Jul. 31 at 1:28 PM
$LEGN When it comes to
$LEGN , J&J only wants the second 50% of Carvykti, no R&D labs in China. Genscript is ready to cash in.
Step 1: The Spin.
$LEGN packages its Nanjing R&D labs and solid tumor pipeline into a brand new company ("Legend R&D"). They distribute shares of this new entity to current shareholders (GenScript) as a completely tax-free spin-off.
Step 2: The BO. Once the R&D is spun out, the original
$LEGN corporate shell is left holding exactly one asset: the remaining 50% of the Carvykti rights. J&J then simply acquires this "legacy" shell for all-cash premium.
Why it works: It completely bypasses the brutal double corporate taxation of an Asset Purchase Agreement. This is the exact playbook Pfizer used to carve out Biohaven.
$JNJ gets the cash cow, GenScript keeps the R&D, and
$LEGN shareholders get the ultimate payday.
I think we'll see some type of business development transaction in within next 6 months. R&D spin-off to a separate publicly traded company.
