Shares of Legend Biotech (LEGN) plunged about 15% on Monday after the cell therapy company announced a sudden CEO transition, and RBC Capital slashed its price target on the stock.
Legend said on Monday that Ying Huang stepped down as chief executive officer and board member effective July 24.
“Huang’s resignation was not the result of any disagreement with the Company on any matter relating to the Company’s operations, policies or practices or the Company’s financial statements or internal controls over financial reporting,” the company said.
The board named Alan Bash as interim CEO and launched a search for a permanent successor. Bash said his immediate priority is continuity and execution across commercial, clinical, and operational goals.
Bash is the president of the CARVYKTI business unit. CARVYKTI, the company’s lead product, developed with Johnson & Johnson and approved for certain patients with relapsed or refractory multiple myeloma, has treated more than thousands of patients. The company has guided for profitability in 2026 on the back of rising sales and margin gains.
In addition to scaling CARVYKTI sales, Legend is also developing LB2501 for B-cell non-Hodgkin lymphoma. Early-stage trial data release in June showed a 100% objective response rate at higher doses with a favorable safety profile and no dose-limiting toxicities.
RBC Capital on Monday lowered its price target on Legend Biotech to $59 from $63 but kept an Outperform rating. In a research note, the firm said early data on the company’s experimental in vivo CAR-T therapy for non-Hodgkin lymphoma (NHL)—despite coming from a small group of patients and short follow-up—supports its positive outlook. RBC believes the results could open a roughly $3-billion market opportunity for Legend in NHL and help the company transition patients over time from its approved multiple myeloma treatment Carvykti to newer next-generation CAR-T therapies.
RBC’s new price target still represents a potential upside of about 166% from LEGN’s last closing price on Friday.
On Stocktwits, retail sentiment around LEGN stock jumped from ‘neutral’ to ‘extremely bullish’ over the past 24 hours, while message volume jumped from ‘normal’ to ‘extremely high’ levels.
A Stocktwits user pinned the selloff on Monday on the lack of transparency around the CEO’s abrupt departure and voiced optimism for a recovery once more clarity is achieved.
Another user voiced doubt about the company’s next phase of growth.
LEGN stock has fallen 13% year to date.
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