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Argenx (ARGX)
:ARGX
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Argenx Se
(NASDAQ:ARGX)
Rating:74Outperform
Price Target:
$749.00
▲(11.16%Upside)
Positive Factors
Financial Performance
Argenx delivered a stunning sales report in 2Q, with global product net sales of $949M, representing a 97% Y/Y and 19% Q/Q increase, significantly exceeding the Street consensus of $877.3M.
Market Expansion
The launch of a pre-filled syringe for Vyvgart has led to a record number of new patient starts and increased global reach.
Product Approval
The pre-filled syringe formulation of Vyvgart Hytrulo has been approved in the U.S., alleviating some investor concerns regarding timing and process related to recent FDA turmoil.
Negative Factors
Market Competition
Despite Vyvgart's robust sales performance, there are ongoing concerns about net pricing pressures and competition in the immunology market.
Pricing Concerns
Concerns around Vyvgart net pricing pressures related to Medicare Part D have hindered share recovery.
Argenx Se (ARGX) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$41.45B
Dividend YieldN/A
Average Volume (3M)444.47K
Price to Earnings (P/E)31.7
Beta (1Y)0.42
Revenue Growth89.58%
EPS GrowthN/A
CountryUS
Employees1,599
SectorHealthcare
Sector Strength38
IndustryBiotechnology
Share Statistics
EPS (TTM)3.74
Shares Outstanding61,199,900
10 Day Avg. Volume449,259
30 Day Avg. Volume444,471
Financial Highlights & Ratios
PEG Ratio0.11
Price to Book (P/B)7.46
Price to Sales (P/S)0.00
P/FCF Ratio-438.91
Enterprise Value/Market Cap0.79
Enterprise Value/Revenue7.59
Enterprise Value/Gross Profit22.72
Enterprise Value/Ebitda-53.82
Forecast
1Y Price Target
$793.84Price Target Upside17.82% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering22
Argenx Se Business Overview & Revenue Model
Company DescriptionArgenx SE is a global biotechnology company dedicated to developing innovative therapies for the treatment of severe autoimmune diseases and cancer. Leveraging its proprietary antibody engineering platform, SIMPLE Antibody™, Argenx is focused on translating scientific breakthroughs into impactful medicines. The company operates primarily in the biopharmaceutical sector, with a core emphasis on developing antibody-based therapies. Its lead product, efgartigimod, is designed to treat patients with a range of autoimmune disorders, and the company continues to expand its pipeline with additional candidates targeting other critical diseases.
How the Company Makes MoneyArgenx SE generates revenue primarily through the development and commercialization of its therapeutic products, particularly its lead product, efgartigimod. The company earns money through a combination of direct sales, licensing agreements, and strategic collaborations with other pharmaceutical companies. These partnerships often involve upfront payments, milestone payments, and royalties on sales. Additionally, Argenx may receive funding through research grants and alliances that support its drug development activities. The company’s financial performance is significantly influenced by the success of its clinical trials, regulatory approvals, and the commercial uptake of its products in the market.
Argenx Se Earnings Call Summary
Earnings Call Date:Jul 31, 2025
(Q2-2025)
| % Change Since: 12.51%|
Next Earnings Date:Oct 30, 2025
Earnings Call Sentiment Positive
The earnings call highlighted strong financial performance and growth for VYVGART, with significant pipeline expansion and positive real-world impacts. However, there were challenges related to gross to net adjustments, supply issues in China, increased cost of sales, and monitoring of a potential safety signal. Overall, the positive aspects, including exceptional growth and innovation, outweigh the challenges.Q2-2025 Updates
Positive Updates
Exceptional Growth for VYVGART
VYVGART achieved a 97% year-over-year growth across all approved indications with 15,000 patients globally being treated, including 2,500 CIDP patients just one year into the launch.
Strong Financial Performance
Total operating income in Q2 2025 was $967 million, reflecting a 97% growth since last year, with a quarter-over-quarter growth of 19% in product net sales.
Pipeline Expansion and Innovation
Initiated multiple registrational trials in large market opportunities and advanced 4 new molecules into the pipeline, including ARGX-119 and collaboration with Unnatural Products for AI-driven discovery.
Global Market Expansion
Product net sales grew in all global markets except China, with non-U.S. markets representing more than 15% of global product net sales.
Positive Real-World Impact
Positive patient stories, such as improved quality of life for CIDP patients using VYVGART Hytrulo prefilled syringe, highlight the real-world impact of the treatment.
Negative Updates
Gross to Net Adjustments
Gross to net went from 12% at the end of 2024 to approximately 20% at the end of Q2 2025 due to the introduction of PFS and Medicare Part D redesign.
Challenges in China
Product supply to Zai Lab in China did not grow, although it is noted that this is not reflective of demand but depends on shipment timing within the quarter.
Cost of Sales Increase
Cost of sales for the quarter is $111 million, leading to a year-to-date gross margin of 11%, with an increase in operating expenses.
Potential Safety Signal
FDA's FAERS update indicated a potential safety signal that requires monitoring, though the company maintains that the current benefit-risk ratio in CIDP is maintained.
