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Argenx Se (ARGX)
NASDAQ:ARGX
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Argenx Se
(NASDAQ:ARGX)
Rating:69Neutral
Price Target:
$623.00
▲(8.11%Upside)
Positive Factors
Clinical Advancements
Vyvgart's strong YoY growth (+99%) in a seasonally challenged 1Q reflects continued solid demand and momentum.
Product Expansion
The launch of the Vyvgart in the prefilled syringe (PFS) is expected to significantly expand the drug's reach.
Revenue Growth
Vyvgart remains well-positioned for long-term volume-driven revenue growth, creating a more attractive entry opportunity.
Negative Factors
Market Uncertainty
Incremental uncertainty regarding the expected evolution of Vyvgart net pricing over the coming quarters has caused concern.
Pricing Concerns
The stock pulled back due to pricing concerns related to the Medicare redesign.
Revenue Expectations
Disappointment in the Vyvgart revenue results relative to elevated buyside expectations impacted the stock negatively.
Argenx Se (ARGX) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$35.42B
Dividend YieldN/A
Average Volume (3M)412.67K
Price to Earnings (P/E)41.5
Beta (1Y)0.50
Revenue Growth78.01%
EPS GrowthN/A
CountryUS
Employees1,599
SectorHealthcare
Sector Strength40
IndustryBiotechnology
Share Statistics
EPS (TTM)2.58
Shares Outstanding61,059,563
10 Day Avg. Volume358,064
30 Day Avg. Volume412,666
Financial Highlights & Ratios
PEG Ratio0.09
Price to Book (P/B)5.98
Price to Sales (P/S)0.00
P/FCF Ratio-432.36
Enterprise Value/Market Cap0.91
Enterprise Value/Revenue5.73
Enterprise Value/Gross Profit32.30
Enterprise Value/Ebitda-35.54
Forecast
1Y Price Target
$749.65Price Target Upside30.09% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering21
Argenx Se Business Overview & Revenue Model
Company DescriptionArgenx SE (ARGX) is a global biotechnology company focused on developing therapies targeting autoimmune diseases and cancer. The company leverages its proprietary antibody engineering technology platform to create innovative treatments aimed at improving patient outcomes. Argenx's core products include efgartigimod, a first-in-class FcRn antagonist for the treatment of autoimmune diseases, and a robust pipeline of other therapeutic candidates in various stages of development.
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 Earnings Call Summary
Earnings Call Date:May 08, 2025
(Q1-2025)
| % Change Since: -7.50%|
Next Earnings Date:Jul 31, 2025
Earnings Call Sentiment Positive
The earnings call highlighted significant commercial success with record-breaking revenue growth and successful product launches. The company is in a strong financial position and advancing its pipeline with promising data presentations. However, there were challenges related to seasonality, gross-to-net impacts, and unique market dynamics in CIDP that affected growth. Overall, the sentiment is positive due to the strong growth and strategic advancements outweighing the lowlights.Q1-2025 Updates
Positive Updates
Record-Breaking Revenue and Growth
Total operating income in the first quarter of 2025 was $807 million, with $790 million in product net sales, representing 99% growth compared to the prior year quarter.
Successful Product Launch
Launched the VYVGART Hytrulo pre-filled syringe for self-injection in the U.S. and Germany, enhancing patient access and convenience.
Strong Financial Position
Increased cash balance to $3.6 billion at quarter end, driven by cash flow from operations, providing the company with a strong financial foundation.
Significant Pipeline Progress
Advancing 10 registrational and 10 proof-of-concept studies, with multiple readouts expected across the pipeline, including Phase III for seronegative gMG.
Positive Data Presentation
Presented data at AAN reinforcing the potential of VYVGART, with 56.5% of patients achieving minimal symptom expression at any point during treatment.
Negative Updates
Seasonal Revenue Impact
Q1 results reflected typical seasonality with reverification of benefits impacting growth, along with Medicare redesign affecting gross-to-net dynamics.
