On Friday, Jefferies reaffirmed its Buy rating for argenx SE (NASDAQ: ARGX) while increasing the stock’s price target to $707.00 from $689.00. The update came on the heels of promising data across all three subsets of myositis, highlighting clear positive signals in primary and secondary endpoints, including time to response and the depth of responses.
Jefferies noted that argenx’s recent trial data might expedite modifications to the Phase 3 portion of its study. The company has a proven track record of aligning with regulatory requirements and intends to use the combined Phase 2/3 study as the basis for a future filing, although the timeline remains unclear. Additionally, argenx is assessing the total addressable market (TAM) for myositis, focusing on underserved subsets with limited treatment options.
The company is also making strides in other therapeutic areas, including generalized myasthenia gravis (gMG) and chronic inflammatory demyelinating polyneuropathy (CIDP). Argenx expects consistent growth in gMG sales and anticipates a steady upward trend for CIDP, particularly in the fourth quarter. However, CIDP’s dynamics differ from gMG, with potentially higher dropout rates and slower treatment transitions. Still, argenx remains optimistic, citing favorable payer policies for patients switching from steroids or intravenous immunoglobulins (IVIG).
Argenx’s lead product, Vyvgart, is being positioned for broader indications. The company plans to progress directly from proof of concept to Phase 3 trials for some conditions, supported by its partnership with Zai Lab (NASDAQ: ZLAB). However, data on lupus nephritis may not be available before the J.P. Morgan Healthcare Conference.
A Phase 3 trial for Sjogren’s syndrome is also underway, with an increased focus on investigator-initiated studies to rapidly generate biomarker data and explore new indications. Argenx is maintaining tight control over its selling, general, and administrative (SG&A) expenses, particularly in Europe, where its commercial scale is already established. While specific R&D figures were not disclosed, the company emphasized its commitment to flexible innovation investments.
Recent analyst updates have reflected argenx’s strong momentum. Oppenheimer raised its price target to $675, maintaining an Outperform rating. Barclays adjusted its target to EUR670.00, and Raymond James set a target of $770 following positive Phase 2 trial results. Wolfe Research also upgraded its rating, forecasting 2025 as argenx’s first profitable year. Meanwhile, Scotiabank raised its target to $715, citing promising sales and the growth potential of efgartigimod, particularly in the myasthenia gravis (MG) market.
Argenx reported impressive third-quarter results, with net product revenue reaching $573 million, surpassing both Oppenheimer’s estimates and consensus forecasts. These developments solidify argenx’s position as a leader in the biotechnology sector, with a strong focus on innovation, clinical success, and robust sales growth.