Company Guidance
During the call, Argenx provided comprehensive guidance on its financial and operational achievements. The company reported a significant year-over-year growth of 97% in VYVGART sales across its approved indications, with 15,000 patients now on treatment globally. Financially, Argenx achieved a total operating income of $967 million in Q2 2025, with $949 million from product net sales. Regionally, the U.S. contributed $802 million, Japan $52 million, and other markets $83 million. The company highlighted a robust pipeline with three Phase III assets and a strategic focus on expanding VYVGART's potential while advancing new molecules. Their cash position strengthened to $3.9 billion, underscoring a solid financial foundation to support future growth and innovation.Argenx Se Financial Statement Overview
Summary
Argenx Se has demonstrated a robust revenue growth and improved profitability, backed by a strong balance sheet with minimal leverage. However, operational efficiency and cash flow generation remain challenging areas for improvement.Income Statement
Argenx Se has shown a significant increase in total revenue from 2023 to 2024, with a revenue growth rate of 77.32%. The company has also improved its profitability, turning a net income of $804 million in 2024 from a net loss of $295 million in 2023. However, the EBIT margin remains negative, indicating ongoing operational challenges.75
Positive
Balance Sheet
The company's balance sheet is strong, with a high equity ratio of 88.64% and a low debt-to-equity ratio of 0.007. This indicates financial stability and low leverage, reducing financial risk. The return on equity has improved significantly due to positive net income, which enhances shareholder value.80
Positive
Cash Flow
Argenx Se has managed to improve its free cash flow position slightly, but it remains negative. The operating cash flow to net income ratio is unfavorable, suggesting inefficiencies in converting income into cash flow. However, the company has strong financing activities that continue to support its cash position.65
Positive
| Breakdown | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 2.19B | 1.23B | 410.75M | 497.28M | 41.24M |
| Gross Profit | 1.96B | 1.11B | 381.31M | 497.28M | 41.24M |
| EBITDA | 105.17M | -192.28M | -622.78M | -392.78M | -601.03M |
| Net Income | 833.04M | -295.05M | -709.59M | -407.63M | -608.46M |
Balance Sheet | |||||
| Total Assets | 6.20B | 4.54B | 3.13B | 2.85B | 2.28B |
| Cash, Cash Equivalents and Short-Term Investments | 3.38B | 3.18B | 2.19B | 2.34B | 2.00B |
| Total Debt | 39.05M | 20.00M | 12.43M | 11.46M | 9.66M |
| Total Liabilities | 704.24M | 444.95M | 320.56M | 316.05M | 605.36M |
| Stockholders Equity | 5.50B | 4.10B | 2.81B | 2.53B | 1.67B |
Cash Flow | |||||
| Free Cash Flow | -151.05M | -464.14M | -966.63M | -728.25M | -403.60M |
| Operating Cash Flow | -82.75M | -420.33M | -862.81M | -606.81M | -398.46M |
| Investing Cash Flow | -717.59M | 308.21M | -461.18M | -347.07M | 344.69M |
| Financing Cash Flow | 279.76M | 1.34B | 843.76M | 1.12B | 833.00M |
Argenx Se Technical Analysis
Positive
673.80
Price Trends
572.75
Positive
582.46
Positive
599.03
Positive
Market Momentum
20.35
Negative
82.36
Negative
84.45
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ARGX, the sentiment is Positive. The current price of 673.8 is above the 20-day moving average (MA) of 581.47, above the 50-day MA of 572.75, and above the 200-day MA of 599.03, indicating a bullish trend. The MACD of 20.35 indicates Negative momentum. The RSI at 82.36 is Negative, neither overbought nor oversold. The STOCH value of 84.45 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ARGX.
Argenx Se Risk Analysis
Argenx Se disclosed 60 risk factors in its most recent earnings report. Argenx Se reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Argenx Se Peers Comparison
Overall Rating
UnderperformOutperform
Sector (50)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $11.15B | 21.57 | 9.64% | ― | 17.99% | 152.10% | |
75 Outperform | $14.62B | 17.03 | 24.30% | ― | 18.87% | 1088.27% | |
74 Outperform | $41.45B | 31.65 | 24.75% | ― | 89.58% | ― | |
72 Outperform | $13.52B | 12.16 | 22.69% | ― | 25.11% | 46.46% | |
65 Neutral | $51.14B | ― | -257.82% | ― | 5.01% | -330.09% | |
54 Neutral | $25.80B | ― | -3.87% | ― | 0.58% | -764.64% | |
50 Neutral | AU$2.63B | 3.88 | -56.57% | 2.69% | 36.37% | 13.78% |
* Healthcare Sector Average
Performance Comparison
ARGX
Argenx Se
673.80
189.28
39.07%
ALNY
Alnylam Pharma
401.80
136.80
51.62%
BMRN
BioMarin Pharmaceutical
58.14
-22.33
-27.75%
INCY
Incyte
75.59
13.59
21.92%
GMAB
Genmab
21.78
-4.29
-16.46%
BNTX
BioNTech SE
107.34
28.98
36.98%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.