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Argenx Se (ARGX)
NASDAQ:ARGX
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Argenx Se
(NASDAQ:ARGX)
71Outperform
Positive Factors
Convenience and Accessibility
The updated label allows for patient self-administration with the pre-filled syringe, enhancing convenience and expanding potential patient reach.
Market Penetration
The approval is seen as a best-case scenario for ARGX, enabling Vyvgart penetration into earlier lines of therapy and unlocking additional patient share.
Revenue Growth
Vyvgart Hytrulo's pre-filled syringe is expected to boost revenue growth due to its expanded use in Myasthenia Gravis and Chronic Inflammatory Demyelinating Polyneuropathy.
Negative Factors
Insurance and Access
The self-administered prefilled syringe formulation will shift patients to Part D, where plan rebates are higher, resulting in a higher gross-to-net discounting.
Pricing and Rebates
The shift of Vyvgart from medical to pharmacy benefit as a self-administered product implies a higher gross-to-net due to rebating, although the impact is expected to be offset by the higher launch price of the pre-filled syringe.
Argenx Se (ARGX) vs. S&P 500 (SPY)
Market Cap
$35.31B
Dividend YieldN/A
Average Volume (3M)402.63K
Price to Earnings (P/E)41.8
Beta (1Y)0.49
Revenue Growth78.01%
EPS GrowthN/A
CountryUS
Employees1,599
SectorHealthcare
Sector Strength57
IndustryBiotechnology
Share Statistics
EPS (TTM)11.79
Shares Outstanding60,760,956
10 Day Avg. Volume581,370
30 Day Avg. Volume402,625
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)89.48
Price to Cash Flow (P/CF)N/A
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$752.59Price Target Upside15.84% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering21
Argenx Se Business Overview & Revenue Model
Company Descriptionargenx SE, a biotechnology company, engages in the developing of various therapies for the treatment of autoimmune diseases in the United States, Japan, Europe, Middle East, Africa, and China. Its lead product candidate is efgartigimod for the treatment of patients with myasthenia gravis, immune thrombocytopenia, pemphigus vulgaris, generalized myasthenia gravis, chronic inflammatory demyelinating polyneuropathy, thyroid eye disease, bullous pemphigoid, myositis, primary sjögren's syndrome, post-covid postural orthostatic tachycardia syndrome, membranous nephropathy, lupus nephropathy, anca-associated vasculitis, and antibody mediated rejection; ENHANZE SC; Empasiprubart for multifocal motor neuropath, delayed graft function, and dermatomyositis; and ARGX-119 for congenital myasthenic syndrome and amyotrophic lateral sclerosis. The company is developing ARGX-213 targets FcRn; ARGX-121 and ARGX-220 targets immune system; ARGX-109 targets IL-6; ARGX-118 for inflammation; and ARGX-109, as well as cusatuzumab, ARGX-112, ARGX-114, and ARGX-115. It owns VYVGART; VYVGART HYTRULO; VYVDURA; ARGENX; ABDEG; NHANCE; SIMPLE ANTIBODY; and ARGENXMEDHUB. The company has strategic partnership with AbbVie S.À.R.L., Zai Lab Limited, and LEO Pharma A/S; and collaboration and license agreement with Genor Biopharma Co. Ltd, Université Catholique de Louvain, Sopartec S.A., NYU Langone Health, Leiden University Medical Center, AgomAb Therapeutics NV, Broteio Pharma B.V., VIB vzw, University of Texas, BioWa, Inc., and Shire International GmbH. It has collaboration agreement with Genmab A/S to discover, develop, and commercialize novel therapeutic antibodies with applications in immunology and oncology, as well as a strategic collaboration with IQVIA Holdings Inc. to provide safety systems and services. argenx SE was incorporated in 2008 and is based in Amsterdam, the Netherlands.
How the Company Makes MoneyArgenx SE generates revenue primarily through the development and commercialization of its antibody-based therapies. The company earns money from sales of its approved products, such as efgartigimod, which targets autoimmune conditions. Additionally, Argenx has strategic partnerships and collaborations with other pharmaceutical and biotechnology firms, which may include milestone payments, royalties, and research funding. These partnerships help the company to leverage external expertise and resources while expanding its market reach. Licensing agreements for its proprietary technology platform also contribute to its revenue streams.