Gross-to-Net Increase
Shift of patients to Medicare Part D due to Medicare redesign and increased usage of self-injection led to higher gross-to-net impact.
Challenges in CIDP Market
CIDP market dynamics are unique, with physicians being conservative in switching patients between medications, impacting growth trajectories.
Company Guidance
During the call, Argenx provided detailed guidance on its strategic vision and financial performance. The company emphasized its Vision 2030, targeting 50,000 patients across 10 labeled indications and advancing five Phase III assets. In the first quarter of fiscal year 2025, Argenx reported total operating income of $807 million, with $790 million from product net sales, marking a 99% year-over-year growth. The product net sales were distributed as $681 million in the U.S., $32 million in Japan, $57 million in the rest of the world, and $20 million from product supply to Zai Lab in China. The company also highlighted the successful launch of VYVGART Hytrulo pre-filled syringe in the U.S. and Germany, with an optimal FDA label approval expected to drive further expansion in gMG and CIDP markets. Argenx maintained a gross margin of 90% in Q1 2025, and total operating expenses were $668 million, resulting in an operating profit of $139 million. The company's effective tax rate was 16%, with a quarterly net profit of $169 million. Argenx ended the quarter with a cash balance of $3.6 billion, an increase of $238 million from Q4 2024, primarily driven by cash flow from operations.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, the company faces challenges in operational efficiency and cash flow generation, which are critical areas for improvement to sustain long-term growth.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 | |||
| 3.38B | 3.18B | 2.19B | 2.34B | 2.00B | Total Assets |
| 6.20B | 4.54B | 3.13B | 2.85B | 2.28B | Total Debt |
| 39.05M | 20.00M | 12.43M | 11.46M | 9.66M | Net Debt |
| -1.46B | -2.03B | -788.31M | -1.32B | -1.21B | 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 | |||
| -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
Negative
576.24
Price Trends
590.92
Negative
613.82
Negative
589.73
Negative
Market Momentum
-5.89
Negative
46.82
Neutral
78.46
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ARGX, the sentiment is Negative. The current price of 576.24 is below the 20-day moving average (MA) of 588.88, below the 50-day MA of 590.92, and below the 200-day MA of 589.73, indicating a bearish trend. The MACD of -5.89 indicates Negative momentum. The RSI at 46.82 is Neutral, neither overbought nor oversold. The STOCH value of 78.46 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 1 New Risks
1.
We have benefitted from certain research and development incentives. These could be impacted by changes in law (or interpretation), changes of fact (such as a change in ownership), or challenge by tax authorities. Q4, 2023
Argenx Se Peers Comparison
Overall Rating
UnderperformOutperform
Sector (53)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
81 Outperform | $12.93B | 11.90 | 22.69% | ― | 25.11% | 46.46% | |
71 Outperform | $11.14B | 21.55 | 9.64% | ― | 17.99% | 152.10% | |
71 Outperform | $12.65B | 202.20 | 0.47% | ― | 17.13% | -88.78% | |
69 Neutral | $35.42B | 41.49 | 17.33% | ― | 78.01% | ― | |
62 Neutral | $37.83B | ― | -414.62% | ― | 17.21% | 21.16% | |
54 Neutral | $23.69B | ― | -3.87% | ― | 0.58% | -764.64% | |
53 Neutral | $5.19B | 3.33 | -45.04% | 2.83% | 17.58% | -0.66% |
* Healthcare Sector Average
Performance Comparison
ARGX
Argenx Se
576.24
214.08
59.11%
ALNY
Alnylam Pharma
285.56
135.53
90.34%
BMRN
BioMarin Pharmaceutical
58.09
-16.39
-22.01%
INCY
Incyte
64.93
7.63
13.32%
GMAB
Genmab
21.19
-6.80
-24.29%
BNTX
BioNTech SE
97.53
-1.22
-1.24%
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.