On Monday, Truist Securities updated its view on argenx SE (NASDAQ:ARGX), a biotechnology company, by increasing its price target to $480 from the previous $440 while maintaining a Buy rating. The adjustment follows the recent approval of Vyvgart-Hytrulo for Chronic Inflammatory Demyelinating Polyneuropathy (CIDP), which has been granted a broad label for treatment.
The new price target reflects the robust pricing of Vyvgart-Hytrulo, which is set at approximately $450,000 per patient. This pricing strategy takes into account several factors: the comparable per vial pricing to gMG (generalized Myasthenia Gravis), the projected utilization of the drug in CIDP treatments, an even split between commercial and public payor mix, and the added value of being a non-plasma derived therapy, which alleviates sanitary concerns.
Truist Securities' analysis suggests that the peak sales of Vyvgart in the U.S. for CIDP could reach around $2.2 billion. This estimate is considered potentially conservative given the number of diagnosed CIDP patients in the U.S., which stands at approximately 41,000. Out of these patients, about 24,000 are currently receiving treatment, and nearly 12,000 are not well managed with existing therapies.
The firm's optimism is further bolstered by the full CIDP data that was presented at the American Academy of Neurology (AAN) meeting, which showcased robust results. The data presented could indicate a strong market uptake for Vyvgart-Hytrulo, contributing to the positive outlook for argenx's financial performance in the coming years.
In other recent news, argenx SE has seen significant developments with the approval of its drug Vyvgart Hytrulo for Chronic Inflammatory Demyelinating Polyneuropathy (CIDP). This approval has led to several analyst firms revising their price targets and ratings for the company. TD Cowen sustained its Buy rating and a price target of $514.00, while Wells Fargo (NYSE:WFC), Piper Sandler, Scotiabank, and H.C. Wainwright also maintained positive ratings, adjusting their price targets to $542, $535, $416, and $448 respectively.
The company's recent financial performance has been noteworthy, with an 83% rise in total operating income to $413 million, largely propelled by the expansion of Vyvgart. Analyst firms anticipate that the approval of flexible pricing for Vyvgart Hytrulo will significantly impact argenx SE's financial performance, given the drug's potential to tap into a sizable market of refractory patients.
InvestingPro Insights
In light of Truist Securities' updated price target for argenx SE (NASDAQ:ARGX), InvestingPro data and tips offer further insights into the company's financial health and market performance. With a hefty market capitalization of $25.79 billion, argenx's robust revenue growth is notable, having surged by 126.96% over the last twelve months as of Q1 2024. This growth trajectory is complemented by a significant quarterly revenue increase of 79.45% in Q1 2024, underscoring the company's expanding financial scale.
InvestingPro Tips highlight argenx's strong balance sheet, as it holds more cash than debt, and the stock's history of low price volatility, which may appeal to risk-averse investors. Additionally, argenx has delivered high returns over the past five years and the last decade, although it's important to note that analysts do not expect the company to be profitable this year, and it has not been profitable over the last twelve months.
While argenx does not pay a dividend, the potential for capital appreciation is reflected in the stock trading at a high Price/Book multiple of 6.31. For investors seeking more comprehensive analysis and additional InvestingPro Tips, visit https://www.investing.com/pro/ARGX. There are 8 more tips available, which can be accessed with an exclusive 10% discount on a yearly or biyearly Pro and Pro+ subscription using the coupon code PRONEWS24.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.