On Tuesday, Scotiabank (TSX:BNS) significantly increased its price target for argenx SE (NASDAQ: ARGX) and upgraded the stock from Sector Perform to Sector Outperform. The new price target is set at $715.00, up from the previous figure of $439.00.
The upgrade is attributed to the promising sales and potential of efgartigimod (efgart; Vyvgart), particularly in the myasthenia gravis (MG) treatment market, where it has become the preferred anti-FcRn therapy. The steady quarter-over-quarter growth in this segment underscores the drug's solidified status.
argenx's successful launch in treating chronic inflammatory demyelinating polyneuropathy (CIDP) has also been noted, with the company reporting that it has treated over 300 patients, many of whom switched from the standard intravenous immunoglobulin (IVIg) treatments. The analyst sees this as an indication of argenx's ability to capitalize on prescriber overlap between MG and CIDP.
The expectation of positive outcomes from key trials and the initiation of new Phase 3 trials within the next 12 months also contribute to the positive outlook. In particular, the potential success of a Phase 3 decision for myositis treatment by the end of the year is highlighted as a factor that could positively impact the stock.
Further optimism is drawn from the anticipation of favorable regulatory updates in immune thrombocytopenia (ITP) and enrollment progress in ongoing or upcoming Phase 3 trials, including a pivotal study for Sjogren’s disease. The comprehensive view of the drug's performance and the expected trial results have led to the new price target of $715.
In other recent news, Argenx (NASDAQ:ARGX) SE has reported significant earnings and revenue results, with third-quarter net product revenue reaching $573 million, surpassing estimates set by Oppenheimer and consensus forecasts.
This strong financial performance was primarily driven by robust sales of Vyvgart and Vyvgart Hytrulo.
Deutsche Bank (ETR:DBKGn), acknowledging the company's momentum, has raised the price target for Argenx from €500.00 to €525.00, maintaining a Hold rating.
Analyst firms such as Oppenheimer, Piper Sandler, Leerink Partners, and H.C. Wainwright have also increased their price targets citing impressive quarterly earnings. However, Baird downgraded Argenx to Neutral, suggesting limited short-term upside, while William Blair upgraded the stock to Outperform.
The company recently launched Vyvgart for Chronic Inflammatory Demyelinating Polyneuropathy (CIDP), with regulatory reviews ongoing in China, Japan, and Europe, and approvals anticipated in 2025. Despite a year-to-date operating loss, Argenx continues to focus on high-impact programs and robust sales growth.
These are the recent developments for the company.
InvestingPro Insights
The optimistic outlook for argenx SE (NASDAQ: ARGX) presented in the article aligns with several key metrics and insights from InvestingPro. As of the latest data, argenx boasts a substantial market capitalization of $35.7 billion, reflecting investor confidence in the company's potential. The company's revenue growth is particularly impressive, with a 85.56% increase over the last twelve months and a 73.28% quarterly growth in Q3 2024. This robust revenue expansion supports the article's positive stance on argenx's market performance, especially in the myasthenia gravis and CIDP treatment segments.
InvestingPro Tips highlight that net income is expected to grow this year, and analysts predict the company will be profitable this year. These projections align with the article's emphasis on argenx's promising drug pipeline and potential market expansions. Additionally, the stock is trading near its 52-week high, with a strong return over the last month (11.08%) and three months (21.5%), indicating sustained investor enthusiasm.
It's worth noting that argenx holds more cash than debt on its balance sheet, which could provide financial flexibility for ongoing research and development efforts mentioned in the article. For readers interested in a more comprehensive analysis, InvestingPro offers 13 additional tips for ARGX, providing a deeper understanding of the company's financial health and market position.
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