Guggenheim on argenx SE (ARGX): 'Long-term Growth Thesis Intact'

Guggenheim analyst Yatin Suneja reiterated a Buy rating and $1,085.00 price target on argenx SE (NASDAQ: ARGX).

The analyst comments "We caught up with ARGX following today's announcement regarding the discontinuation of efgartigimod's (anti-FcRn) thyroid eye disease (TED) pivotal study due to futility, which we view as reflective of the specific indication biology with minimal read-across to the Graves' disease program. We note that TED is a localized, tissuedominant disorder characterized by fibroblast activation, adipogenesis, and IGF-1Rmediated remodeling, where IgG lowering alone may be insufficient, particularly beyond the early inflammatory phase once structural remodeling is established. We also note that TED clinical endpoints (i.e., proptosis) are heavily influenced by structural and anatomical changes that may lag immunologic modulation, limiting sensitivity to systemic antibody reduction. Notably, TED activity often persists despite biochemical control of thyroid disease, further underscoring its partial decoupling from circulating autoantibody burden. By contrast, Graves' disease is mechanistically more directly and systemically antibodymediated via pathogenic TSH-receptor autoantibodies and therefore more amenable to anti-FcRn inhibition. From a valuation perspective, TED futility modestly narrows Vyvgart optionality at the margins (we modeled TED peak sales at ~$760MM, a low-single-digit contribution to our $15B estimate for the Vyvgart franchise), leaving our long-term growth thesis intact. From a competitive standpoint, the readout tempers our expectations for IMVT's TED program, though TED was always framed by IMVT as pure optionality, with mgmt explicitly stating advancement in TED would require clearly compelling efficacy."

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 $877.94 yesterday.

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