutting-edge cell therapy manufacturing. This isn't like buying office supplies; the inputs are highly specialized, and that concentration of unique resources gives suppliers leverage.

The power is high primarily because of reliance on specialized, proprietary viral vectors and reagents. Think about it: for CARVYKTI^®, the core component is the lentivirus used to engineer the patient's T-cells. If only a few entities can reliably produce clinical-grade lentiviral vectors that meet the stringent specifications for this therapy, those producers hold significant sway over Legend Biotech's production timeline and costs. This reliance creates a bottleneck that is tough to bypass quickly.

Also, manufacturing itself is complex and autologous, meaning it's patient-specific. This requires highly specialized equipment and facilities that must adhere to Good Manufacturing Practices (GMP) for cell and gene therapy. Scaling this up isn't just about adding more space; it's about validating every piece of highly technical equipment and every process step. This complexity limits the pool of potential contract manufacturing organizations (CMOs) that could step in, further strengthening the hand of existing specialized suppliers or partners.

To be fair, the joint venture with Johnson & Johnson (Janssen) does mitigate some of the direct supplier risk for Legend Biotech, but it shifts the dynamic rather than eliminating the underlying supply chain pressure. The recent component and product supply agreement, signed in October 2025 to replace the temporary one from February 2022, formalizes this relationship for global supply outside Greater China. Under the new terms, Janssen will supply Legend Biotech with critical inputs like lentivirus and unprocessed cells at a price reflecting Janssen's total costs plus a markup. Plus, total production costs are shared equally, which spreads the financial burden but confirms the high underlying cost structure. This partnership means Legend Biotech is less exposed to a single external vendor for these key materials, but it's now deeply intertwined with J&J's own supply chain capabilities and cost structure.

The financial data clearly reflects these high production demands. For the three months ended June 30, 2025, the Cost of Collaboration Revenue was $94.9 million. That figure is substantial, especially when you consider the Collaboration Revenue for the same period was $219.7 million. Here's the quick math: that means roughly 43.2% of the collaboration revenue went straight to covering the costs of goods sold for CARVYKTI^® production in that quarter. What this estimate hides is the capital intensity required to maintain the manufacturing footprint, like the €165 million joint investment with J&J to expand the Ghent facility.

Here is a snapshot of the relevant Q2 2025 figures that illustrate the cost component:

The high cost of revenue, coupled with significant R&D spending of $98.3 million for the quarter, shows why Legend Biotech is still working toward its goal of achieving company-wide profitability in 2026. The supplier power is baked into the cost of goods sold, and managing that relationship-even with a partner like J&J-is a constant focus area.

• Viral vectors and reagents are proprietary and specialized.
• Manufacturing is patient-specific (autologous).
• Janssen supplies key raw materials like lentivirus.
• Production costs consumed 43.2% of collaboration revenue in Q2 2025.
• Legend Biotech holds $1.0 billion in cash as of June 30, 2025.

Finance: draft 13-week cash view by Friday.

Legend Biotech Corporation (LEGN) - Porter's Five Forces: Bargaining power of customers

You're looking at the customer side of the equation for Legend Biotech Corporation (LEGN), and honestly, the power held by payers and hospitals is significant, even with the clinical success of CARVYKTI. The primary lever here is the ultra-high cost of these transformative therapies.

The sticker price for these advanced cell therapies keeps the bargaining power firmly in the hands of the payers and the hospital systems that administer them. For context, recent prices for approved CAR T-cell treatments in the U.S. generally range from $373,000 to $475,000 per cycle of treatment, not including the associated hospital stays. Specifically for BCMA-targeted options like CARVYKTI and its main rival, prices have been reported above $450,000 to $465,000.

Here's a quick look at how that pricing stacks up against the competitive set in the multiple myeloma space, where the BCMA segment holds a 85-90% revenue share:

Customers, meaning the large payers and hospital systems, face limited choice when treating relapsed/refractory multiple myeloma patients who need BCMA CAR-T therapy. You're definitely looking at a duopoly situation between CARVYKTI and Abecma for this specific target. This limited choice, however, is somewhat offset by the fact that CARVYKTI is the only approved therapy for second-line treatment with a confirmed overall survival benefit as of late 2025. Still, payers use this high cost to exert significant pressure on reimbursement terms and patient access protocols.

We see this negotiation power clearly in European markets. For instance, the German Federal Joint Committee (G-BA) lists the price of cilta-cel at €420,000, but the actual reimbursement price settled at around €285,000. That's a substantial reduction driven by payer negotiation, showing they have leverage to lower the effective price you receive. Anyway, Legend Biotech's strong cash position of approximately $1.0 billion as of September 30, 2025, helps them absorb some of this pressure while continuing to scale.

