argenx SE returns to growth driven by Vyvgart, H.C. Wainwright raises shares PT

On Friday, argenx SE (NASDAQ:ARGX) experienced an uptick in its shares potential as H.C. Wainwright increased the company’s price target to $533 from the previous $504, while maintaining a “Buy” rating. This adjustment follows a notable second-quarter performance from argenx’s product Vyvgart, primarily driven by its application in treating myasthenia gravis (MG).

Vyvgart’s sales soared to $478 million, marking a 78% year-over-year (YoY) growth, and surpassing the consensus estimate of $426 million. This surge was attributed to its use in MG patients, as the drug’s approval for chronic inflammatory demyelinating polyneuropathy (CIDP) came later in the quarter, not contributing to the current sales figures.

The company revealed that 60% of patients receiving Hytrulo, the subcutaneous (SC) formulation of Vyvgart, were new to the treatment. This suggests that Hytrulo is broadening the market base rather than simply shifting patients from intravenous (IV) administration.

The Food and Drug Administration (FDA) has recently accepted an application for a pre-filled syringe (PFS) version of Vyvgart SC, which is anticipated to enhance patient access for both MG and CIDP treatments.

Argenx is also developing an autoinjector, though discussions with clinicians indicate that the PFS should suffice in making Vyvgart readily available for most patients. With Vyvgart’s robust performance this year, H.C. Wainwright has revised its estimates upward for MG. Additionally, following a clearer development plan for immune thrombocytopenia (ITP), the firm has increased its probability of success (POS) estimate from 20% to 35%.

The revised price target reflects the positive outlook based on these developments and the strong sales figures reported by argenx for Vyvgart. The company’s continued progress in expanding treatment indications and improving drug accessibility suggests a promising trajectory for argenx’s growth and market presence.

In other recent news, Wells Fargo recently raised the price target on argenx’s shares, citing revenue growth from Vyvgart, one of argenx’s products. The firm’s analysts do not see Amgen (NASDAQ:)’s Uplizna as a significant threat to argenx, despite investor concerns.

In other developments, argenx received CIDP approval in June and is preparing for the product’s launch. The company maintains a strong cash position of $3.1 billion, supporting its ambitious goals, including advancing five molecules to Phase 3 trials and aiming to serve 50,000 patients globally by 2030.

However, argenx did not provide revenue guidance for the year due to uncertainties and potential pricing pressure from competition. Despite these challenges, the company has shown strong commercial progress in Europe and Japan, and it remains confident in securing payer agreements for CIDP.

InvestingPro Insights

As argenx SE (NASDAQ:ARGX) garners attention with its upward price target revision by H.C. Wainwright, the company’s financial health and market performance offer additional insights. With a robust market capitalization of $28.55 billion, argenx is navigating a pivotal phase. Despite a negative P/E ratio indicating that the company is not currently profitable, the impressive revenue growth of 98.69% over the last twelve months as of Q2 2024 underscores the company’s significant sales momentum, aligning with the successful performance of Vyvgart highlighted in the article.

InvestingPro Tips further reveal that argenx holds more cash than debt, providing financial stability for ongoing and future projects. However, analysts have tempered expectations, with two analysts revising their earnings downwards for the upcoming period, which could suggest caution among investors. Notably, the stock’s recent performance has been strong, with a 30.45% total return over the last three months, reflecting investor confidence in the company’s trajectory.

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