An overview of events. Genscript Biotech Corporation announced on August 7, 2022 that the company's acellular therapy business is expected to record an adjusted net profit of approximately US $29.0 million to US $31.80 million in the first half of the year ended June 30, 2022. Legend Biotech Corp expects to record an adjusted net profit of about US $196.0 to US $228.9 and R & D expenditure of US $135.3 to US $157.9.
The net profit growth of acellular therapy business is in line with expectations, and the investment of talents continues to strengthen. 2022H1, the company expects to record a net profit of $29.0 million to $31.80 million in its acellular therapy business and $26.3 million in 2021H1. The year-on-year growth is expected to be 10.3%, 20.9%, and 14.8% for 2021H1. Taking into account the impact of the overall epidemic in the first half of 2022 on BSJ, Boom Biology and other businesses, we believe that the company's net profit growth in acellular therapy business is in line with expectations. At the same time, the company's equity settlement in 2022H1 share compensation expenses of about $33.9 million, an increase of about 133% over the same period last year, the company further increased investment in high-end talent and long-term incentive mechanism to mobilize the enthusiasm of executives and teams.
Sufficient cash reserves provide strong support for the third phase of the world. Legend Biotech Corp expects to record an adjusted net profit of about US $196.0 to US $228.9 and R & D expenditure of US $135.3 to US $157.9. At present, the company also carries out three global multicenter Ⅲ trials of CARTITUDE-4,5,6, covering the first-and second-line early treatment of multiple myeloma, with high overall demand for R & D costs. At the same time, Legend Biotech Corp has cash and cash equivalents of 379.8 million US dollars and time deposits of 407.8 million US dollars. The company's strong cash and deposit reserves can effectively support the rapid clinical progress of Cilta-cel and other pipelines.
Planting with the underlying technology of life science, the four-in-one industry leader has gradually become. Kingsley is a global leader in the field of gene synthesis, a key low-level technology in life sciences, rooted in the underlying technologies such as gene synthesis provided by Life Science Services, and has created four major business departments, including "Baxger Biotechnology", "Legend Biotech Corp" and "vigorous Biology". They are global health services, synthetic biology, cell therapy and antibody / cell gene therapy CDMO services. With the help of Hillhouse Capital more than HK $8 billion investment to help the company's technology development, production capacity landing and product commercialization, has grown into a four-in-one life science industry chain leader.
Investment advice: we expect homing net profit from 2022 to 2024 to be-2.34 and 627 million respectively, and earnings per share to be-0.11 and 0.30 respectively, maintaining the "recommended" rating.
Risk tips: product launch and expansion is not as expected; product research and development progress is not as expected; industry policy risk; systemic risk