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Investing.com - Morgan Stanley (NYSE:MS) has assumed coverage on argenx SE (NASDAQ:ARGX), a $33.6 billion market cap biotech company with an impressive 82% revenue growth over the last twelve months, with an Overweight rating and a price target of $700.00, down from the previous target of $750.00. According to InvestingPro data, the company maintains a GREAT financial health score of 3.23.
The firm’s coverage focuses on the launch of Vyvgart Hytrulo for chronic inflammatory demyelinating polyneuropathy (CIDP), targeting an initial addressable U.S. patient population of approximately 12,000. This target represents about half of the estimated 24,000 CIDP patients receiving treatment in the U.S., specifically those whose condition is not well controlled or who experience safety issues with current therapies. The company’s strong financial position, with virtually no debt and profitable operations, supports this expansion strategy.
In the first two quarters of the Vyvgart Hytrulo CIDP launch, argenx reported strong initial uptake with over 300 patients in the first quarter and approximately 1,000 patients in the second quarter, performance the firm describes as similar to the myasthenia gravis (MG) launch.
Morgan Stanley notes that argenx’s first quarter 2025 update provided limited detail on CIDP patient numbers, which raised some investor concerns about potential bolus demand. Despite this, the firm maintains conviction in the market opportunity for Vyvgart in CIDP.
The firm’s checks with key opinion leaders indicate current uptake ranging from 5% to 20% of CIDP patients, with expectations for peak uptake of 20% to 40%, and one specialist suggesting potential for up to 50% adoption among their patients.
In other recent news, Argenx SE has received significant attention due to various developments. The company announced that its ARGX-119 drug has progressed to late-stage clinical development after positive results from a Phase 1b study, prompting H.C. Wainwright to reiterate its Buy rating with a $720 price target. Meanwhile, the U.S. Food and Drug Administration (FDA) has flagged a potential serious risk associated with Argenx’s lead drug, Vyvgart, which is under evaluation for severe worsening of chronic inflammatory demyelinating polyradiculoneuropathy (CIDP). Despite this, Citi has maintained its Buy rating and $803 price target, advising caution over the interpretation of the FDA’s adverse event data.
TD Cowen also reaffirmed its Buy rating on Argenx, setting a $761 price target following promising trial results for VYVGART in myositis and Sjogren’s disease. These trials met their primary endpoints, suggesting potential multibillion-dollar opportunities for the therapy. Additionally, H.C. Wainwright emphasized Vyvgart’s unique position in treating myasthenia gravis, highlighting its strong clinical data and effectiveness compared to other treatments. Argenx continues to explore new research directions, particularly in autoimmune conditions, reflecting a strategic approach to drug development. These recent developments underscore the company’s ongoing efforts and challenges in advancing its pharmaceutical portfolio.
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