RBC Capital on argenx SE (ARGX): 'We Would Remain Buyers'

RBC Capital analyst Luca Issi reiterated an Outperform rating and $850.00 price target on argenx SE (NASDAQ: ARGX).

The analyst commented: "Competition For MG Intensifying, But Our KOL Continues To See Steady Growth For Vyvgart; We hosted a world expert in neuromuscular diseases. On Myasthenia Gravis, our KOL thinks Vyvgart's first-mover advantage combined with the availability of three formulations (IV, SQ, PFS) makes it a clear category leader. Importantly, our KOL has 15 patients on Vyvgart today (out of 50 total), but can see that number climbing to 30 in just the next couple of years. Also, our KOL notes that many of his colleagues are now using the drug with shorter off-cycles which we think is an underappreciated revenue tailwind. Competition is clearly intensifying, but none of the new approaches are viewed as game changing vs Vyvgart. On CD19, AMGN's Uplizna offers materially less frequent dosing, but it is IV and our doc can only see 3-5 patients on it a year post launch. On C5, REGN/ALNY's cemdisiran also offers convenient quarterly dosing, but the likely need for prophylactic meningococcal vaccination is a meaningful barrier to adoption. On C1, our KOL is impressed by recent DNTH's Phase II (particularly efficacy at the high dose), but the positive antinuclear antibodies is something to keep an eye on. On chronic inflammatory demyelinating polyneuropathy (CIDP), Vyvgart remains the only approved novel therapy (SOC today is IG) and our KOL notes highly justifiable cost/ benefit for Vyvgart to be used ahead of IG (pending Phase IV study to clear the path with payers). Our KOL has 10 CIDP patients on Vyvgart today (out of 50) but can see such number going up materially over the next few years given push to first line and a competitive landscape that is clearly not as rapidly evolving as MG. On ocular MG (pivotal topline will be 1H26), our KOL thinks PoS should be high given previous gMG study showed impressive benefit in MG-ADL ocular subdomain (recall, our ophthalmology KOL gave it 95% PoS in our initiation report on p37). Overall, we would remain buyers given we think Vyvgart's uptake doubles from here in approved indications, and we can't think of many Biotech companies with 20 Phase II/ III trials ongoing with relatively high PoS (company methodically prioritizing indications with strong biologic rationale and/or indirect validation from other mechanisms like IVIg or B-cell depletion)."

For an analyst ratings summary and ratings history on argenx SE click here. For more ratings news on argenx SE click here.

Shares of argenx SE closed at $711.62 yesterday.

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