On the logistics front, there was a definite win for customer friction reduction in mid-2025. The U.S. Food and Drug Administration (FDA) eliminated the Risk Evaluation and Mitigation Strategies (REMS) program for CARVYKTI in July 2025. This change means hospitals no longer need special certification or on-site access to ancillary drugs like tocilizumab for administration.

The removal of the REMS program streamlines hospital logistics, which is a direct benefit to the customer base. Previously, this meant:

• Hospitals did not need special certification.
• Patients no longer required to stay near a facility for four weeks post-infusion.
• The requirement for on-site, immediate access to tocilizumab was removed.

The updated labeling now requires patients to be near a facility for only two weeks. This easing of administrative and logistical burdens slightly reduces friction for the centers administering the treatment, which is a positive for customer relations, but the core issue of the therapy's high price point remains the dominant factor in their bargaining power. Finance: draft 13-week cash view by Friday.

Legend Biotech Corporation (LEGN) - Porter's Five Forces: Competitive rivalry

The competitive rivalry in the BCMA CAR-T space for Legend Biotech Corporation is definitely high intensity, you know that already. Bristol Myers Squibb's Abecma (ide-cel) is the primary, established rival here, but the field is getting crowded fast with other modalities also vying for the same patient pool.

CARVYKTI's performance is what's driving the intensity, frankly. The net trade sales for CARVYKTI in the third quarter of 2025 hit approximately $524 million. That positions it as a clear market leader in the BCMA CAR-T segment, which naturally draws more attention and competitive response from rivals like Bristol Myers Squibb.

To give you a sense of the immediate competitive snapshot in the broader cell therapy landscape for Q3 2025, here's a quick look at the sales figures we have for key players in the multiple myeloma space:

The rivalry isn't just about the BCMA CAR-T drugs, though. The entire T-cell immunotherapy market is seeing consolidation at the top. We're seeing forecasts that just three CAR-T drugs-CARVYKTI, Yescarta (Gilead Sciences), and Breyanzi (Bristol-Myers Squibb)-are expected to capture over 70% of the global T-cell immunotherapy market in 2025. That concentration shows how critical market share is right now.

The key battleground, as you noted, is shifting earlier in the treatment sequence. Legend Biotech Corporation has a distinct advantage here because CARVYKTI is approved for second-line multiple myeloma, putting it one line ahead of Abecma, which is approved for third-line use. This earlier access, supported by data showing a 45% reduction in mortality risk over three years versus standard of care in the CARTITUDE-4 study, is a major competitive lever.

Here are the key competitive positioning points we see as of late 2025:

• CARVYKTI holds about 80% of the late-line market share in US treatment centers that offer both CAR-T therapies.
• Over 9,000 patients have been treated with CARVYKTI to date.
• Legend Biotech Corporation anticipates CARVYKTI achieving peak product sales potential of over $5 billion.
• Competition is intensifying as both CAR-T and bispecific antibodies (like Tecvayli and Elrexfio) push for earlier lines of therapy.

If onboarding takes 14+ days, churn risk rises due to the logistical complexity of CAR-T manufacturing versus off-the-shelf options.

Finance: draft 13-week cash view by Friday.

Legend Biotech Corporation (LEGN) - Porter's Five Forces: Threat of substitutes

You're looking at the competitive landscape for Legend Biotech Corporation (LEGN), and the threat from substitutes is definitely real, even with CARVYKTI's strong clinical profile. These substitutes aren't just older drugs; they are next-generation therapies that challenge CARVYKTI on convenience and, in some cases, cost. We need to map out exactly where the pressure points are as of late 2025.

The established, non-CAR-T therapies present a high threat. For instance, the monoclonal antibodies (mAbs) segment was already dominating the next-generation multiple myeloma therapies market, holding a 33.3% share in 2024. This segment includes established anti-CD38 agents like Darzalex (daratumumab). Furthermore, novel agents like bispecific antibodies, such as Janssen's TALVEY (approved in August 2023), are continually emerging in the multiple myeloma pipeline, directly competing for patients in the relapsed/refractory setting where CARVYKTI is currently positioned as the only approved CAR-T therapy for second-line treatment.

