Argenx Stock: How Its Pipeline In A Product Is Driving Shares To Record Highs

Argenx (ARGX) believes it could have “one of the biggest biologics of all time.” And that may explain why Argenx stock now trades at a record high.


The biotech company gained Food and Drug Administration approval for its only product in late 2021. That drug, known as Vyvgart, treats generalized myasthenia gravis, an autoimmune disease that causes weakness in the skeletal muscles. Since then, sales have beaten expectations every quarter.

But company spokeswoman Beth DelGiacco says that’s just the beginning for Vyvgart. Vyvgart treats what Argenx believes to be the underlying cause of more than 100 autoimmune diseases.

Further, that changes how patients think about their condition, DelGiacco told Investor’s Business Daily.

“It kind of creates a new normal, a new bar for what well-controlled (disease) can look like,” she said. “That’s where we’re really trying to play — redefining what well-controlled (disease) can look like.”

Argenx Stock And Its Product Pipeline

Vyvgart works by blocking a specific receptor in the body that interacts with immunoglobulin G, an antibody in the body that protects against infections. That antibody, also called IgG, is at the center of numerous autoimmune diseases. Though IgG is playing a different role in these diseases, it’s one of the underlying commonalities, DelGiacco said.

What started out as three disease areas to prove the concept now has expanded to 13, she said. Over the next two years, Argenx plans to test Vyvgart in two additional diseases.

Argenx wants to revolutionize the immunology space, she said. Historically, patients with these diseases receive corticosteroids or immunosuppressants. Both classes of drugs carry burdensome side effects, while Vyvgart is tied to respiratory and urinary tract infections, and headaches.

Analysts are paying attention as Argenx stock rockets and takeover rumors abound.

‘Multi-Blockbuster Potential’

SVB Securities analyst Thomas Smith says Vyvgart has a “multi-blockbuster potential.” Argenx also is testing Vyvgart in patients with a neurological disease known as chronic inflammatory demyelinating polyneuropathy, or CIDP.

vyvgartCIDP causes damage to the protective sheaths on nerves, leading to tingling or loss of feeling in the fingers and toes. Piper Sandler analyst Allison Bratzel says CIDP could be a significant opportunity for Argenx, and worth $2.6 billion by 2030. Argenx’s study in CIDP is called Adhere.

And that’s just one opportunity for Vyvgart, also known by the test name efgartigimod.

In a recent note to clients, SVB’s Smith said: “Overall, we remain confident in Argenx’s strong launch execution for Vyvgart and see the pivotal Adhere (study) data in CIDP as the key near-term focus for investors, representing one of several upcoming pivotal datasets that we expect will continue to unlock efgartigimod’s multi-blockbuster potential.”

He has an outperform rating on Argenx stock, and sees the CIPD opportunity being worth $2 billion in peak annual revenue.

Now, investors are watching for Argenx’s efforts to expand Vyvgart.

As a treatment for generalized myasthenia gravis, Vyvgart is now available in five countries after recently securing approvals in the U.K. and Israel. Pricing and reimbursement negotiations are ongoing in more than 10 countries in Europe, Smith said in a separate report.

Argenx Stock Hits Record High

Enthusiasm for Vyvgart is driving Argenx stock. Vyvgart is what biotech observers call a “pipeline in a product.”

argenxShares hit a record high on May 17 after Bloomberg reported Argenx could be the next biotech buyout target. The health care space has seen a spree of biotech takeovers as Big Pharma looks to replenish its pipeline ahead of a patent cliff. Pharmaceutical companies also are sitting on hoards of cash, while biotech valuations have taken a hit.

Argenx lands in that sweet spot for an acquisition, according to experts. It has a single commercial drug with plenty to suggest Vyvgart could work in myriad conditions. Sales in the first quarter came in at $218 million, blowing away forecasts by as much as $49 million, Piper Sandler’s Bratzel said.

Wedbush analyst David Nierengarten says takeover interest could deepen if Argenx has positive data in CIDP in July.

“Big pharma is willing to ‘pay up’ for blockbuster growth opportunities that can augment their pipeline,” he said in his note to clients.

He says Argenx stock could go for $500 per share and above $550 in the event of a bidding war. That puts the total potential deal value at $31 billion. Meanwhile, the buyout suggestion on May 17 sent Argenx shares well above a buy point at 408.03 out of a consolidation, according to

DelGiacco, the company’s spokeswoman, declined to comment on the rumor.

Subcutaneous Shot, CIDP Remain Key

Further, the company hopes to gain approval for a subcutaneous shot under the skin. Today, Vyvgart is given via intravenous infusion. The FDA will make a decision on the subcutaneous version of Vyvgart by June 20.

Subcutaneous shots are an easier and quicker means of administering drugs. Wedbush’s Nierengarten says the subcutaneous version of Vyvgart would further enhance its competitive profile against similar drugs like AstraZeneca‘s (AZN) Ultomiris.

Beyond CIDP, Argenx is also testing Vyvgart in patients with immune thrombocytopenia and pemphigus vulgaris. The former is a condition in which the immune system destroys platelets. In the latter, a rare immune condition causes blisters in the mouth and on the skin.

Those readouts are due in the fourth quarter, analysts said.

Highly Rated Argenx Stock

With a bit more success, sales of Vyvgart could grow rapidly. Argenx stock analysts polled by FactSet expect sales to tack on an additional $1 billion each year from 2025 to 2028. That projection comes amid expectations for Argenx to turn profitable for the first time in 2025.

DelGiacco, Argenx’s spokeswoman, says the company hasn’t given any guidance on when it might be first profitable or what its sales trajectory could be. This year, analysts forecast a $6.16 loss per share on $1.01 billion in sales. By 2028, they expect adjusted earnings of $31.31 a share and nearly $6 billion in sales.

“A lot of patients are looking for better treatment options,” she said. “This could end up being one of the biggest biologics of all time.”

Bullishly, Argenx stock has a nearly perfect IBD Digital Composite Rating of 97. This means shares rank in the top 3% of all stocks when it comes to fundamental and technical measures. Shares also have a strong Relative Strength Rating of 90, which is a measure of 12-month performance.

Also, nine of IBD’s Mutual Fund Index members own shares of Argenx stock.

Follow Allison Gatlin on Twitter at @IBD_AGatlin.


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