Argenx Q3 Revenue, EPS Beats Excite Bullish Biotech Analysts: 'Most Enviable I&I Pipeline In Entire Industry'

Shares of Dutch biotechnology company Argenx SE ADR ARGX jumped this week after an impressive third-quarter earnings print. Analysts shortly raised their price targets on the stock.

The Argenx Analysts: The following analysts released notes following argenx’s earnings:

• Piper Sandler analyst Allison M. Bratzel, reiterating an Overweight rating, raising its price target from $553 to $620.
• Oppenheimer analyst Leland Gershell, reiterating an Outperform rating, raising its price target from $560 to $646.
• Truist analyst Joon Lee, reiterating a Buy rating, raising its price target from $540 to $660.
• Citizens JMP analyst Jason N. Butler, reiterating an Outperform rating, raising its price target from $497 to $606.

Piper Sandler: Bratzel noted that the rescinding of Argentx’s cash burn guidance implies an increase in the company's revenue outlook in coming quarters.

“While hand-wringing about the competitive landscape will continue to come and go, we continue to believe that
ARGX has set an extremely high bar with Vyvgart's clinical profile and has solidified themselves as dominant players in the gMG space (and soon-to-be CIDP space),” the analyst said.

Accordingly, Bratzel raised revenue estimates in the near term.

Oppenheimer: Gershell noted the potential to beat long-term patient estimates.

“With >3,000 total Vyvgart prescribers and ~10K treated patients, ARGX appears on track to achieve its Vision 2030 goal of 50K patients on therapy—and we see potential to exceed this.”

The analyst also believes that Argentx is sufficiently managing expenses, pipeline and commercial demands.

Truist: Lee is encouraged by Argentx’s immunology and inflammation pipeline.

“Most importantly, in our view, ARGX has the most enviable I&I pipeline in the industry with multiple data read-outs over the next 12-18 months.”

The analyst will closely watch global expansion in Japan, the European Union, China and Canada in 2025.

Citizens JMP: Butler highlighted Argentx’s strong quarter, success in its CIDP launch and ongoing
global expansion of VYVGART.

“We view the initial launch of VYVGART Hytrulo in CIDP as robust, with over 300 CIDP patients currently on treatment as of the end of 3Q24,” the analyst said. “85-90% of patients on drug transitioned from IVIg, supporting the market switch potential. 25% of CIDP prescribers are first time prescribers and some also prescribed for MG.”

Butler also noted management’s “Vision 2030” goal of five new molecules in Phase 3, 10 labeled indications, and 50k patients.

Price Action: Shares of Argentx rose over 6% on Thursday and, at the time of writing, is up over 1% on Friday.

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