One of the most tangible competitive advantages for some substitutes is the ease of administration. CARVYKTI requires complex logistics centered around a one-time infusion following apheresis and manufacturing. In contrast, established substitutes like Darzalex, when given subcutaneously (SC) as Darzalex Faspro, offer a much simpler patient experience. Here's the quick math on administration convenience:

The cost differential is also a factor you can't ignore. While CARVYKTI's net trade sales reached approximately $524 million in the third quarter of 2025, signaling strong market acceptance, the upfront cost for CAR-T therapies can exceed $465,000 per treatment. Bispecific antibodies, on the other hand, like Tecvayli, have a per-cycle cost reported to be over $29,000. This difference in immediate financial outlay can influence payer decisions and access, especially in systems with budget constraints.

Still, Legend Biotech Corporation (LEGN) has a strong clinical defense against these substitutes. The U.S. Food and Drug Administration (FDA) and the European Commission (EC) have updated the CARVYKTI label to include the statistically significant overall survival (OS) benefit demonstrated in the Phase 3 CARTITUDE-4 study. This data directly counters substitutes by showing superior long-term patient outcomes versus standard therapies like PVd or DPd in the relapsed/lenalidomide-refractory setting.

The pipeline continues to evolve, meaning the threat isn't static. We see ongoing development in novel agents, often targeting new pathways to overcome resistance to existing therapies. For example:

• GPR5D-directed therapies are a focus area for both CAR-T and bispecific antibodies.
• BMS-986393, a GPR5D-directed autologous CAR-T, is in a Phase II trial with key data anticipated in 2026.
• The development of allogeneic (off-the-shelf) bispecific antibodies aims to reduce the logistical burdens associated with autologous CAR-T approaches like CARVYKTI.

As of late 2025, Legend Biotech Corporation (LEGN) has treated over 9,000 patients with CARVYKTI, which speaks volumes about its current market penetration and acceptance, but the continuous emergence of more convenient and potentially less complex treatments keeps the pressure on for ongoing differentiation.

Legend Biotech Corporation (LEGN) - Porter's Five Forces: Threat of new entrants

You're looking at the barriers to entry in the autologous cell therapy space, and honestly, it's like trying to build a skyscraper without a blueprint, deep pockets, or a construction crew that knows how to handle living material. The threat of new entrants for Legend Biotech Corporation is decidedly low because the industry is walled off by massive, non-negotiable requirements.

High Barriers to Entry in Autologous Cell Therapy

Entering the market for personalized cell therapies like CARVYKTI is not like launching a standard small-molecule drug; it's an entirely different beast. New players face an uphill battle against established players like Legend Biotech Corporation, which has already navigated the initial, most treacherous phases. The global autologous cell therapy product market, for context, surpassed USD 10.1 billion in 2025, showing the prize is big, but the cost of entry is astronomical.

Here's a quick look at the scale of the existing market and the required investment to even compete:

Stringent Regulatory Hurdles

Regulatory bodies like the FDA and EMA impose stringent, lengthy requirements that demand extensive, high-quality clinical data. A misstep in preclinical design or CMC (Chemistry, Manufacturing, and Controls) strategy can add months and hundreds of thousands of dollars to development timelines, which is a huge risk for a new entrant without deep institutional knowledge.

The complexity of the process itself creates regulatory risk:

• Process failure rates in autologous manufacturing range between 5-10%.
• Each failed batch is estimated to cost over $100,000 to manufacture.
• Delays are clinically devastating; an estimated 20% of patients on waitlists for CAR-T drugs die before treatment.

Navigating this maze requires proactive engagement with the FDA from the very start, something only well-capitalized, experienced firms can sustain.

Massive Manufacturing Complexity and Capital Requirements

Manufacturing is perhaps the single biggest moat. It's patient-specific, labor-intensive, and requires specialized, aseptic facilities. Legend Biotech Corporation, alongside its partner, has already committed significant capital to secure its supply chain, signaling the required scale to any potential competitor.

Consider the capital already deployed by the incumbent:

• Legend Biotech Corporation and Johnson & Johnson made a joint investment of €165 million to enhance the Ghent facility.
• An additional $150 million was approved for further expansion of the Ghent Tech Lane facility, with construction slated to start in the second half of 2025.
• Legend Biotech Corporation has over 1,450 employees in the U.S. and over 1,000 across Europe as of late 2025.

New entrants must replicate this infrastructure, which demands billions in capital expenditure and years of operational learning.

Entrenched Market Access and Established Treatment Sites

Even if a new therapy gains approval, getting it to the patient is a logistical nightmare that requires established relationships and physical infrastructure within major medical centers. Legend Biotech Corporation has already built out this critical commercial network for CARVYKTI.

The established footprint is substantial:

A new entrant must secure contracts, train specialized hospital staff, and build out the complex cold-chain logistics to reach these established centers of excellence. Finance: draft 13-week cash view by Friday.