Legend Biotech's (LEGN) multiple myeloma therapy Carvykti is facing growing competitive pressure as Gilead Sciences' (GILD) anito-cel approaches a potential approval and Johnson & Johnson's (JNJ) Tec-Dara gains traction, UBS Securities said Thursday in a report.

UBS said Carvykti isn't expanding quickly enough in second- and third-line patients to be protected from anito-cel's launch, and that bispecific antibodies such as Tec-Dara may erode its position in earlier treatment lines.

UBS expects these headwinds to weigh on Legend stock until the next major catalysts including earlier-line Carvykti data and updates from the company's in-vivo programs, which it doesn't project until late 2027.

Gilead has signaled confidence that anito-cel will receive a fourth-line-plus label and a clean safety profile, UBS said. Legend estimates that about 41% of current US Carvykti use is in second- and third-line patients, leaving the remaining 59% of the fourth-line-plus market potentially at risk, the report said. The US Food and Drug Administration's decision date for anito-cel is Dec. 23.

UBS cut its valuation multiple on Legend to three times estimated 2032 sales from 3.5 times, citing higher competitive risk and slower expected Carvykti growth.

UBS lowered its price target on Legend stock to $24 from $28 and maintained its neutral rating.

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