TSX up after index logs fresh record high close
Investing.com - RBC Capital has reiterated an Outperform rating on argenx SE (NASDAQ:ARGX) with a price target of $850.00, following positive clinical trial results for the company’s Vyvgart treatment. The $42.3 billion biotech company, which has demonstrated remarkable revenue growth of 88% over the last twelve months, continues to attract analyst attention with targets ranging from $560 to $1,091.
The firm highlighted that Vyvgart demonstrated meaningful benefits across all antibody status subtypes in myasthenia gravis patients, including those who are seronegative. This result is particularly significant as it represents the first Phase III study showing clinically meaningful improvement across all three subtypes of the condition. According to InvestingPro data, argenx maintains a strong financial position with more cash than debt and excellent liquidity metrics, providing robust support for its clinical development programs.
RBC noted the strong performance despite somewhat mixed data from the earlier ADAPT trial, where response rates between Vyvgart and placebo were close (68% vs 63%). The analyst suggested those earlier results may have been affected by a small sample size and larger-than-anticipated placebo effect.
The firm praised argenx’s clinical execution strategy, specifically mentioning the decision to power the trial conservatively with 119 patients to mitigate placebo response as "the right decision."
RBC remains bullish on argenx’s prospects, projecting that Vyvgart’s uptake will double in approved indications and noting the company’s robust pipeline with 20 Phase III/II trials ongoing that have relatively high probability of success. The company’s strong financial health is reflected in its "GREAT" rating from InvestingPro, with a return on assets of 21.4% and healthy gross profit margins above 52%.
In other recent news, Argenx reported a remarkable earnings performance for the second quarter of 2025, significantly exceeding market expectations. The company’s earnings per share were reported at $6.32, more than doubling the forecasted $3.06, resulting in a 106.54% surprise. Revenue also outperformed predictions, reaching $1.74 billion compared to the expected $876.3 million, marking a 98.56% surprise. Additionally, RBC Capital initiated coverage on Argenx with an Outperform rating, setting a price target of $850. This positive outlook from RBC Capital is based on the continued growth of Argenx’s Vyvgart treatment. These recent developments highlight Argenx’s strong financial performance and the confidence analysts have in its future prospects.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.