Legend Biotech (NASDAQ: LEGN) saw its stock price plummet 5.19% in pre-market trading on Tuesday following the release of its first quarter 2025 financial results. The biotech company reported a widened net loss of $100.9 million, up from $59.8 million in the same period last year, despite strong sales of its flagship product CARVYKTI.

The increased net loss appears to be the primary factor driving the stock's decline, overshadowing some positive aspects of the company's performance. Legend Biotech reported that net trade sales for CARVYKTI (ciltacabtagene autoleucel) reached approximately $369 million in Q1 2025, indicating strong market traction for the cell therapy product. However, license revenue decreased from $12.2 million in Q1 2024 to $9.3 million in Q1 2025, primarily due to timing of activities related to the Novartis License Agreement for the LB2102 clinical trial.

Despite the widened net loss, Legend Biotech's adjusted net loss showed significant improvement, decreasing to $27.0 million from $85.3 million in the first quarter of 2024. The company also maintained a strong cash position of $1.0 billion as of March 31, 2025, which is expected to provide a financial runway into the second quarter of 2026. Additionally, Legend Biotech reported operational progress, including the commencement of clinical production of CARVYKTI at the Tech Lane facility and receiving a positive CHMP opinion to include a statistically significant improvement in overall survival from the CARTITUDE-4 study in the CARVYKTI label. However, these positive developments were not enough to offset investor concerns about the increased net loss, resulting in the sharp stock price decline.