Citi keeps Buy rating on argenx amid pipeline updates, shares down 11%

Citi analyst Samantha Semenkow reiterated a Buy rating and $1,301.00 price target on argenx SE (NASDAQ: ARGX), following a set of mixed clinical pipeline developments from the company.

Argenx announced that a Phase 3 pivotal trial for Vyvgart in Sjogren's disease was discontinued following a futility analysis. The company also reported a Phase 2 trial win for FB102, an anti-CD122 treatment, in celiac disease, with argenx confirming advancement of FB102 into a Phase 3 program.

Semenkow noted that the Sjogren's discontinuation "removes a medium-term expansion opportunity for Vyvgart" and also removes what the analyst described as "arguably an anchor indication as argenx looks to expand their commercial engine into rheumatology." The analyst added that the myositis opportunity in rheumatology "remains a significant value driver, particularly as we await FDA feedback" for dermatomyositis.

On the Phase 2 celiac data, Semenkow said the results are "a bright spot" and noted the FB102 advancement reinforces "the value potential underpinning argenx's first significant acquisition."

Shares of argenx SE most recently closed at $928.44.

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