Legend Biotech (LEGN) is positioned to sustain profitability after achieving adjusted net income profitability in Q2 and given its existing cash runway, RBC Capital Markets said.

Revenue increased to $387.5 million from $255.1 million. Revenue growth was mainly driven by myeloma therapy Carvykti, according to the note Tuesday.

Carvykti's market share as an earlier-line treatment for myeloma continues to grow. RBC said the 2nd-to-4th-line market remains underpenetrated by BCMA-targeting therapies.

The investment firm believes near-term risk to Carvykti, developed in collaboration with Johnson & Johnson (JNJ), from bispecifics and future CAR-T entrants is being overstated. The continued investment by Legend and J&J supports the drug's growth outlook, according to the note.

Johnson & Johnson has reiterated Carvykti's potential to generate more than $5 billion in annual sales.

RBC has an outperform rating on the stock and lowered its price target to $58 from $59.

Shares of Legend Biotech were down 3.4% in Wednesday trading.

Price: 21.07, Change: -0.76, Percent Change: -3.48