GICS Sector : Healthcare
argenx SE, a biotechnology company, focuses on developing various therapies for the treatment of autoimmune diseases in the United States, the Netherlands, Belgium, Japan, Switzerland, Germany and France.Its lead product candidate is efgartigimod for the treatment of patients with myasthenia gravis, immune thrombocytopenia, pemphigus vulgaris, and chronic inflammatory demyelinating polyneuropathy in Phase III clinical trials; bullous pemphigoid and idiopathic inflammatory myopathy in Phase II/III clinical trials; and ENHANZE SC in Pre-clinical study.The company is also developing immunology innovation programs, including cusatuzumab for hematological cancer, as well as high risk MDS; ARGX-119, an antibody that targets muscle-specific tyrosine kinase stage; ARGX-117 for severe autoimmune indications; ARGX-118 for airway inflammation; and ARGX-120 to treat autoimmune diseases.
Argenx reported total product net sales of $1.13 billion in the third quarter, a historic milestone as the company surpassed $1 billion in VYVGART sales in a single quarter. The earnings per share (EPS) came out at $3.46, significantly beating estimates of -$0.91. Total operating expenses in the third quarter were $805 million, representing a 5% increase compared to the second quarter. The company's research and development (R&D) expenses increased by 9% or $28 million, and selling, general, and administrative (SG&A) expenses rose by 4% or $11 million.
Publication Date: Nov -01
The commercial performance was strong, with consistent delivery of new patient growth for 15 quarters while executing on the strategy to unlock the full 60,000 patient opportunity in Myasthenia Gravis (MG). VYVGART remains the #1 prescribed and fastest-growing biologic in MG, with a strong safety and efficacy profile driving earlier prescribing decisions. The prefilled syringe was a major driver of growth this quarter, continuing the trend seen since the subcutaneous version was launched. The IV formulation continues to be an important contributor to the business.
Argenx is making significant progress in its pipeline, with three first-in-class molecules in Phase III development: efgartigimod, empasiprubart, and ARGX-119. The company is excited about the potential expansion of its label to include seronegative gMG patients following positive top-line results. The unmet need in this area is significant, especially for triple seronegative patients who experience diagnostic challenges and currently have no approved therapies.
With a P/E Ratio of 53.7 and an EV/EBITDA of 115.95, the market is pricing in significant growth expectations. Analysts estimate next year's revenue growth at 34.0%, indicating a strong outlook for the company. The ROE (%) is 18.96, indicating a relatively high return on equity. The Net Debt / EBITDA ratio is -4.93, indicating a healthy debt position.
The operating expenses for the rest of the year are guided between $2.6 billion and $2.7 billion, with a focus on investing in growth. The company is excited about the size of the opportunity in Graves' disease, with a large prevalence of the disease and a clear unmet need. The trial design for Graves' disease will be presented soon, and the company is not commenting on the potential disease modification.
How Recent Developments Are Rewriting the Story for argenx Amid Analyst Optimism and Caution
Dec -02
European Equities Traded in the US as American Depositary Receipts Rise in Monday Trading
Dec -01
European Equities Traded in the US as American Depositary Receipts Rise in Friday Trading, Gain 4% for Week
Nov -28
Biotechs Are On A Big Run, And Two Stocks Have Buy Points
Nov -28
Are argenx Shares Still at a Discount After Clinical Trial Wins and 48% Rally?
Nov -19
Is Health Canada's Approval of VYVGART SC Transforming the Investment Case for argenx (ENXTBR:ARGX)?
Nov -19
argenx Announces Results of Extraordinary General Meeting of Shareholders
Nov -18
Vera Therapeutics Stock Earns RS Rating Upgrade
Nov -18
Driven by increasing demand for innovative biotechnology solutions and argenx SE’s strong pipeline of antibody-based treatments, the segment is expected to experience significant growth.
A human IgG1 antibody fragment that binds to the neonatal Fc receptor (FcRn), reducing the concentration of disease-causing autoantibodies in autoimmune diseases.
A human monoclonal antibody that targets C2, a key component of the classical complement pathway, to treat severe autoimmune diseases.
A human monoclonal antibody that targets the neonatal Fc receptor (FcRn), reducing the concentration of disease-causing autoantibodies in autoimmune diseases.
A human monoclonal antibody that targets CD70, a protein involved in the activation of immune cells, to treat cancer and autoimmune diseases.
The threat of substitutes for argenx SE is moderate due to the availability of alternative treatments for autoimmune diseases.
The bargaining power of customers is low due to the specialized nature of argenx SE's products and the lack of alternative treatments.
The bargaining power of suppliers is moderate due to the dependence on a few key suppliers for raw materials and manufacturing services.
The threat of new entrants is high due to the growing interest in autoimmune disease treatments and the potential for new companies to enter the market.
The intensity of rivalry is high due to the competitive nature of the biotechnology industry and the presence of established companies in the market.
| Value | |
|---|---|
| Debt Weight | 0.52% |
| Debt Cost | 5.21% |
| Equity Weight | 99.48% |
| Equity Cost | 5.78% |
| WACC | 5.77% |
| Leverage | 0.53% |
Value: 3.7
Growth: 9.7
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Volatility: 4.3
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