Immunovant's FcRn Strategy Gains Momentum: Analysts View ADHERE Study as De-Risking Factor for CIDP Clinical Development

Monday, Argenx SE ARGX reported topline results from the ADHERE study evaluating Vyvgart Hytrulo (efgartigimod alfa and hyaluronidase-qvfc) in adults with chronic inflammatory demyelinating polyneuropathy (CIDP), meeting its primary endpoint.

Stifel has upped the price target for Immunovant Inc IMVT from $28 to $34, following the encouraging topline results of ARGX's ADHERE study of efgartigimod.

The analyst maintains that the success of ADHERE not only mitigates the risks associated with FcRn-blockade in CIDP (IMVT is carrying out a similar study), but also bolsters confidence in the broader potential of the FcRn opportunity.

In the future, a deeper analysis of the full ADHERE dataset could reveal whether there is potential for enhanced efficacy for IMVT through higher IgG reduction or if benefits could be amplified by excluding naive/steroid patients from the primary analysis.

A Citi analyst states that the positive ADHERE data substantially supports the autoantibody hypothesis in CIDP, suggesting that most CIDP patients could benefit from an FcRN inhibitor. 

The analyst also sees a positive impact on Immunovant's ongoing Phase 2 trial in CIDP, as the uncertainty regarding the addressable CIDP population from a mechanistic perspective has largely been alleviated.

Furthermore, HC Wainwright has also revised its price target for the stock upward from $27 to $29, maintaining a Buy rating. 

The analyst notes that efgartigimod results validate the theory that IgG antibodies significantly contribute to de-risking the clinical development of Immunovant's anti-FcRn for this indication. 

The analyst also highlights that with the more aggressive dosing being employed by Immunovant, there could be potential for Immunovant to derive some incremental efficacy.

Price Action: IMVT shares are up 6.53% at $24.64 on the last check Tuesday.