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argenx shares hold Buy rating with steady price target

EditorAhmed Abdulazez Abdulkadir
Published 06/24/2024, 07:37 AM
ARGX
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On Monday, H.C. Wainwright maintained a Buy rating on shares of argenx SE (NASDAQ:ARGX) with a price target of $448.00. The firm's endorsement comes after the recent FDA approval of the sBLA for Vyvagart Hytrulo for the treatment of chronic inflammatory demyelinating polyneuropathy (CIDP). This marks the third approved indication for efgartigimod, which is also available as Vyvgart IV and Vyvgart Hytrulo subcutaneous.

The approval, announced on Friday, was anticipated by H.C. Wainwright, citing the robust results of the ADHERE study. The analyst highlighted the comprehensive nature of the drug's label as a positive outcome. In preparation for the approval, argenx has increased its salesforce to effectively target the 10,000 neurologists identified, 72% of whom are already engaged with the myasthenia gravis (MG) market.

The company's management has recently updated the total number of targeted prescribers to 10,000, reflecting a larger-than-expected MG market and the inclusion of CIDP. With the first quarter earnings report, argenx disclosed having 2,700 prescribers, which indicates significant progress in the MG sector and suggests potential for further expansion.

The reiterated Buy rating and price target reflect H.C. Wainwright's confidence in argenx's strategic positioning and the expected market performance of its approved indications for efgartigimod. The company's proactive measures in scaling its salesforce demonstrate a commitment to capitalizing on the expanded prescriber base and addressing the needs of patients with CIDP.

In other recent news, argenx SE has seen a flurry of activity with their drug Vyvgart. The U.S. Food and Drug Administration (FDA) has approved the use of Vyvgart for the treatment of adult patients with Chronic Inflammatory Demyelinating Polyneuropathy (CIDP). Stifel, an analyst firm, has maintained a Buy rating on argenx SE and increased the price target to $500 following this approval.

On the financial front, argenx SE reported a significant 83% increase in total operating income, reaching $413 million, largely due to the expansion of Vyvgart. Barclays also maintained an Equal-weight rating on argenx SE, focusing on the anticipated U.S. approval of Vyvgart for CIDP treatment.

In addition, Piper Sandler kept an Overweight rating for argenx, with a price target of $522.00, while H.C. Wainwright reaffirmed a Buy rating for argenx, albeit with a slightly reduced price target from $451.00 to $448.00. These recent developments highlight the potential of Vyvgart and the company's financial performance.

InvestingPro Insights

Following H.C. Wainwright's endorsement of argenx SE (NASDAQ:ARGX), real-time data from InvestingPro further informs investors of the company's financial landscape. With a robust Market Cap of $25.45 billion, argenx holds a significant position in the biotech sector. Despite not being profitable in the last twelve months, the company has demonstrated remarkable revenue growth, with the last twelve months as of Q1 2024 showing a substantial increase of 126.96%. This growth trajectory is reflected in the recent quarterly revenue growth of 79.45%, underscoring the company's expanding market reach.

InvestingPro Tips provide additional context to argenx's financial health and stock characteristics. Notably, argenx holds more cash than debt on its balance sheet, indicating a solid financial position. Moreover, the stock typically experiences low price volatility, which may appeal to investors seeking stability in their biotech holdings. While analysts predict the company will not be profitable this year, argenx's high return over the last five years suggests a strong potential for long-term growth. For investors looking for more comprehensive analysis and additional "InvestingPro Tips," they can explore the full suite with a special offer: use coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription. With over six additional tips listed in InvestingPro, investors can gain deeper insights into argenx's market performance and strategic outlook.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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