H.C. Wainwright notes that Legend Biotech (LEGN) partner Janssen, a division of Johnson & Johnson (JNJ), reported Q1 aggregate revenues for Carvykti that implied a 1% quarter-over-quarter contraction following 5% quarter-over-quarter growth recorded from Q3 to Q4. However, the flat sales in Q were "not alarming to us" as the firm expects a return to growth, with substantial growth in the second half of 2024 compared to the first half, says the analyst, who reiterates a Buy rating and $87 price target on Legend shares.

Says has financial flexibility to consider multiple types of transactions.

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Reports Q1 revenue $21.4B, consensus $21.4B. "Johnson & Johnson's solid first quarter performance reflects our sharpened focus and the progress in our portfolio and pipeline," said Joaquin Duato, Chairman and Chief Executive Officer. "Our impact across the full spectrum of healthcare is unique in our industry, and the milestones achieved this quarter reinforce our position as an innovation powerhouse."

Novartis (NVS) presented results from a pre-specified interim analysis of the Phase 3 APPLAUSE-IgAN study of Fabhalta, an investigational Factor B inhibitor of the alternative complement pathway, in patients with IgA nephropathy, or IgAN. In the analysis, patients treated with Fabhalta achieved a 38.3% proteinuria reduction as measured by 24-hour urine protein to creatinine ratio at 9 months when compared to placebo on top of supportive care. This pre-specified interim analysis included 250 patients for the efficacy analysis and 443 for the safety analysis1. The APPLAUSE-IgAN study continues in a double-blind fashion, and therefore only limited interim analysis results can be presented. Submission for possible accelerated approval to the FDA was accepted and has received priority review. The primary endpoint evaluating Fabhalta's ability to slow IgAN progression by measuring the annualized total estimated glomerular filtration rate slope over 24 months is expected at study completion in 2025, Novartis stated. "IgAN progresses over many years, and patients' needs may evolve such that different therapies may be best used at different times. Our renal pipeline includes medicines with a variety of mechanisms which may allow them to be targeted to patients based on their clinical characteristics," added David Soergel, M.D., Global Head, Cardiovascular, Renal and Metabolism Development Unit, Novartis. Recently, after Alpine Immune Sciences (ALPN) and Vertex Pharmaceuticals (VRTX) announced that the companies entered into a definitive agreement under which Vertex will acquire Alpine for $65 per share, or $4.9B in cash, Evercore ISI analyst said the B cell modulator space within IgAN is "hot," with Alpine marking the second acquisition in the class in the last 10 months. The analyst, who sees Alpine trailing Otsuka, Vera Therapeutics (VERA) and Novartis by about one to two years, argued that with Alpine off the market, Vera is now "the only free-standing B cell modulator in the IgAN space."

Notable companies reporting before tomorrow's open, with earnings consensus, include UnitedHealth (UNH), consensus $6.21... Johnson & Johnson (JNJ), consensus $2.47... Bank of America (BAC), consensus 72c... Morgan Stanley (MS), consensus $1.66... PNC Financial (PNC), consensus $3.02... BNY Mellon (BK), consensus $1.19.