argenx SE (ARGX) PT Raised to $707 at Jefferies

Jefferies analyst Akash Tewari raised the price target on argenx SE (NASDAQ: ARGX) to $707.00 (from $689.00) while maintaining a Buy rating.

The analyst comments "Myositis: 1) It was an easy decision for ARGX as they're seeing a clear signal across all 3 myositis subsets including on secondary endpoints like time to response & deep responses - it's also fair to assume that historical IVIG data would be considered as reference point when setting "go" threshold, 2) ARGX just got the data & the team will be looking to see if they can benefit from making any changes to Ph.3 portion (any pot'l changes will be made quickly), 3) ARGX has previously aligned w/ regulators & only needs this Ph.2/3 to file (timing TBD), 4) Co is doing work on the TAM, but indicated subsets with worse SoC (eg, IMNM) could have higher uptake vs subsets where IVIG is approved (eg, DM) - overall, they expect myositis to be a meaningful indication but this will depend on data. gMG & CIDP: 1) ARGX expects consistent QoQ gMG growth & will continue to expand pop. (ocular & seronegative Ph.3 PCD in '25), 2) ocular gMG pts are earlier (~80k ocular MG pts -> ~85% progress to gMG) & ARGX feels good about trial/rationale as MG-ADL has ocular components - trial isn't designed to see if Vyvgart could be disease modifying, but they can follow pts LT, 3) CIDP is on a good trajectory for Q4 & ARGX expects steady cadence for growth (cautions against extrapolating vs gMG due to stickier IVIG switch dynamics & lower response rates/pot'l higher dropouts over time), 4) pleased w/ current CIDP payer policies which generally have loose definitions for IVIG failure & some allow pts to go directly from steroids or IVIG. Other Vyvgart indications/expansion oppty: 1) Can go from PoC to Ph.3 w/ data from Zai partnership (though lupus nephritis data will likely not be ready by JPM), 2) On Sjogren's Ph.3 trial design, co has thought extensively about what endpoint they can win on & how to minimize pbo, 3) ARGX broadened their ongoing # of investigator initiated studies (eg, stiff person syndrome, GBS) which allows them to identify new indications & generate biomarker data quickly, 4) basket studies across different indications will require FDA to communicate btwn divisions & the same endpoint (eg, myositis basket has TIS endpoint) - ARGX will need to develop clinical endpoints across other neuromuscular diseases that are consistent & acceptable by regulatory agency. OPEX: 1) ARGX thinks they're getting to the point where they're building up operating leverage, 2) Co is being disciplined on SG&A - next set of indications will mostly be in EU where they have commercial scale (so expect limited growth)...this could change when ARGX enters into rheumatology, 3) Co isn't putting a number on R&D because they want to invest in innovation - that said, they have flexibility."

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