Shares of cell therapy company Legend Biotech Corp (NASDAQ:LEGN) were trading lower on Monday, after being among the top pharma gainers in the first week of June.

The company's Carvykti drug is likely to return to growth and revive investor enthusiasm, according to Truist Securities.

The Legend Biotech Analyst: Asthika Goonewardene initiated coverage of Legend Biotech with a Buy rating and price target of $88.

The Legend Biotech Thesis: In a landmark collaboration with Johnson & Johnson (NYSE:JNJ), the company launched Carvykti, which is "the most attractive product" for treating multiple myeloma, Goonewardene said in the initiation note.

"Our spot survey of CAR-T prescribers indicate intentions to increase Carvykti use at a run-rate that is more than double that of last year," the analyst wrote. Carvykti could generate more than 96% year-on-year growth in sales, "and as a revenue generating biotech, we think this will more favorably impact sentiment on LEGN over binary clinical developments," he added.

Cell therapies in Multiple Myeloma are estimated to be worth more than $15 billion in the major Western markets and Carvykti can be an over $5 billion product, Goonewardene further said.

LEGN Price Action: Shares of Legend Biotech were down 2.5% to $41.38 at the time of publication on Monday.