Citi analyst Samantha Semenkow maintains a positive outlook on Argenx (ARGX, Financial), indicating that worries about a deceleration in the Vyvgart launch are overstated. The firm suggests there is a significant opportunity for investors, anticipating ongoing growth of Vyvgart and promising outcomes from upcoming pipeline updates. The recent approval of a prefilled syringe with an ideal label and the expansion of its launch for treating chronic inflammatory demyelinating polyneuropathy are expected to bolster Vyvgart's market presence in the short term. Citi continues to recommend buying Argenx shares, setting a target price of $803, and views the recent price dip as a compelling investment opportunity.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 24 analysts, the average target price for argenx SE (ARGX, Financial) is $747.54 with a high estimate of $1,065.00 and a low estimate of $416.00. The average target implies an upside of 29.26% from the current price of $578.31. More detailed estimate data can be found on the argenx SE (ARGX) Forecast page.
Based on the consensus recommendation from 25 brokerage firms, argenx SE's (ARGX, Financial) average brokerage recommendation is currently 1.5, indicating "Buy" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for argenx SE (ARGX, Financial) in one year is $1874.63, suggesting a upside of 224.16% from the current price of $578.31. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the argenx SE (ARGX) Summary page.
ARGX Key Business Developments
Release Date: May 08, 2025
- Total Operating Income: $807 million in Q1 2025.
- Product Net Sales: $790 million, representing 99% growth compared to the prior year quarter.
- Regional Sales Breakdown: $681 million in the US, $32 million in Japan, $57 million in the rest of the world, and $20 million from product supply to Zai Lab in China.
- Quarter-over-Quarter Growth: 7% overall, with 5% growth in the US.
- Gross Margin: 90% in Q1 2025.
- Total Operating Expenses: $668 million, with a 2% quarter-over-quarter growth.
- Operating Profit: $139 million in Q1 2025.
- Net Financial Income: $36 million, benefiting from $27 million in unrealized exchange gains.
- Effective Tax Rate: 16% for Q1 2025.
- Net Profit: $169 million after tax for the quarter.
- Cash Balance: $3.6 billion at quarter end, an increase of $238 million from Q4 2024.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- argenx SE (ARGX, Financial) reported a total operating income of $807 million for Q1 2025, reflecting a 99% growth in product net sales compared to the prior year.
- The company successfully launched a pre-filled syringe for VYVGART in the US and Germany, enhancing patient access and convenience.
- argenx SE (ARGX) maintained a strong gross margin of 90% in Q1 2025, consistent with previous quarters.
- The company is on track to progress four INDs in the clinic this year, with ARGX-109 and ARGX-213 now in Phase 1 studies.
- argenx SE (ARGX) has a robust cash balance of $3.6 billion at the end of Q1 2025, driven primarily by cash flow from operations.
Negative Points
- The company faced typical Q1 seasonality, impacting growth due to benefit reverification for patients.
- Medicare redesign took effect on January 1, 2025, which accelerated the evolution of the channel mix to Part D, impacting gross to net for the quarter.
- argenx SE (ARGX) anticipates increased gross to net over time due to the shift to Part D, which could affect revenues despite patient volume growth.
- The company is experiencing some technical difficulties with the transition of patients from Part B to Part D, impacting net pricing.
- argenx SE (ARGX) is still early in the launch curve for MG, indicating that there is significant room for growth but also potential challenges in market penetration.