Argenx Se Financial Statement Overview
Summary
Argenx Se has demonstrated robust revenue growth and improved profitability, backed by a strong balance sheet with minimal leverage. However, challenges remain in operational efficiency and cash flow generation, which are critical 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 | 381.32M | 497.28M | 41.24M | EBIT |
| -21.65M | -425.05M | -720.34M | -348.75M | -477.62M | EBITDA |
| 3.39M | -192.28M | -622.78M | -392.78M | -601.03M | Net Income Common Stockholders |
| 833.04M | -295.05M | -709.59M | -408.26M | -608.46M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 3.26B | 3.18B | 2.19B | 2.34B | 2.00B | Total Assets |
| 5.99B | 4.54B | 3.13B | 2.85B | 2.28B | Total Debt |
| 37.70M | 20.00M | 12.43M | 11.46M | 9.66M | Net Debt |
| -1.41B | -2.03B | -788.31M | -1.32B | -1.21B | Total Liabilities |
| 679.80M | 444.95M | 320.56M | 316.05M | 605.36M | Stockholders Equity |
| 5.31B | 4.10B | 2.81B | 2.53B | 1.67B |
| Cash Flow | Free Cash Flow | |||
| -81.61M | -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
649.67
Price Trends
602.04
Positive
620.97
Positive
582.09
Positive
Market Momentum
12.19
Negative
65.62
Neutral
91.23
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 649.67 is above the 20-day moving average (MA) of 596.58, above the 50-day MA of 602.04, and above the 200-day MA of 582.09, indicating a bullish trend. The MACD of 12.19 indicates Negative momentum. The RSI at 65.62 is Neutral, neither overbought nor oversold. The STOCH value of 91.23 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 (52)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
84 Outperform | $13.23B | 12.14 | 23.16% | ― | 30.43% | 82.29% | |
77 Outperform | $11.89B | 28.20 | 9.64% | ― | 17.35% | 151.40% | |
75 Outperform | $12.10B | 193.47 | 0.47% | ― | 17.13% | -88.78% | |
71 Outperform | $35.31B | 41.82 | 17.33% | ― | 78.01% | ― | |
64 Neutral | $33.82B | ― | -414.62% | ― | 22.97% | 38.54% | |
62 Neutral | $25.18B | ― | -3.38% | ― | -27.64% | -172.62% | |
52 Neutral | $5.35B | 3.96 | -42.60% | 2.86% | 17.58% | 1.27% |
* Healthcare Sector Average
Performance Comparison
ARGX
Argenx Se
649.67
255.89
64.98%
ALNY
Alnylam Pharma
259.39
108.17
71.53%
BMRN
BioMarin Pharmaceutical
62.03
-20.07
-24.45%
INCY
Incyte
62.53
8.45
15.63%
GMAB
Genmab
21.48
-7.55
-26.01%
BNTX
BioNTech SE
104.94
11.59
12.42%
Argenx Se Earnings Call Summary
Earnings Call Date:Feb 27, 2025
(Q4-2024)
| % Change Since: 4.28%|
Next Earnings Date:May 08, 2025
Earnings Call Sentiment Positive
The earnings call highlighted significant achievements in clinical milestones, financial growth, and pipeline expansion, indicating strong momentum. However, there were challenges with exchange losses and an operating loss despite revenue growth. Overall, the positive aspects and future outlook outweigh the negatives.Q4-2024 Updates
Positive Updates
Significant Patient Reach and Clinical Milestones
Expanded reach to over 10,000 patients globally across 3 approved indications. Achieved key clinical milestones with empasiprubart advancing to Phase III and efgartigimod advancing into larger registrational studies.
VYVGART's Impact and Expansion
VYVGART has significantly shaped the gMG treatment landscape. Prefilled syringe for self-administration expected to drive growth in 2025 for both MG and CIDP.
Financial Growth and Profitability
Product net sales reached $2.2 billion for the full year, with a 98% growth compared to the previous year. 2025 expected to be the first year as a profitable company.
Pipeline and Innovation
Advancing 10 Phase III and 10 proof-of-concept studies across multiple programs. Nominated 4 new molecules for Phase I development.
Negative Updates
Exchange Losses Impact
Incurred exchange losses of $55 million, mainly related to unrealized FX on non-U.S. denominated cash balances.
Operating Loss Despite Revenue Growth
Despite the revenue growth, resulted in an operating loss for the full year of $22 million.
Company Guidance
During the conference call, argenx provided comprehensive guidance on its recent achievements and future objectives. In 2024, the company delivered $2.2 billion in product net sales, marking a 98% year-over-year growth, with a significant contribution from VYVGART's expansion across multiple indications. The company emphasized its plans to advance ten Phase III and ten proof-of-concept studies, including key programs like efgartigimod and empasiprubart, aiming to disrupt existing treatment paradigms in areas like CIDP and MMN. Financially, argenx reported a full-year operating income of $2.3 billion, with a gross margin of 90%, and projected a 25% increase in R&D and SG&A expenses for 2025, underscoring its commitment to innovation and pipeline growth. The potential approval of a prefilled syringe for self-administration in the U.S. is anticipated to further drive growth, leveraging the company's strong market access and strategic positioning in autoimmune diseases.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
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.