Argenx SE: Strong Buy Rating on Vyvgart’s Market Expansion and Promising Pipeline

Analyst Tazeen Ahmad of Bank of America Securities maintained a Buy rating on Argenx Se (ARGX – Research Report), retaining the price target of $535.00.

Tazeen Ahmad has given his Buy rating due to a combination of factors concerning Argenx Se’s recent developments and future growth prospects. Ahmad’s optimism is primarily fueled by the strong market share growth of Vyvgart in the treatment of gMG (generalized Myasthenia Gravis), with the company continuing to add new patients. This growth is supported by the company’s increased marketing efforts, including an expanded salesforce and direct-to-consumer campaigns. Moreover, there is potential for further expansion into the seronegative patient population, as well as broader geographic reach, which bolsters the case for a Buy rating. The company’s promising pipeline and upcoming PDUFA date for CIDP (Chronic Inflammatory Demyelinating Polyneuropathy) also contribute to the favorable outlook. Ahmad maintains Argenx as a top pick for 2024, with a price objective that suggests significant upside from the current levels.

Additionally, Ahmad is encouraged by the strategic initiatives in place for the launch of Vyvgart in the CIDP market, which involves a different approach from the gMG market, focusing on patient transition from IVIg (intravenous immunoglobulin) to Vyvgart. Despite expectations of a gradual initial uptake, confidence in the long-term opportunity is underpinned by the drug’s value proposition and ongoing efforts to increase disease awareness and physician education. Further, advancements towards self-administration options like the prefilled syringe and autoinjector are anticipated to drive uptake. The analyst also points to multiple growth drivers in the pipeline, including several potential go/no-go decisions for efgartigimod in various indications, and new INDs expected to provide additional value in the long-term, reinforcing the Buy rating.

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Argenx Se (ARGX) Company Description:

argenx SE is a clinical-stage biotechnology company, which engages in the development of antibody-based therapies for the treatment of autoimmune diseases and cancer. Its products include ARGX-113 for the treatment of autoimmune disease myasthenia gravis and ARGX-110 for the treatment of hematological cancer acute myeloid leukemia. The company was founded by Hans J. W. de Haard, Torsten Dreier, and Tim van Hauwermeiren on April 25, 2008 and is headquartered in Breda, the Netherlands.