argenex (NASDAQ:ARGX) Releases Quarterly Earnings Results, Beats Estimates By $1.46 EPS

Key Points

• argenx beat quarterly estimates, reporting EPS of $7.32 versus the $5.86 consensus and revenue of $1.54 billion versus $1.45 billion expected.
• The company highlighted 18 straight quarters of growth, with second-quarter product net sales of $1.5 billion, up 60% year over year, driven by patient expansion in MG and CIDP and strong U.S. demand.
• VYVGART continues to broaden its market reach after the recent seronegative gMG approval, while argenx also expects two registrational readouts before year-end for myositis and MMN.

argenex (NASDAQ:ARGX - Get Free Report) issued its quarterly earnings data on Thursday. The company reported $7.32 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $5.86 by $1.46, Zacks reports. The firm had revenue of $1.54 billion during the quarter, compared to the consensus estimate of $1.45 billion. argenex had a net margin of 31.31% and a return on equity of 44.37%.

Here are the key takeaways from argenex's conference call:

• argenx reported 18 consecutive quarters of growth, with second-quarter product net sales of $1.5 billion, up 60% year over year and 17% sequentially. Management said the growth was driven by continued patient expansion across MG and CIDP and strong U.S. performance.
• VYVGART continues to expand its reach in generalized myasthenia gravis, including the recent seronegative gMG approval, which makes it the first and only approved biologic across all gMG serotypes. Management highlighted quick payer uptake, removal of serology testing requirements by many plans, and a meaningful halo effect on broader prescribing.
• The company said its CIDP launch is still early but remains on a strong trajectory, supported by the prefilled syringe and data showing benefit in earlier-line and treatment-naive patients. Management also pointed to evidence such as successful switching from IVIG and increasing use in patients seeking greater functional improvement.
• argenx expects two registrational readouts before year-end, led by myositis for VYVGART’s expansion into rheumatology and MMN for empasiprubart. The company said both programs could support additional label growth, but the specific filing path will depend on the upcoming data.
• The company’s pipeline and balance sheet remain a major part of its long-term story, with $5.2 billion in cash and plans to advance multiple late-stage assets, including next-generation FcRn programs and ARGX-121 for IgA nephropathy. Management also reiterated openness to disciplined business development around novel biology and high unmet need.

argenex Stock Up 4.1%

Shares of argenex stock opened at $887.02 on Thursday. The company has a market capitalization of $55.49 billion, a price-to-earnings ratio of 39.10, a PEG ratio of 1.08 and a beta of 0.45. The stock's 50-day simple moving average is $863.85 and its 200-day simple moving average is $813.80. argenex has a 52 week low of $577.04 and a 52 week high of $953.58.

Analyst Upgrades and Downgrades

Several analysts have issued reports on ARGX shares. Wedbush reissued an "outperform" rating and set a $1,000.00 price target on shares of argenex in a report on Thursday, June 11th. Morgan Stanley lifted their price objective on argenex from $1,170.00 to $1,180.00 and gave the company an "overweight" rating in a research report on Wednesday, June 24th. HC Wainwright reiterated a "buy" rating and set a $940.00 price objective on shares of argenex in a research note on Thursday, June 25th. Guggenheim increased their target price on shares of argenex from $1,120.00 to $1,135.00 and gave the stock a "buy" rating in a report on Friday, May 8th. Finally, Glj Research upgraded shares of argenex to a "strong-buy" rating in a research note on Friday, April 3rd. Two investment analysts have rated the stock with a Strong Buy rating, eighteen have given a Buy rating and four have issued a Hold rating to the company. Based on data from MarketBeat, the stock has an average rating of "Moderate Buy" and a consensus target price of $1,042.67.

Institutional Investors Weigh In On argenex

A number of institutional investors have recently added to or reduced their stakes in ARGX. CIBC Private Wealth Group LLC increased its position in argenex by 421.1% in the fourth quarter. CIBC Private Wealth Group LLC now owns 198 shares of the company's stock worth $167,000 after purchasing an additional 160 shares during the last quarter. Raiffeisen Bank International AG lifted its holdings in shares of argenex by 12.6% in the 4th quarter. Raiffeisen Bank International AG now owns 134 shares of the company's stock valued at $112,000 after acquiring an additional 15 shares during the last quarter. Rehmann Capital Advisory Group purchased a new position in shares of argenex in the 3rd quarter worth approximately $212,000. Private Advisor Group LLC purchased a new stake in shares of argenex in the third quarter valued at $201,000. Finally, Diversify Advisory Services LLC bought a new stake in shares of argenex in the 3rd quarter worth about $195,000. 60.32% of the stock is owned by hedge funds and other institutional investors.

About argenex

argenx NASDAQ: ARGX is a biotechnology company focused on the discovery, development and commercialization of antibody-based therapeutics for severe autoimmune and neuromuscular diseases. The company uses its proprietary SIMPLE Antibody platform to generate differentiated antibodies and engineered Fc regions, and it pursues mechanisms that modulate the neonatal Fc receptor (FcRn) to reduce pathogenic IgG levels. Argenx's research and development activities span target identification, preclinical development and late-stage clinical programs aimed at addressing unmet needs in immunology.

The company's lead product, efgartigimod (marketed as Vyvgart), is an FcRn antagonist developed to reduce circulating IgG antibodies and treat IgG-mediated disorders.

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