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Argenx Se (ARGX)
NASDAQ:ARGX
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Argenx Se (ARGX) AI Stock Analysis

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ARGX

Argenx Se

(NASDAQ:ARGX)

Rating:74Outperform
Price Target:
$749.00
▲(13.48% Upside)
Argenx Se's strong financial performance and earnings call highlight significant growth and innovation. However, technical analysis indicates potential overbought conditions, and operational inefficiencies and cash flow challenges pose risks. The valuation reflects moderate expectations, balancing growth prospects with current market sentiment.
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.
Product Launch
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.
Product Performance
Vyvgart's strong performance was driven by broad growth across its approved indications and products, with Argenx continuing to expand into earlier lines of therapy and growing the number of patients on the drug.
Negative Factors
Market Competition
Increasing patient demand and growing prescriber enthusiasm have helped Vyvgart maintain its competitive positioning, even with new market entrants.
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)

Argenx Se Business Overview & Revenue Model

Company DescriptionArgenx SE (ARGX) is a clinical-stage biopharmaceutical company focused on developing innovative therapies for patients with severe autoimmune diseases and cancer. The company is headquartered in Zug, Switzerland, and operates primarily in the biotechnology sector, leveraging its proprietary antibody engineering platform to create therapies that target the immune system. Argenx's core product candidates include efgartigimod, a treatment for various autoimmune conditions, and other pipeline candidates aimed at addressing unmet medical needs in both autoimmune and oncology indications.
How the Company Makes MoneyArgenx generates revenue primarily through the development and commercialization of its therapeutic candidates. Key revenue streams include product sales from approved therapies, milestone payments from partnerships, and royalties from licensed products. The company has established strategic collaborations with major pharmaceutical firms, which provide upfront payments and contingent milestone payments tied to the development and commercialization of its products. Additionally, Argenx may receive royalties based on the future sales of partnered products, contributing to its overall earnings. The successful advancement of its clinical pipeline, especially the commercialization of efgartigimod, plays a pivotal role in its revenue generation strategy.

Argenx Se Earnings Call Summary

Earnings Call Date:Jul 31, 2025
(Q2-2025)
|
% Change Since: 10.20%|
Next Earnings Date:Oct 30, 2025
Earnings Call Sentiment Positive
The earnings call reflects strong growth and expansion for VYVGART across global markets and indications, supported by financial performance and pipeline advancements. However, challenges include market dynamics in China, increased gross to net adjustments, and ongoing safety monitoring in CIDP.
Q2-2025 Updates
Positive Updates
Exceptional Year-over-Year 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 compared to the previous year, with $949 million in product net sales and a 19% quarter-over-quarter growth.
Global Market Expansion
VYVGART saw growth across all regions, with U.S. product net sales at $802 million, Japan at $52 million, and significant growth in Europe, Canada, and partner markets.
Introduction of Prefilled Syringe
The launch of the prefilled syringe has driven new patient starts and prescriber demand, with 50% of PFS patients being new to VYVGART.
Pipeline and Innovation Expansion
Advancing 4 new molecules into the pipeline, including ARGX-119, and collaborations to enhance capabilities, such as with Unnatural Products.
Negative Updates
Challenges in China
Supply to China did not reflect demand and depends on shipment timing within the quarter.
Increased Gross to Net Adjustments
An increase in gross to net from 12% to approximately 20% due to Medicare Part D redesign and the introduction of PFS.
Potential Safety Concerns in CIDP
Monitoring of a potential safety signal in CIDP, with less than 2% of events reported, though no immediate risk to benefit-risk ratio.
Company Guidance
During the call, Argenx provided extensive guidance on their financial and operational performance. They reported a 97% year-over-year growth in VYVGART sales, achieving $967 million in total operating income for the second quarter of 2025. The growth was driven by $949 million in product net sales, with $802 million from the U.S. market alone. Argenx highlighted the significant progress in treating 15,000 patients globally, including 2,500 with CIDP, just one year into the product's launch. The company aims to expand its patient base to 50,000 by 2030. They also discussed the promising developments in their pipeline, with three Phase III assets, including efgartigimod, advancing across multiple indications. Argenx emphasized their robust financial position, with a $3.9 billion cash balance, and their commitment to innovation and long-term growth, all while maintaining a net revenue per patient consistent with previous guidance despite increased gross-to-net adjustments.

Argenx Se Financial Statement Overview

Summary
Argenx Se has shown significant revenue growth and improved profitability. The strong balance sheet with minimal leverage provides financial stability. However, challenges in operational efficiency and negative cash flow require attention.
Income Statement
75
Positive
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.
Balance Sheet
80
Positive
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.
Cash Flow
65
Positive
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.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue2.29B2.19B1.23B410.75M497.28M41.24M
Gross Profit1.52B1.96B1.11B381.31M497.28M41.24M
EBITDA413.96M105.17M-192.28M-622.78M-392.78M-601.03M
Net Income1.11B833.04M-295.05M-709.59M-407.63M-608.46M
Balance Sheet
Total Assets7.18B6.20B4.54B3.13B2.85B2.28B
Cash, Cash Equivalents and Short-Term Investments3.93B3.38B3.18B2.19B2.34B2.00B
Total Debt43.15M39.05M20.00M12.43M11.46M9.66M
Total Liabilities1.08B704.24M444.95M320.56M316.05M605.36M
Stockholders Equity6.10B5.50B4.10B2.81B2.53B1.67B
Cash Flow
Free Cash Flow473.52M-151.05M-464.14M-966.63M-728.25M-403.60M
Operating Cash Flow479.76M-82.75M-420.33M-862.81M-606.81M-398.46M
Investing Cash Flow-214.14M-717.59M308.21M-461.18M-347.07M344.69M
Financing Cash Flow313.76M279.76M1.34B843.76M1.12B833.00M

Argenx Se Technical Analysis

Technical Analysis Sentiment
Positive
Last Price660.00
Price Trends
50DMA
596.85
Positive
100DMA
591.47
Positive
200DMA
606.68
Positive
Market Momentum
MACD
17.88
Positive
RSI
62.43
Neutral
STOCH
74.88
Neutral
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 660 is above the 20-day moving average (MA) of 652.09, above the 50-day MA of 596.85, and above the 200-day MA of 606.68, indicating a bullish trend. The MACD of 17.88 indicates Positive momentum. The RSI at 62.43 is Neutral, neither overbought nor oversold. The STOCH value of 74.88 is Neutral, 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 (51)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
82
Outperform
$14.54B11.9226.08%23.25%64.46%
80
Outperform
$16.90B19.3324.30%18.87%1088.27%
78
Outperform
$11.00B17.1711.62%17.38%153.58%
74
Outperform
$41.32B31.0024.75%89.58%
60
Neutral
$60.07B-257.82%5.01%-330.09%
56
Neutral
$26.78B-1.81%7.51%30.53%
51
Neutral
$7.82B-0.16-39.78%2.19%21.38%-1.56%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
ARGX
Argenx Se
660.00
142.54
27.55%
ALNY
Alnylam Pharma
454.38
185.24
68.83%
BMRN
BioMarin Pharmaceutical
58.58
-31.40
-34.90%
INCY
Incyte
85.04
19.88
30.51%
GMAB
Genmab
24.65
-2.71
-9.90%
BNTX
BioNTech SE
110.88
23.37
26.71%
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.Date of analysis: Aug 01, 2025