IMVT - argenx SE: A Post FDA Approval Assessment

2024-07-10 12:19:05 ET

Summary

• argenx SE's stock is down significantly from its all-time highs due to some clinical failures for its primary asset, Vyvgart.
• However, recent approval for a label expansion into CIDP has turned sentiment more positive, with the shares spurting forward just over 20% since the FDA decision.
• The company is focused on its Vyvgart FcRn inhibitor therapy with multiple indications in trial development, and argenx has a cash-rich balance sheet.
• In addition, the company is expected to reach profitability in FY2025.  An analysis follows in the paragraphs below.

Shares of autoimmune concern argenx SE ( ARGX ) are down from their all-time high set in July 2023, as two clinical failures have dampened extremely elevated expectations for Vyvgart. However, a recent approval for label expansion into chronic inflammatory demyelinating polyneuropathy ((CIPD)) has started to improve the narrative on the stock as the shares have risen just over 20% since that positive news hit on June 21st. With its potential blockbuster FcRn inhibitor therapy expected to be in the clinic for more than ten indications during 2025 and with many competitors looming, argenx merited further investigation. An analysis follows below....

For further details see: