Argenx’s third-quarter net sales of $573 million stunned investors and analysts (consensus: $522 million). They increased by 74.1% year-on-year and 20% quarter-on-quarter.
After nine months, turnover (CA) increased 77.5%, to $1.45 billion. US sales increased 21% compared to the second quarter, to $492 million, driven not only by increased sales of Vyvgart (efgartigimod administered intravenously) and Vyvgart Hytrulo (same FcRn inhibitor, administered subdermisally). ) to patients suffering from myasthenia gravis (gMG), but also by the better-than-expected sales of Vyvgart Hytrulo to patients suffering from chronic inflammatory demyelinating polyneuropathy (CIDP) – an indication approved by the FDA on June 21. If separate CAs haven’t been passed on, some interesting comparisons though. For example, three months after Vyvgart for gMG went on the market in the first quarter of 2022, 380 patients were being treated. For CIDP, there were more than 300 patients under treatment at the end of September. The turnover from the PIDC was $21.2 million in the first quarter of 2022 and the consensus is on $50 million for 2024. But we already know that this prognosis is too unambitious in that, per patient suffering from CIDP, the expected net annual turnover is 450,000 dollars, compared to 225,000 per patient suffering from gMG. Another positive element: 25% of neurologists now prescribe Vyvgart to their patients with CIDP; among them, some are only beginning to also prescribe it to their gMG patients. Enough to dispel fears of a slower start to CIDP treatment.
In Japan and the rest of the world (Europe, Israel and Canada), turnover grew by 20% and 28% respectively, to $24 million and $46 million, in the third quarter. In China, turnover, more fluctuating (sales through partner Zai Lab), fell by 21%, to $11 million.
Operating profit amounted to 14.2 million dollars, net profit to 91.4 million, thanks in particular to 40 million in interest income. Cash has swelled by $194.5 million since the end of 2023, to $3.4 billion, or $56 per share, and less than the $500 million predicted to have ultimately been consumed over the year. The company is targeting a turnover of $2.04 billion for 2024 and $2.91 billion for 2025. The development of the pipeline is accelerating as planned in its strategic plan for 2030. Before the end of the year, four phase III studies will be underway with efgartigimod (indications: ocular MG, seronegative MG, PDD and Sjögren’s syndrome) and a phase III study testing empasiprubart (ARGX-117) on multifocal motor neuropathy will be launched. One of the two indications (kidney diseases) for which Zai Lab conducted a phase II study with efgartigimod will not be developed further. The last major news expected this year will be argenx’s decision to continue or abandon phase III studies with efgartigimod for three variants of myositis. On April 10, 2025, we will know if the FDA approves self-administration of efgartigimod by pre-filled syringe, for gMG and CIDP.
All other programs (ARGX-119 and four other molecules) are progressing as desired. The company will announce the planned steps next year at the JPMorgan annual conference in early 2025. Very satisfied with the quarterly report, we maintain our purchase advice.
Tip: buy
Risk: medium
Rating : 1B
Course: 543.80 euros
Ticker : ARGX BB
Code ISIN : NL0010832176
Market: Euronext Brussels
Capit. stock market: 32.7 billion EUR
C/B 2023 : –
C/B expected 2024: –
Perf. price over 12 months: +17%
Perf. price since 1/1: +58%
Dividend yield: –
